This report is read as follows:
The company actively carries out M & An integration, tamps the performance foundation, and is expected to continue to expand M & An and maintain its holding rating in the future.
Main points of investment:
The purchasing strategy has progressed steadily, covering the rating of increasing holdings for the first time. After the company completed the acquisition of Ningbo Tianheng in 2015, the merger and acquisition of Yantai in 2016 is only clear, the performance foundation has been consolidated, and the company is expected to continue to carry out M & An integration in the future. It is estimated that the EPS in 2017-19 is 0.77,0.88,0.99 yuan; referring to the current similar companies' 2017 PE of about 37 times, give the company a target price of 28.50 yuan, cover for the first time, and give the company an overweight rating.
Actively carry out extension mergers and acquisitions to promote rapid growth of performance. Tianheng Pharmaceutical, which the company acquired in 2015, achieved 310 million in revenue in 2016, with a net profit of 60.656 million yuan, an increase of 41.31 percent. In June 2016, the company completed the acquisition and listing of only Chu Pharmaceutical Co., Ltd., realizing the strategic layout in the field of biological fermentation and entering the field of blood lipid regulation drugs and diabetes drugs. In 2016, only Chu Pharmaceutical achieved an income of 577 million yuan and a net profit of 126 million yuan, of which the net profit belonging to listed companies during the merger period was 82.8723 million yuan. The combined net profit of the two acquisition targets is 144 million yuan. According to the performance commitment at the time of M & A, the combined committed net profits of the two companies in 2017 were 60 million yuan and 120 million yuan, respectively, totaling 180 million yuan. Through continuous epitaxial acquisitions, the company's revenue and profits are growing rapidly, and the company is expected to actively implement the epitaxial M & A strategy and continue to improve its performance in 2017.
Enrich the company's product structure and lay the foundation for medium-and long-term development. At present, through its own R & D variety reserve and extension mergers and acquisitions, the company has transformed from the original antibiotic enterprise to the enterprise with the coordinated development of antibiotics and specialist drugs. At present, the company has nearly 100 reserve varieties covering anti-tumor, cardio-cerebrovascular, anti-infection and other treatment areas, most of which have obtained clinical approval or are applying for production approval, which has laid the foundation for the company's medium-and long-term development.
Risk hint: the downside risk of the performance of the target of M & A
