Seagull Living (002084): Proposed acquisition of champion building materials subsidiary complete sanitary development

Seagull Living (002084): Proposed acquisition of champion building materials subsidiary complete sanitary development

Seagull Living (002084): Proposed acquisition of champion building materials subsidiary complete sanitary development

Event On December 24, Seagull Laborers issued the “Announcement on Signing Cooperation Agreement”.

  The company and Champion Building Materials extended the “Cooperation Intent Agreement” on December 23, 2019, intending to acquire no more than 60% equity of the wholly-owned subsidiary of Champion Building Materials.

The “Cooperation Intent Agreement” signed this time is a preliminary intent and is the basic consensus reached by the company and champion building materials on cooperation in ceramic tile production and operation. More specific formal agreements are required for specific matters.

  Our analysis and judgment business has been extended to the production and operation of ceramic tiles. The development of complete sanitary wares can be expected. The old building tile enterprise champion of this cooperation, which was established in November 1972, was listed in Taiwan, China in 1992, and is listed on the mainland.With Kunshan, Jiangsu as the national marketing center, professional green tile production bases have been established in Penglai, Shandong and Suzhou, Anhui.

The “Champion” brand is the innovation of champion building materials. Since 2018, it has been the “Top Ten Tile Brands” for the best home furnishing for two consecutive years, and has been selected as the “Top 500 Most Valuable Brands in China” by the World Lab for 11 consecutive years.

At the same time, Champion Building Materials is an important partner for many major customers of star projects, such as: Beijing Olympic Bird’s Nest, Water Cube, Shanghai Pudong International Airport, Shanghai Maglev Station, Taipei Railway Station, etc., and with internationally renowned chain brands KFC, McDonald’s, Starbucks,BMW, Cadillac, Hema Xiansheng, etc. have formed strategic cooperative relationships and become Vanke, Greenland, Poly, Wanda and other well-known real estate, hotels, luxury homes and other high-end decoration preferred brands.

With a good reputation and excellent quality, Champion Building Materials has been highly recognized in the market. Its products sell well in more than 70 countries and regions including the United States, Japan, Germany, France, Britain, South Korea, Australia, Africa, Southeast Asia and other regions.

  Haigu Shougong acquired 60% equity of Champion Building Materials’ subsidiary this time to expand ceramic tile production and operation.

At present, the complete assembly materials on the market are mainly divided into three types: SMC, color steel plate, and ceramic tile. In addition to the traditional SMC products, the company has realized the conversion of color steel plate products, and the tile products have also completed sample confirmation.

In the first three quarters of 2019, the company’s complete bathroom business achieved revenue1.

37 ppm, a 319-year increase.

77%; Realized revenue of 4347 in the quarter of 2019Q3.

270,000, an annual increase of 401.

97%, the whole bathroom business continued to grow rapidly.

If the first cooperation is officially reached, the company will expand its business to the production and operation of ceramic tiles through the integration of the industrial chain, and promote the continued development of the new business of complete bathrooms.

  Hardcover rooms are trending, and Seagull ‘s complete sanitary and bathroom layouts are beginning to bear fruit. The company currently owns two custom-made sanitary ware brands, “Youchao” and “Seagull Furunda”. In the first half of 2019, in order to expand the coverage of sanitary ware sales,Through the integration of key city marketing centers, six complete bathroom sales areas have been established in South China, East China, Central China, Southwest China, Beijing, and Northeast China; with a good brand image and excellent product quality, Seagull Furunda continues to become Longhu Real Estate and Yuexiu Real EstateAfter Vanke Real Estate’s SMC and color steel plate complete sanitary ware collection suppliers, it further expanded its market share to become Xuhui Leading Apartments, Excellence Group, China Resources Land and Shangkun Group.

  On July 25, 2019, Seagull Laborers completed the registration change of industrial and commercial increase of capital to Jaco Polo, directly holding Jaco Polo 67.

27% 南京桑拿论坛 equity.

Jaco Polo is a full-house custom home enterprise that integrates design, production, sales, installation and after-sales service, as well as all-in-one cabinets, wardrobes, etc., is Evergrande, Country Garden, Yuexiu, Poly, R & F and other national well-known real estate group companies hardcover room cabinet, Wardrobe, bath cabinet project supporting strategic partners; the addition of Jaco Polo, has enriched the company’s existing complete bathroom interior product categories, and laid the foundation for the company’s future expansion of the customized overall kitchen business.

  As one of the leading technology providers of interior package solutions for the complete bathroom industry, the company actively participates in the formulation of relevant industry standards. The standards currently participating in the formulation include “Assembled Moderate Toilets” and “Technical Specifications for the Application of Assembly Moderate Toilets.”

In addition, the “Assembly Integrated Bathroom Application Technical Standards” (JGJ / T467-2018), which was previously compiled by the company, has been officially released by the Ministry of Housing and Urban-Rural Development and implemented on May 1, 2019.

  The company continues to deepen its transformation and upgrading strategy, actively explores the domestic interior industrialized parts and services market, and vigorously develops domestic sales of customized private bathrooms, cabinets, smart homes and other private brands. The initial strategic layout of the bathrooms and other businesses has achieved initial results.

According to the company announcement, the company’s net profit attributable to its parent in 2019 is expected to be 10,841.

98 to 15,000.

330,000 yuan, an increase of 158 in ten years.

46% -257.


  Investment suggestion: Regardless of the transaction of the Cooperation Intent Agreement, we estimate that the net profit of Seagull Living will be 1 in 2019-2020.

29, 1.

5 billion yuan, an annual increase of 208.

02%, 16.

27%, corresponding to the current PE of 25.

4x, 21.

8 times.

The first coverage was given an “overweight” rating.

  Risk warning: The development of the whole bathroom is less than expected; the price of raw materials fluctuates greatly.