The hottest Hengli oil cylinder transformed into a

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By virtue of overseas mergers and acquisitions, Hengli oil cylinder has transformed itself into a hydraulic system integrator. By virtue of overseas mergers and acquisitions, Hengli oil cylinder has transformed itself into a hydraulic system integrator. China Construction machinery information has worked hard towards the goal of transforming itself into a hydraulic system provider. Hengli oil cylinder (601100) announced its acquisition of Harvey inline, a German core technology enterprise

Ding Hao, Secretary of the board of directors of Hengli oil cylinder, revealed that the original plan was to seek overall equity cooperation with Harvey group, the parent company of Harvey inline. "Both parties are aware that the overall equity cooperation is not yet fully ripe, and the cake needs a mouthful. But the company finally bought what it has always wanted to buy. After this acquisition, the promotion of the company's hydraulic pump, casting and even the overall hydraulic strategy will usher in major opportunities. This also lays the foundation for the future in-depth cooperation between the two companies." Reflected in the performance level, the hydraulic product structure of Hengli oil cylinder will be improved, and the casting order will be greatly released

an industry analyst at a Shanghai securities firm believes that "this overseas merger and acquisition of Hengli oil cylinder may become a sample of introducing German industry 4.0 to connect with made in China 2025. At present, China's manufacturing industry urgently needs to be upgraded, and overseas mergers and acquisitions are one of the shortcuts to quickly introduce advanced technology. It is worth looking forward to how much chemical effect the cooperation between Hengli and Havel can produce in the future."

"Harvey inline is a hydraulic pump, and Hengli oil cylinder has also started to do hydraulic pumps in the early stage. The acquisition of the same business is not for mergers and acquisitions, but for the sake of brand positioning and company strategy. To give investors a popular example, the positioning of Hengli oil cylinder is Yager, while the positioning of Harvey inline is Armani, and the brand positioning is different from the customer group." Wang Liping, chairman of the company, revealed that, "The acquisition of German manufacturing core technology enterprises has always been the most desired thing for the company, and has been concerned for a long time. Because of some coincidences, I don't want to miss the opportunity to win this time. The hydraulic industry is not big, but it is not easy to acquire each other, especially at present, it is very difficult for Chinese manufacturing enterprises to go out and acquire companies with core technology. Foreigners are not very willing to sell it to me People. "

the outside world is a little strange to Harvey's name, but for professionals in the hydraulic industry, Harvey's name is not unfamiliar. Harvey has a history of more than 60 years. It is a family business headquartered in Germany, providing hydraulic technology solutions for more than 70 kinds of industrial equipment, as well as consulting, system design and CAD support. Among the hydraulic enterprises in Germany, Harvey ranks among the top three in the industry, second only to Bosch Rexroth, the world's hydraulic giant, and is equal to hytrek in the industrial chain

"The characteristics of Harvey inline products are very prominent in the industry. First of all, they are made in pure Germany. The history of Harvey inline company is even earlier than that of Harvey group, which can be traced back to 1901. It was acquired by Volvo company in 1974 and Harvey group in 1999. The hydraulic pump of Harvey inline is mainly used for agricultural and forestry machinery, heavy trucks and marine engineering equipment, while the hydraulic pump of Hengli oil cylinder is mainly used for construction machinery such as excavators, which is similar to the current situation of the company There is good complementarity between products. Harvey inline products are famous for their durability, reliability and stability. At present, the price of single products is even higher than that of Bosch Rexroth in Germany. Because of its high-end positioning, it used to be mainly for large European enterprises. " Ding Hao, Secretary of the board of Hengli oil cylinder, introduced

according to the announcement, the transaction price determined by the two parties through negotiation for the acquisition of Harvey inline by Hengli oil cylinder is 13.7 million euros. "This price is almost the same as its one-year income. If you acquire a company with the same technology as the international level in China, you are unlikely to win with this valuation. This also reflects the valuation advantage of overseas mergers and acquisitions at present." Ding Hao revealed

according to the announcement, Harvey group and its affiliated companies have obtained the exclusive distribution right of inline's products outside China for the next five years (2016-2020). Five years later, Hengli and Harvey group negotiated and concluded a new distribution agreement according to the market conditions at that time. Harvey set but blocked the visible light group to strive to achieve sales in 2016 that exceeded sales in 2015. Hengli and inline have the right to directly sell products produced by inline to direct sales customers. In the next ten years (from January 2016 to December 2025), Harvey group grants the right to use the "haWe" trademark of inline company, so that inline company can use the trademark alone or as part of the combined trademark with "inline" on its products. Some hydraulic experts believe that the sales revenue of Harvey inline can be increased by at least 50% in the next three years because the sales network overlaps the dual channels of Hengli and Harvey, while keeping the brand of haWe unchanged

on the day of the acquisition announcement, Hengli oil cylinder also announced that the company had signed an international cooperation agreement with Harvey group of Germany. Including: Harvey group and the company will cooperate in supply chain management and make use of their respective resource advantages to facilitate the other company's procurement business; The company will provide high-quality and high-priced casting products to Harvey group and its affiliates, and Harvey group will give priority to purchasing Hengli's casting products; In the next ten years (from January 2016 to December 2025), Harvey group will provide continuous technical support to inline and establish a joint research and Development Steering Committee to guide the research and development of inline products

"Harvey inline's advantage lies in its very good development in the European market. After the acquisition of Hengli oil cylinder, it can concentrate on operating the domestic market in China. Before, Harvey inline's market development in China was not enough, and the Chinese market is the strength of Hengli oil cylinder. This is also the reason why the company believes that after the acquisition of Harvey inline, it has great confidence and can manage this asset well. In the future, both parties will work together to develop the American market 。” Ding Hao said

Hang Li oil cylinder was suspended in the early stage according to the standard of major asset restructuring, and then resumed trading because the acquisition object failed to meet the standard of major asset restructuring. The person in charge of the company admitted to China Securities News that the original plan was to make an overall acquisition of Harvey group, the parent company of Harvey inline. Now it is inconvenient for the company to disclose why it did not make an overall acquisition of Harvey group this time. However, the cooperation between the two sides will continue to deepen in the future, and the company will always maintain a positive attitude. It should be noted that as the hydraulic pump business of Harvey inline is injected into the company, and the hydraulic plant of the company is officially put into operation in the early stage, the casting plant will also rapidly increase the volume through this cooperation with Harvey. In the future, Hengli oil cylinder will get rid of the situation of relatively single product structure and enter a new stage of becoming a hydraulic system supplier. At present, the abbreviation of the company's securities still contains the word "oil cylinder", but in the future, the company will not rule out renaming in due course

old fist products meet the ceiling

Hengli oil cylinder products play an important role in the machinery industry chain

in the early stage of listing, the company's main product has been high-pressure oil cylinder. Statistics show that the company is an independent brand enterprise that broke the monopoly of foreign capital and achieved the first large-scale production of excavator special oil cylinders in China. In the first half of 2015, it accounted for 48% of the market share of excavator special oil cylinders. At the same time, the company is also the world's largest supplier of high-pressure cylinders for shield machines. Shield machines used in subway construction in Japan, Australia and other countries are loaded with hydraulic cylinder products produced by Hengli cylinders

different from the traditional way of holding high the banner of price war with the so-called "low-cost and low-quality" products, quickly excluding foreign brands, and gradually adjusting the product structure in the later stage, Hengli oil cylinder has been aiming at adhering to the high-end positioning since its listing. At the business level, since its listing, the company has mastered the key technologies of pump and valve products by establishing the first large-scale production base of high-precision hydraulic castings in China, acquiring the old state-owned enterprise Shanghai Lixin Hydraulic Co., Ltd., and investing 1.2 billion yuan to build the world's largest hydraulic production base. The products have broken the foreign monopoly, and their performance has reached and partially exceeded the international mainstream level. At present, the company is the first brand of excavator cylinder in China and the only local supplier. After long-term research and development and trial production, the company's customers not only cover Sany, Liugong, XCMG and other domestic first-line brands, but also successfully enter the global supply system of caterpillar, Shengang, Kubota, Hitachi and other well-known foreign brands

according to common sense, a company that successfully squeezes out foreign brands in a certain segment is bound to enjoy huge market dividends. In recent years, this has been the case in security, information security, rail transit and other fields. However, from the perspective of performance, Hengli oil cylinder obviously did not enjoy this treatment. Since 2012, the gross profit margin and net profit margin of the company have been in a downward trend. In 2014, the company achieved an operating income of 1.09 billion yuan, a year-on-year decrease of 11.1%; In the first three quarters of this year, the company achieved an operating revenue of 803million yuan, a year-on-year decrease of 3.94%. The net profit attributable to shareholders of listed companies was 65.74 million yuan, a year-on-year decrease of 12.51%, and the net profit of shareholders after deduction of non profits was 88.17% year-on-year decrease

The crux of the problem is that the downstream of the company is experiencing an unprecedented trough. According to the statistics of the excavation machinery branch of China Construction Machinery Industry Association, the domestic excavator sales volume in the first half of 2015 was 38328, a year-on-year decrease of 42.3%. 18 listed companies of construction machinery and key parts and components of construction machinery suffered an overall loss of 590 million yuan in the first half of 2015, a year-on-year decrease of 114.89% compared with the profit of 3.96 billion yuan in the first half of 2014. The loss of the whole construction machinery industry in 2015 may be inevitable. On the one hand, the downstream market continues to decline, on the other hand, it is the double squeeze caused by the disappearance of the demographic dividend and the rising rigid expenditure. The 2015 semi annual report shows that in the first half of 2015, the company spent 22.38 million yuan on raw materials and 23.57 million yuan on fuel and power, which increased by different ranges compared with the previous period

the recession of the construction machinery industry also led to a significant decline in the sales of Hengli's Excavator cylinder products. The data released by the excavator Association as of July showed that the decline of the industry was still obvious. Relatively speaking, the performance decline of Hengli oil cylinder is significantly lower than that of the industry, and the company's market share remains stable. According to the person in charge of Hengli oil cylinder, in view of the current situation of the domestic industry downturn, the company adjusted the product structure and increased the market development of non-standard oil cylinders, especially in the fields of shield tunneling, marine engineering, aerial work vehicles and so on, which to some extent made up for the impact of the decline in the excavator industry. The non-standard oil cylinders achieved a 30% growth in the first half of 2015. The company focuses on the development of overseas customers, most of which are leading enterprises in the industry. Based on subsidiaries in the United States, Germany and Japan, we will strive to develop more product types for overseas customers and make breakthroughs in the supply of new customers. At present, the export business of the company has accounted for more than 30%, and the supply of foreign brands accounts for 50%. The company accelerates the research and development progress of pump and valve products, strives to achieve mass production as soon as possible, and improves the matching degree of products to the application fields of downstream strategic emerging industries, especially accelerates the research and development and matching of hydraulic core components in marine engineering, rail transit, high-end CNC machine tools, aviation and other fields

an industry analyst pointed out that no matter for customers

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