Jiaotong University Onli (600530.SH) announced on January 4 that it intends to make comprehensive use of secondary market purchase, agreement transfer and other ways to purchase no more than 29.99% of the shares in Tailing Pharmaceutical one after another, so as to make Jiaotong University Onli become an important shareholder and strategic investor in Tailing Pharmaceutical.
Win-win cooperation in the field of health products: Anli of Jiaotong University is a leading company in the domestic health products industry. Through this transaction, it is conducive to the gradual strategic transformation of Anli into a large health industry investment integration platform, and strategically enter the pharmaceutical industry. At the same time, we expect that Tailing Pharmaceutical will launch new products in the field of health products in 2016, and the company will work with Anli of Jiaotong University in the field of health products to jointly promote the development of new products.
In-depth cooperation in many fields, the synergy effect is obvious: this merger and acquisition will help Tai Ling Pharmaceutical and Anli of Jiaotong University to achieve synergy in many aspects. Anli of Jiaotong University intends to open up the channels of hospitals under Shanghai Jiaotong University to help Tailing Pharmaceutical expand its sales and market share, and the two sides will have synergy in terms of channels and networks. At the same time, the two sides will jointly develop functional health food business by means of technology licensing and the establishment of joint ventures, which are expected to initially focus on diseases such as gastrointestinal digestion, hepatitis and leukemia, which will help the two sides to produce synergy in technology and products. In the future, the two sides will explore appropriate ways and platforms to jointly develop new Internet medical models such as mobile health care and disease management, and explore the joint launch of medical industry funds to invest in pharmaceutical, medical devices, medical services and other industries, which will help the two sides to create synergy in business model innovation and industrial investment.
New products continue to be launched in 2016-2017: Tai Ling Medicine has now formed a series of product groups such as tumors, central nervous system diseases, respiratory diseases, liver diseases, gynecological diseases and so on. The company will focus on developing its own products in the future. Potential varieties such as Xidi Ke and Songjia pills are important growth drivers for major diseases such as tumor and liver disease. At the same time, new products will continue to be launched in the next three to five years.
Maintain the buy rating with a target price of HK $3:
Starting from 15 years, the company's performance has entered a period of rapid growth. With the continuous introduction of new products, the company will gradually transform into an integrated enterprise of R & D, production and sales of innovative drugs. We expect the company's operating income in 2015, 1.311 billion and 2017 to be 958 million / 2016 / 1.681 billion, an increase of 10.79%, 36.88% and 28.19%, respectively, and a three-year net profit of 86 million / 136 million / 181 million, an increase of 4000%, 58% and 33% respectively, corresponding to an EPS of 0.05,0.09 and 0.12 yuan. Reiterate the buy rating, with a target price of HK $3, equivalent to 2016PE26X.
Catalyst: new indications approved, extension of new products on the ground
Risk hint: market competition intensifies; new product promotion is not as expected.
