Event
The company issued an announcement on the evening of December 23 to issue convertible corporate bonds to unspecified objects, raising 210 million yuan, with a conversion price of 87.38 yuan per share.
Brief comment
The issuance of convertible bonds has landed and entered a new stage of development.
Placement: priority placement to the original shareholders, with 4.0407 yuan of convertible bonds per share, and the original shareholders can subscribe for up to 99.9977% of the issued amount.
The conversion price is 87.38 yuan per share, which is 102% of the closing price of 12.22.
Fund-raising use: raise 210 million yuan to invest in the cell therapy industrialization equipment manufacturing base project, with a total investment of 302 million yuan.
Next amendment clause: if the closing price of at least 15 trading days is lower than 85% of the transferred stock price in at least 15 consecutive trading days, the board of directors shall have the right to propose a revision plan, which can be implemented after the shareholders' meeting has voted at least 2gam3 or more.
Conditional redemption: 1. In at least 15 of the 30 consecutive trading days, the closing price is not less than 130% of the transferred share price. The balance of untransferred shares is less than 30 million yuan.
Terms of return: for 30 consecutive trading days, the closing price was less than 70% of the transferred share price.
Actively distribute the equipment consumables of the cell therapy industry chain
The company announced in January 2021 that it plans to invest 300 million yuan to build a cell therapy industrialization equipment manufacturing base. the products mainly include cell preparation workstation, cell aseptic sub-assembly workstation and supporting consumables, honeycomb cell culture equipment, intelligent cell incubator, automatic aseptic detection and culture system, etc., which is expected to be put into production in 2024 and reach production by 2027, with an after-tax internal rate of return of 27.19%. The company has carried out research and development of cell therapy workstations and other equipment for 5 years, and applied for 17 patents, of which 8 have been authorized. Since 2018, the company's cell workstations and other products have been sold on a small scale.
The localization of consumable materials for cell therapy equipment is imperative and has great potential.
Cell therapy is a method to repair tissues and organs by using autologous or allogeneic cells with specific functions, which mainly includes stem cell therapy and immune cell therapy. By 2020, stem cell therapy projects in China account for about 10% of the world, and clinical research on immune cell therapy accounts for about 1. 3% of the world. With Fosun Kate, Yao Ming Gunuo and other CART products approved one after another, domestic CART cell therapy has officially entered a commercial era. According to Frost Sullivan, the domestic market space for CART cell therapy will grow from 200-300 million yuan in 2021 to 28.7 billion yuan in 2030, and the overall market space for cell therapy will grow from 1.3 billion yuan in 2021 to 58.4 billion yuan in 2030. Although the pricing of domestic CART products has been significantly lower than Europe and the United States and other developed countries, but for domestic patients, acceptance still needs to be improved, reduce costs, prices are still urgent demand, cell therapy related equipment consumables localization is imperative, great potential.
Profit forecast and investment rating
We estimate that the company's operating income in 2021, 2022 and 2023 is 2.7,4.0 and 560 million yuan respectively, and the return net profit is 0.68,1.08 and 141 million yuan respectively, with corresponding growth rates of 41%, 59% and 30% respectively, corresponding to 65,41,32 times of PE. We are optimistic about the company's cell therapy equipment business and maintain our buy rating.
Risk hint
New technology development risk, market expansion risk, industry competition aggravating risk, industry policy risk and so on.