[headline announcement Nuggets]
DongFeng Motor Group (00489) Dongyu Xinsheng's first batch of power cells are delivered offline.
According to the terms of the agreement, the company agreed to buy the target assets at a consideration of 1.714 billion yuan, and DPCA agreed to sell the target assets at 1.714 billion yuan. On the same day, Dongfeng Group also reached a leasing arrangement with Shenlong Company, in which Dongfeng Group leased its target assets to Shenlong Company.
Comments:At one point, DPCA was about to stop production, but this time Dongfeng Group bought its target assets and then leased them back to DPCA, which reduced the financial burden on DPCA and could travel light. This acquisition will not change DPCA's shareholding structure. After the acquisition, the company and Stellantis will further deepen their cooperation to support DPCA to continue to produce existing Peugeot and Citroen passenger cars and Fukang models, while expanding the export business of complete vehicles and spare parts. Dongfeng Group will make use of the advantages of the system to help DPCA integrate into the territory of Dongfeng new energy business, and promote DPCA to press the acceleration key of new energy transformation. In the first half of 2024, Shenlong's first intelligent electric SUV for C-end customers will be launched. In the next five years, DPCA will launch 9 new models and a number of modified models, 8 of which are new energy models. Dongfeng Group's cumulative car sales from January to September in 2023 were 1.4913 million, down about 20.7% from the same period last year. But Dongfeng Motor Co., Ltd., a subsidiary, sold about 113600 cars, up about 14.9% from a year earlier. On October 10, the company announced that Dongyu Xinsheng officially went offline to deliver the first batch of battery products. The production base has a total investment of 12 billion yuan and plans to build an annual 30Gwh new energy power battery, officials said that the lithium-ion power cell off the line covers 300km to 700km and can achieve full coverage of A00 and A0 cars to medium and large cars and SUV full scene applications. On the whole, the acquisition of target assets forms the effect of 1: 1 > 2.
[key announcement Nuggets]
Weichai Power (02338) Fa Yingxi expects the net profit in the first three quarters to increase by about 5.961 billion to 6.624 billion yuan per 10 shares.
Zhitong Financial and Economic APP News, Weichai Power announced that he intends to distribute an interim cash dividend of RMB2.26 (including tax) to all shareholders for every 10 shares. The company's net profit for the first nine months of 2023 is expected to be about 5.961 billion-6.624 billion yuan, an increase of about 80% to 100% compared with the same period last year. The company has laid out hydrogen internal combustion engine technology, completed breakthroughs in key core technologies and commercial applications, mastered a number of original patented technologies, and jointly released the country's first commercial hydrogen internal combustion engine heavy truck equipped with 13L hydrogen internal combustion engine independently developed by Weichai Power in June 2022. On October 13, southward funds were obtained to increase their holdings of 1.838 million shares.
Comments:The performance is quite strong, and the increase in the company's net profit is mainly due to the company seizing the opportunities such as the recovery of demand in the heavy truck industry and strong demand in the export market during the period, driving the performance to achieve substantial year-on-year growth. From January to September this year, China's heavy truck market sold a total of 701000 vehicles, up 34 per cent from the same period last year. In the first three quarters of this year, the cumulative sales of China's heavy truck market has exceeded that of last year, and the overall industry continues to show signs of warming. The company's future development is still resilient: 1, the company's heavy trucks, automotive power systems (engines, axles, hydraulic presses, transmissions) and other products continue to expand exports, according to 50% to 100% year-on-year growth rate, its products are cost-effective, best-selling in overseas markets, market share continues to rise; 2, the acquisition of Leiwo brand production of agricultural machinery, relying on Weichai Power, the market share has increased rapidly in recent years, ranking first in China. Leiwo subsidiary applied for listing on Kochuang Board, which will greatly increase Weichai Power's valuation. 3. The rise in foreign exchange rate brings huge premium income to overseas business and the doubling of exports. Logistics Kaiao faces the European market, accounting for half of the total revenue. 4, continue to expand new energy projects, cooperate with top companies to develop power batteries, the successful research and development of hydrogen internal combustion engine will open up the hydrogen energy market; 5, other costs, such as steel prices, are still in a low position. The company has a good dividend over the years and is favored by the organization.
[list of important announcements for Hong Kong stocks]