The China Truck Network reporter got the latest news, and Weichai Group, a subsidiary of Shandong Heavy Industries, had made the latest progress in acquiring Ferretti, an Italian luxury yacht manufacturer. It is reported that on January 10, 2012, Weichai Power will formally acquire Ferretti, and Weichai Chairman Tan Xuguang will attend the signing ceremony. This not only means Weichai's determination to expand its marine engines, but also demonstrates the firm pace of Weichai's move into the world.
According to reports, Ferretti has reached an agreement with its creditors and agreed to be acquired by Shandong Heavy Industry Group, which will reduce Ferretti’s debt from 685 million euros to 116 million. At the same time, the company will receive another 180 million euros in financing.
Since Weichai Power (000338.SZ) had previously acquired the 100-year-old French Baudoin Engine Company and already had the engine manufacturing capability for yachts, Weichai Power is expected to share the increase in the volume of business brought about by this acquisition, while the future We also do not rule out Weichai Power's involvement in the yacht business.
Yacht manufacturing into key areas
All the state-owned shares of Shandong Heavy Industry are owned by Weichai Holding Group Co., Ltd., Shandong Construction Machinery Group Co., Ltd. and Shandong Automotive Industry Group Co., Ltd., and the state-owned shares of Shandong Degong Machinery Co., Ltd. held by Shandong Provincial Transportation Industry Group Corporation. Turn to build. According to the agreement at that time, Shandong Heavy Industries will shoulder the heavy responsibility of building a 100 billion auto parts group in Shandong.
After the strategic plan was implemented three years ahead of schedule, the focus of Shandong Heavy Industry began to focus on the machinery industry to the entire vehicle market and emerging markets. Based on the original business, Shandong Heavy Industry combed out five major businesses, including power systems, construction machinery, commercial vehicles, auto parts and yacht manufacturing.
Shandong Heavy Industry said the insiders told this newspaper that the yacht business is mainly responsible for its Weichai Group.
In July 2011, Ferretti and Shandong Heavy Industry signed a non-binding letter of intent regarding the establishment of a joint venture between the two parties to develop industry partnerships for the design, production and sale of power yachts in Greater China and other emerging markets.
Since the financial crisis in 2008, the demand for luxury yachts in the international market has fallen sharply, and Ferretti’s production and profits have also suffered. In fiscal years 2009–2010, the company’s operating costs exceeded 310 million euros, and gross profit from the previous 7.7 Billion euros fell to 5.1 billion euros.
In order to get out of the current predicament, Ferretti management decided to find new shareholders and funds, and study and formulate the company's future development strategy. According to foreign media reports, Ferretti quoted 350 million euros to sell 75% of its shares to Shandong Heavy Industry, including trademarks, shipyards, and sales networks. This provided an opportunity for the acquisition of Shandong Heavy Industry.
Weichai Power Sharing Yacht Business
A person in charge of the Weichai Power Securities Department told the newspaper yesterday that the acquisition of Ferretti was not driven by Weichai. It should be at the group level.
However, Weichai Power does not have anything to do with the yacht business. In 2009, Weichai Power successfully acquired the 100-year-old French Boduuan Engine Company and obtained the products, technologies and brands of Baudouin, becoming China’s largest and most powerful multi-purpose engine and power system group. Production of yacht engines.
However, since 2011, the performance of Weichai Power has dropped significantly. In the third quarter of 2011, Weichai Power achieved operating revenue of approximately 10.55 billion yuan in one single quarter, a year-on-year decrease of 22.9%, and net profit attributable to shareholders of listed companies was only 1.08 billion yuan, a year-on-year decrease of 31.1%; the company achieved operating revenue of 47.18 billion yuan in the first three quarters. Yuan, a year-on-year increase of 0.6%, achieved a net profit attributable to shareholders of listed companies of 4.58 billion yuan, a year-on-year decrease of 4.6%.
According to the statistics of the China Association of Automobile Manufacturers, the output of heavy-duty truck industry in the first three quarters of 2011 decreased by 15.8%, and sales volume decreased by 9.8%. The major contribution of Weichai Power's main business is heavy-duty vehicles, engines, and Fast transmissions. The engine and gearbox business is the main source of profit.
Weichai Power has been looking for new profit growth points. Weichai Power executive director and general manager of technology Sun Shaojun had previously disclosed to the outside world that Weichai Power already possesses the production capacity of yacht engines. Weichai Power will extend the existing yacht engine industrial chain and plan to achieve the adoption of overseas acquisitions from engine manufacturing to The leap in yacht manufacturing, the acquisition target may be the leading yacht manufacturer in the United States or Europe, and related acquisitions will be completed by 2012.
In response, the above-mentioned person in charge of the Weichai Power Securities Department emphasized that the company does not currently have plans to enter the yacht manufacturing field. “Is it going to enter in the future and it is still not easy to say at this time.†He said that the company’s current business in yachting is mainly focused on Yacht engine area.
Hua Yi United Securities analyst Wang Yuming believes that the current European and American yacht market has become saturated, and the domestic yacht market has just started, the future market space is broad, foreign yacht manufacturers optimistic about the Chinese market, have invested in domestic factories.
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