Ceepower (SZ:300062) Mei Ri Jing Ji Xin Wen·2025-12-07 13:35Core Viewpoint - Zhongneng Electric has announced an investment plan to acquire 65% stakes in three companies, aiming to fill gaps in its high-voltage product offerings and enhance its market position [1][4]. Group 1: Acquisition Details - The total base price for the three acquisitions is estimated at 857 million yuan [2][3]. - The targeted companies include Dacheng Electric, Dacheng High Voltage Switch, and Shuifa Chixiang Electric, with respective debts of 96.32 million yuan, 114 million yuan, and 81.69 million yuan [3]. - The acquisition is part of a strategic move to strengthen the company's position in the high-voltage sector, which is crucial for future competitiveness [4][5]. Group 2: Financial Implications - The projected combined revenue for the acquired companies in 2024 is approximately 1.154 billion yuan, which would double Zhongneng Electric's revenue [5]. - However, two of the targeted companies reported significant losses in the first ten months of 2025, totaling 44.96 million yuan, which poses a risk to Zhongneng Electric's financial health [6][7]. Group 3: Strategic Intent - The acquisition is described as a "strategic positioning" move to transition from medium-voltage to high-voltage products, aiming to overcome market barriers and enhance overall competitiveness [4][8]. - The targeted companies primarily serve major clients like the State Grid, indicating a focus on high-value contracts and market share expansion [4]. Group 4: Challenges and Risks - The acquisition process involves uncertainties, including the potential for not securing the bids due to market competition and the need for substantial upfront cash [6][8]. - Zhongneng Electric's current cash balance of 661 million yuan is insufficient to cover the total base price of 857 million yuan, raising concerns about funding the acquisition [8].