Guangzhou Ship international termination of takeover case hard to rival industry downturn

Container shipping rates from Asia to Europe for the first time ever dropped to zero analysts believe that the shipbuilding industry overcapacity, the next 5 years may exist in May 19 1:30, the International Conference of the General Assembly of 2008, 2009 first domestic stock category shareholder meeting and 2009 first foreign stock shareholder meeting. In order to deal with the possible future crisis of the shipbuilding industry, and because of the change of the valuation system of Guangzhou text-Chong shipyard with the change of industry demand, the company announced the termination of the plan of acquiring 100% of the shareholding of the Guangzhou-owned shipyard of the controlling shareholder of China Shipbuilding industry Group. In accordance with the original plan of the Canton Ship International Rights, will be 10 shares with 3 shares to all the shareholders, the total number of 148 million shares, the collection of funds for the acquisition of Guangzhou Wen Chong Shipyard, the acquisition price of 3.041 billion yuan. The terminated acquisition of the text-Chong shipyard has restored investors ' confidence in the future development of the Guangzhou-ship International.　　However, given the sluggish demand in the shipping industry around the world, it is far from enough to end the restructuring alone. The London Telegraph reported that the first ever drop in container shipping rates from Asia to Europe fell to 0. Huaxia Securities senior analyst Zheng said: "At present from the volume to see basically can be regarded as 0 transactions, so far from the transaction price, and has to the end of the volume to go to the bottom of the end will not say." Just from the production and operation of Enterprises, by 2008 the first half of the shipyard orders have been queued to 2011 years or even 2012 years, so there are still some in hand orders in the implementation of the company this year and next two years should still be profitable, but from the current situation, there are still orders canceled, so the situation in the next few years is not optimistic. "The BDI index, which measures the sentiment of the shipping market, plunged at 763 at the end of November 2008, a 22-year low since January 1987." The current BDI index (the Baltic Dry Index) has tumbled 96%. Huatai Securities analyst to the Securities Daily Reporter said: "Shipbuilding industry is a typical cyclical industry, a few years ago, the expansion of the fierce, bought a lot of ships, 2009, 2010 in the Descent channel, the BDI index may fall, the 2008 financial crisis more exposed the ship industry problems, such as overcapacity. Some foreign clients have been financed by bank loans and are now tightening, export of dry, bulk goods, mainly relatively low-end products, in order to cope with the depth of the market adjustment, Europe, Japan and South Korea's large-scale shipbuilding enterprises have launched the enterprise restructuring measures to reduce the dependence on shipbuilding, planning business areas of diversification, improve the proportion of non-ship business. The route map of shipping industry transfer from Europe to Japan and South Korea is transferred to China. "It is understood that 2009 1-April, the national scale of shipbuilding industry above the total industrial output value of 156.8 billion yuan, an increase of 39.4% per cent, an increase of 18%." January-April, the national shipbuilding completed capacity of 9.54 million tons, an increase of 54%; new ship orders 990,000 loadton, year-on-year decline of 95%, of which April new orders 200,000 DWT, hand-held orders 194.71 million dwt, an increase of 7%. Analysts told the Securities Daily Reporter: "The future is obviously not optimistic, I think the next 3-5 years from the gradual decline in profits should be the state of the industry." The reversal of the industry is the recovery of the world economy and trade from the demand, from the point of view of supply is to eliminate a number of excess capacity, from the conditions of business operation is to adjust the enterprise product structure, improve product innovation and localization rate. "By the impact of the decline in industry demand, the domestic shipbuilding industry, one of the three A-share of the international a-shares from the maximum of 102.89 yuan fell to a minimum of 9.68 yuan, the largest decline of up to 90.59%; the Guangzhou H shares fell from a maximum of HK $68.5 to HK $3.17. Morgan Stanley said April 14 that it would ship international (00317.　　HK the target price was lowered from HK $7.6 to HK $6.6, with a reduction of 16%, 17% and 22% to 2.02 yuan, 1.5 yuan and 0.9 yuan in 2009-2011, reflecting the rising financial costs of enterprises, the possible extension of delivery and the risk of falling. Canton Ship International (600685. SH) a quarterly display, January-March to achieve business income 1.494 billion, a small increase of 5.84%, to achieve operating profit of 152 million, down 53.14%, attributable to the listed company shareholders net profit of 129 million, down 49.84%, to achieve earnings per share 0.26 yuan. During the reporting period, the company's operating income grew slightly, while net profit fell by 49.84%.　　With profits falling, funds were withdrawn from the broad ship, and the fund held a wide-boat position from last year's four quarter to the first quarter of this year, from 12.63% to 4.79% of its circulation. When does the shipping industry get out of the bottom? "The industry will lag the world economic recovery for at least 2-3 years," Zheng said. The shipbuilding industry is mainly the problem of overcapacity, the current global shipbuilding capacity of 200 million tons, China to the end of 2008, the statistics have been built and under construction of the 50,000-ton berth and dock to reach 66 million dwt. And there are basically no new orders, as the new ships that lasted several years reached their peak, accumulated a lot of transportation capacity, and the financial crisis caused the shipping companies to be hit, even if the volume of goods returned to a certain level, the market temporarily does not need to increase the new capacity, the shipping companies to buy new ship decision will become very cautious, Only a few special requirements of the ship will have demand, overcapacity problem may exist in the next 5 years, such a result must be the ship price will fall, the future for a long time shipping companies will experience a downturn some new shipyards are even at a loss. "For investors, given the bleak outlook for the shipping industry, it is not appropriate to buy a broad-ship stock now." As to when it will be the time to sell, Zheng admits: "In fact, 2007 years South Korea two ship orders have been withdrawnBy marking the turning point of the world shipbuilding industry, also from that time the organization is gradually reducing, but the stock price falls too fast, the organization even too late to ship. And the first quarter of this year, the state ship revitalization planning policy of the rebound time to ship, should be a better time. "Perhaps the good news that the Guangzhou ship International passed on May 19 to terminate the acquisition of the assets of the canton City of the shipyard may be an opportunity for investors to take advantage of shipments."