The Strategic Layout Has Been Optimized, And The Reorganization And Integration Of State-owned Assets And Central Enterprises Have Been Implemented Intensively

On the chessboard of optimizing the layout and adjusting the structure of the state-owned economy, central enterprises and local state-owned assets have recently simultaneously made key moves. China Shenhua (601088), China State Shipbuilding Corporation, and the Sinochem Group and others have successively released their plans for reorganization and integration; local state-owned assets in Ningxia, Henan, and Tianjin have also made concerted efforts to reshape the state-owned economic landscape through strategic reorganization. Industry insiders believe that as the deepening and upgrading action of state-owned enterprise reform enters the final stretch in the second half of the year, and policies and measures such as technological innovation and optimizing the layout of the state-owned economy accelerate their implementation, state-owned assets and central enterprises are using reorganization and integration as a fulcrum to fully unleash new drivers of development.

Central state-owned enterprises accelerate the layout of strategic emerging industries.

On the evening of August 4th, China State Shipbuilding Corporation Limited released an announcement regarding the implementation of the acquisition request right for dissenting shareholders in the share swap and absorption merger of China Shipbuilding Industry Corporation (601989) and related transactions. The announcement stated that the transaction has been approved by the China Securities Regulatory Commission and the company will promptly handle the relevant matters of this transaction. The stocks of China State Shipbuilding Corporation Limited and China Shipbuilding Industry Corporation will be suspended on August 13th, and the stocks of China Shipbuilding Industry Corporation will remain suspended until delisting. This marks the official conclusion of the years-long integration of "North and South Shipbuilding".

The energy sector has seen a series of major reorganization and integration moves. On the evening of August 1st, China Shenhua announced that it plans to acquire the equity of 13 energy assets held by its controlling shareholder, the State Energy Investment Corporation. The target range comprehensively covers core links of the industrial chain such as coal mining, coal-fired power generation at the coal mine mouth, coal-to-oil, coal-to-gas, coal chemical industry, and related logistics and transportation systems. This move will significantly enhance China Shenhua's strategic coal resource reserves and integrated operation capabilities.

On August 5th, Inner Mongolia Huadian (600863) announced that its application for a proposed acquisition of new energy assets worth 5.717 billion yuan has been accepted by the Shanghai Stock Exchange. After the transaction is completed, the company's new energy installed capacity and proportion will be further increased. In addition, recently, Huadian International (600027) completed the transfer and delivery of a major asset reorganization, laying a solid foundation for it to build a leading domestic conventional energy flagship platform.

Sinochem Group has been particularly active. Recently, Sinochem International (600500) released a plan stating that it intends to acquire 100% of the equity of Nantong Xingchen, aiming to expand into the high-performance engineering plastics sector. Meanwhile, Sinochem Equipment (600579) announced a plan to acquire 100% of the equity of Yiyang Rubber Machinery and Beihua Machinery, reinforcing its main business direction of "chemical equipment + rubber machinery".

Zhou Lisha, a researcher at the China Enterprise Reform and Development Society, believes that the reorganization and integration of central enterprises will serve higher-level goals, such as supporting major national strategies, green and low-carbon transformation, deepening scientific and technological innovation and digital transformation, etc. In the future, central enterprises will accelerate their layout in strategic emerging industries such as new energy and artificial intelligence.

Local state-owned assets shape a new pattern

Local state-owned enterprises and assets are simultaneously undergoing restructuring. Each region, based on its actual development situation, is resolving the predicament of being "small, scattered and weak" through strategic integration, and reshaping the layout of the state-owned economy.

Recently, the State-owned Assets Supervision and Administration Commission of Ningxia has carried out strategic reorganization and integration of six regional state-owned enterprises, creating three new "flagships" - Ningxia Transportation Construction Investment Group, Ningxia State-owned Capital Operation Group, and Ningxia State Farming Reclamation Group. "This is the largest state-owned enterprise reorganization action in our region in recent years, aiming to break the 'small, scattered and weak' predicament, reshape the state-owned economic pattern, and inject strong impetus into high-quality development," said the main person in charge of the State-owned Assets Supervision and Administration Commission of Ningxia.

Reorganization and integration in Henan Province are being vigorously advanced. The provincial State-owned Assets Supervision and Administration Commission recently disclosed that by promoting the integration of Henan International Cooperation Group and Natural Resources Group, a window and platform for opening up and cooperation will be created; relying on Zhongyu Port Group to integrate provincial resources and accelerate the construction of the core area of the international land port; and establishing Henan Port and Shipping Group to coordinate inland waterway shipping resources and promote the integrated management of investment, construction and operation.

Tianjin guides the direction of mergers and acquisitions and reorganizations through policy innovation. The recently released "Several Measures of Tianjin Municipality to Support Mergers and Acquisitions and Reorganizations" clearly states that it will encourage listed companies and leading enterprises to carry out strategic mergers and acquisitions around advantageous industries such as green petrochemicals and automotive equipment, emerging industries such as biomedicine and new energy, as well as future industries such as future intelligence, aerospace and deep sea. It encourages the acquisition of high-quality unprofitable assets to fill and strengthen the industrial chain and break through the technological bottlenecks that are "choke points". State-owned enterprises will play a leading and exemplary role, and support cross-regional mergers and acquisitions and the landing of high-quality projects in Tianjin.

According to a relevant person in charge of Zhiben Consulting, the basic strategic direction for resolving the reorganization of local state-owned assets and enterprises is to consolidate at the bottom, integrate upwards, and return functions to their proper places. Under this direction, it is necessary to design and implement the integration roadmap based on the actual situation of each region, with a tailored approach for each district.

China Merchants Securities' analysis suggests that focusing on the core business to promote integration will help to coordinate and allocate state-owned capital on a larger scale, strengthen the core competitiveness of state-owned enterprises, and improve the efficiency of capital allocation. As the effects of the reorganization gradually emerge, the overall function of the state-owned economy will continue to enhance, and the investment opportunities related to asset integration are worth paying attention to.