Securities Daily: Sany Heavy Industry completed the delivery of "Elephant" and the quality of overseas mergers and acquisitions has reached a higher level

Source: Securities Daily Reporter: He Jun

Xiang Wenbo said that in national brands, there will be more successful cases of overseas mergers and acquisitions, and the quality will be higher and higher

A few days ago, Sany Heavy Industry Co., Ltd. and German Putzmeister Holding Co., Ltd. jointly announced that the two parties officially completed the acquisition and delivery. Putzmeister will remain relatively independent in its operations, while its headquarters, Elsita, will be designated as a subsidiary of Sany Heavy Industries outside of ChinaConcrete machineryThe global headquarters of the business.

So far, following the acquisition of Italy CIFA by Zoomlion, the acquisition of DA Company, a German sewing equipment company, and the acquisition of Coburg by Beijing *5656 Machine Tool Factory, China's construction machinery manufacturers ranked *5656 have also successfully taken the step of overseas mergers and acquisitions, and compared with the previous overseas mergers and acquisitions, the "gold content" of this merger and acquisition target is higher.

"In 2008, Zoomlion acquired about 60% of the shares of the Italian concrete machinery giant CIFA, and used 370 million euros of funds, which was about 4 billion yuan at the exchange rate at that time, and Sany used 324 million euros or about 2.654 billion yuan to acquire Putzmeister, and the shareholding ratio reached 90%. Not only is it cost-effective, but more importantly, Putzmeister has a higher 'gold content'." Huabao Securities * deep industry researcher Wang Hexu said.

According to the Yengst report, according to the Yengst report, Sany ranks sixth in the world and is the sixth largest construction machinery manufacturer in the world and is the largest construction machinery manufacturer in China *5656 in terms of revenue in 2010. Founded in 1958, Putzmeister is one of the world's most well-known construction machinery manufacturers, with a global concrete machinery *5656 brand and a global market share of about 40% for a long time.

"In the future, Putzmeister will not only continue to maintain the leading advantages of existing products, but also further extend the product line and become the world's leading provider of complete sets of construction machinery equipment; Putzmeister's global sales network will not only continue to sell all the products of Putzmeister brand, but also bring Sany's other construction machinery products to the world. Liang Wengen, chairman of Sany, said, "Sany has preliminarily determined Putzmeister's business target for the next few years, that is, to achieve sales of 700 million euros in 2012 and 2 billion euros in 2016, which will be twice the good performance of Putzmeister's history." ”

Sany Heavy Industry's overseas strategy turned around

In fact, before Sany acquired Putzmeister, Sany Heavy Industry's concrete pump plant near Cologne, Germany, had been put into operation in 2011. As a result, Sany became the first engineering company in China to put into production in Germany.

Wang Zhile, a researcher at the Chinese Academy of International Trade and Economic Cooperation of the Ministry of Commerce, said, "Sany Heavy Industry's acquisition of Putzmeister marks a major turning point in Sany's overseas strategy. Traditional industries in developed countries tend to have overcapacity, and if Chinese companies build new factories, they are prone to conflict with local companies. Therefore, Chinese enterprises should invest more in traditional industries in developed countries through mergers and acquisitions."

"Putzmeister is a family-owned company, so this is a merger between a well-known German small and medium-sized specialist manufacturing company and a Chinese company." Wang Hexu pointed out. The deal was also the first merger of a well-known German medium-sized company with a Chinese company, and Putzmeister's founder, Schleissitt, once called it "a Sino-German model deal".

The three giants are vying to "go to sea"

"In the next few years, you will see more successful cases of overseas mergers and acquisitions in national brands, and the quality will be higher and higher." Xiang Wenbo said.

In fact, just recently, it was reported that another construction machinery giant, XCMG, had signed an agreement to acquire a majority stake in the German concrete equipment giant Schweiying. This is after Zoomlion and Sany Heavy Industry successively acquired the German concrete giant, another European construction machinery giant was won by Chinese companies. After the completion of the acquisition, XCMG Machinery will basically form a situation of "three kingdoms" with Zoomlion and Sany Heavy Industry in the field of concrete machinery.

It is reported that in addition to the Big Three, some other domestic construction machinery companies are also casting a net around the intention of mergers and acquisitions, but so far, Sany Heavy Industry's overseas mergers and acquisitions * eye-catching. "From a simple acquisition valuation, Zoomlion's acquisition of CIFA is 43 times the price-to-earnings ratio, while the price-to-earnings ratio of Sany Heavy Industry's acquisition of Putzmeister is 60 times." In this regard, Liu Rong, a researcher in the machinery industry of China Merchants Securities, analyzed that due to the impact of the European economic crisis in 2010 and 2011, Putzmeister's profitability was at a low point in the past ten years, so PE does not have much reference significance. If the average net profit of Putzmeister in the six years from 2002 to 2007 in the last economic cycle was 35.68 million euros, the PE value of this acquisition is only 10 times.

"The purchase price of the entire equity of 360 million euros is equivalent to 0.64 times the PS of Putzmeister in 2011 and 2.03 times the PB at the end of 2010, and we believe that the purchase price is reasonable." Wu Hua, an analyst at Industrial Securities, also said that compared with Zoomlion's acquisition of CIFA at the peak of the economic cycle in 2008, the price of Sany's acquisition of Putzmeister during the European economic downturn was more cost-effective.

According to the data, Putzmeister is a global concrete*5656 brand, with a market share of 33.3% in Western Europe and 21.5% in the world. CIFA is the third largest concrete brand in the world, with a market share of 22.2% in Western Europe and 8.9% globally. Despite the impact of the European debt crisis, Putzmeister's total assets of 504 million euros are still almost 60% higher than the total assets of 316 million euros at the peak of CIFA. Putzmeister's operating income was 560 million euros and CIFA's revenue was almost 300 million euros. Putzmeister profitability is actually stronger than CIFA. Putzmeister's EBITDA was EUR 54 million, compared to CIFA's EUR 50.75 million. Therefore, judging from the comparison of net assets, asset-liability ratio, acquisition consideration and other data, the gold content of Sany Heavy Industry's acquisition is higher.