Before this issue, the total share capital of the company is 50 million shares, and Qunxing Investment holds 58.50% of the shares of the company, which is the controlling shareholder of the company. Fan Xian Russia owns 80% of the shares of Qunxing Investment, which is the actual controller of the company.
The company is a pharmaceutical enterprise mainly engaged in the development and production of natural plant medicine and chemical freeze-dried powder injection. The company has more than 10 kinds of drugs, such as breviscapine for injection, defibrase for injection, methionine vitamin B1 for injection, sodium ferulate for injection, etc.
The company's leading product is "Long John" brand breviscapine for injection, which is one of the pharmacological functions of traditional Chinese medicine in the treatment of cerebral palsy and sequela of cerebral hemorrhage, coronary heart disease and angina pectoris caused by occlusive cerebrovascular disease. This product accounts for more than 90% of the company's revenue in recent years, and the gross profit margin accounts for more than 95%.
Cardiovascular disease is the top three cause of death in China, and there is a huge market for drug treatment. In China, the use of drugs for cardiovascular and cerebrovascular diseases ranks second in the drug market, second only to anti-infective drugs, and has the largest variety of products with sales of more than 500 million yuan. Most of the cardio-cerebrovascular diseases are chronic diseases, and proprietary Chinese medicine has unique advantages in this respect.
Breviscapine for injection is a unilateral freeze-dried powder injection of breviscapine, which has a single active ingredient. The purity of breviscapine, the main ingredient, is more than 98%. Its purity can be measured according to the standard of chemicals, and has high safety and quality controllability. effectively overcome the common problems existing in traditional Chinese medicine injection. The competition pattern of breviscapine for injection is good. At present, only Long John Pharmaceutical and Hunan Hengsheng have obtained the approval for the production of breviscapine for injection. The company's products appeared on the market earlier, and its sales have been basically stable in recent years.
Investment suggestion Cardiovascular traditional Chinese Medicine injection-Breviscapine for injection is the company's main product, contributing more than 90% of the company's revenue and profits. Assuming that 16.75 million shares are issued this time, it is predicted that the diluted EPS of the company in 2015 and 2016 will be 1.04yuan and 1.14yuan respectively. With reference to the valuation of listed companies in the same industry, we think that it is more appropriate for the company to value 30 times PE in 2015, with a reasonable price range of 28.08-34.32 yuan per share.
Investment suggestion single risk of product structure, risk of change of industry pharmaceutical policy, risk of market competition
