640 million high premium acquisition of negative assets Dehao Runda intends to stabilize downstream channels?
On May 14, Dehao Runda (002005) announced that it plans to invest 640 million yuan in cash for a total asset of only 55 million yuan, net assets of more than 28 million yuan, and 2012 net profit of minus 2200. 10,000 yuan of Beijing Weimei Shengjing Advertising Co., Ltd. (hereinafter referred to as "Wei Mei Sheng Jing"), and only accounted for 21.27% of the shares.
However, this investment with an alarmingly high premium rate has another hidden point. After 640 million yuan of cash was invested in the advertising company called “Wei Mei Sheng Jingâ€, the funds will all flow back in the form of purchasing the LED display of Dehao Runda. Listed companies, and given the optimistic view of the LED billboard business of the Weimei Shengjing gas station, Dehao Runda will also get a profit share on a pro rata basis.
This seemingly “beautiful†investment project may have a profitable outlook “Shengjingâ€. Insiders pointed out that although the sale of LED displays can recover more than 100 million profits, the remaining 500 million investment funds are difficult to rely on advertising business in the short term. The profit is divided into recycling.
Want to stabilize downstream sales channels?
According to the information, Weimei Shengjing was established on April 28, 2011 and is a subsidiary of NASDAQ-listed AirMedia Group. AirMedia Media Group is China's most influential mid-to-high-end outdoor media operator, with a market share of more than 90% in the Chinese aviation digital media market, and a leading share of traditional airport media resources, creating a coverage of Beijing, Shanghai, Guangzhou and other countries. The main airport and the aviation media network of more than 2,300 airlines of Air China, China Eastern Airlines and China Southern Airlines.
The incentive to promote the foreign investment of Dehao Runda is the project of AirMedia and Sinopec to expand the outdoor new media of the gas station.
It is reported that the project started in 2009, Weimei Shengjing has signed a strategic cooperation agreement with Sinopec Group to develop and manage the quality media resources of Sinopec's more than 30,000 gas stations. Weimei Shengjing will install LED display screens at Sinopec's relevant gas stations as advertising carriers, and collect advertising fees from customers by playing advertisements.
For the above market temptation, Dehao Runda has invested, and the controversial is the high premium rate of this investment.
According to the main financial indicators of the investment target company, Weimei Shengjing's audited net assets in 2012 was -186.446 million yuan, and net assets at the end of March 2013 was -28.871 million yuan (unaudited); net profit for the same period was 22,18.84 million respectively. Yuan and 5,270,700 yuan.
What is the premium rate? Since the company announcement did not disclose the asset valuation report of Weimei Shengjing and the feasibility analysis of the new advertising business, it is difficult to estimate.
An asset appraiser told reporters that if the investment of 640 million yuan from Dehao Runda is calculated together, the net assets of Weimei Shengjing, which will complete the equity financing, will reach 600 million yuan, if the LED advertising business of the gas station will be carried out according to the income method. Evaluation, the evaluation price of Weimei Shengjing will increase.
"Because a lot of data about the LED advertising business of the gas station is not known, it is not good to evaluate the assets of Weimei Shengjing, but the 640 million yuan only accounted for 21.27% of the equity is definitely a high premium rate." The appraiser said.
The company also indicated in the announcement that the risk “has a higher premium risk†and “the profitability of Weimei Shengjing does not reach the expected riskâ€.
A LED researcher familiar with Dehao Runda told reporters that due to the overcapacity of the LED industry in recent years, companies that have mastered sales channels are likely to win in the competition. The condition of Dehao Runda Investment is that Weimei Shengjing must use all investment funds to purchase the LED display of Dehao Runda.
"The intention of this condition is very obvious. The investment of 640 million yuan was first exchanged for the order of 640 million yuan in the next two years. At present, the advertising screen of 640 million yuan is only enough to equip 2000 gas stations, and Weimei Shengjing won It is a project of 30,000 gas stations. If you want to continue to equip new gas stations in the future, Dehao Runda may still benefit from it,†said the researcher.
The researcher also said that the investment is similar to the previous purchase of NVC Lighting's equity, showing Dehao Runda's intention to strengthen control over downstream sales channels.
At the end of December last year, Dehao Runda held 20.05% of NVC Lighting shares by acquiring the shares of the original shareholders and the secondary market acquisition, and obtained control of the Hong Kong-listed LED company.
According to the data, NVC Lighting has the first marketing capability and channel scale in the industry. It has 36 operation centers and more than 3,000 brand stores nationwide, and has established operating institutions in more than 30 countries and regions around the world.
The strategic cooperation between Dehao Runda and NVC Lighting includes: 1. Paying fixed expenses to use NVC brand; 2. Selling LED light source products through NVC channel; 3. Part of LED lighting products for NVC. "In March, the first batch of products with NVC Lighting has been shipped. It is expected to cover the terminal channels in late May. The cooperation with NVC will benefit the sales of Dehao Runda." The aforementioned researcher said. .
Investment is difficult to recover
According to the company's announcement, the investment income has two components, on the one hand, the profit from the purchase of LED display by Weimei Shengjing, and on the other hand, the distribution of LED advertising business from the gas station.
According to the company's announcement, “the sales profit rate will be slightly higher than the average level of the LED display industry.†A brokerage analyst said that the current average net profit of the industry is 15%, and the net profit of the order may reach more than 20%. According to this estimate, Weimei Shengjing purchase LED display DHL Runda can earn about 120 million yuan, the remaining more than 500 million is the investment cost of Dehao Runda.
Deng Fei, the company's director-general, said that the company had conducted feasibility analysis and demonstration. The prospect of the advertising project is relatively optimistic, the premium has certain rationality, and if there is a loss in operation of Weimei Shengjing before June 30, 2014, Under the responsibility of AirMedia, Dehao Runda does not assume, and the profit is shared by the new shareholders according to their shareholding ratio.
And the investment cost of more than 500 million does not seem to be easy to recover in the short term.
According to Air America's CEO Guo Man, in the US stock conference conference on May 14, Dehao Runda injected 640 million yuan of funds to purchase LED billboards for 2000 gas stations, one for each gas station. The company expects to operate 1000 LED screens for gas stations by July 2014, and is expected to add 1,000 units by July 2016. Among them, 500 to 1000 LED screens will be attractive to big brand advertisers, and revenues will accelerate as the screen increases.
Guoman did not give specific data on the profitability of the LED advertising project at the gas station. She only said that LED has the advantages of large advertising capacity, particularly good effect, improved customer recognition and greatly reduced operating costs.
“The previous light boxes required local staff to be installed for more than 15 days. It is possible to miss the customer’s promotion period or even later than other media, which has a great impact on our sales. The LED screen ads are published in less than an hour. There is almost no cost, and it greatly improves efficiency," Guo Man said.
“This means that Dehao Runda will not be able to start sharing the advertising profits of Weimei Shengjing at least until the end of 2014, and it will only be 1000 LED screens, and another 1000 will have to generate revenue by the end of 2016. And Dehao Run Up to only 21.27% of the shares, the final net profit is also very limited." The aforementioned analyst said.
According to Hangmei Financial Statements, AirMedia’s total revenue for the first quarter was US$64.5 million, down 23.3% year-on-year; net loss attributable to AirMedia’s shareholders was US$3.6 million, which was attributed to AirMedia’s shareholders last year. The loss was $7.3 million.
After AirMedia released the investment of 640 million yuan from Dehao Runda, Morgan Stanley still released a research report on the downward revision of Air America's stock price expectations.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
However, this investment with an alarmingly high premium rate has another hidden point. After 640 million yuan of cash was invested in the advertising company called “Wei Mei Sheng Jingâ€, the funds will all flow back in the form of purchasing the LED display of Dehao Runda. Listed companies, and given the optimistic view of the LED billboard business of the Weimei Shengjing gas station, Dehao Runda will also get a profit share on a pro rata basis.
This seemingly “beautiful†investment project may have a profitable outlook “Shengjingâ€. Insiders pointed out that although the sale of LED displays can recover more than 100 million profits, the remaining 500 million investment funds are difficult to rely on advertising business in the short term. The profit is divided into recycling.
Want to stabilize downstream sales channels?
According to the information, Weimei Shengjing was established on April 28, 2011 and is a subsidiary of NASDAQ-listed AirMedia Group. AirMedia Media Group is China's most influential mid-to-high-end outdoor media operator, with a market share of more than 90% in the Chinese aviation digital media market, and a leading share of traditional airport media resources, creating a coverage of Beijing, Shanghai, Guangzhou and other countries. The main airport and the aviation media network of more than 2,300 airlines of Air China, China Eastern Airlines and China Southern Airlines.
The incentive to promote the foreign investment of Dehao Runda is the project of AirMedia and Sinopec to expand the outdoor new media of the gas station.
It is reported that the project started in 2009, Weimei Shengjing has signed a strategic cooperation agreement with Sinopec Group to develop and manage the quality media resources of Sinopec's more than 30,000 gas stations. Weimei Shengjing will install LED display screens at Sinopec's relevant gas stations as advertising carriers, and collect advertising fees from customers by playing advertisements.
For the above market temptation, Dehao Runda has invested, and the controversial is the high premium rate of this investment.
According to the main financial indicators of the investment target company, Weimei Shengjing's audited net assets in 2012 was -186.446 million yuan, and net assets at the end of March 2013 was -28.871 million yuan (unaudited); net profit for the same period was 22,18.84 million respectively. Yuan and 5,270,700 yuan.
What is the premium rate? Since the company announcement did not disclose the asset valuation report of Weimei Shengjing and the feasibility analysis of the new advertising business, it is difficult to estimate.
An asset appraiser told reporters that if the investment of 640 million yuan from Dehao Runda is calculated together, the net assets of Weimei Shengjing, which will complete the equity financing, will reach 600 million yuan, if the LED advertising business of the gas station will be carried out according to the income method. Evaluation, the evaluation price of Weimei Shengjing will increase.
"Because a lot of data about the LED advertising business of the gas station is not known, it is not good to evaluate the assets of Weimei Shengjing, but the 640 million yuan only accounted for 21.27% of the equity is definitely a high premium rate." The appraiser said.
The company also indicated in the announcement that the risk “has a higher premium risk†and “the profitability of Weimei Shengjing does not reach the expected riskâ€.
A LED researcher familiar with Dehao Runda told reporters that due to the overcapacity of the LED industry in recent years, companies that have mastered sales channels are likely to win in the competition. The condition of Dehao Runda Investment is that Weimei Shengjing must use all investment funds to purchase the LED display of Dehao Runda.
"The intention of this condition is very obvious. The investment of 640 million yuan was first exchanged for the order of 640 million yuan in the next two years. At present, the advertising screen of 640 million yuan is only enough to equip 2000 gas stations, and Weimei Shengjing won It is a project of 30,000 gas stations. If you want to continue to equip new gas stations in the future, Dehao Runda may still benefit from it,†said the researcher.
The researcher also said that the investment is similar to the previous purchase of NVC Lighting's equity, showing Dehao Runda's intention to strengthen control over downstream sales channels.
At the end of December last year, Dehao Runda held 20.05% of NVC Lighting shares by acquiring the shares of the original shareholders and the secondary market acquisition, and obtained control of the Hong Kong-listed LED company.
According to the data, NVC Lighting has the first marketing capability and channel scale in the industry. It has 36 operation centers and more than 3,000 brand stores nationwide, and has established operating institutions in more than 30 countries and regions around the world.
The strategic cooperation between Dehao Runda and NVC Lighting includes: 1. Paying fixed expenses to use NVC brand; 2. Selling LED light source products through NVC channel; 3. Part of LED lighting products for NVC. "In March, the first batch of products with NVC Lighting has been shipped. It is expected to cover the terminal channels in late May. The cooperation with NVC will benefit the sales of Dehao Runda." The aforementioned researcher said. .
Investment is difficult to recover
According to the company's announcement, the investment income has two components, on the one hand, the profit from the purchase of LED display by Weimei Shengjing, and on the other hand, the distribution of LED advertising business from the gas station.
According to the company's announcement, “the sales profit rate will be slightly higher than the average level of the LED display industry.†A brokerage analyst said that the current average net profit of the industry is 15%, and the net profit of the order may reach more than 20%. According to this estimate, Weimei Shengjing purchase LED display DHL Runda can earn about 120 million yuan, the remaining more than 500 million is the investment cost of Dehao Runda.
Deng Fei, the company's director-general, said that the company had conducted feasibility analysis and demonstration. The prospect of the advertising project is relatively optimistic, the premium has certain rationality, and if there is a loss in operation of Weimei Shengjing before June 30, 2014, Under the responsibility of AirMedia, Dehao Runda does not assume, and the profit is shared by the new shareholders according to their shareholding ratio.
And the investment cost of more than 500 million does not seem to be easy to recover in the short term.
According to Air America's CEO Guo Man, in the US stock conference conference on May 14, Dehao Runda injected 640 million yuan of funds to purchase LED billboards for 2000 gas stations, one for each gas station. The company expects to operate 1000 LED screens for gas stations by July 2014, and is expected to add 1,000 units by July 2016. Among them, 500 to 1000 LED screens will be attractive to big brand advertisers, and revenues will accelerate as the screen increases.
Guoman did not give specific data on the profitability of the LED advertising project at the gas station. She only said that LED has the advantages of large advertising capacity, particularly good effect, improved customer recognition and greatly reduced operating costs.
“The previous light boxes required local staff to be installed for more than 15 days. It is possible to miss the customer’s promotion period or even later than other media, which has a great impact on our sales. The LED screen ads are published in less than an hour. There is almost no cost, and it greatly improves efficiency," Guo Man said.
“This means that Dehao Runda will not be able to start sharing the advertising profits of Weimei Shengjing at least until the end of 2014, and it will only be 1000 LED screens, and another 1000 will have to generate revenue by the end of 2016. And Dehao Run Up to only 21.27% of the shares, the final net profit is also very limited." The aforementioned analyst said.
According to Hangmei Financial Statements, AirMedia’s total revenue for the first quarter was US$64.5 million, down 23.3% year-on-year; net loss attributable to AirMedia’s shareholders was US$3.6 million, which was attributed to AirMedia’s shareholders last year. The loss was $7.3 million.
After AirMedia released the investment of 640 million yuan from Dehao Runda, Morgan Stanley still released a research report on the downward revision of Air America's stock price expectations.
( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )
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