China heavy industry is putting on a snake swallow elephant high debt buy-out group business

The Chinese Heavy Industry (601989.SH), which has only been listed for half a year, has staged a "snake swallow Elephant". July 16--China's major restructuring plan for heavy industry was released.　　According to the draft reorganization, China's heavy industry will, through the non-public offering of about 2.5 billion shares, buy large ship heavy industry, the Bohai ship heavy industry, the whole mountain ship heavy industry assets and the North ship heavy industry 94.85℅ assets, China Shipbuilding heavy Industry group nearly 80% of the repair ship business into China heavy industry.　　However, after swallowing huge amounts of assets, China's heavy industry is facing not only the benefits of thickening profits, but also the huge increase in debt.　　"Snake Swallow Elephant" reorganization plan after two months of suspension, China's heavy industry restructuring plan finally came out. As a listed enterprise at the end of 2009, ship supporting and service business is the main business section of China before heavy industry.　　In 2008, the State Council approved the listing of the China Shipbuilding heavy Industry Group as "the overall listing of the people's shipowners industry, step-by-step implementation".　　It is understood that after the asset injection, China's heavy industry business will include ship manufacturing, ship repair, ship repair, marine engineering equipment and energy transportation equipment, the five major business sectors. And the reorganization for China's heavy industry, is a "snake swallow Elephant" plan. According to a draft reorganization released July 16, the total target of the proposed asset purchases accounted for 235.3% of the total assets of listed companies in 2009.　　The operating income of the target assets accounted for 140.53% of the 2009-year operating income of the listed companies.　　When this reporter asked, whether this asset injection for the management of listed companies to bring some difficulty, China heavy Industry Investment Relations Department related people said that these are originally a group under the assets, and this is just an injection of equity. The announcement shows that after the reorganization, China's heavy industry will become the largest and most powerful shipbuilding enterprise in the country. It is understood that to July 16, 2010, after the reorganization of the company's new ship in hand orders for 28.853 million dwt.　　In the same period, the Chinese ship for 10.695 million dwt, Canton Ship international 1.968 million dwt. After the shipbuilding assets are injected into the listed companies, the performance of the listed companies can be thickened obviously.　　"said an industry analyst who declined to be named. July 16, China Heavy industry re-licensing. But its shares did not rise rapidly as a result of the restructuring plan.　　On the July 16, China's heavy industry opened at 6.71 yuan per share, closing at 6.72 yuan per share. "May 6 The market points are 2,857 points, July 6 has fallen to 2,424 points, therefore, China's heavy industry still have to make up the fall of the need."　　The analyst said.　　Debt rate worries under the proposed reorganization, China's heavy industry restructuring after the completion of its debt will face a surge in the situation. As of April 30 this year, the total liabilities of China's heavy industry after reorganization will be increased by more than 86 billion yuan, an increase of $444.17.　　In particular, the proportion of long-term borrowing will rise, the four enterprises to be injected, especially Dalian heavy industry, the long-term borrowing amount of the largest, about 15.7 billion yuan. In addition to high indebtedness, nowThe risk of Jinguu should not be neglected.　　According to China Heavy Industry 2009 Annual report, as at the end of 2009, its cash flow was negative 720 million yuan, 125.49% lower than the previous year. The debt rate remained high after the deal was completed. "This is mainly due to the cyclical characteristics of the shipbuilding industry, the financial crisis to promote the overall shipbuilding industry in the low, although the global economy gradually to the good, but the overall shipbuilding industry is still in the low hovering." Although the injected assets can increase the company's profits, but because of the cyclical risk of shipbuilding industry, for listed companies will not be too much help.　　The analyst said.　　Analysts of several securities companies have previously said that the future of the company's main focus is on military products and including wind power, nuclear power and other new energy-related business injection. In the capital market, its performance also does not seem to be satisfactory. July 16, the opening day, they boarded the transaction billboard. According to the Shanghai Stock Exchange data show that the first few sold on the day are institutional seats.　　Among them, the sale amount is 100 million more than the purchase amount. In addition, from July 16 to 23rd, the stock was not a big increase, of which two days were in a downward trend. As of July 23 press deadline, and the market continues to rise, the trend is different, the stock is again showing the trend of decline, the newspaper closed at 6.99 Yuan, down 0.71%.