ZOOMLION transformation of agricultural machinery to accelerate industrial diversification strategy
Due to the recent period of construction machinery industry downturn, many enterprises have sought new ways to seek development. ZOOMLION is ready to move on to the agricultural machinery industry, and ZOOMLION shares show its determination.
Company announcement says, participate in bid for Chery heavy industry 1 billion 800 million shares, accounting for 60% of Chery heavy industry total capital stock, listing price 2 billion 88 million yuan, if the completion of the acquisition will accelerate into the agricultural industry.
The purchase price is reasonable, improve the company's valuation level. 2014 1-6 months, Chery heavy industry attributable to the parent company shareholders' equity of 3 billion 1 million yuan, accounting for about 7% of ZOOMLION's shareholders' equity, operating income of 3 billion 862 million yuan in 2013, accounting for about 10% of ZOOMLION's revenue scale. The purchase price corresponding to the city's net rate of 1.16 times, lower than the average level of the current agricultural machinery industry net rate of 2.73 times, help to improve the company's valuation level.
Chery heavy machinery business growth across the country, overseas exports to accelerate the development of the European market. In the first half of 2014, Chery heavy industry wheat harvester increased by more than 70%, plowing tractors doubled, drying machines, excavators increased more than doubled. Overseas markets have also been awarded good results. After the export of more than 2400 agricultural machinery in Ethiopia in 2013, the export volume doubled in the first half of 2014. In addition to the strong momentum in the emerging market countries, overseas markets also opened up European countries, in March the company more than 1000 sets of tractors exported to Poland and other markets, products have also exported to the United Kingdom and other European countries, while the Americas, Africa is also a major export market.
If the bid is successful and the transaction is completed, will become a milepost company's formal entry into the agricultural machinery sector in the short term, the company will quickly complete the layout for the agricultural machinery sector, new technology for the subsequent market expansion, the introduction of a good foundation, will help the company to do large agricultural machinery business, play a synergistic effect in the financial, research and development supply chain, brand, etc., to enhance the long-term profitability and sustainable development ability and the ability to resist risk ability of the company.
According to the "agricultural machinery industry development plan", in 2015, China's agricultural machinery industry output value reached more than 400 billion yuan, the export trade volume of 12 billion U. s.dollars. ZOOMLION is a new opportunity for the development of agricultural machinery, and seriously to the agricultural machinery industry transformation, the merger laid the company's long-term diversified development of new power.
