CHINT ELECTRICS(SH:601877) Xin Lang Cai Jing·2025-08-01 15:05Core Viewpoint - The company, Zhejiang Chint Electric Co., Ltd., is planning to spin off its subsidiary, Chint Aneng, for an IPO after facing multiple interruptions since its initial acceptance in September 2023. This move aims to enhance the valuation and financing channels for both the parent and subsidiary companies [1][2]. Group 1: Company Overview - Chint Electric's main business segments include low-voltage electrical appliances and photovoltaic new energy, with Chint Aneng being the only platform for household photovoltaic business under the parent company [1]. - In 2024, Chint Electric reported a total revenue of CNY 64.519 billion, with Chint Aneng contributing CNY 31.826 billion, accounting for 49.33% of the total revenue [1]. Group 2: Financial Performance - Chint Aneng's net profit for the same period was CNY 2.861 billion, representing 73.85% of the parent company's net profit of CNY 3.874 billion [1]. - The company plans to raise CNY 6 billion through the IPO, with CNY 5 billion allocated for household photovoltaic power station projects and CNY 2 billion for information platform construction [3][4]. Group 3: Debt and Financial Structure - The company has a high debt ratio, with asset-liability ratios increasing from 76.92% to 80.25% over recent years, significantly above the industry average [6][7]. - Short-term debts have risen sharply, with total debts reaching CNY 37.9 billion, while cash reserves were only CNY 3.2 billion, indicating a substantial funding gap [8][10]. Group 4: Market Dynamics - The household photovoltaic sales business has seen a decline in revenue growth, with sales revenue of CNY 2.481 billion in 2024, showing a slowdown compared to previous years [16][17]. - The removal of government subsidies for household photovoltaic systems has negatively impacted profit margins, with gross margins dropping from 17.41% to 10.09% [17]. Group 5: Spin-off Implications - The spin-off is expected to enhance the operational focus and independence of both Chint Electric and Chint Aneng, potentially improving their competitive capabilities [17]. - However, there are concerns regarding the valuation of the parent company post-spin-off, as frequent separations may lead to a decline in the parent company's market value [18][22].