An item of business.
Recently, the company has issued several announcements one after another: first, on May 5, 70 million invested with Jiangsu Jinmao and Shandong International Trust to set up a medical and health industry M & A fund (a total of 300 million yuan); second, on May 19, Tongjuntang Pharmaceutical Co., Ltd., a wholly-owned subsidiary, intends to set up a wholly-owned subsidiary "Zhejiang Tongjuntang traditional Chinese Medicine Co., Ltd." with a monetary capital of 10 million yuan to separate the prepared slices business and intend to apply for tax benefits. Third, on June 4, the M & A fund completed its investment in Wuxi and Bang Bio (planned to hold no less than 30%) and was involved in the research and development of genetically engineered proteins and peptides; on June 5, the wholly-owned subsidiary "Zhejiang Tongjuntang traditional Chinese Medicine Co., Ltd." was approved for tax preference.
The main point.
1. The application for tax concessions for wholly-owned subsidiaries of prepared slices has been approved, and the approval of the 25% income tax relief will greatly improve the company's performance in 2015. In 2014, Tongjuntang Pharmaceutical, a wholly owned subsidiary of the company, earned 529 million yuan, of which more than 80% was from prepared pieces of traditional Chinese medicine. the company's 25% income tax reduction is expected to increase the net interest rate to more than 10%. At the same time, the company previously announced that it had signed the Framework Agreement on Strategic Cooperation of traditional Chinese Medicine with Henan College of traditional Chinese Medicine to further promote industry-university-research cooperation, achievement transformation, personnel training and resource sharing in the field of modernization of traditional Chinese medicine. Henan College of traditional Chinese Medicine has three affiliated hospitals integrating teaching, medical treatment and scientific research (the first affiliated hospital, the second affiliated hospital, also known as Henan Hospital of traditional Chinese Medicine, and the third affiliated hospital featuring acupuncture and massage). The company is expected to actively expand to the market of prepared pieces of traditional Chinese medicine in Henan Province, and the business performance of prepared pieces of traditional Chinese medicine will continue to exceed expectations.
two。 Jiangsu Jinmao Investment has rich experience in mergers and acquisitions, investment and state biological distribution in the field of biomedicine. Jiangsu Jinmao has invested nearly 40 enterprises with an investment of nearly 2 billion yuan, directly participating in or promoting the listing of more than 10 enterprises at home and abroad, deeply focusing on the three major areas of medicine and health, new materials, environmental protection and energy saving, and rich project reserves. This time, it is involved in the research and development of genetically engineered proteins and peptide drugs in the form of M & A funds. Hebang has rich experience in the research and development of long-acting protein drugs, treatment of type 2 diabetes, long-acting interferon drugs and long-acting granulocyte stimulating factors. The introduction of funds is conducive to the rapid expansion and strengthening of Hebang biology. The rapid landing of M & A fund projects shows that the company's extension development is worth continuing to look forward to.
3. Relying on the resources of experts from Henan College of traditional Chinese Medicine, it is expected to expand to medical services. In the previous cooperation with Henan College of traditional Chinese Medicine, the company also stressed that it would give full play to the brand advantages of its subsidiary Tongjuntang traditional Chinese Medicine and set up Tongjuntang traditional Chinese Medicine Museum (chain) inside and outside Zhengzhou and Henan Province. by hiring experts such as veteran Chinese medicine from the College of traditional Chinese Medicine and affiliated hospitals to provide traditional Chinese medicine diagnosis and treatment services, it is worth looking forward to the expansion of the company's business from traditional Chinese medicine production to traditional Chinese medicine services.
4. Investment advice: raised to "highly recommended". We believe that the new management of the company has a strong driving force, the state-owned assets have a strong desire for the development of the company, and there is plenty of room for the improvement of the company's endogenous efficiency and the power of extension mergers and acquisitions. M & A funds quickly cut into the field of genetically engineered proteins and polypeptide drugs, and wholly-owned subsidiaries complete income tax relief, which is expected to gradually divest large infusion loss business this year, and there is a high probability that the performance will exceed expectations. At the same time, by holding hands with the most famous institutions of traditional Chinese medicine in Henan Province, the expansion of Tongjun Hall inside and outside Henan Province is expected to accelerate. With the promotion of the depth and breadth of cooperation, it is of great significance to enhance the company's medical research and development, famous traditional Chinese medicine resources and so on. We have raised the EPS for 2015-2017 to 0.26,0.36 and 0.47 yuan respectively, and the current stock price corresponds to 63X/53X/40X for 2015-2017 PE. In view of the fact that the company's Tongjuntang / new leading business segment has a high probability of exceeding expectations and the expected marginal effect of continuous mergers and acquisitions in the future is significant, it is given a "highly recommended" rating. The target price for 6 months is 25 yuan.
Risk hint.
1. The performance risk that the acquisition progress is lower than expected.
two。 Lower-than-expected wind of platform expansion