It is proposed to issue shares and raise matching funds to purchase 100% stake in Alpha Pharmaceutical.
The company announces the issuance of shares and the payment of cash to purchase assets and raise matching funds and related party transactions: it intends to purchase 100% equity in Alpha Pharmaceutical by issuing shares and paying cash, which is priced at 1.122 billion yuan. Among them, no more than 30.2 million shares (20.67 yuan / share) were issued to Shi Zhenxiang, the former shareholder of Alpha Pharmaceutical, and others, totaling 624 million yuan to pay the transaction consideration of 55.64%. At the same time, it plans to issue shares to specific targets to raise matching funds, and the company intends to issue shares to no more than 10 specific objects, including Nantong Holdings, to raise supporting funds, not more than 37.31 million shares (2144yuan / share) totaling 800 million yuan, of which 498 million yuan pays the remaining 44.36% trading consideration of Alpha Pharmaceutical. After deducting various expenses, the remaining 302 million yuan will be used for the "technical transformation project with an annual output of 2100 tons of chiral drugs and their intermediates and 3500 tons of by-products".
Alpha is a leading pharmaceutical intermediate company of Atto vastatin calcium and rosuvastatin calcium.
Alpha Pharmaceutical is mainly engaged in pharmaceutical intermediates, and its main products are key intermediates of important cardiovascular and cerebrovascular drugs, such as Atto vastatin calcium and rosuvastatin calcium, which has advantages in scale and technology in the industry, and also occupies a leading position in the domestic and international markets. foreign countries are mainly for India, Europe and Southeast Asian markets, long-term customers include India Baikang, Israel Teva, Novartis and other enterprises. In China, it has also entered the leading domestic statins preparation enterprises in large quantities. The company has a revenue of 457 million yuan and a net profit of 53.359 million yuan in 2015. at the same time, it has promised that the net profit for 2016, 2017 and 2018 will not be less than 70.5 million yuan, 97 million yuan and 131 million yuan respectively, and the sum of the net profit achieved during the three-year examination period will not be less than 298.5 million yuan, which is expected to significantly increase the profit.
The company's business of pharmaceutical intermediates and APIs is improving day by day.
The company adheres to the development strategy of "one main body and two wings" and constantly improves the business layout. While strengthening the dominant position of traditional Chinese medicine, we should develop and strengthen the "two wings" of characteristic APIs, pharmaceutical intermediates and new chemical preparations. Through the acquisition of Alpha Pharmaceutical, the expansion of intermediates and API "first wing" will be greatly improved. The company quickly entered the core industry chain of Atto vastatin calcium and rosuvastatin calcium API, which can significantly increase the business income of intermediates and API sectors and enrich the variety structure. the company also reserves a number of industrialization technologies of APIs and their key intermediates (including chiral drugs and their intermediates), which accumulates potential to break through the downstream preparation industry chain.
The company's annual results are expected to continue the high growth trend.
The company's main traditional Chinese medicine preparation is expected to continue a good situation, is expected to increase by more than 30% for the whole year. Sulfur-free traditional Chinese medicine slices are expected to produce small profits this year, and the listed Dongli management is expected to continue to successfully fulfill its performance commitments, driving the company's overall performance to double for the whole year.
Optimistic about the promotion of the company's strategy and maintaining the "buy" rating company has initially formed three major sectors: proprietary Chinese medicine preparations and traditional Chinese medicine slices, chemical raw materials and pharmaceutical intermediates, biological pharmaceuticals and research and development, and there are continuous extension expectations. we are optimistic about the long-term development of the company. Excluding Alpha Pharmaceutical, the EPS from 2016 to 2018 is expected to be 0.42,0.54,0.67 yuan respectively, corresponding to 61,48,38 times PE, maintaining the company's "buy rating".
Risk hint: the progress of M & An and the effect of integration are lower than expected.