Huafeng Spandex (002064) Major Asset Restructuring Review: The Group’s High-Quality Asset Securitization Creates a Leading Enterprise in the Global Polyurethane Products Industry
Key investment events: Huafeng Spandex issued shares and paid cash to purchase assets and raise supporting funds and related transaction plans. It intends to acquire Zhejiang Huafeng New Material Shares of the company’s controlling shareholder Huafeng Group by combining the issue of shares and cash payment.Co., Ltd. 100% equity, and plans to raise funds for non-public offering of shares to no more than 10 investors.
Maintain the level of “prudent overweight”.
Through this major asset reorganization, Huafeng Spandex’s main products include polyurethane spandex (polyurethane fiber), polyurethane polyol, adipic acid, and adipic acid. The domestic market share of the company’s polyurethane dope has reached more than 50%.The market share reached more than 30%, and merged with the Huafeng Group’s subsidiaries for many years. It has very competitive products and has a good synergistic development effect.
Through this acquisition, listed companies will significantly improve asset quality, expand revenue scale, and improve profitability and risk resistance.
Huafeng Spandex is a leading enterprise in the spandex industry in China, with outstanding production capacity, quality and technical advantages.
In the end, the backbone enterprises in the spandex industry have made technological progress and further improved their cost advantages. With the increasingly strict environmental protection policies, the industry has been reshuffled further, the scale is weak, technology upgrades are slow, and companies with high 淡水桑拿网 operating costs will face pressure to eliminate and the industry concentration will gradually change.
The company is one of the companies with the most mature technology and the largest scale in the early stage of the development of the domestic spandex industry. In the future, the company will start production with the Chongqing Subsidiary 10 title (phase 6 with 6 pins, phase 4 with 4 pins).Increase, scale benefits will be further highlighted.
After the completion of this major asset reorganization, the company’s main products will add more polyurethane stock solutions, polyester polyols and adipic acid, and become a global polyurethane product leader from a single spandex company. The big prospect is worth looking forward to.
Regardless of the impact of this major asset reorganization, we maintain the EPS for 2018-2020 to be 0.
The profit forecast of 51 yuan maintains the investment rating of “prudent increase in holdings”.
Risk reminder: industry competition intensifies risks, the potential risks of rising raw material prices, project commissioning is less than expected risks, and reorganization fails to meet expected risks.