'Shuangjia' shuangxiang Wanrun technology shares the trillion landscape lighting market

Wanrun technology, a well-known enterprise in the LED industry, is also actively moving out. The company announced this evening that it plans to use no more than 2. 0. 9 billion, 2. 2. 5 billion yuan, respectively acquired Guangdong Zhongzhu Tianyou aesthetic Lighting Co. , Ltd. 51. 02 equity and 51 equity of Nanjing Langhui Optoelectronic Technology Co. , Ltd. Both companies have the first-class qualification and photography for professional contracting of urban and road lighting engineering. With the development of LED industry, it is becoming more and more mature, the profit margin of general lighting is constantly being compressed, and most lighting enterprises now rely mainly on scale to win. Obviously, simply fighting the scale is not enough to support the rapid growth of listed companies, so the market segments with large potential and high profits have become the focus of many large companies. In this context, driven by major events, night travel economy, urbanization and other multilateral drive, the landscape lighting industry with a market size of nearly one trillion has set off a boom in the industry. Wanrun technology, a well-known enterprise in the LED industry, is also actively moving out. The company announced this evening that it plans to use no more than 2. 0. 9 billion, 2. 2. 5 billion yuan, respectively acquired Guangdong Zhongzhu Tianyou aesthetic Lighting Co. , Ltd. 51. 02 equity and 51 equity of Nanjing Langhui Optoelectronic Technology Co. , Ltd. Both companies have the first-class qualification for professional contracting of urban and road lighting engineering and the special design qualification for lighting engineering, commonly known as Shuangjia. This move has caused widespread concern in the market. Powerfully join hands to seize the opportunity. Industry experts said that on the one hand, they benefited from the national infrastructure investment and cultural tourism policy, including the country's vigorous promotion of characteristic towns and beautiful China, and the demand for lighting projects related to urban development increased accordingly; On the other hand, a large number of large-scale urban landscape lighting demonstration projects have emerged in the country. The local government's demand for night travel economic construction has exploded, and the urban landscape lighting industry has ushered in opportunities. Enterprises that can grasp such opportunities also need funds and excellent qualifications. Some lighting projects over 100 million yuan take a long time, ranging from several months to several years, it is necessary to continuously invest high costs for it, which tests the financial strength of lighting engineering enterprises. In addition, landscape lighting projects are generally led by the government and implemented through bidding. Lighting Engineering enterprises with more qualifications mean more advantages in bidding. The valuation of listed companies has been comprehensively improved. Driven by the favorable development of the industry and the combination of strong forces, the two companies acquired by Wanrun technology 2018- 2020 performance commitment is very considerable respectively for 45 million, 48 million, 62. 4 million and 50 million, 65 million, 84. 5 million. Based on the current shareholding ratio of Wanrun technology, if the two companies have completed their performance commitments in three years, they will contribute less to the listed companies. Net profit of 0. 8 billion. As Wanrun technology has been very active in various capital mergers and acquisitions in recent years, it has formed an enterprise group driven by both LED and advertising media, and the acquired companies have completed their performance commitments in recent years. Some investors calculate based on this. For example, the bid acquired by Wanrun technology can fulfill its performance promise in 2018, and Wanrun technology's net profit in 2018 will reach 0. 4 billion. For example, considering the industrial benefits brought by industrial cooperation, performance growth will even exceed this figure, so the company's current market value is seriously underestimated. The acquisition of Wanrun technology changed the style of the past, using cash acquisition instead of the previous issued shares. The number of shares purchased was 51, instead of a one-time 100. A brokerage analyst who has long been concerned about Wanrun Technology pointed out that although Wanrun's acquisition style has changed, the strict acquisition terms have not changed, and various unlocking conditions have not changed. The compensation clause is still consistently harsh. For example, the agreement stipulates that to obtain the transaction consideration, the two companies need to purchase Wanrun technology shares through the secondary market within 90 days with funds with a transaction amount of more than 55, the total amount will exceed 2. 0. 6 billion yuan, which will bring more direct benefits to the secondary market of Wanrun technology.