Mitsui water meter focus on heating reform plans to acquire two heat meter manufacturers


Jiangxi Sanchuan Water Meter Co., Ltd. has announced its intention to announce that it intends to acquire Beijing Tian Ruixiang Instrument and Meter Co., Ltd. and Beijing Tianrui Xiangde Measurement Technology Co., Ltd. as part of its equity interest.

Beijing Tim Ruixiang Instrument Co., Ltd. is a high-tech enterprise specializing in the development, research, manufacture, and sales of heat supply metering management systems, heat (cold) meters, and heat pipe networks. The company has an annual production capacity of 1 million heat meters and 300,000 sets of on-off time area products.

The registered capital of the company is 35 million yuan. Licensed business project: assembly, processing heat meter. General management projects: Sales and development of heat meters, water meters, flow balancing valve, thermostatic control valve, temperature measuring ball valve; technical consulting; technology transfer.

Beijing Tianrui Xiangde Measuring Technology Co., Ltd. is a high-tech enterprise specialized in building energy-saving heating measurement solutions and the development, production and sales of necessary accessory products. It has “Hou Dexiang” brand products. The annual production capacity can meet the needs of millions of users for heat metering.

The registered capital of the company is 33 million yuan. Business scope: production and processing of heat (energy) meters, calibration and calibration equipment, professional contracting, labor subcontracting, thermal (energy) technology promotion, sales of heat (energy) meters, calibration and calibration equipment, heating systems, metering automation equipment, Electronic products, communications equipment, hardware, electricity, construction materials, computer software and auxiliary equipment.

Sanchuan Water Meter plans to use cash payment method or cash and stocks to acquire 60% equity of each of Tianrui Xianghe and Tianrui Xiangde. After the completion of the acquisition, the company holds 60% of the shares of Tianrui Xianghe and Tianrui Xiangde, becoming Tian Ruixiang and Tian Ruixiangde. The controlling shareholder. The transaction is expected to be based on the estimated net profit of the company's 2014 earnings (that is, the net profit attributable to the target company's shareholders after deducting non-recurring profits and losses), which is estimated at approximately 10 times the PE.

In recent years, with the country’s increasing efforts in energy conservation, emission reduction and air pollution control, relevant industrial policies for supporting heat supply measurement, building energy conservation, and environmental governance have been continuously introduced to bring heat metering and energy-saving related companies to the market. A rare historical opportunity and a broad space for development.

Sanchuan Water Meter Mergers and Acquisitions Tian Ruixiang and Tian Rui Xiangde are designed to actively extend to the measurement-related fields under the framework of the implementation of the “Smart Water Environmental Protection Hydraulics” development strategy, and to make heating metering and heating energy use a new company Business pillars and profit growth points.

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