The Return Of Quality Leader To A-Share CIMC Vehicle Gem Is A Milestone

Wen / Yu Qing

In April 2020, the registration system reform of gem was officially implemented, which built a new bridge between the development of emerging industries and capital services. In the face of new opportunities in the domestic market, CIMC vehicles (01839. HK), a subsidiary of CIMC group (000039. SZ / 02039. HK), soon began to return to the A-share gem. It was officially accepted by Shenzhen Stock Exchange in July 2020 and successfully passed the meeting in December 2020.

As early as July 11, 2019, CIMC vehicles were officially listed on the stock exchange of Hong Kong. By 2020, under the background of the innovation and reform of domestic capital market, CIMC has ushered in the development opportunity of gem listing. On May 6, 2020, CIMC group announced that its holding subsidiary CIMC vehicles planned to be listed on the gem.

More importantly, CIMC will become the first a + H company controlled by a + H company, which has an important milestone significance. On the one hand, this reflects the innovation mechanism in the domestic market since the implementation of the registration system, which greatly increases the attractiveness of overseas high-quality listed companies; on the other hand, CIMC vehicles will bring demonstration effect to overseas listed companies controlled by other a + H companies, and lead the trend of return of overseas listed companies controlled by other a + H companies.

The return of high-quality leading stocks to A-share CIMC vehicle gem is a milestone

As an important step in the construction of capital market, gem reform and pilot registration system is of great significance to promote transformation and innovation, the overall virtuous cycle of the economy and high-quality economic development.

At present, the gem has gathered a number of industry leading companies with exemplary significance, such as Ningde times and Mindray medical. CIMC vehicles, as a new benchmark in the high-end manufacturing field, has returned to the gem with milestone significance behind it.

The first is the return of high-end manufacturing enterprises. CIMC vehicle is the global leader in the high-end manufacturing of semi-trailer and special purpose vehicle. As the vehicle plate controlled by CIMC group, CIMC vehicle has grown in Shenzhen, the forefront of China's reform and opening up, and is also the representative of China's high-end semi-trailer and special-purpose vehicle manufacturing in the world. It is a long cherished wish to be listed in A-share market.

In 2019, CIMC vehicles will be listed in Hong Kong stock market. After the gem registration system is opened, CIMC vehicles first submitted the listing application. With the meeting on December 25, 2020, gem will usher in another global industry leader.

Secondly, CIMC vehicles will return to gem, or will lead the trend of a + H company controlled by a + H company back to a.

"In the past, due to the split listing policy, many companies had to choose to be listed in Hong Kong and US stocks. But in fact, the liquidity of the overseas capital market is generally general, and the foreign capital's understanding of the business of many domestic companies has always been somewhat estranged, resulting in the value of many high-quality companies being undervalued for a long time. " According to industry insiders, "with the reform of gem and the continuous deepening of China's capital market opening up, the financing capacity of GEM has been continuously improved, and the process of returning high-quality listed companies to a is speeding up."

Data show that the listing of CIMC group is of great significance in innovation and milestone. In 1994, CIMC landed in Shenzhen Stock Exchange. In 2012, CIMC's B-share was delisted from Shenzhen Stock Exchange and transferred to Hong Kong for H-share listing, creating a precedent of B-share to H-share listing, which is also a very few successful cases.

In the subsequent spin off listing, as the listed companies in the A-share market had to wait for a policy breakthrough to spin off their subsidiaries to a shares, the business sectors of CIMC all chose H-share listing, such as CIMC Enrico (03899. HK), etc.

In July 2019, CIMC vehicles chose to be listed in H shares after the spin off, and the policies of A-share market appeared frequently. In December 2019, China Securities Regulatory Commission (CSRC) issued some provisions on pilot projects for domestic listing of listed companies to spin off their subsidiaries. The registration system will be implemented in the gem in 2020, opening the door for more excellent enterprises to be listed on A-share market, while CIMC vehicles choose to be listed on the gem for the second time.

This also benefits from the establishment of diversified and inclusive listing conditions in the process of promoting the pilot registration system and infrastructure system construction by Shenzhen Stock Exchange, setting multiple listing standards considering the expected market value, income, net profit, R & D investment, cash flow and other factors, allowing special equity structure enterprises and red chip enterprises to list. The optimization of IPO conditions will smooth the direct financing channels of enterprises, greatly enhance the inclusiveness of the plate, and greatly stimulate the business enthusiasm of innovative and growing enterprises.

In addition, over the past 11 years, the gem has cultivated many excellent enterprises for the domestic capital market, and the GEM market has gradually become a base for incubating technology-based and growth oriented enterprises. In the view of insiders, as a market segment with stronger growth and a large number of Listed Companies in emerging industries, the gem itself should enjoy a certain valuation premium effect. With the implementation of the registration system, the gem will further enhance the ability of the capital market to serve the real economy and is expected to produce more global great companies.

For CIMC, listing on A-share can further optimize and improve its governance structure, enhance its comprehensive governance level, fully exploit and utilize the financing channels of A-share capital market, attract more domestic high-quality investors, improve stock liquidity and financing ability, promote business transformation and development, create greater value for shareholders and investors, and continuously improve the company's core Heart competitiveness.

Lighthouse factory leads the development of global industry

CIMC focuses on providing high-quality equipment and solutions for the global logistics and energy industry. Over the past 40 years, CIMC has expanded its business to containers, road transport vehicles, energy and chemical storage and transportation equipment, marine engineering equipment, airport equipment, food processing equipment, heavy truck equipment, logistics services, industrial parks and other fields.

In 2019, CIMC's revenue is about 85.815 billion yuan, only one step away from the 100 billion level multinational industrial group. CIMC vehicle is one of the high-quality businesses with core competitiveness and successful global operation under CIMC group. In terms of revenue scale, it is currently the second largest business segment of CIMC group.

As we all know, CIMC is a high-end manufacturer of special purpose vehicles and semi-trailer with products launched in three major markets of China, North America and Europe, with leading market ranking and strong product competitiveness. As of 2019, CIMC vehicles have maintained the first sales volume of semi-trailer in the world for seven consecutive years.

Judging from the performance of the first three quarters of 2020, this position will continue to be consolidated: in the first three quarters of 2020, CIMC achieved revenue of 18.8 billion yuan, with a year-on-year growth of 7.3%.

At the same time, CIMC is expected to achieve an annual revenue of 24 billion-26.5 billion yuan in 2020, which is expected to reach a record high. The global leading position of semi-trailer and special purpose vehicle high-end manufacturing will remain stable.

According to the report of Zhongyan Puhua Research Institute, China's semi-trailer and special purpose vehicle market is still in the development stage, and the immature and non specialized demand market leads to the relatively scattered supply side of China's semi-trailer market. According to the sales statistics of China's semi-trailer enterprises, in 2019, the market scale of China's semi-trailer industry exceeds 80 billion yuan, of which the revenue of CIMC semi-trailer is about 13.55 billion yuan, which can be seen from the market share.

In addition to being the largest semi-trailer manufacturer in the world, CIMC is also China's leading manufacturer of special purpose vehicle loading and refrigerated van body, and leads the traditional special vehicle manufacturing industry to upgrade to high-end manufacturing.

Since 2014, CIMC has begun to explore the construction of "high-end manufacturing system". At present, it has built 12 semi-trailer "Lighthouse" factories, 6 special-purpose vehicle loading "Lighthouse" factories, 2 refrigerated van type car body production "Lighthouse" factories, and has built a series of "product modules" of semi-trailer products.

It is reported that the "lighthouse factory" has made remarkable achievements in improving the utilization rate of raw materials, reducing the number of workers, improving efficiency and green production. According to the Research Report of CITIC Securities, compared with the traditional production mode, the cost of a single car is reduced by about 1000 yuan, the demand for personnel is reduced by 29%, and the per capita output value is increased by 32%.

Looking back on the development of CIMC vehicles, chairman and CEO of CIMC said: "CIMC's vehicle business started in 1998 when I was in Australia and saw semi trailers. At that time, there was no semi-trailer in China. CIMC was the first one, which just caught the great development stage of China's road vehicle upgrading. So we seized the opportunity to start the car making business at the right time, integrate global resources, and soon became the number one in the world sales volume. Moreover, CIMC participated in the formulation of many car standards in China

According to CIMC's vehicle prospectus, at present, the company's annual R & D investment exceeds 300 million yuan, and is in a growing trend. The revenue from core technology products accounts for more than 90% of the total revenue. The R & D team of up to 700 people, more than 1000 registered patents, participated in or led the formulation of 22 national or industrial standards We have jointly built a powerful technology moat for CIMC vehicles in the world, making CIMC vehicles an outstanding representative of China's high-end manufacturing in the world.