Incidents:
On the evening of October 13, 2015, the company announced a fixed increase plan and employee stock ownership plan. The subscription targets were China Securities Asset Management - Daan Gene Employee Stock Ownership Plan, He Yunshao (Chairman), Zhou Xinyu (Director and General Manager), Cheng Gang (Director and Deputy General Manager), Zhang Bin (Secretary of the Board of Directors and Deputy General Manager), and Zhang Weijie (Chief Financial Officer and Deputy General Manager). The subscription price was 32.38 yuan/share, raising no more than 1.5 billion yuan. The target of the employee stock ownership plan is that the company's supervisors (Huang Liying, Li Hu) purchased shares and invested 2,594 million yuan, while other employees purchased shares invested 684.86938 million yuan, accounting for 96.36% of the total size of the employee stock ownership plan. The specific targets mentioned have all subscribed for this non-public offering of shares in cash at the same price. The shares of this non-public offering cannot be transferred within 36 months from the end of this offering. The funds raised are mainly intended for fluorescence PCR product line expansion projects, R&D center construction projects, and supplementary working capital.
The additional subscription targets the company's internal heavyweight executives. He Yunshao, Zhou Xinyu, and Cheng Gang each subscribed for 116.216.05 million shares, while Zhang Bin and Zhang Weijie each subscribed for 46324.89 million shares. If this subscription were successful, the chairman's shareholding ratio would reach 2.85%, showing the confidence of senior management in the company's future. At the same time, as a school-run enterprise, the company introduced employee shareholding, and the reform of state-owned enterprises took an important step. In 2012-2014, the average compound annual growth rates of the company's revenue and net profit reached 36.53% and 30.29%, respectively, and the advantage gradually became apparent. The use of capital raised this time will help the company increase production capacity, further expand the company's market share in the in vitro diagnostics industry, and share the increase brought about by the growth of the entire industry.
Profit forecast:
Predicting EPS 0.34/0.36/0.44 for 15-17, the dynamic PE corresponding to the current meta-stock price is 127.8/121.2/100 times, giving it an “increase in holdings” rating.
Risk warning:
Fixed increase failure; product development and marketing risk; policy risk.