Huaihe Energy(SH:600575) Xin Lang Cai Jing·2025-09-12 15:36Core Viewpoint - Huaihe Energy Group Co., Ltd. is undergoing a significant acquisition process to enhance its competitive position in the energy sector through the integration of coal and electricity operations, which is expected to yield substantial synergies and operational efficiencies [1][2]. Group 1: Transaction Necessity and Synergies - The transaction is deemed necessary due to the overlapping business areas of Huaihe Energy and the target company, which includes thermal power generation and renewable energy, allowing for significant operational synergies post-acquisition [2]. - The integration will facilitate unified management of power plants, optimization of coal procurement, and enhancement of regional market influence through asset consolidation [2]. - The acquisition will also address previous issues related to competition and enhance the overall competitiveness of Huaihe Energy, as prior restructuring efforts did not include certain key assets [2]. Group 2: Business Analysis of the Power Group - The power group operates three thermal power plants and 22 photovoltaic projects, with additional projects under construction, demonstrating strong competitive metrics in power generation and cost efficiency [3]. - Despite the rapid growth of renewable energy capacity, thermal power is expected to maintain high utilization rates, particularly in Anhui Province, ensuring stable demand for the power group's output [3]. - The acquisition is anticipated to improve operational quality in coal and electricity business, accelerating the establishment of an integrated coal-electricity-new energy framework [3]. Group 3: Financial and Governance Aspects - The power group has effectively managed its financial obligations, including the pledging of electricity sales rights to secure bank loans, with expectations of meeting repayment obligations without significant risk [3]. - The governance structure allows for effective control over subsidiaries, ensuring operational independence while maintaining a clear basis for management fee settlements [3].