Fulin Precision (300432, bar) May 17 evening announcement, proposed to 2.1 billion yuan to acquire Hunan sublimation technology limited 100% equity, while raising 1.5 billion yuan of matching funds. From the pre-proposal, sublimation technology is in a period of rapid development, and the business has a certain synergy with the Fu Lin Precision Industry, the main financial indicators characteristics and industry development characteristics match. If the two companies successfully integrated, Fullin Precision is expected to form a "automotive precision parts + power lithium core materials" dual industry pattern.

Involved in lithium battery cathode material field

The proposal shows that Fulin Precision intends to purchase the 100% shares of Shenghua Technology held by Peng Peng and other 11 shareholders for RMB 2.1 billion by issuing 95,667,300 shares and paying cash of RMB 504 million at RMB 16.68/share; at the same time, the company will issue 59,352,500 shares of shares at RMB 16.68/share to raise RMB 1.5 billion of matching funds for the Shenghua Technology Li-ion Battery Anode material lithium iron phosphate industrialization project, pay the cash consideration of this transaction, supplement the company's working capital.

Sublimation Technology is mainly engaged in the research and development, production and sales of power battery cathode materials, and its main products are lithium iron phosphate and ternary cathode materials. Data show that the output of lithium iron phosphate of sublimation technology in 2015 ranked the top three in the industry.

In 2015, the new energy automobile industry stepped into the outbreak period, driving the explosive growth of core materials such as positive electrode materials, negative electrode materials, electrolyte, isolation film and other core materials in the power battery of new energy vehicles.

As a leading enterprise of power lithium anode materials, the performance of sublimation technology is also quite beautiful. Audited financial data show that sublimation science and technology in 2015 to achieve operating income of 266 million yuan, net profit attributable to the owners of the parent company of 66.7913 million yuan, compared with the same period of the previous year have a large increase in accounts receivable during the period of accounts receivable accounted for the proportion of operating income was downward trend.

Informed sources told the China Securities Journal reporter, sublimation technology in recent years, sustained growth in performance, adequate technical reserves, product quality is better, its lithium iron phosphate production capacity still has more room for improvement. The company a few years ago to prepare for the IPO, due to the queue of enterprises and more "curve" listing.

The proposal shows that in 2014-2015, sublimation science and technology lithium iron phosphate production were 1025 tons and 3389 tons, accounting for the proportion of the total domestic lithium iron phosphate production were 8.91% and 10.46%. its downstream customers are mainly for Watts, light power supply and AVIC lithium battery and other large-scale lithium-ion battery enterprises. According to the performance commitment, in 2016-2018, the audited and net profit attributable to the parent company after deducting non-recurring gains and losses realized by Sublimation Technology in each year should be not less than 152 million yuan, 200 million yuan and 261 million yuan respectively, with a cumulative total of not less than 613 million yuan. Calculated on the basis of the promised performance in 2016, the price-earnings ratio of the acquisition is 13.82 times.

Formation of a dual-major industry pattern

Fulin Precision mainly specializes in the research, development, production and sales of automotive engine precision parts.

According to Fulin Precision, after the completion of this transaction, the company's business scope will be expanded, product types will be enriched, and in the automotive, especially new energy vehicle parts and components field to form a synergistic effect, the sustained operating capacity will be enhanced. At the same time, sublimation science and technology will also use the capital market platform, enhance the research and development ability and market development ability.

Industry insiders said that the traditional automotive industry development has slowed down, as a supporting link of Fulin Precision is difficult to stand alone, the merger and acquisition may be a rainy day move. Sichuan automotive field, a person said, full Lin Precision Engineering this move is intended to industry before the inflection point, the formation of "automotive precision parts + power lithium core materials" dual industry pattern, for the subsequent steady development of paving the way.

At present, Fulin Precision Industry in the field of engine precision parts with hydraulic tappet, mechanical tappet, hydraulic tensioner and rocker arm based on the four major mature products. 2013-2015, Fulin Precision Industry attributable to the owners of the parent company's net profit were 0.93 billion yuan, 0.137 billion yuan, 0.174 billion yuan, is still in the period of rapid growth.

At the same time, the new energy vehicle industry is in an explosive development trend. Some analysts believe that new energy vehicles will continue to grow at a high rate in 2016, with expected sales of more than 700,000 units.

The aforementioned automotive industry, pointed out that in the field of new energy vehicles, its core components for the motor and battery, China's current technical level in this field is not very different from foreign countries. "In the field of new energy vehicles is likely to realize the bend in the road to overtake."

"From the current industry policy and development trend, the future of the new energy automobile industry can still maintain a high development rate." A brokerage researcher said that with the completion of the production of 50,000 tons of new energy automobile power battery cathode materials in Jiangxi Shenghua, a subsidiary of Shenghua Technology, the lithium iron phosphate production capacity of Shenghua Technology is expected to reach about 60,000 tons, which will further improve the performance elasticity of FULLING Precision.

China Securities Journal reporter noted that the actual controller of both sides of the transaction and a number of executives are involved in the collection of matching funds subscription. The proposal shows that the actual controller of Fulin Precision An Zhifu, natural person Cong Lingling, Anxin Qiansheng Fulin Zhongcheng special asset management plan, Suzhou Houyang Qihang Investment Center (limited partnership), Shenzhen Juxi New Energy, etc. to participate in the subscription. Among them, sublimation technology Peng Peng, Peng Shu, Li Lu and other executives appeared in the Anxin Qian Sheng Fulin Zhongcheng special asset management plan subscriber list.