The full acquisition of Osram, which may become a major milestone in the LED industry in China and the world, seems to be a bit "not cold or hot" with the clarification announcement of Sanan Optoelectronics (in some respects, it is confirmed) ".
In response to the report on the acquisition of German lighting giant Osram, Sanan Optoelectronics issued a clarification announcement on the evening of October 10, saying that after self-examination, the company is currently in preliminary contact with OSRAM related parties on a potential acquisition transaction or cooperation. The two sides only met once.
As of now, there are no negotiations on the terms of the transaction (including scope and price), no binding documents, and whether the acquisition transaction or cooperation matters and related negotiations have significant uncertainties.
However, the capital market did not give a positive response. As of the close of the 11th, Sanan Optoelectronics shares closed at 12.47 yuan per share, only rose 3.83%. The turnover rate on the day is also lower than the average turnover rate of the green lighting sector. It seems that investors are still on the sidelines.
The report said that Osram's share price rose 2.8% at the beginning of the trading session yesterday, but the stock price turned down after Sanan Optoelectronics said that it had only one face-to-face meeting with Osram on a possible acquisition or cooperation agreement. Osram shares fell 1.58% on the day.
It should be noted that starting from September 29, Osram's share price has increased by 20% in 7 trading days due to the information on the rights of relevant Chinese investors to acquire shares.
In terms of the government that may face the biggest obstacles to the acquisition, the position of the relevant German authorities is also unpredictable.
Earlier, the German economy minister said that if the news is true, the German government will oppose this acquisition. But since then, the German Ministry of Economics spokesperson changed his mouth and said: Refusal to comment on the intention of Chinese companies to acquire Osram Lighting. The Ministry of Economic Affairs does not support protectionism and hopes for fair competition.
Sanan Optoelectronics intends to acquire Osram from its overseas overseas market and LED core patents. This is one of the purposes of the LEDVANCE, a lighting business company independently operated by Osram, which was previously acquired by the consortiums such as Mulinsen and IDG.
“We hope to cooperate with OSRAM on LED chips and epitaxial wafer technology. If we can successfully acquire OSRAM's lighting business, we can integrate the entire supply chain from LED chips to end products. The transaction will involve horizontal and vertical Integration.†Mulinsen executive general manager Lin Jiliang said earlier that the Mulinsen brand is mainly aimed at the Chinese market, while the OSRAM lighting brand is positioned in the international market.
Barclays Capital Commodity Analyst said in the report, "Osram's attraction is necessarily the LED intellectual property (IP) cross-licensing, and (Sanan Optoelectronics) will only be able to obtain through the acquisition of a majority stake."
"These IP rights will allow Sanan Optoelectronics to legally sell its chips outside of China, and this is something that it can't do now."
According to the report, Osram's potential acquirer can buy a stake of 17.5% Osram held by Siemens as a stepping stone to the acquisition of all companies.
In recent years, Sanan Optoelectronics has continuously increased its R&D investment. Its R&D expenses in 2015 reached 335 million yuan, accounting for 6.90% of the revenue. This is impossible for any LED company in China. As of December 31, 2015, Sanan Optoelectronics owns 885 patents and proprietary technologies, most of which are invention patents.
Accelerating global market development through overseas acquisitions is not a temporary rise.
On August 23, 2013, Sanan Optoelectronics acquired a 100% stake in LuminusDevices, Inc. for US$22 million to promote the company's international operation.
Luminus has been working in the field of professional lighting for 12 years and is a well-known brand in the US market. The technology is derived from the Massachusetts Institute of Technology. Applications include projectors, stage entertainment lights, medical, UV-UV and infrared products.
At that time, the relevant person in charge of Luminus was more confident, indicating that by 2020, there will be an opportunity to achieve sales of 1 billion US dollars.
However, the LED market has changed beyond what everyone expected. Intense price competition has burned from the Chinese market to overseas markets.
According to Sanan Optoelectronics' 2016 semi-annual report data, Luminus suffered a loss in the first half of the year, with a loss of 14.439 million yuan and a revenue of 91.321 million yuan. There is still a long way to go to the $1 billion 2020 goal.
In terms of revenue data in overseas markets, Sanan Optoelectronics' revenue from overseas markets in 2015 was 654 million yuan, an increase of 14.74% over the previous year, which was higher than the growth rate of overall revenue by nearly 8 percentage points.
Compared with the domestic market, the growth space of overseas markets may bring more opportunities for Sanan Optoelectronics' business expansion in the next few years.
Some insiders said that as the "leader" of the previous round of expansion of China's LED industry, this time, a group of Chinese LED leading companies such as Sanan Optoelectronics and Mulinsen may also undertake the mission of the second expansion of China's LED industry. This is an excellent opportunity for Chinese LED companies to break through the global market again.
In the domestic market, Sanan Optoelectronics has apparently faced the ceiling of sustained and rapid growth in performance and profitability.
Sanan Optoelectronics semi-annual report data show that in the first half of 2016, operating income was 2.778 billion yuan, up 21.25% over the same period of last year; net profit attributable to shareholders of listed companies was 966 million yuan, up 6.89% over the same period of the previous year. The lower limit of the %-30% performance outlook interval is lower than market expectations.
The company's non-recurring gains and losses in the first half of the year amounted to 324 million yuan, including the current government subsidy amount of 348 million yuan. Net profit attributable to shareholders of listed companies, net of non-recurring gains and losses, decreased by 9.49% year-on-year. The data shows that current government subsidies accounted for 36.24% of net profit, more than 30%.
As the operating cost increased significantly by 45.86%, which was higher than the revenue growth rate, the company's gross profit margin fell by 10.52%, and the net profit growth rate was lower than market expectations.
Capacity expansion is rapid and downstream demand is strong. At the end of 2015, about 170 sets of equipment were put into production. In the first quarter of 2016, a total of 226 pieces of equipment were put into production. By the end of the first half of the year, the company's MOCVD equipment has been put into production of 256 units. The capacity expansion in the first half of the year was nearly 50%, reflecting the strong downstream demand. .
Production costs fell less than expected, resulting in a decline in gross margin and short-term performance pressure. The price of LED products continued to decline, which was a large drop compared with the same period of last year. In the past, the ability to maintain the gross profit margin level remained high mainly through technology upgrades to reduce production costs.
The company's production costs fell less than expected in the second quarter, resulting in a significant decline in the company's gross profit margin, operating profit of 469 million yuan in a single quarter, down 18.58%, net profit of 509 million yuan, down 7.37%.
Wuxi Doton Power , https://www.dotonpower.com