Tongfang Co., Ltd. (600100) announced on the evening of 27th that THTF Energy-Saving Holding Limited (hereinafter referred to as “THTF ESâ€), a wholly-owned subsidiary of the company, intends to obtain a controlling stake in Hong Kong-listed company Zhen Mingli by way of subscription of new shares. The total transaction volume will exceed RMB 700 million.
According to industry insiders, this is an important step for Tongfang's LED business chart expansion. Zhen Mingli will become the capital operation platform for the future LED business in the future.
Bigger and stronger LED business
According to the announcement, THTF ES intends to subscribe for 100 million new shares to be issued by Zhen Mingli at a price of HK$0.9/share. The subscription price is HK$900 million (equivalent to RMB700 million).
If this subscription plan is implemented, Tongfang will hold a 51.6% stake in Zhen Mingli through THTF ES and become its controlling shareholder. The company said that this subscription plan still requires Zhen Mingli to fulfill the approval procedures of the Hong Kong Securities Regulatory Commission, the Stock Exchange and the Zhen Mingli Shareholders' Meeting.
"At present, Tongfang's LED business has a long layout, from upstream chips to downstream environmental lighting and commercial lighting." A LED industry insider told China Securities Journal, but the lack of channel channels and brands is also the same. The short-board of the LED business, this time Tongfang seeks the control of Zhen Mingli, and also conveys the attitude and confidence to continue to enlarge and strengthen the LED business.
Zhen Mingli or Cheng Capital Platform
The LED business is an important part of the future industry's key industry layout. The industry believes that after obtaining the control of Zhen Mingli, Tongfang will be very likely to be the future LED business capital platform.
In terms of financial data, Zhen Mingli's operating data is not optimistic. Its fiscal year 2014 reported a revenue of 5.41 Hong Kong dollars, achieving a net profit of -123 million Hong Kong dollars. A Hong Kong stock analyst who has long tracked Zhen Mingli told the China Securities Journal that the financial data is not the focus of Tongfang's shareholding in the real market. Otherwise, the price per share will not be only 55% of the price of the real market.
Judging from the current situation of Tongfang, Zhenmingli has several resources that are shortcomings that Tongfang LED business needs to make up for: First, Zhenmingli has a mature brand; secondly, the US and European markets are true and bright traditional advantages, while Tongfang LED The products have been tepid in overseas business; in the end, Zhen Mingli has a certified laboratory. Through the bright and beautiful laboratory, the certification time of Tongfang LED products will be greatly shortened.
"This high-profile entry of Tongfang, on the one hand, shows that the company is optimistic about the field of LED lighting, and on the other hand, it is also a change in the business philosophy of the same party. By splitting the hot business into separate listings, it is beneficial to improve the overall capital market to the same party. Valuation," the analyst pointed out.
>>> For more related content, please read the topic of Gaogong LED: "The whole line hits the reef. Is it really beautiful to escape the "selling body" fate? 》
According to industry insiders, this is an important step for Tongfang's LED business chart expansion. Zhen Mingli will become the capital operation platform for the future LED business in the future.
Bigger and stronger LED business
According to the announcement, THTF ES intends to subscribe for 100 million new shares to be issued by Zhen Mingli at a price of HK$0.9/share. The subscription price is HK$900 million (equivalent to RMB700 million).
If this subscription plan is implemented, Tongfang will hold a 51.6% stake in Zhen Mingli through THTF ES and become its controlling shareholder. The company said that this subscription plan still requires Zhen Mingli to fulfill the approval procedures of the Hong Kong Securities Regulatory Commission, the Stock Exchange and the Zhen Mingli Shareholders' Meeting.
"At present, Tongfang's LED business has a long layout, from upstream chips to downstream environmental lighting and commercial lighting." A LED industry insider told China Securities Journal, but the lack of channel channels and brands is also the same. The short-board of the LED business, this time Tongfang seeks the control of Zhen Mingli, and also conveys the attitude and confidence to continue to enlarge and strengthen the LED business.
Zhen Mingli or Cheng Capital Platform
The LED business is an important part of the future industry's key industry layout. The industry believes that after obtaining the control of Zhen Mingli, Tongfang will be very likely to be the future LED business capital platform.
In terms of financial data, Zhen Mingli's operating data is not optimistic. Its fiscal year 2014 reported a revenue of 5.41 Hong Kong dollars, achieving a net profit of -123 million Hong Kong dollars. A Hong Kong stock analyst who has long tracked Zhen Mingli told the China Securities Journal that the financial data is not the focus of Tongfang's shareholding in the real market. Otherwise, the price per share will not be only 55% of the price of the real market.
Judging from the current situation of Tongfang, Zhenmingli has several resources that are shortcomings that Tongfang LED business needs to make up for: First, Zhenmingli has a mature brand; secondly, the US and European markets are true and bright traditional advantages, while Tongfang LED The products have been tepid in overseas business; in the end, Zhen Mingli has a certified laboratory. Through the bright and beautiful laboratory, the certification time of Tongfang LED products will be greatly shortened.
"This high-profile entry of Tongfang, on the one hand, shows that the company is optimistic about the field of LED lighting, and on the other hand, it is also a change in the business philosophy of the same party. By splitting the hot business into separate listings, it is beneficial to improve the overall capital market to the same party. Valuation," the analyst pointed out.
>>> For more related content, please read the topic of Gaogong LED: "The whole line hits the reef. Is it really beautiful to escape the "selling body" fate? 》
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