Company profile

The company is a pharmaceutical enterprise that develops and produces natural botanical medicines and chemical freeze-dried powder injections, and is mainly committed to the development, production and sale of dengzhanhuaxin lyophilized powder injections for injectable use. The company has 10 varieties, including injectable dengzhanidin, injectable fibrinase, and injectable methionine vitamin B1. Dengzhanidin for injection is the dominant variety.

Profit prediction

We expect net profit attributable to the parent company to achieve annual increases of -21.88%, 16.97%, and 8.84% in 2014-2016, with corresponding diluted earnings per share of 0.88 yuan, 1.03 yuan, and 1.12 yuan.

Company valuation

We think the valuation level of giving the company a price-earnings ratio of 20 times per share for 15 years is reasonable. The reasonable valuation range for a company centered on this price-earnings ratio and a positive and negative range of 20% is 18.68-22.41 yuan. Compared with the static price-earnings ratio in 2014 (diluted after issuance), it is 21.27-25.52 times.

Pricing Conclusions

The proposed public offering shall not exceed 16.75 million shares, not less than 25% of the total share capital after issuance. The original shareholders of the company did not publicly sell their shares in this offering. The total share capital after issuance did not exceed 66.75 million shares. The estimated issuance fee is 53.13 million yuan, the net capital to be raised is 302.14 million yuan, and the issuance price is 21.21 yuan. The corresponding PE for 14 and 15 years is 24.15 and 20.64.