标题：Kingenta Ecological EngineeringCompo business acquisition to improve global deployment
发布日期：2016-04-14 9:24:16
内容： What's new Kingenta will spend ？16mn or ~Rmb850mn to acquire CompoConsumer Business from Compo AcquiCo S.à.r.l. Before thetransaction is completed, Kingenta may introduce other investorsto this deal. The M&A target recorded ？54mn operating revenuein FY15, ？4.2mn EBITDA and ？7.4mn recurring EBITDA.Therefore, the payment implies 6.7x recurring EBITDA. Comments Better global deployment in high-end fertilizer. Compo isthe largest supplier of specialized fertilizers and plant protectionproducts for household gardening in Europe. Kingenta will gainadvanced technologies and production lines, a matureinternational marketing network and a global brand. Earlier thisyear, Kingenta spent ？.1mn to acquire International B.V. (thelargest slow-release fertilizer producer in Europe). Theacquisitions should help improve its value chain, product line,service, and brand, and develop the international market, globalproduction and distribution. Domestic industry in infancy, possible blue ocean forproducts and services. Domestic consumer demand forgardening products is limited and customized, which means highcost and little attention from large companies, so China has fewproviders. These acquisitions give Kingenta a big edge. E-commerce is a fine channel for these products and shouldalso improve Kingenta’s competitive edge. Valuation and recommendation As transnational M&A require filing & registration at regulatoryauthorities, we temporarily maintain 2016/17e EPS at Rmb0.90and Rmb1.12. current P/E is 17x 2016e, 14x 2017e. MaintainBUY and TP at Rmb22.5. Risks M&A progress, business integration, new product promotion
发布日期：2016-04-14 9:24:16
内容： What's new Kingenta will spend ？16mn or ~Rmb850mn to acquire CompoConsumer Business from Compo AcquiCo S.à.r.l. Before thetransaction is completed, Kingenta may introduce other investorsto this deal. The M&A target recorded ？54mn operating revenuein FY15, ？4.2mn EBITDA and ？7.4mn recurring EBITDA.Therefore, the payment implies 6.7x recurring EBITDA. Comments Better global deployment in high-end fertilizer. Compo isthe largest supplier of specialized fertilizers and plant protectionproducts for household gardening in Europe. Kingenta will gainadvanced technologies and production lines, a matureinternational marketing network and a global brand. Earlier thisyear, Kingenta spent ？.1mn to acquire International B.V. (thelargest slow-release fertilizer producer in Europe). Theacquisitions should help improve its value chain, product line,service, and brand, and develop the international market, globalproduction and distribution. Domestic industry in infancy, possible blue ocean forproducts and services. Domestic consumer demand forgardening products is limited and customized, which means highcost and little attention from large companies, so China has fewproviders. These acquisitions give Kingenta a big edge. E-commerce is a fine channel for these products and shouldalso improve Kingenta’s competitive edge. Valuation and recommendation As transnational M&A require filing & registration at regulatoryauthorities, we temporarily maintain 2016/17e EPS at Rmb0.90and Rmb1.12. current P/E is 17x 2016e, 14x 2017e. MaintainBUY and TP at Rmb22.5. Risks M&A progress, business integration, new product promotion
