Tongyu Heavy Industry Equity Transfer

On June 22, Tongyu Heavy Industry issued an equity transfer announcement, and the transaction party was Zhuhai Port Holding Group; on June 29, the two parties signed the “Strategic Cooperation Framework Agreement”, Zhuhai Port Group intends to control and hold Tongyu Heavy Industry shares for a long time to strengthen strategic cooperation relationship.

According to the announcement, Tongyu Heavy Industry intends to add no more than 613 million shares to Zhuhai Port Group and raise no more than 944 million yuan to supplement liquidity. After the completion of this transaction, Zhuhai Port Group will become the company’s controlling shareholder.

The actual controller of Tongyu Heavy Industry will also be changed to Zhuhai SASAC.

In fact, since Gree’s mixed reform was implemented in April, Zhuhai SASAC has had more than 40 billion more funds in hand-Zhuhai Mingjun has acquired 15% of Gree Electric at a total price of 41.662 billion yuan.

The Zhuhai State-owned Assets Supervision and Administration Commission, which holds a huge amount of money, began to look for high-quality standards and opened the way to buy, buy and buy.

At the end of last year, Zhuhai city officials announced in a semiconductor investment event that they would cultivate several hundred billion industries in the fields of new energy and integrated circuits.

For the moment, in the field of semiconductors, the Zhuhai State-owned Assets Supervision and Administration Commission has taken a fancy to Tianjin Zhonghuan and signed up to participate in the mixed reform of the Central District last month; and in the field of new energy, the Zhuhai State-owned Assets Supervision and Administration Commission has taken the lead in Tongyu Heavy Industries.

Why choose Tongyu Heavy Industry?

According to the data from Tianyan Check, Tongyu Heavy Industry is a national-level key high-tech enterprise, which was listed on the Shenzhen Stock Exchange’s Growth Enterprise Market in 2011.

As a leading wind power spindle in many fields such as molds, forgings, energy and power, Tongyu Heavy Industry has gradually entered the stage of development acceleration after accelerating the pace of product structure adjustment and industrial transformation and upgrading based on national strategic decisions.

Financial report data shows that in 2019, Tongyu Heavy Industry achieved revenue of 4.027 billion yuan, an increase of 13.93% year-on-year, and deducted non-net profit of 240 million yuan, an increase of 24.19% year-on-year.

In the first quarter of this year, its performance further increased, achieving revenue of 1.163 billion yuan, an increase of 46.39% year-on-year, and deducting non-net profit of nearly 60 million yuan, an increase of 170.83% year-on-year.

In addition, public information shows that Tongyu Heavy Industry has been committed to the development, production and sales of key wind power components for a long time. It has accumulated a good reputation and brand effect in the industry, and has many high-quality customer resources. Downstream companies such as Guodian United Power signed large contracts.

It is worth noting that with the rapid development of wind power equipment manufacturing business, Tongyu Heavy Industry also assisted the localization of nuclear three wastes treatment equipment, increasing the market layout after nuclear power.

For Zhuhai SASAC, this transaction will become an extremely important part of its entry into the wind power field.

Expand market layout and increase offshore wind power

In recent years, Zhuhai Port Group has continuously increased its investment in the energy sector, and revenue from the energy sector has also become one of the main sources of group income.

As early as 2014, Zhuhai Port under the Zhuhai Port Group invested in wind power projects, such as Kexiao Wind Power and Dongdian Maolin Wind Power, which have already reaped benefits in just one year.

Zhuhai Port’s 2019 financial report shows that Zhuhai Port’s integrated energy business revenue was 502 million yuan, an increase of 26.23% year-on-year, and its six wind farms achieved a total of 79.36 million standard cubic meters of gas sales, an increase of 93.62% year-on-year.

According to Times Finance, Liang Jun, a veteran of offshore wind power, pointed out: “In recent years, Guangdong Province has rapidly built a number of offshore wind power projects, and steel structure production is in short supply. Because Guangdong’s own heavy industry base is weaker than that of the Yangtze River Delta, Beijing-Tianjin-Hebei, and Northeast China. Localized production is the only way to reduce logistics costs, and the introduction of heavy industry enterprises is also part of the industrial layout.”

This means that Zhuhai Port Group’s investment in Tongyu Heavy Industry is to take the latter’s technical advantages to extend the wind power industry chain and optimize its own industrial structure. Through the acquisition of Tongyu Heavy Industries, Zhuhai Port can connect from upstream wind power development companies to downstream wind power equipment manufacturing, which will help reduce costs and enhance core competitiveness.

Unlimited prospects, stock price hit a new high in nearly 1 year

In addition, the prospect of developing offshore wind power has added more room for imagination to this Zhuhai Port’s marriage with Tongyu Heavy Industry.

Data show that 97% of my country’s wind power industry is onshore projects, while offshore wind power accounts for only 3%. The latter has broad prospects and needs to be developed urgently. Compared with onshore wind power, offshore wind power has the characteristics of rich resources, relatively high utilization hours of power generation, and relatively high-end technology. It is the frontier area of ​​new energy development and an area with considerable potential for large-scale development in renewable energy.

With the iteration of wind power equipment technology, the reduction of costs, the development of energy storage and UHV technologies, and the arrival of the golden decade of offshore wind power, the future industry prosperity will continue to improve.

Wang Manchang, director of the Management Committee of the National Offshore Wind Power Engineering Technology Research Center, once said that my country’s offshore wind power resources are rich and have huge potential, and are close to the eastern load center and are convenient for local consumption. Therefore, the development of offshore wind power will become an important strategic support for my country’s energy structure transformation.

The admission of Zhuhai Port can provide capital and business support for Tongyu Heavy Industry, which will help promote the steady development of Tongyu Heavy Industry. With its obvious advantages in casting and forging technology and independent technical capabilities, Tongyu Heavy Industry is expected to become an important part of Zhuhai Port Group. Manufacturing listing platform. The leading wind power spindles and the giants of port and shipping companies in the Bay Area will be the maximization of the business strength, brand and experience advantages of both parties.

With the promotion of capital matters, the two parties will further realize industrial synergy in the fields of clean energy, power, port and terminal, and offshore equipment, strengthen their core competitiveness and innovation capabilities, and further enhance the intrinsic value of both parties.

In the future, whether it is Tongyu Heavy Industry or Zhuhai Port Group, its operating power and development potential will be double-released and inspired.

Therefore, since the announcement of the news, the share price of Tongyu Heavy Industry has soared. As of July 10, Tongyu Heavy Industries’ stock price closed at 2.33 yuan per share, a record high in the past year.