100,000,000,000 two of the race: Sany Heavy Industry against Xugongkeji

Who will become the mechanical engineering industry, "the new boss?" Asset re-ignite a new round of the Sany Heavy Industry Xugongkeji between the fuse.

Oct. 7, Xugongkeji (000425.SZ) announcement, the company transferred part of the state-owned stake in the program on September 26 approved by the SFC. At the same time, the company announced a final capital injection program, to buy the amount of 5,309,000,000 yuan.

Means that quite contrast, Sany Heavy Industry (600031.SH) since September 25 the cause of assets restructuring plan suspension, is expected to resume trading on October 10 and the disclosure of the reorganization plan. Sany Heavy Industry Notes Xugongkeji Why in the capital re-suspension of the crucial moment? "The key reason is that once these additional programs,

Xugongkeji income will exceed the size of the Sany Heavy Industry, Construction Machinery became the first unit." Haitong Securities analysts pointed out that one. Earlier, the president of Sany Heavy Industry to the text of 2-year time-multi-wave success of the spoiler, "Carlyle to buy Xugong." Affected by this once quiet Xugongkeji 3 years, the performance decline in a row, earnings per share for -0.02 million. The detonation of the "restructuring", the president of

Xugong Group, Wang is determined to win, "Construction Machinery shares in the first" in the world. Asset restructuring race "Kai Leiche from the end of Xugong", and Sany Heavy Industry Xugongkeji competition to the beginning of capital markets. In the reorganization of the race, Sany Heavy Industry was left behind.

Xugongkeji reorganization of the final plan: to Xugongkeji Xugong Group of additional targeted, the acquisition of its owned Xugong 90% stake in heavy-duty hydraulic pieces of the company 50% stake in the company dedicated 60% of the vehicles, special machinery company 90 % Of the equity, providing 90 percent stake in the company cranes, Import and Export Corporation 100% stake in Xugong, as well as have a registered trademark, and Test Center-related assets (including liability).

Prior to the program and compared to the original issuance price of 16.47 yuan per share, but the price of assets acquired by the plans of 5,309,000,000 yuan fell to 5.6 billion, 1,800 million shares to reduce the issued shares. Relating to securities analysis, and this year is expected to Xugongkeji in 2009 net profit of 11.3 billion yuan, 955,000,000 yuan, after the issuance of the corresponding 86744.4631 million shares, the total share capital is expected in 2008 and 2009 earnings per share of about 1.31 yuan and 1.12 yuan . At present, Sany Heavy Industry of the total share capital of 1,490,000,000, earnings per share to 0.55 yuan. It is clear that after the reorganization of the Xugongkeji Sany Heavy Industry is more optimistic than the results. "This is only from the stock's performance, in fact, Xugongkeji income scale will be much higher than the Sany Heavy Industry, the two companies will determine the final profit." Guotai Junan analyst Zhang Jincan said.

Xugong Group Chairman Wang previously an interview that "in the first half of this year, Xugong heavy-duty operating income of about 10.4 billion and net profit of about 8 billion, annual revenue is expected to more than 15,000,000,000 yuan." Upon completion of the reorganization of the above, Xugong heavy Xugongkeji will be the core assets. Financial statements show that last year Xugongkeji 3,266,000,000 yuan of business revenue, combined with the injection of various types of assets, Xugongkeji annual income will be more than 20,000,000,000 yuan. In contrast, the Trinity Group operating income last year of about 13.5 billion yuan, of which only listed company Sany Heavy Industry 9,140,000,000 yuan. Although the group announced on March 1 last year, the total amount of more than 4,000,000,000 yuan of profits, but from 2,000,000,000 shares in investment income, rather than from product sales.

After the reorganization of the business from Xugongkeji size and profitability over the current performance of Sany Heavy Industry. The performance gap is the president of Sany Heavy Industry to the text wave of worry about the key issues. Trinity Group, Sany Heavy Industry holds 60.73 percent stake in Trinity Group Excavators, truck crane, machinery, such as coal assets into listed companies have not yet. In the reform, commitment to Trinity Group, has been phasing out the other engineering machinery assets into the Sany Heavy Industry. Sany Heavy Industry Annual Report 2007 also revealed for the extension of the company's product line will start in the first half of 2008 to acquire the business of the Group Excavators. Access to Information show that Trinity Group Excavators in 2008 about the creation of 200,000,000 yuan of profits. Analysts think that excavators into the business Sany Heavy Industry, thickening of the listed companies 10% -20% of the performance. But the thickening is difficult to reflect the performance of this year, at least until next year.

Industrial Park expansion In fact, in addition to capital operation, Sany Heavy Industry, through the expansion of various types of plans are "ready to fight back." October 6, Sany Heavy Industry Bulletin, to be of a wholly-owned subsidiary of Trinity International Development Limited capital 100,000,000 euros for the construction of Europe in Cologne, Germany, R & D center and production base machine. Sany Heavy Industry of the pace of internationalization is accelerating, following in India, the United States to set up industrial parks, Cologne, Germany, Sany Heavy Industry is to create overseas production base in the third leg. Project RMB, annual profit will total 48,020,000 euros.

Sany Heavy Industry-related securities on our reporter said, "in Cologne, Germany, to invest and build factories, Sany Heavy Industry in Asia, North America, Europe has a production base that will help Sany Heavy Industry than other similar companies to expand overseas . " Sany Heavy Industry in September 2007 to set up wholly-owned subsidiary of Trinity International Development Limited, the company registered capital of 60,000,000 U.S. dollars. The most crucial is that Hong Kong on March 1 for International Development Sany Heavy Industry Co., Ltd. will serve as a global investment platform for the operation of the primary. According to the briefing, Sany Heavy Industry in the U.S. state of Georgia land 220 acres, 60,000,000 U.S. dollars investment in the establishment of the United States Sany Heavy Industry R & D, manufacturing center, plans to 5 years to achieve production capacity 500,000,000 U.S. dollars. As early as the end of 2006, Sany Heavy Industry 60,000,000 U.S. dollars investment in India to set up industrial park in the project with a total investment of 60,000,000 U.S. dollars. "From a business strategy, Sany Heavy Industry is not only of international expansion beyond the size of Xugong Group, the investment beyond the industrial park in Xugong. However, the expansion arising from the performance to be reflected in the next few years." Haitong Securities analyst, said Ye Chang .

On the one hand, Sany Heavy Industry, through the international strategy to accelerate the creation of overseas R & D and production base; On the other hand, Sany Heavy Industry in Beijing, east China, Hunan, and other efforts to expand the industrial park. In September this year, Sany Heavy Industry Bulletin, started construction in Changde Industrial Park project, which will serve as a base for the ground, asphalt mixing plants, such as equipment manufacturing base. It is understood that the industrial park in Changde in Hunan Province on March 1 will be the fifth regional industrial park. At the same time, as early as April this year, Trinity Group, signed an agreement with the parties concerned in Beijing, plans to invest 8.0 billion in the Beijing Zhongguancun Science and Technology Park, Beijing Huilongguan area expansion of the Trinity Industrial Park, is a leading product-type borer. May 6, Trinity Group and the city of Huzhou in Zhejiang Province Wu Xingqu sign a cooperation agreement to spend 8.6 billion project to create Wu machinery manufacturing base.

According to Wen Bo, president of Sany Heavy Industry, "the creation of industrial parks is to expand production capacity of the Group on March 1, hundreds of billions across an important way to development goals." At the same time, the text of the wave also pointed out that this future Sany Heavy Industry for the operation of capital Reserve assets quality. Reporters learned that in order to wave to the text of Sany Heavy Industry "100,000,000,000 yuan," the development goals, Wang also worked out Xugong Group, "100000000000" blueprint. However, Xugong Group's investment plan very carefully. It is worth noting that in 2007 Sany Heavy Industry Group, the total income of 13.5 billion yuan, Xugong Group's total revenue reached 30.8 billion. It is clear that the two companies the size of the current gap, so that the text feeling the pressure wave.