Lithium battery diaphragm unit price has long fallen through the expected acquisition of innovative shares of Shanghai Enjie how to achieve the promised net profit?

From the planned acquisition to the suspension of the acquisition, until the revision of the plan to restart the acquisition, the innovative shares(002812. SZ) took more than a year to acquire Shanghai Enjie New Materials Technology Co., Ltd.(hereinafter referred to as "Shanghai Enjie") finally obtained regulatory authorities. Release.

The acquisition of more than $5 billion is significant for innovative shares. From the listing of less than half a year to plan the acquisition, and now use more than a year to complete the acquisition, the company to lithium-ion battery diaphragm of the leading enterprises successfully set sail.

The main product of Shanghai Enjie is lithium battery diaphragm. After the construction of the company's Zhuhai base is completed, it is expected to become the world's first supplier of lithium ion battery isolation film. But will Shanghai enjie achieve the desired profit in the Red Sea, where the lithium-ion battery diaphragm market is locked in a price war, compared with when the acquisition was launched a year ago?

Gross interest rate negative trend

According to the initial acquisition plan, the innovative SHARES plan to issue 108 million shares at a price of 51.56 yuan/share price of 5.55 billion yuan to acquire 100 % of the shares held by the Lixiaoming family and others, and at the same time to raise 800 million yuan for Zhuhai Base project construction and intermediary costs. Since both the innovative shares and Shanghai Enjie are controlled by the Lixiaoming family, the acquisition will not lead to a backdoor listing.

Due to the involvement of foreign natural persons among shareholders, innovation SHARES announced in mid-February that they would not temporarily acquire the shares of foreign natural persons other than the actual owners, that is, the company would not acquire the 6.67 % stake in Shanghai Enjie jointly held by Tan KimChwee and Alexcheng.

The acquisition plan was revised to an innovative share with 50.83 yuan/share issue of 102 million shares to acquire 93.33 % of Shanghai Enjie's shares. The transaction price was 5.18 billion yuan, and the supporting funds did not exceed 800 million yuan. Two months later, innovation shares were successfully approved for reorganization. However, due to the implementation of the transfer plan, the company's issuance plan was revised to acquire 24.87 yuan/share and 208 million shares.

According to the introduction, first-line battery manufacturers such as Ningde Times, Guoxuan Gaoke(002074. SZ) and BYD(002594. SZ) are all major customers of Shanghai Enjie. Shanghai Enjie, which was established in 2010, ushered in a performance outbreak in 2016.

From 2015 to 2017, Shanghai Enjie's revenue was 157 million yuan, 499 million yuan, and 894 million yuan. The net profits attributed to the parent company's shareholders were 29.72 million yuan, 200 million yuan, and 393 million yuan, respectively.

In the past two years, Shanghai Enjie has maintained a net profit margin of more than 40 %, thanks to the company's ultra-high gross profit margin.

From 2015 to 2017, Shanghai Enjie's comprehensive gross profit margin was 43.33 %, 61.39 % and 65.05 %, respectively. Whether it is lithium battery substrate or lithium battery coated barrier film, the company's two major products in a steady increase in gross margins.

In addition, Shanghai Enjie's high rate of good quality also reduces unnecessary product waste. From 2015 to 2017, the company's comprehensive quality rate was 53 %, 73 % and 78 %, respectively. The Xingyuan material(300568. SZ) prospectus disclosed that the company's good quality rate in the first half of 2015 and 2016 was 59.29 % and 64.47 %.

According to the level of industry, the rate of good dry diaphragm is generally higher than that of wet diaphragm, and the star source material is the main dry diaphragm. It can be seen that Shanghai Enjie's good quality rate is indeed ahead of the general peers.

However, not all of this is the same, and the acquisition of Hongtu Diaobiao by Golden Crown Electric(300510. SZ) is equally expensive. From 2015 to 2016 and from January to August 2017, the comprehensive quality rate of the Hongtu diaphragm was 76.83 %, 77.03 % and 69.07 %, respectively. Compared with Shanghai Enjie, the company's good performance in 2015 and 2016 is not inferior or even better.

But none of its peers has had such a good day compared with Shanghai enjie's 2017 rise in gross margins. Xingyuan Material is Shanghai Enjie's main competitor in China. In 2016, the company's gross profit margin was 61.7 %, and in 2017 it dropped 9.85 percentage points to 51.85 %.

Zhangzhou Pearl(002108. SZ) is another listed company that entered the lithium battery diaphragm market earlier. In 2016, the company's gross profit margin was 63.61 %, and the steady and moderate decline was basically stable. In 2017, the gross profit margin of 47.75 % dropped significantly. 15.86 percentage points.

In September 2015, Victory Precision(002426. SZ) acquired 51 % of Suzhou Jieli New Energy Materials Co., Ltd.(hereinafter referred to as "Suzhou Jieli") for 612 million yuan, thus entering the area of lithium battery diaphragm. The company then continued to invest 486 million yuan in October 2016 to acquire Suzhou Jieli 33.77 % of shares, thus holding 84.77 %.

Suzhou Jieli's lithium battery diaphragm is similar to Shanghai Enjie's main wet diaphragm. Customers also include well-known lithium battery manufacturers such as Ningde Times and BYD. According to the Victory Precision Annual Report, in 2017, the production capacity of Suzhou Jieli film design was nearly 400 million square meters per year, and the coating film design production capacity reached 120 million square meters per year.

Compared with Shanghai Enjie's 285 million square meters of basic film production capacity and 238 million square meters of coating film production capacity, Suzhou Jieleng's scale is not inferior, but the gross profit margin is far away. Its 2016 gross profit margin is 49.02 %, which is stable. In 2017, the gross profit margin fell 19.4 percentage points, leaving only 29.62 %.

The company's acquisition of Hongtu Dim and Changyuan Group's(600525. SH) Zhonglixin are also two major manufacturers in the wet diaphragm field, but because the two companies have not completed the 2017 financial report, their gross profit rate changes are unknown.

At the same time as the peer gross margin fell, the rising Shanghai Enjie gross margin did not decline but slightly improved. Even if the company calls the wet method diaphragm better than the dry method diaphragm, the wet method diaphragm's gross margin is also falling. How does Shanghai Enjie do against the trend?

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