Xin Lang Cai Jing·2025-12-21 03:31Core Viewpoint - China Shenhua (601088.SH) announced a significant acquisition plan to purchase assets worth 1,335.98 billion yuan from its controlling shareholder, China Energy Group, marking the largest acquisition in the A-share market to date [1]. Group 1: Acquisition Details - The acquisition involves 12 target companies across coal, coal power, coal chemical, shipping, and port sectors, with a payment structure of 30% in shares and 70% in cash [1]. - The assessed value of the target assets is 1,436.75 billion yuan, with a premium rate of 59.52% [3]. - The total assets of the acquired entities are projected to be 2,334.23 billion yuan, with a revenue of 1,139.74 billion yuan and a net profit of 94.28 billion yuan for the previous year [3]. Group 2: Financial Metrics - The acquisition's price-to-earnings (PE) ratio based on 2024's net profit is 14.2 times, comparable to China Shenhua's current PE of 15.49 times [4]. - Post-acquisition, China Shenhua's coal reserves will increase to 6.849 billion tons, a growth rate of 64.72%, while its recoverable coal reserves will rise to 3.45 billion tons, a 97.71% increase [5]. - The company's coal production capacity will reach 512 million tons, reflecting a 56.57% growth [5]. Group 3: Strategic Context - The acquisition aligns with China Energy Group's commitment to resolving industry competition issues, as outlined in previous agreements since 2005 [4]. - Following the restructuring of China Energy Group in 2017, the integration of assets into China Shenhua is expected to be completed by August 27, 2028 [4]. - The transaction is part of a broader trend of accelerating state asset securitization and is supported by recent regulatory encouragement for mergers and acquisitions in the capital market [11]. Group 4: Market Position and Performance - China Shenhua's total assets will reach 8,965.87 billion yuan post-transaction, with total liabilities increasing to 3,904.90 billion yuan, resulting in a debt-to-asset ratio rise from 25.11% to 43.55% [10]. - The company has faced declining revenues over the past four reporting periods, with a 16.57% year-on-year decrease in revenue for the first three quarters of 2025 [12]. - As of December 20, China Shenhua's stock price was 40.59 yuan, with a market capitalization of 8,064.63 billion yuan [12].