Audio high premium on the acquisition of supremacy: Shenan group assets rose strange performance

In July 29th, audio announcement that the company intends to spend 1 billion 590 million yuan to buy 100% stake in Beijing Shenan group. Prior to the acquisition in 2013, Beijing Shen An Group's performance rose more than 200%, which is much higher than the performance of the company in the same industry.

It is worth noting that, along with the substantial increase in the company's performance, Beijing Shen an accounts receivable also increased significantly. 2012 to 2013, Beijing Shen An Group's operating income from accounts receivable were over 5 and into 9.

Some market participants pointed out that Beijing Shen An Group to use a large number of accounts receivable to high performance, may be in order to enhance the valuation of the acquisition. In addition, a large number of accounts receivable also laid down the risk of bad debts.

High premium acquisition

Audio was founded in November 18, 1984, and listed on the Shanghai stock exchange in December 19, 1990. 1984 to 1997, the company's main business for home appliance marketing, professional production and sale of audio. 1997 to 2002, the company's industrial structure adjustment, the IC card industry restructuring. In 2002, the company acquired 100% stake in Shanghai light bulb factory Co., Ltd., into the green lighting industry. 2009, the company's strategic adjustment, the main business focus on green lighting, and gradually withdraw from the IC card industry.

With the development of the lighting business, the business has become the main source of income for the leap sound. At present, a wholly owned subsidiary of Shanghai Yaming Lighting Co. Ltd., a subsidiary of Shanghai St. Lanna Industrial Co., the production of LED lighting products.

2012 to 2013, the company achieved revenue of 2 billion 14 million yuan, respectively, $2 billion 142 million, net profit of $105 million, $57 million 440 thousand. At the same time, Shanghai Yaming Lighting Co. the company achieved total revenue of 1 billion 642 million yuan respectively, 1 billion 649 million yuan, net profit was 44 million 647 thousand and 700 yuan, 8 million 180 thousand yuan; Shanghai St. Lanna Industrial Co., the company achieved total revenue of 287 million yuan, 384 million yuan, net profit was 34 million 911 thousand and 900 yuan, 40 million 950 thousand yuan.

The proposed merger of Beijing Shen An Group, is a large LED lighting solutions provider. The audio said that through the acquisition of Beijing Shenan group, is conducive to the company with Beijing Shenan group accumulated over the years of construction experience, experience in the field of LED lighting applications and project channel resources and customer resources, accelerate the expansion of the company's business segments LED lighting, is an important measure to realize the company's strategic development objectives established.

However, the acquisition price is relatively high market concern. As of May 31, 2014, the audit of the subject matter of the transaction attributable to the parent company's net assets of 413 million yuan, to assess the value of $1 billion 593 million, to assess the appreciation rate of 285.45%. It is understood that the use of the proceeds of the transaction evaluation results as the final assessment results.

Statistics show that Beijing Shenan group 2014 forecast net profit of 136 million yuan, calculated according to the assessed value of 1 billion 593 million yuan, while the audio acquisition of Beijing Shenan group for 11.71 times earnings.

Compared with the acquisition of the audio, Chukyo electronics acquired the assets acquired LED will have lower earnings. In February this year, the Beijing Electronic Publication program, the company intends to 286 million yuan acquisition of 100% equity interest founder. The founder of the expected 2014 net profit of not less than 28 million yuan, this calculation, the Beijing Founder Electronics to acquire up to 10.21 times earnings. Data shows, the founder of the current main business is very influential in the flexible printed circuit board (FPC) R & D, production and sales, is used in the field of energy-saving LED lighting market is a leading enterprise FPC.

Similarly, the liard JINDA lighting acquired business is more cost-effective. Last November, Riyadh spent 203 million yuan to acquire 100% stake in JINDA lighting. The lighting scheme for the main business of building and road design, construction and matching lamps lighting design, installation, sales of gold buckle up lighting 2014 net profit of not less than 22 million 500 thousand yuan, this calculation, the liard JINDA lighting acquired for 9 times earnings.

A brokerage analyst said, with the two companies acquisition earnings compared to audio acquisition of Beijing Shenan group earnings significantly higher.

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