HONTRON(SZ:002379) Quan Jing Wang·2025-05-22 13:20Core Viewpoint - Hongchuang Holdings is set to acquire Shandong Hongtuo Industrial Co., Ltd. for approximately 63.5 billion yuan, marking a record in A-share mergers and acquisitions, which will significantly enhance its profitability and market position in the aluminum industry [1][2]. Group 1: Acquisition Details - The acquisition involves issuing approximately 11.895 billion new shares at a price of 5.34 yuan per share to pay for the 100% stake in Hongtuo Industrial, which is valued at around 63.5 billion yuan [2]. - Post-acquisition, Hongchuang Holdings' asset scale will exceed 100 billion yuan, with net profit expected to rise above 10 billion yuan, transforming its financial health from negative to positive [4]. Group 2: Business Integration and Competitive Advantage - Hongtuo Industrial is a leading enterprise in the aluminum industry, with an annual production capacity of over 6.45 million tons of electrolytic aluminum and 19 million tons of alumina, holding nearly 15% of the national electrolytic aluminum capacity [3]. - The acquisition will eliminate competition between Hongchuang Holdings and Hongtuo Industrial, enhance overall profitability, and improve the company's competitive edge in the aluminum market [2][4]. Group 3: Financial Performance and Growth Potential - By the end of 2024, Hongtuo Industrial is projected to achieve revenues of approximately 149.29 billion yuan, a year-on-year increase of 15.77%, and a net profit of 18.14 billion yuan, reflecting a significant growth of 168.91% [4]. - The transaction is expected to elevate Hongchuang Holdings' net asset return rate from negative to nearly 40%, with earnings per share turning positive at 1.39 yuan [4]. Group 4: Industry Context and Future Outlook - The aluminum industry in China is experiencing a shift towards high-quality development, with a focus on supply-side structural reforms and resource optimization, which aligns with national policies [6][7]. - The demand for electrolytic aluminum is expected to continue growing, driven by sectors such as automotive lightweighting and renewable energy, with a projected supply gap of 500,000 to 1.3 million tons in the domestic market [8]. Group 5: Environmental and Technological Leadership - Hongtuo Industrial has established itself as a leader in energy efficiency and low emissions, being recognized as an industry "leader" in energy efficiency by the Ministry of Industry and Information Technology [9]. - The company is also advancing its technological capabilities with the implementation of AI and smart factory initiatives, enhancing production efficiency and sustainability [10].