Summary of the report:
The company's main chemical drug prescription drug research and development, production and sales, the leading products cover parenteral nutrition drugs, anti-infective drugs and digestive system drugs three major areas. Before this issue, Lingkang Holdings holds 66% of the shares of the company and is the controlling shareholder of the company. The actual controls of the company are Tao Lingping and Tao Linggang.
The company is mainly engaged in the R & D, production and sales of chemical drugs and prescription drugs. The company adheres to the market-oriented product development strategy, the product variety is rich, the structure is reasonable, and many core products have a prominent market position. The company's leading products cover the three major areas of parenteral nutrition drugs, anti-infective drugs and digestive system drugs, which contributed 37.70%, 37.60% and 15.84% of the company's revenue in 2014, respectively. By the end of January 2015, the company had obtained a total of 84 preparation varieties and 180 drug production approval documents, with a wide range of products, of which 50 varieties were listed in the national medical insurance catalogue and 13 varieties were listed in the national base drug catalogue. In addition, 27 new drug varieties and 117 generic drug varieties are in the process of applying for clinical approval or production approval. According to the 2013 statistics of Nanfang Institute, the market share of many of the company's leading products ranks in the forefront of the industry, such as alanyl glutamine for parenteral nutrition injection, cefmendol sodium for anti-infective injection, cefathiamidine for injection, omeprazole sodium for digestive system injection, etc. are among the top 5 in the market segment.
During the reporting period, the leading products with income contribution of more than 5% were mainly divided into three categories and eight varieties, namely, parenteral nutrition drugs, mainly alanyl glutamine for injection, cefmendol sodium for injection, cefuroxime sodium for injection, cefuroxime sodium for injection, aztreonam for injection, cefthiamidine for injection, Yanhuning injection with antiviral effect, digestive system drugs are mainly omeprazole sodium for injection.
The number of shares in this issue does not exceed 65 million shares, the issue price is 11.70 yuan per share, and the total share capital after the issue does not exceed 260 million shares. The total amount of funds raised is 760.5 million yuan, with a net amount of 702.99 million yuan after deducting the issuance expenses. The funds raised will be used for projects such as the construction of freeze-dried powder injection production line.
Investment suggestion: the company is an excellent enterprise in the field of chemical preparations, and has certain advantages in the fields of off-site nutrition, anti-infection, gastrointestinal digestion and so on. We predict that the EPS of the company in 2015 will be 0.69 yuan per share, and the price-to-earnings ratio of SW chemical industry in 2015 is 44.33 times (overall method, excluding negative value), corresponding to the company's stock price of 30.59 yuan per share, with a reasonable price range of 27.53-33.65 yuan per share.
Risk tips: drug price reduction risk, drug policy change risk, new product research and development and promotion risk
