Incident Overview

The company issued an announcement: The company plans to use its own capital of 200 million yuan to acquire 50% of the shares of Jiangsu Bochuangyuan Biomedical Technology Co., Ltd. held by Nanjing Baijiahui; Bochuangyuan will become the company's holding subsidiary and be included in the scope of consolidated statements.

Bochuangyuan products focus on skin diseases and are expected to become a new growth point for the company

Bochuangyuan's innovative drug pipeline mainly includes skin diseases (including immune, inflammatory and infectious skin diseases, etc.) and non-skin autoimmune diseases (including rheumatoid arthritis, multiple sclerosis, inflammatory bowel disease, etc.), and is globally innovative and leading. Among them, CKBA has remarkable curative effects in treating autoimmune skin diseases such as psoriasis and vitiligo mediated by CD8+ T cells. Currently, CKBA ointment is undergoing phase 2a clinical treatment for psoriasis. It is proposed to increase clinical research on vitiligo indications. Through this transaction, Taiencang may add new varieties of CKBA-related drugs in the future; this transaction is conducive to enriching and perfecting the company's product structure, expanding product coverage areas, and will bring new performance growth points to the company.

Investment advice

Maintain the company's profit forecast: the company's revenue for 2022-2024 is expected to be 787/1012/1,283 billion yuan respectively; the estimated EPS for 2022-2024 is 0.78/1.26/1.77 yuan respectively, corresponding to the 42.33 yuan/share price of February 14, 2023, and PE for 2022-2024 is 54/34/24X respectively, maintaining the “buy” rating.

Risk warning

Risk of product promotion falling short of expectations, risk of insufficient supply of agency products, risk of possible discrepancies between performance forecast data and final annual reports, risk of unsuccessful implementation of transactions