Core ideas:
Invest in Enoqin and equity investment institutions in the field of biotechnology
Xiangxuekang Wanda, a holding subsidiary of ①, recently announced that its holding company, Xiangxuekang Wanda, has transferred its 90% stake in Yenoqin held by Chenshan Investment and all the claims on its loan to Chenshan Investment for a total price of 10.500001 million yuan. The 90% equity agreement transfer price of Yinuoqin is 1 yuan, and 10.5 million yuan is the debt of Chenshan Investment to Yiluoqin. ② invested 50 million yuan to participate in Nanyue assets and acquired a 10% stake in Nanyue assets.
Enoqin has good resources of cooperative medical institutions.
Enoqin is mainly engaged in the cell therapy business of using iAPA technology to suppress negative immune regulatory factors to improve the anti-tumor effect of DC vaccine. Affected by the "Wei Zexi" incident, the performance of Enoqin was greatly influenced. From 2015 to 2016, the income dropped from 37.73 million yuan to 13.32 million yuan, and the net profit from 179700 yuan to a loss of 14.18 million yuan. However, Enoqin has good resources of cooperative medical institutions, which will produce greater business coordination for the company to promote TCRT research in the future.
Nanyue assets is expected to provide the company with high-quality project reserves.
Nanyue assets focuses on the venture capital business in the field of biotechnology, and cooperates deeply with the Institute of Biophysics of the Chinese Academy of Sciences, focusing on the ten strategic development directions in the field of biology. At the same time, Nanyue assets promises that the total net cash flow generated by operating activities in 2018-2020 will not be less than 70 million yuan, and the fair value of the target company at the end of 2020 shall not be less than 1.2 billion yuan. Nanyue assets is expected to provide high-quality project reserves for the development of the company's precision medical industry and accelerate the pace of the company's extension development.
Tianji subsidiary develops related industries of traditional Chinese medicine and increases the share of prepared slices
The company announced that Hubei Tianji, a holding subsidiary, set up a wholly-owned subsidiary "Hubei Tianji Wisdom traditional Chinese Medicine Technology Co., Ltd." with 5 million yuan. Further develop TCM diagnosis and treatment, TCM physiotherapy and other intelligent TCM related industries, optimize the company's industry layout, so as to further enhance the market share of traditional Chinese medicine business.
The expected results for 16-18 years are 0.11 yuan per share, 0.20 yuan per share and 0.30 yuan per share, respectively.
We expect the company to have an EPS of 0.11 to 0.20 in 16-17-18 (EPS is 0.27 in 2015). The current share price corresponds to PE111/69/46 times, the company's slices epitaxial industry integration, TCR technology is comparable to the international leader, destocking impact at the end of 2017 performance is expected to rebound, maintain the "buy" rating.
Risk hint
Drug research and development is lower than expected; traditional medicine destocking is lower than expected; business development of traditional Chinese medicine slices is lower than expected.