Dunan Environment is expected to be acquired by Gree due to its fluctuating quarterly performance

2022-04-30 0 By

Zhejiang Dun ‘an Artificial Environment Co., Ltd. (hereinafter referred to as “Dun ‘an Environment”, 002011.sZ) ‘s earnings forecast is considered “in line with expectations” by the institution.According to the announcement, the annual net profit of Dunan environment in 2021 is between 380 million yuan and 430 million yuan.In addition, the company’s acquisition by Gree Electric Appliances is pending antitrust review.But fellow oligarch Sanhua Wisdom Holdings is not optimistic about the acquisition, the company’s secretary said on the investor interactive platform, the acquisition is “too late.”However, there are also institutions optimistic about the gree into office.Cinda Securities believes that if it can be successfully acquired by Gree Electric Appliances, Dunan environment or will usher in new development opportunities.Compared with the net profit loss of 1 billion yuan in 2020, Dunan Environment is expected to turn a profit in 2021.According to the 2021 annual performance forecast released by Dunan Environment on January 28 this year, the company engaged in refrigeration accessories related business, annual net profit is expected to be between 380 million yuan – 430 million yuan;Non-deduction net profit is expected to be between 345 million yuan and 395 million yuan, up 410.87 percent to 484.91 percent year-on-year.For the company’s performance growth, Dunan environmental believes that the optimization of product structure, market share increase, is the main driving force of performance growth.In addition, factors that caused losses in 2020, such as the impact of the epidemic and disposal of non-core assets, did not occur in 2021, which also enabled the company to successfully turn a loss last year.Cinda securities that shield an environment this performance in line with expectations;The agency also believes that the company will improve its market position in the high margin valve and commercial segments in the future by proactively adjusting its product and customer mix.According to cinda Securities estimates, dunan environment last year in all categories of market share increased.The agency is expected to shield environment household valve domestic market share has been close to 40%, up 6% year on year, ranked first in the industry, among them, electronic expansion valve and four-way valve share increased significantly.As a major is engaged in refrigeration components, refrigeration and air conditioning equipment research and development, production and sales of the company, its electronic expansion valve, four-way valve belongs to shield Ann environment refrigeration fittings products, in addition to the above two kinds of valve, this kind of product and solenoid valve, stop valve, small pressure vessels, heat exchangers, integrated piping components, and other products, these products are used in the field of residential and commercial air conditioning.Among them, refrigeration accessories products are the company’s main source of revenue.According to the revenue structure disclosed by the company in 2021, the refrigeration parts industry contributed 4 billion yuan, accounting for 80.26%;Refrigeration equipment industry contributed nearly 700 million yuan of revenue, accounting for 13.77%;In addition, there are other businesses and energy conservation industry, which contribute 5.9% and 0.12% of operating revenue respectively, as shown in the figure below.However, shield environment this performance report, some investors do not understand.In the first three quarters of 2021, the net profit of Dunan Environment is 342 million yuan, and the net profit of dunan Environment after deduction is 313 million yuan. In the fourth quarter of 2021, the company is expected to realize the net profit of Dunan Environment after deduction is 37.788 million yuan to 87.788 million yuan, and the net profit of Dunan environment after deduction is 32.455 million yuan to 82.455 million yuan.From the performance forecast, last year’s annual net profit is expected to be between 380 million yuan – 430 million yuan;Net profit is expected to range from 345 million yuan to 395 million yuan.This shows that the upper and lower limit of the fourth quarter performance forecast of Dunan environment is 50 million yuan apart, but the company did not elaborate on the reason for the fluctuation of single quarter performance.Industry insiders believe that if Dunan environment in the fourth quarter of last year only made 37.788 million yuan of net profit, compared with the first quarter of 97.7457 million yuan, the second quarter of 161 million yuan, the third quarter of 83.2516 million yuan of single quarter net profit, the fourth quarter performance worst.And the company did not explain why, some investors do not understand.In addition to last year’s performance is worth paying attention to, The acquisition of Dunan Environment by Gree Electric Appliances (000651.SZ) has come to a critical moment: whether the acquisition can succeed needs to pass the Anti-monopoly review of the State Administration for Market Regulation on the concentration of operators.Dunan Environment announced on January 15 this year that the company’s controlling shareholder Dunan Precision and Gree Electric Appliances have signed a share transfer Agreement on November 16, 2021. The former sold 270 million shares of Dunan Environment to Gree Electric Appliances, accounting for 29.48% of the total share capital of the listed company.At the same time, on November 16 last year, the listed company Dunan Environment issued 139 million shares in a private placement to Gree Electric Appliances, raising a total of 810 million yuan to replenish working capital and repay bank loans.If the two deals are completed, Gree electric Appliances will hold 410 million shares in Dunan, accounting for 38.78 percent of the total share capital, making it the controlling shareholder of the company.According to the “Acquisition report” released by Dunan Environment, the acquisition is an important measure of Gree to implement the strategy of improving the layout of parts industry, which is conducive to gree Electric Appliances to improve the stability of the air conditioning industry chain;It is conducive to improving gree electric Appliances’ new energy vehicle core parts industrial layout;In addition, Gree Electric Appliances can make full use of its financial strength and industrial resources to optimize the capital structure of listed companies through continuous resource allocation.However, shield environment announced by Gree after the acquisition of the news, the market views are mixed.On November 17, 2021, Sanhua Wisdom Holding publicly stated on the Shenzhen Stock Exchange e-Interactive platform that “Gree and Dunan are too late.”The reason given by the secretary of the board of directors is that new energy vehicles have been saturated, and Dunan environment will become Gree’s internal supplier;Even metaphorical shield environment existing customers have turned to sanhua wisdom control.Two days later, Dunan responded to the above doubts, and in the acquisition report disclosed on January 15 this year, dunan once again insisted on the independence of the acquired company and the guarantee of a fair competition environment in the same industry.As well as fair price related transactions, etc., to ensure.However, brokerages were more bullish on the deal than their rivals’ “pessimistic attitude”.Cinda Securities said in its research report on January 17 that the share transfer and private placement will effectively improve the balance sheet structure of Dunan Environment.Moreover, the company will cooperate with Gree development, improve the company’s refrigeration core competitiveness and industry status;At the same time, through the gree industry status, money, resources, or improve the competitive ability in the new energy vehicle thermal management business, automotive electronic expansion valve sill is high, the future is expected to follow household refrigerating pattern, form three flowers intelligence control, shield security environment domestic double oligopoly, shield thermal management product line complete, heat pump model scale expansion and ascension will bring significant industry and bike value enhancement,The company has huge development space.The acquisition is not yet complete, and there are already opposing views in the market;”Investor.com” will continue to pay attention to the direction in which Dunan environment will develop after joining Gree.(Produced by Siwei Finance) ■