Main points of investment:
Event: disclose the non-public offering plan to raise no more than 830 million yuan to acquire 100% stake in Wellcome Pharmaceutical, 2.287% stake in Jinbao Pharmaceutical Minority shareholder and replenish liquidity. Lu Zhongkui, the company's largest shareholder, and Liu Jun, the second largest shareholder, subscribed for 291.2 million and 228.8 million respectively; Liu Xiaopeng (100% controlling shareholder of Wellcome Pharmaceuticals) subscribed for 310 million, and Liu Xiaopeng promised that the net profit after deducting 2016-2018 of Wellcome Pharmaceutical was not less than 50 million, 60 million and 72 million, respectively.
1) the acquisition of Wellcome Pharmaceuticals intends to launch the second shot in the transformation of medicine. Huikang Pharmaceutical has biological products, traditional Chinese medicine injection and other preparations. At present, it has 33 varieties and 42 approval numbers. The main products include Kobo peptide injection, osteopeptide injection, calf blood deproteinized extract injection, Hedyotis diffusa injection, Salvia miltiorrhiza injection, Shuanghuanglian injection, sarcosine injection, defibrase for injection, ginseng antler Ganoderma lucidum capsule, erythromycin ethyl succinate tablets and so on. It has a wide range of clinical applications and good market prospects. After Ssangyong acquired 97.713% of Jinbao Pharmaceutical Co., Ltd., the main business of the listed company increased the research and development, production and sales of proprietary Chinese medicine. In the early stage, through the acquisition of 97.713% equity transformation medicine of Jinbao Pharmaceutical Co., Ltd., the main business increased the research and development, production and sales of proprietary Chinese medicine. After the acquisition of 100% stake in Wellcome Pharmaceutical, small volume injections and freeze-dried powder injections will be added to the business line. The company's pharmaceutical product structure has been enriched, which will create new profit growth points.
2) the performance has increased greatly, and the extension has just begun. The company planned the merger and acquisition of Jinbao Pharmaceutical Industry in November 13 (focusing on the R & D, production and sales of proprietary Chinese medicines, leading products for the treatment of gynecological diseases, with a market share of more than 50%). In October of 14, it was officially included in the bag and began to merge, resulting in a great increase in performance, and the pharmaceutical business also replaced the chemical rubber business as the company's main performance engine. Revenue in the first three quarters of 2015 was 535 million and 124 million, up 205.31% and 254.86% respectively over the same period last year. Most of the performance was contributed by the pharmaceutical business, and the overall transformation of pharmaceuticals was initially realized. the company is expected to achieve a net profit of about 160 million for the whole year. Jinbao Pharmaceutical is expected to contribute 120 million of this. Affected by the macro environment of the industry, the company's traditional chemical industry strives for sustained restorative growth in the future; Jinbao Pharmaceutical, which has successfully acquired excellent assets, is regarded as the first stick of the transformation pharmaceutical health strategy, and the acquisition of Wellcome Pharmaceutical is going to fire the second shot. we believe that the extension and expansion of the company's pharmaceutical field has just begun, and we expect more actions in the future.
Valuation rating: as a typical example of cross-border transformation of pharmaceutical development, the company continues to extend the pharmaceutical industry, break through the restrictions of the original industry, and fully enjoy the high growth and high valuation of the pharmaceutical industry. Regardless of the impact of this plan and subsequent extension, due to the company's better-than-expected results in the third quarter, we raised the EPS for 15-17 years to 0.38,0.49,0.59 yuan respectively, and the corresponding PE was 26,20,17 times respectively, maintaining the buy rating.
Risk hint: the epitaxial landing is lower than expected.