LUXSHARE-ICT(002475) 长江证券·2024-09-22 02:37Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company announced the acquisition of Leoni AG and its wholly-owned subsidiaries to accelerate the globalization of its automotive business and enhance its competitiveness in the global automotive wiring harness market. The acquisition involves purchasing 50.1% of Leoni AG and 100% of Leoni Kabel GmbH, with respective prices of €205 million and €320 million [5][6]. - Leoni AG is a century-old German automotive wiring harness company and a leading supplier of cable, wire, and wiring harness system solutions. In 2023, Leoni AG reported revenues and net profits of €546 million and -€13 million, respectively [5]. - The acquisition aims to enhance the company's competitiveness and influence in the global automotive wiring harness sector. It will facilitate resource integration and improve vertical integration levels. The global production capacity of Leoni will help the company seize opportunities in the automotive business and provide efficient services to both Chinese and overseas automotive manufacturers [5]. - The company has a successful track record in the consumer electronics sector, leveraging both organic growth and acquisitions to achieve comprehensive development across multiple categories and clients. It is now applying this experience to the automotive sector, positioning itself to become a major player in the industry amid the opportunities presented by automotive intelligence and electrification [5]. - The projected net profits for the company from 2024 to 2026 are estimated to be ¥133.97 billion, ¥162.15 billion, and ¥189.91 billion, respectively. Given the company's robust growth potential, its current valuation may be underestimated [5]. Summary by Sections Acquisition Details - The company plans to acquire 50.1% of Leoni AG and 100% of Leoni Kabel GmbH for €205 million and €320 million, respectively, to enhance its automotive business [5][6]. Market Position and Financial Status - Leoni AG is a leading supplier in the automotive wiring harness industry, with a significant customer base and extensive R&D experience. However, it faces challenges such as low resource utilization and high operating costs [5]. Strategic Objectives - The acquisition is intended to improve the company's competitive edge in the automotive wiring harness market, facilitate resource integration, and enhance operational efficiency [5]. Financial Projections - The company anticipates net profits of ¥133.97 billion, ¥162.15 billion, and ¥189.91 billion for the years 2024 to 2026, indicating strong growth potential [5].