1. Main business and shareholders
The company was founded in December 2008, mainly engaged in pharmaceutical equipment in the field of solid preparation equipment research and development, production, sales and technical services, is a well-known domestic solid preparation equipment supplier. The products include wet granulation series, boiling drying / granulation series, dry granulation series, lifting series, mixing series, coating series, cleaning series, pharmaceutical containers and other 8 series, which are mainly used in the pharmaceutical industry. it can also be used in health products, food and other health industry related fields.
From 2011 to 2013, the company's operating income was 138 million, 152 million and 154 million respectively, with a compound growth rate of 5.64%; net profit was 34 million, 36 million and 35 million respectively, with a compound growth rate of 1.59%, maintaining a steady growth trend.
Since the establishment of the company, Mr. Fang Hengzhi has been the actual controller of the company. in addition to directly holding 15% of the issuer, he also controls 52.5% of the shares of the issuer through the Canaan Group, which he controls, totaling 67.5% of the shares of the issuer. Fang Zhiyi holds the remaining 45.77% stake in Canaan Group.
Nanjing Bison holds 2.6 million shares in the company, with a stake of 6.5 per cent. The establishment of Nanjing Bison is mainly for the indirect shareholding of the middle-level backbone staff of the company, in order to achieve the consistency of the future interests of the backbone personnel and the company, and improve the internal governance structure of the company.
two。 Equipment manufacturers specializing in solid preparations
Since its establishment, the issuer has focused on equipment research and development and process innovation in the field of solid preparations. At present, it can provide pharmaceutical enterprises with professional, customized and integrated solid preparation granulation equipment and supporting process design schemes. have the ability of process design and the R & D and manufacturing of core equipment.
Pharmaceutical machines and pharmaceutical containers are the company's main business. From 2011 to 2013, the revenue of pharmaceutical machines was 94 million, 108 million and 120 million respectively, the proportion of sales of pharmaceutical machines was 68.4%, 71.1% and 78.4% respectively, and the proportion of sales of pharmaceutical containers decreased from 28% to 18%. The proportion of gross profit of pharmaceutical equipment has gradually increased from 75% to 77%, and that of pharmaceutical containers has gradually decreased from 22% to 18%.
3. The company's financial indicators show a steady growth trend.
From 2011 to 2013, the compound growth rate of operating income was 5.64% and the compound growth rate of net profit was 1.59%, maintaining a steady growth trend.
Gross profit margin rose from 46.8% in 2011 and 2012 to 48% in 2013, which is related to the increase in the proportion of pharmaceutical machines with high gross profit margin and the increase in gross profit margin of pharmaceutical containers.
From 2011 to 2013, the operating expense rates were 7.55%, 7.23% and 9.15%, respectively. The increase in the management expense rate in 2013 is related to the rapid increase in business publicity and transportation fees for international business.
From 2011 to 2013, the rate of management expenses was 10.82%, 11.34% and 13.03% respectively. The annual increase in the rate of management expenses is mainly due to the increase in wages and welfare expenses, depreciation and amortization expenses, and R & D expenses. Nanjing Canaan dormitory, canteen and other construction and ancillary projects have been completed in late 2012 and 2013, resulting in an increase in the company's depreciation and amortization expenses. In addition, in order to ensure the company's technological leadership, R & D fees are also rising year by year.
4. Fund-raising projects: production expansion + R & D center + marketing network
The total investment of the company's issuance and fund-raising project is 243.5 million, of which the pharmaceutical equipment industrialization base project (the first phase) invested 149 million, the R & D center construction invested 55.23 million, the marketing and service network construction project invested 18.81 million, and the working capital projects related to the main business invested 20 million. By the end of September, the pharmaceutical equipment industrialization base project had invested 81.5 million of its own funds.
The company intends to issue no more than 13.4 million RMB common shares to the public, with a total share capital of 40 million shares before the issue.
5. Reasonable value range: 13-16.25 yuan
Considering the issuance of 13.4 million shares, we estimate that the EPS of the company from 2014 to 2016 (corresponding to the post-issue share capital) is 0.65,0.81 and 0.88 yuan, respectively.
There are three A-shares of the same type of companies: East Fulong, Chutian Science and Technology and Qianshan Pharmaceutical Machine. Qianshan yam machine has seriously deviated from the valuation of pharmaceutical equipment due to its foray into the field of gene chip. East Fulong and Chutian Technology were selected as comparative samples, and the median valuation of the two companies in 2014 was 28.98 times. Taking into account the actual growth rate of the company and combined with market capitalization, the company will be given 20-25 times PE in 2014, with a reasonable value range of 13-16.25 yuan.
6. Main risk
1) performance disturbance caused by GMP policy orientation
The end of 2013 is the period for the certification of the new version of GMP for sterile drugs, and more investment from downstream customers to aseptic preparations, resulting in a decline in the company's performance growth in 2013. While the GMP certification period for non-sterile preparations is the end of 2015, the company's performance may have a good growth from 2014 to 2015, but the subsequent performance growth is uncertain.
2) the risk of losing patent litigation
Patent lawsuits between the company, Harbin Nano Pharmaceutical and Chemical equipment Co., Ltd., and Harbin Nano Machinery and equipment Co., Ltd. are under way, and the patented products involved have an impact on the company's revenue by more than 10%. If you lose the lawsuit, it will have a great impact on the company's performance and brand.
3) the risk of performance fluctuation caused by the uneven distribution of orders.