Main points of investment
Taihe Group joined the company and started Huashen's third new journey of entrepreneurship: Taihe Group was founded in 2002 with a registered capital of 1 billion yuan. After 14 years of extraordinary development, Taihe Group has formed the industrial layout of "outstanding financial industry." the industrial layout of coordinated development of major health, education, cultural tourism, real estate and other related industries has ranked among the top 500 private enterprises in China for four consecutive years, with total assets exceeding 60 billion yuan on June 30th, 2016. Headquartered in Hong Kong in October 2015, it actively seeks international development through the operation of financial capital and M & A business. Taihe's actual controller, Wang Renguo and his wife, indirectly held 18.08% of the listed company by holding a 72% stake in Sichuan Huashen, becoming the largest shareholder of the company.
Major shareholders have a strong intention to increase their holdings and are optimistic about the development of the company's big healthy industry: in September 2016, the company changed its name from Huashen Group to Taihe Health, and the original securities code remains unchanged. In 2015, Taihe Group plans to subscribe for an additional 430 million yuan from listed companies for Sanqi Tongshu capsule internationalization project, marketing network construction project and supplementary working capital. The fixed increase plan will be withdrawn in 2016, taking into account changes in the capital market and the external environment.
The release of heavyweight products takes time, and the short-term performance is obviously under pressure: the company's Sanqi Tongshu capsule is the first batch of traditional Chinese medicine products in China to use fingerprint for quality control, compared with similar capsule products containing Panax notoginseng on the market, it has a clear material basis, clear action mechanism, remarkable clinical effect, and has the conditions for the internationalization of traditional Chinese medicine. The completion of Sanqi Tongshu capsule internationalization project will bring new profit growth points to the company. As the world's first monoclonal antibody radiotherapy drug for primary liver cancer, the company's biological drug ricardine has a high disease control rate and few side effects. However, due to the high price of ricardine and the high requirements for hospital hardware facilities, it will take some time for the growth.
The company adheres to the epitaxial development plus endogenous growth path: the market capitalization of the company is small, about 6 billion, and the shareholders are scattered, with the largest shareholder accounting for 18.08%, and the top ten shareholders accounting for 28.59% of the shares. Major shareholders and Zhongyu Capital set up 5 billion industrial investment funds to expand the sources of M & A projects in the future, reserve potential M & A targets for the company, and reduce the risk of follow-up operation integration through the incubation and cultivation of industrial investment funds.
Profit forecast: we expect the company to achieve operating income of 450 million, 480 million, 520 million and net profit of 24.82 million, 30.29 million, 34.03 million from 2016 to 2018, corresponding to EPS of 0.06, 0.07, 0.08, we are optimistic about the future development strategy of the company's big healthy industry, and at the same time have confidence in the future of Sanqi Tongshu capsule, the extension of the endogenous growth path is in line with the company's current situation, so it is given a "buy" rating.