"Tertiary" Strip is hard to find the cigarette assets, closed transfer possibilities
Traditional market view, tobacco system "tertiary" stripping for cigarette companies to provide a significantamount of merger and acquisition deals. We proceed from the historical policy, systematically reviews thestatus of system output stripping tobacco. Study finds that three Peel are more concentrated in the tobaccosystem in chemical industry, tourism, electricity, construction and other industries, hardly a deal involvingcigarette labels production or packaging and printing. In addition, seen from the acquirer, cigarettecompanies nearly three years involving mergers and acquisitions do not come from the subject of tobaccosystem, and more concentrated in private enterprise. Based on the above facts, we believe that the tobaccocompanies and not from the public way to transfer the cigarette or other packaging and printing assetsthrough closed higher probability of transfer of the assets, three acquisitions from Peel to the cigaretteindustry is not obvious.
Cigarette stocks limited market space, increasing cost of mergers and acquisitions in the industry
The cigarette industry's overall size by cigarette consumption decisions. As China's population growth isslowing and the smokers tend to be stable, domestic cigarette market growing space is limited. 2013 cigarettesold 2.576 trillion, an increase of 1.4%, the lowest level of growth in a decade. In such cases, cigarettecompanies to achieve growth without the extensive expansion with mergers and acquisitions as representative.However, we have found that cigarette tobacco system is a piece of cake in the stock of resources, resourcesare relatively limited, and now rarely publicly stripped only by virtue of this part of the resource does notgive cigarette companies plenty of room to grow. Meanwhile, the cigarette assets acquisition costs risingtrend, increasing funding pressure on the acquirer from cigarette brand assets reflect only rely on mergers and acquisitions to become bigger and stronger strategy unsustainable. Therefore, we believe that thecigarette brand faucet should be far-sighted, based on the "big print", "large packaging" category, cloudprinting, PET films as a representative of new business has a broad development space, with financingadvantage publicly traded company strategic cooperation, mergers and acquisitions, and other ways you can get involved in market for new business, to find new engines of growth, breaking the growing.
Dong Feng Jin Ka mergers and acquisitions capabilities highlighted, expansion potential in the industrialchain
As the cigarette industry to endogenous growth, slowing trend for a long time to establish, through theintegration of industry and cross-industry resources for growth has become inevitable. However, with themerger increased competition, rising costs of mergers and acquisitions, acquirers of funding pressure is alsogrowing. Listed companies have the advantage of financing channels, low financing costs, in a strong positionin the mergers and acquisitions. Through analysis of financial indicators, we believe in three great smokyDragon, Dongfeng shares and shares the most stable cash flows, while maintaining low-leverage situationsstill have high profitability, mergers and acquisitions were quite strong. Dongfeng shares as an industrywithin the industry's most complete coverage of the cigarette brand leading products covering upstreamproduction of paper products, PET base coating and ink, as well as downstream of the cigarette design,printing and other sectors, able to handle industry chain profit and operating efficiency, extensivepossibilities of expansion through acquisitions industrial chain bigger and more successful.