GUANGHUI ENERGY(SH:600256) Zhong Guo Jing Ji Wang·2025-06-04 02:04Core Viewpoint - The acquisition of 15.03% of Guanghui Energy by Fude Life Insurance and Fude Financial Holdings for 6.35 RMB per share, representing a premium of over 5% compared to the closing price on the announcement date, raises questions about the motivations behind this high-priced investment and its implications for both companies involved [1][2]. Group 1: Investment Details - Fude Life Insurance and Fude Financial Holdings plan to invest a total of 62 billion RMB in Guanghui Energy, with Fude Life contributing 40.55 billion RMB and Fude Financial contributing 21.45 billion RMB [1]. - The investment is based on a positive outlook for Guanghui Energy's future, with a commitment to not sell shares for 60 months post-acquisition [2]. - Guanghui Energy's dividend yields are relatively high, projected at 8.87%, 9.80%, and 9.24% for 2022, 2023, and 2024 respectively, making it an attractive option for dividend investors [2]. Group 2: Financial Performance and Risks - Guanghui Energy is expected to face significant revenue pressure in 2024, with projected revenues of 36.441 billion RMB, a decrease of 40.72% year-on-year, and a net profit of 2.961 billion RMB, down 42.60% year-on-year [2]. - Fude Life Insurance has not disclosed annual reports for four consecutive years, raising concerns about its financial health and governance [3][4]. - The company’s solvency ratios are close to regulatory limits, with a comprehensive solvency adequacy ratio of 103% and a core solvency adequacy ratio of 87% as of Q4 2021 [3]. Group 3: Historical Context and Market Sentiment - The investment by Fude Life Insurance in Guanghui Energy is reminiscent of its previous investments in Jilin, which faced challenges and raised questions about the company's strategic and risk management capabilities [6]. - The market is cautious about Fude Life's ability to learn from past mistakes, particularly in light of its previous failures in diverse sectors such as real estate and sports [6]. - The commitment to a long-term investment strategy, while theoretically sound, may not alleviate market concerns regarding the transparency and compliance of insurance fund utilization [6].