Flying Music Stereo Acquisition Cloud: The target asset performance suspicious rise

Acquisition of the target of 90% revenue from the accounts receivable Flying music audio Acquisition Cloud: The target asset performance suspicious rise Zhang Jianfeng Zhang Yuxiang July 29, Flying Music Audio (600651.SH) announced that the company intends to spend 1.59 billion yuan to buy Beijing Shen ' an group of 100% equity. In the 2013 before the acquisition, Beijing Shen ' an group performance rose more than 200%, this performance is far higher than the same industry companies. It is noteworthy that with the company's performance growth, the Beijing Shen ' an group of accounts receivable also increased significantly. From 2012 to 2013, Beijing Shen ' an group operating income from the accounts receivable exceed 50% and 90% respectively. Some market sources pointed out that Beijing Shen ' an group to use a large number of accounts receivable to high performance, may be to enhance the valuation of the acquisition. In addition, a large number of accounts receivable also buried the risk of bad debts. The high premium acquisition of flying Music Audio was established on November 18, 1984 and was traded on the Shanghai Stock Exchange [Weibo] on December 19, 1990. From 1984 to 1997, the company's main business is home appliance marketing, professional production and sales of audio. From 1997 to 2002, the company's industrial structure adjusted to the IC Card industry transformation. 2002, the company acquired 100% shareholding of Shanghai Minghua Bulb factory, and entered the green lighting industry. 2009, the company's strategic adjustment, the main business focus on green lighting, gradually withdrew from the IC card industry. With the development of lighting business, the business has become the main source of revenue for the leap sound. At present, the company wholly-owned subsidiary of Shanghai Asia-Ming Lighting Co., Ltd., the holding subsidiary of Shanghai Sheng Diaphragm Industrial Co., Ltd. to produce LED lighting products. From 2012 to 2013, the company realized income is 2.014 billion yuan, 2.142 billion yuan respectively, net profit is 105 million yuan, 57.44 million yuan respectively. In the same period, Shanghai Asia-Ming Lighting Co., Ltd. to achieve total operating income of 1.642 billion yuan, 1.649 billion yuan, net profit of 44.6477 million yuan, 8.18 million yuan; Shanghai Diaphragm Industrial Co., Ltd. to achieve total operating income of 287 million yuan, 384 million yuan, net profit is 34.9119 million yuan, 40.95 million Yuan. The proposed acquisition of Beijing Shen ' an group, is one of our large LED lighting solutions provider. Flying Music Audio said that the acquisition of Beijing Shen ' an group, conducive to the company with Beijing Shen ' an group of years of experience in the field of LED lighting application and construction experience, channel resources and customer resources, speed up the company LED lighting business plate expansion, is to achieve the company's strategic development goals of the important measures. However, the purchase price is relatively high by the market attention. As at May 31, 2014, the audit of the transaction is attributable to the parent company's net assets of 413 million yuan, the evaluation value of 1.593 billion yuan, the evaluation of value-added rate of 285.45%. It is understood that this transaction using the income method evaluation results as the final evaluation results. Data show that Beijing Shen ' an group 2014 forecast net profit of 136 million yuan, according to 15.93Billion evaluation of the value of the calculation, then the Flying Music audio acquisition of Beijing Shen ' an group of 11.71 times times earnings. In contrast to the acquisition of the Flying Music stereo, the acquisition of LED assets by China-Beijing Electronics (002579.SZ) is low. In February this year, the Beijing electronic announcement scheme, the company intends to buy 286 million Yuan founder up to 100% Equity. Founder up to 2014 net profit is not less than 28 million yuan, in this calculation, the Beijing electronic acquisition founder up to 10.21 times times earnings. Data show that founder of the current business is the zenith of the flexible printed circuit board (FPC) research and development, production and sales, is used in LED energy-saving lighting field of the FPC market more advanced enterprises. Similarly, Liard (300296.SZ) acquisition of gold Tatsu lighting business also seems to be more cost-effective. Last November, Liard spent 203 million yuan to buy a 100% stake in the lighting. Main business for the building and road lighting scheme design, lighting engineering construction and matching lighting design, installation, sales of Tatsu lighting is expected to deduct 2014 net profit of not less than 22.5 million yuan, in order to calculate, then Liard acquisition of the price-earnings ratio of Tatsu 9 times times. A brokerage analyst told the China Business newspaper that the price-earnings ratio of the company was significantly higher than that of the two companies. The odd performance "myth" of the Flying music acoustics using the income method as the basis of the evaluation results is the high growth of the company's performance. And Beijing Shen ' an group on the eve of the listing of the performance of the "myth" has undoubtedly supported such an overvalued value. Data show that from 2012 to 2013, Beijing Shen ' an group's operating income is 137 million yuan, 419 million yuan respectively, net profit is 20.3659 million yuan, 70.7019 million yuan respectively. 2013 the above two indicators year-on-year growth of 205.83%, 247.16% respectively. This increase is far higher than the industry's diligent photoelectric, Liard, poly-fly photoelectric, sunlight lighting and Lehman photoelectric. 2013, in the LED industry listed companies, Lehman Photoelectric, diligence on optoelectronics, Sunshine lighting to achieve the net profit attributable to the listed companies were 23.04%,-1.17%, 4.52%, and the performance of the Liard and poly-fly photoelectric performance increase is only 37.81%, 43.06 %。 For the Beijing Shen ' an group profit growth is far higher than the performance of peers listed companies, the securities brokers said, even if the company's led business capacity is stronger, will not be better than the performance of listed companies so much, this performance appears too "beautiful." To this, the Flying music audio response reporter said, Beijing Shen ' an group's main business is to provide customers with various types of outdoor lighting, landscape lighting, interior lighting, such as project design, construction, contracting and technical services, with supporting sales of various types of LED lighting products or custom-type lighting products, and to provide customers with contract energy management services. Flying Music Audio said, Beijing Shen ' an group and diligent on photoelectric, Liard, poly-fly photoelectric, sunshine lighting and thunderThere are some differences in the main business types of the man photoelectric. With the substantial increase in revenues and net profits of the company in 2013, the accounts receivable balance of the Beijing Shen ' an group also increased from $80.2568 million in 2012 to $397 million, which accounted for a significant increase in operating income from 58.39% to 94.75% in the same period. Financial director of a listed company said to reporters, from the above data can be seen, Beijing Shen ' an group of these two years of income mainly from accounts receivable, and 2013 income unexpectedly more than 90% from the accounts receivable, this situation in the engineering category of listed companies are very rare. It further pointed out that, from the above situation can be seen, the large increase in accounts receivable is Beijing Shen ' an group of the two years of significant increase in performance of the "most important" hero, but such performance growth is not stable. And it does not rule out a radical way to increase performance in order to raise the price of the purchase. The financial Director pointed out that, if the acquisition is completed, the above high accounts receivable facing the difficulties of receiving, will have a negative impact on the operation of the Flying Music audio company. It is noteworthy that, in the report, Fei Le Audio said that, taking into account the nature of business, receivables are longer, there is a certain risk of bad debts, so the assessment in accordance with the current revenue of 1% forecast the future annual asset impairment losses. According to the analyst, predicting the loss of future annual asset impairment by 1% per cent of operating income in the current year is a good insurance policy for the Beijing Shen ' an group to guarantee its performance commitments from 2014 to 2016. And after the performance commitment period, the annual operating income of 1% forecast for future annual impairment of asset loss preparation is unreasonable, then if the accounts receivable risk outbreak, the flying music sound will have to the Beijing Shen ' an group of bad debts risk to pay. More puzzling is, Beijing Shen an group in its 2014 1 ~ May of the five major customers, readers Publishing Media Co., Ltd. is the first major customer, the purchase amount of 111 million yuan, accounted for 28.29%. Readers Publishing Media Co., Ltd. is a cultural company, why this year so large-scale procurement of Beijing Shen ' an group of products, the reason is puzzling.