Super Bull Stocks: Blockbuster Acquisitions Are Hanging!

Source: Company E

After falling back from a high of 95.7 yuan / share in mid-March, on April 17, High-tech Development (000628) once again harvested a rare 10CM daily limit in the near future.

At about 0:13 a.m. on April 18, High-tech Development issued an announcement announcing that it had been planning to acquire 70% of the shares of Sichuan Huakun Zhenyu Intelligent Technology Co., Ltd. (hereinafter referred to as "Huakun Zhenyu") for more than half a year, but finally failed to reach an agreement with some counterparties on the transaction price.

As early as September 2023, the high-tech development, which is mainly engaged in construction construction, announced the suspension of trading and planning the acquisition of the equity of Huakun Zhenyu, a computing power company, after which the company disclosed relevant plans and gave a valuation of 100% equity of Huakun Zhenyu at no more than 3 billion yuan. Among them, the pricing of the issued shares is not less than 80% of the average trading price of the company's shares in the 20 trading days before the pricing benchmark date, which is specifically determined to be 12.24 yuan per share.

After more than half a year, the transaction consideration between the two parties has not been finally negotiated, but the share price of High-tech Development has experienced great ups and downs.

After the announcement of the merger and acquisition, the resumption of trading of the stock price of high-tech development in September 2023 will harvest 11 daily limits. Since then, the high-tech development has not stopped, reaching a high of 71.63 yuan per share at the end of 2023.

However, after entering 2024, the share price of high-tech development once fell sharply, and there was a halving trend in a month. Since the beginning of February this year, the company's share price has recovered sharply, reaching a high of 95.7 yuan per share in mid-March.

In the announcement in the early morning of the 18th, High-tech Development also said that as of the date of disclosure of this announcement, the closing price of the company's shares has risen 239.5% compared with the closing price before the suspension of the major asset restructuring. Since this transaction is expected to be unable to proceed further, it may lead to a decline in the company's stock price, please invest rationally and pay attention to investment risks.

The major asset restructuring of High-tech Development has attracted so much attention mainly because the target company, Huakun Zhenyu, is a Huawei Kunpeng ecological chain enterprise.

According to the official website of Huakun Zhenyu, the company is a leading domestic leader in the integrated computing power industry of intelligent computing and storage, with 60% of the state-owned assets holding, undertaking the strategic transformation and upgrading of Changhong's computing industry, focusing on the infrastructure application of "new computing and new storage", and is fully responsible for the design, production, sales and service of "Tiangong" self-owned brand servers, storage, PCs, machine vision and other products based on Huawei's "Kunpeng + Ascend" processor.

According to public information, in July 2023, Huawei announced that it had signed contracts with three companies to work together to deepen urban digitalization, and Huakun Zhenyu was one of the signatories. In September 2023, Huakun Zhenyu attended HUAWEI CONNECT 2023, saying that he would work with Kunpeng + Ascend to build a computing power base in China and provide computing platform support for large models in China.

In the announcement in the early morning of the 18th, High-tech Development has not yet fully announced the end of the equity merger and acquisition of Huakun Zhenyu.

The company said that due to the long duration of this transaction, the industry in which the target company is located is affected by the internal and external environment, and the market expectation is high, the company has failed to reach an agreement with some counterparties on the price of this transaction, and the company cannot issue a notice of convening a general meeting of shareholders within six months (before April 19, 2024) after the announcement of the first board resolution to issue shares to purchase assets.

The Company is negotiating with the counterparty whether to terminate the transaction, which is expected to be unable to proceed with the current plan, and whether to change the plan or terminate the transaction will be announced on April 19, 2024 in accordance with relevant regulations.

The high-tech development that has faded from the halo of M&A dividends will still be stable in 2023.

According to the recently disclosed 2023 annual report, Gaoxin Development achieved operating income of 8.008 billion yuan last year, a year-on-year increase of 21.88%, and net profit of 366 million yuan, a year-on-year increase of 83.82%. The company intends to distribute a cash dividend of 1.52 yuan (tax included) to all shareholders for every 10 shares based on 352 million shares.

In 2023, the operating income of the high-tech development construction industry will be 7.318 billion yuan, an increase of 18.21% over the same period of the previous year, and the net profit margin will increase by 1.47 percentage points over the same period of the previous year, mainly due to the recovery of 350 million yuan of execution funds for the Jiayuehui project in the reporting period, which will increase the company's net profit by about 65 million yuan.

Closely focusing on the construction needs of the five major industrial functional zones of Chengdu High-tech Zone, as of December 31, 2023, the cumulative amount of signed unfinished orders is about 31.939 billion yuan, which provides a reliable guarantee for the company's profit source in the following years.

In the field of power semiconductor business, High-tech Development will build a power semiconductor business group in 2023 to strengthen the operation of market-oriented mechanism and enhance the development momentum of power semiconductor business. The power semiconductor business group currently includes the company's subsidiaries Senwei Technology and Xinwei Semiconductor, as well as a new wholly-owned subsidiary, Dianyan Technology (Power Semiconductor Research Institute).

In addition to the above-mentioned power semiconductor and construction industries, the company currently exists in the construction of smart cities, operations and related services, kitchen cabinets and other businesses, but the revenue or profit volume is small, and the company has also been actively optimizing and disposing of businesses and assets that are not related to the company's overall development strategy.

Editor-in-charge: Ye Shuyun

Proofreading: Gao Yuan

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