Recently, CGA announcement to 1.0062 billion yuan acquisition of Shenzhen City Peng Automotive (Group) Co., Ltd. (hereinafter referred to as "Shenzhen Peng") 100% equity, to get 18 4S shop, an internet holding company, 1 branches, a second-hand car companies, four business companies.
Among these, including in Shenzhen, Guangzhou, Huizhou and Hunan and other places three Honda 4S shop, 4 Guangzhou Toyota 4S shop, three Audi 4S shop, two Mercedes-Benz 4S shop, two Dongfeng Honda 4S shop, a Beijing Hyundai 4S shop, a Jaguar Land Rover 4S shop, a FAW Toyota 4S shop.
Analysis pointed out that the CGA to 1.006 billion yuan of low-cost access to the Shenzhen Peng in southern China market, nearly 20 outlets, illustrates the intense Automobile Dealers market environment has changed, the traditional 4S shop has moved from a "cash cow" to "thorn pimple."
On the other hand, after the rest of the country to improve regional distribution, CGA Through this acquisition fully into the ownership of the largest in southern China market, will lead the regional market to usher in a fierce reshuffle.
4S shop valuation has shrunk dramatically
CGA announcement that cover business and to further optimize CGA Services AG brand structure, encrypted network expansion to Guangdong, Hunan Province, a wholly owned subsidiary of New Hyde Automotive Services Limited, intends to own funds acquired by a natural person Zhang Bin, Zhang Junfeng Wenyi You and by 100% stake in Shenzhen development Co., Ltd. Junfeng indirectly held by the target company.
It is reported that the transaction amounted to 1.0062 billion yuan, a total of wholly owned 17 4S stores, including three Honda, four Toyota Camry, three Audi, two Mercedes-Benz, two of Dongfeng Honda, a Beijing Hyundai, 1 Jaguar Land Rover, a FAW Toyota. Another holds Chenzhou Peng-Lung Chi Feng Automobile Sales & Service Co., Ltd. 49% stake.
Area 4S shop from the point of view, a total of six 4S shop in Shenzhen, Huizhou has 5 4S shop, Guangzhou has a 4S shop, Hengyang has two 4S shop, Chenzhou, Hunan has 4 4S. It can be said, Shenzhen Peng's 4S stores mostly located in Shenzhen, Huizhou region, and more for the brand accounted for half of the Japanese market in South China.
However, why the quality of 4S shop assets, the valuation has shrunk so much?
It is learned that the 2011 acquisition of Shenzhen Zhengtong Auto SCAS's 31 4S shop, a high trading price to 55 million. In accordance with the audit materials, Shenzhen Peng before spending two months of this year total 23.02 billion, but total liabilities reached 20.35, the net assets of 2.67 billion yuan, sales income of 701 million yuan, net profit of 019 million yuan.
Analysts pointed out that behind Peng low price, is the Automobile Dealers market slump, profit margins have fallen sharply. Data show that in 2015 the Group's total revenue hundred auto dealers about 1.2714 trillion yuan, an increase of about 3.2%, an increase over 2014 of 9.4%, in 2013 16% likely to drop sharply. More critical, car dealer group hundred sharp decline in profitability, gross margin fell 1.66 percentage points, has dropped to 4.47%; net profit margin was 1.22%, down 0.3 percentage points; the return on investment dropped to 7.7%.
By a strong cost advantage layout
It is also the market downturn, let Automobile Dealers market speculators saw an opportunity to strengthen the M & seek greater market share.
In recent years, the domestic automobile dealership and service industry matures, but industry concentration is low, the current situation has not yet been decentralized operation essential change. In the ordinary course of business, large-scale distribution services group by virtue of economies of scale and synergies, better able to grasp industry trends, to better respond to industry fluctuations, thus maintaining good profitability.
CGA in explaining why the acquisition of Shenzhen Peng Feng said, as a leading passenger car distribution and services group, seize the favorable opportunity to carry out need more industry consolidation, in order to better improve their overall strength.
In fact, since entering the market last year grew slightly, CGA with a strong capital advantage, will start large-scale mergers and acquisitions in the country.
Last December, CGA to the total price of approximately HK $ 11.5 billion (about 9.5 billion yuan) to acquire 75% stake in Baoxin Auto. In February, a wholly-owned indirect subsidiary of Xinjiang Guanghui car Longze acquire honor billion cubic Group Dalian Investment Co., Ltd. 100% equity, the transaction amount of about 1.12 to 1.76 billion yuan. Meanwhile, CGA once planned to acquire Kangbenlong Soon Group.
This series of acquisitions to strengthen the competitive advantage of the CGA.
In accordance with the first half of this year, semi-annual notice, CGA attributable to shareholders of listed companies net profit compared with last year, will increase by 50% -60%. This is mainly due to the acquisition of the first half of 2016, more rapid business expansion, acquisition project in 2015 to produce results and the company strengthened fine management and cost control, etc. due in 2016.
South China market structure has changed or
Compared with the previous acquisition, the acquisition of Shenzhen Peng, for CGA, the greater significance lies in the South China market to achieve a true strategic layout.
Has been at the core of Guangdong in South China Automobile Dealers market, the development of the local automobile circulation group occupied the country, dealers hundred list the past three years can be seen widely Qimao, south east, south and other local Mitsubishi car dealers sales among the best. Alien Dealer difficult to have a share from the huge market capacity of the South China market.
Currently, the CGA has not been in the region of Hunan industrial layout, regional distribution network in Guangdong less, influence and profitability of the above-mentioned areas to be further enhanced.
CGA side said the deal an important step to achieve full coverage car brand in the country strategy, after the success of the acquisition, on the basis of access to quality service automobile dealership assets in Guangdong and Hunan, the Hunan Province to further expand the business, and improve network coverage in Guangdong region, the region increased to 4S shop is now 19. Will further enhance the strength of enterprises, enhance the competitiveness of enterprises.
However, the use of capital CGA stick directly in the South China market torn a hole in the future will change the competitive landscape of the market.
"This year the market downturn, for large dealers is an excellent opportunity to make economies of scale to expand market discourse, the formation of the cost advantage. However, this year the whole South China major auto operation is relatively small in particular. "Guangzhou, a large dealer groups in the capital market, the official said operational level, the next period of time may be difficult to find such a time.
At present, Guangdong traditional car dealer group, only the South Link car in three new board listing, and realized capital operation. From this perspective, such as the CGA large national dealers have been settled, with its management and cost advantages, on the one hand will speed up small dealers out of the market, on the other hand will also be local and traditional dealer formed contend.
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