Shandong Teamgene Technology (SH:603151) Xin Lang Cai Jing·2025-06-19 00:05Core Viewpoint - After three consecutive declines in performance, the pig feed company Bangji Technology (603151.SH) plans to acquire six pig farming companies and one livestock technology consulting firm to turn around its business [1][6]. Group 1: Acquisition Details - Bangji Technology intends to acquire 100% equity of seven companies, including Beixi Agriculture, Ruido Weili, Xinmu Agriculture, and others, as well as 80% of the equity of Paistong Livestock Technology Consulting (Shanghai) Co., Ltd [3][5]. - The net asset of the seven target companies is 760 million yuan, which accounts for 57% of Bangji Technology's net assets as of the first quarter [5][19]. - The acquisition will constitute a major asset restructuring and related party transaction, with the acquiring company expected to hold over 5% of Bangji Technology post-transaction [6][30]. Group 2: Financial Performance - Bangji Technology's net profit for 2022 to 2024 is projected to decline from 120 million yuan to 50 million yuan, indicating a downward trend in profitability [6][7]. - The seven target companies had a combined net profit of 86.83 million yuan last year, which is 173% of Bangji Technology's profit, showcasing better profitability [19][20]. - However, the seven companies collectively reported a loss of 57.30 million yuan in 2023, with six of them incurring losses, raising concerns about the sustainability of their earnings [21][15]. Group 3: Market Conditions - The pig farming industry is currently experiencing a downturn, with pork prices declining from February to May, affecting overall profitability [14][15]. - The summer season is expected to bring a further decline in pork consumption, making it difficult for prices to rebound [15][30]. - The cyclical nature of pig prices poses a risk to the profitability of the newly acquired companies, which may impact Bangji Technology's financial health post-acquisition [13][21]. Group 4: Stock Performance and Shareholder Dynamics - Bangji Technology's stock price has doubled this year, with a 106.89% increase, following a series of trading halts and subsequent price surges [24][25]. - A mysterious individual investor significantly increased their stake in Bangji Technology before the trading halt, now holding 2.02% of the total shares [25][27]. - A substantial amount of shares, accounting for 51.89% of the total share capital, will be unlocked in October 2025, raising concerns about potential selling pressure [28][30].