Billions of assets to buy snake swallow elephant Yangtze power returns today

At the beginning of last year's suspension of the Yangtze power (600900), the market had expected the restructuring to include the remaining 18 units of the Three Gorges Corporation, 6 underground units and 2 hydroelectric projects under construction in the Jinsha River.　　And finally announced the reorganization plan only to include 18 units, the Three Gorges Corporation deputy general manager Shasenhua thinks, after the capital market has changed drastically, this plan is guarantees the investor benefit maximization choice. According to people familiar with the situation, the Yangtze River Power was initially reported as a third, that is, one-time realization of all hydropower projects overall listing, but this program in the SFC has not been approved.　　Analysts point out that the entry of non-profit assets into the listed companies will result in the company's performance below market expectations for the next 1-2 years, which could lead to the release of systemic risk of the company's share price after the scheme is unveiled. Asset expansion 1.8 times times according to the Yangtze River Power Quarterly, the company's total assets of 57.7 billion yuan, the total liability of 19.43 billion yuan. The acquisition of 107.5 billion yuan of assets, for the company is undoubtedly staged a "snake swallow Elephant" drama.　　After the asset injection, the total assets of the company will reach 165.2 billion yuan, is 2.86 times times before the asset injection. According to the reorganization plan, the Changjiang Electric Power intends to purchase 107.5 billion yuan assets to the Three Gorges Corporation by means of debt, non-public offering and payment of cash, including 18 units with a single capacity of 700,000-kilowatt for the Three Gorges Power station 9# to 26#, as well as productive facilities directly related to the power generation business.　　Six for the construction of hydropower projects and power production to provide equipment management, tendering, supervision, water supply, communications, operation and maintenance management services, such as ancillary production specialization company. The plan shows that the company will be to undertake the way of debt to pay about 50 billion yuan, the private issue of shares in the way to pay about 20 billion yuan, in cash to pay the price of about 37.5 billion yuan.　　Changjiang Power is expected to issue about 1.552 billion shares, offering a price of 12.89 yuan per share, all to the China Three Gorges Corporation. The basic ratio of equity financing and debt financing to the Yangtze power acquisition of hydropower assets is 2:8.　　The proportion of equity financing is lower than the market expectation, and the dilution of earnings per share is therefore lower than expected. Nevertheless, 37.5 billion yuan of cash is not a decimal, and this part of the payment of funds, from the date of delivery three working days, the Yangtze River power to the Three Gorges Corporation to pay the initial cash to the price of 20 billion yuan, the remaining cash in the delivery of a year after the completion of payment.　　According to the company's quarterly report, the company's cash and equivalent is only 3.56 billion yuan. Changjiang Electric Power chief Lou Jian said the company is fully capable of paying the cash price. He said that of the 37.5 billion yuan, bank loans and debt issuance are possible ways to raise funds.　　In this way, after the asset injection, the total liabilities of the Changjiang power will increase by more than 80 billion yuan, the ratio of assets and liabilities from the previous 33.7% to about 60%, which is still normal level in hydropower enterprises. Analysts believe that the power of the Yangtze River's asset-liability ratio has been low, the way through debt acquisition of assets, fullyThe use of financial leverage, to 16% of the dilution of equity, in exchange for 186% of asset expansion and 150% of installed capacity growth.　　This also reflects the company's management to inject assets of the profitability is more optimistic, mainly rely on debt financing can increase shareholder returns, although this "low equity high debt" approach to the acquisition of the company's assets and liabilities to a certain extent, but if the increase in the proportion of equity financing, it is necessary to diluted earnings per share. Shasenhua, deputy general manager of the Three Gorges Corporation, believes that the equity financing of 20 billion yuan is the minimum, which can ensure that the ratio of assets and liabilities is controlled at a certain level, the future rate of assets and liabilities is expected to be around 60%, and the characteristics of water and electricity is very good cash flow, after the estimated　　The Changjiang power has a cash surplus of about 10 billion yuan a year, and the ratio of assets to liabilities will gradually decline within a few years.　　This year, the net profit of 6.3 billion companies analysis, assuming the completion of the target asset delivery on June 30, 2009, under the premise of 2009 attributable to the owners of the listed companies are expected to reach about 6.3 billion yuan. Shasenhua told the China Securities News reporter, this 6.3 billion yuan net profit is only according to the normal water level of the results, the real profit to be affected by two factors, one is to water impact, the company's calculation has room for, and the second is the specific date of settlement of assets, the calculation is in accordance with June 30 as the delivery date, but at present it seems　　It may be postponed, depending on how long the SASAC approves the asset assessment, and the intermediate process company is unable to master it.　　The Great Wall Securities analyst Zhang Lin said that in the first half of 2009 to complete the target asset delivery, water growth of 13% per cent year-on-year, the company is expected to return 2009 earnings will reach 0.60 yuan, 2010 is expected to reach 0.73 yuan. As of December 31, 2008, the company can control the installed capacity of 8.377 million kilowatts, put into production rights of about 10.97 million kilowatts installed capacity. After the completion of the transaction, the company can control installed capacity of about 21 million kilowatts, about 2.5 times times before the acquisition; Due to the better water condition in the past 2009 years, it is expected that the 2009 Three Gorges-Gezhouba Cascade Hub will generate 99 Billion-kilowatt of its annual output, about 2008 times the company's 44.278 billion kwh.　　One of the Three Gorges Project 9# to 26# unit annual output is estimated to be about 58.7 Billion-kilowatt.　　Zhang Lin that, even according to the multi-year average, the Three Gorges Project 26 generating units generating capacity of about 84.7 Billion-kilowatt, will also make the company's electricity growth of more than 90%. And the Yangtze River Electric power to eliminate the security, the company and the State Grid company and the southern Grid company signed a long-term purchase and sale of electricity contracts to ensure that the Three Gorges Electric energy elimination.　　This means that the company in East China, central China, Guangdong Power market share will be significantly improved.　　Shasenhua introduced that the current comprehensive depreciation rate of the Changjiang power is 3.97%, roughly calculated, the depreciation period of about 25 years. In addition to the expansion of the expansion of the performance of the thickening, according to company sources, the follow-up company will also undertake to restructure the debt, to low interest ratesDebt to replace higher-interest debt and to tap into the potential of corporate performance growth from debt management. "Two Three Gorges" to be injected in addition to the completion of the acquisition of the Yangtze River Power after the 26 units, the Three Gorges Corporation and the right bank 6 total 4.2 Million-kilowatt of the construction unit, the total investment of 9.1 billion yuan, is expected to be in production from 2010 to 2012, then injected into the Yangtze River is a matter of　　The following assets to be injected into the Changjiang power also include the Three Gorges Corporation planning and construction of the Xiluodu, to the home Dam, Wudongde and Baihe Beach 4 hydropower stations, a total of 40.35 Million-kilowatt, the scale of which is equivalent to the reconstruction of two Three Gorges hydropower station. Shasenhua said that the underground power plant can make full use of the Yangtze River hydropower resources, but also can improve the power quality of the Three Gorges Hydropower station, improve peak load capacity, in view of the underground power station has not been completed, in order to maintain the Three Gorges Project construction management system continuity, the acquisition plan temporarily not as a target　　China's Three Gorges Corporation is still responsible for construction and management.　　And for the lower Jinsha River Cascade Hydropower Station construction of the four power plants, also temporarily not sold to the Yangtze River Power, which means that the expansion of the power of the Yangtze River is far from stop, there will be a large extension of space in the future. According to the Three Gorges Corporation, in addition to the acquisition of the parent company assets, the Yangtze River Power breakthrough development, but also from other enterprises to invest in mergers and acquisitions. The stable cash flow of the Yangtze River will also be able to support its outward investment. In the long run, these investments can optimize the company's power structure, form fire and fire, enhance the stability of the performance, but also can rapidly expand the company's installed capacity, to achieve diversified development. The goal of the Yangtze Power development is to become an integrated energy holding group. "Before and after the Three Gorges Corporation and the Changjiang power assets structure Changjiang Power balance sheet main data unit: Yuan March 31, 2009 December 31, 2008 December 31, 2007 December 31, 2006 total assets 57,695,883,886.13 57,739, 432,540.87 64,314,083,270.88 47,635,885,017.70 Liabilities Total 19,429,498,831.82 20,172,343,975.57 23,060,852,720.57 18,714, 046,569.19 listed company owner's equity total 38,266,385,054.31 37,567,088,565.30 41,253,230,550.31 28,921,838,448.51 before and after the issuance of the equity structure of shareholders Number of shares (billion shares) shareholding ratio (billion shares) shareholding ratio China Three Gorges Corporation 58.42 62.07% 73.94 67.44% Other investors 35.70 37.93% 35.70 32.56% equals 94.12 100% 109.64 100%