Event: it is proposed to transfer the 100% equity of Chongqing synthetic, 66.86% of Fang Xin Chemical and 92.26% of Daxin Pharmaceutical (with a total price of 712 million) to the controlling shareholder synthetic Group; at the same time, it is proposed to transfer the 100% equity of Chongqing Hesheng to Chongqing Pantai; the above transaction is completed by cash payment.

Comments:

1) peel off the API, enhance the profitability of the statement, enhance the overall valuation center, and withdraw the funds to help the extension. At present, the company's main business is API, affected by periodic overcapacity, the improvement of national environmental protection standards and other factors, the prices and sales of major products have dropped sharply, causing a huge impact on the company. In 14 years, the proportion of raw material drug revenue and gross profit was 34.59% and 21.54% respectively, and the gross profit margin was 11.67%, which was the lowest business unit except drug circulation, which reduced the overall profitability of the consolidated statement. The transfer of assets related to the API business is expected to turn losses into profits in 15 years, reflecting the profitability of the preparation and distribution business; and the valuation of the API business is significantly lower than that of the company's pharmaceutical and medical services business. divestiture of APIs can improve the overall valuation of the company. It is expected that 712 million of the funds will be used for the extension development of the company's preparation and medical services sector.

2) strengthen the strategic direction of the industry chain with tumor characteristics, and focus on anti-tumor agents and medical services, as well as distribution and circulation business. Under the guidance of the strategy of building an industrial chain with tumor characteristics, the company distributes the tumor-related three ends. A, tumor-related drugs. The tumor adjuvant drugs on the market are Ganoderma lucidum cell glycopeptide and paronosetron, in which the market share of the sample hospital of Ganoderma lucidum cell glycopeptide is nearly 70%; in the research of antineoplastic drugs, there are more than 10 kinds of anti-tumor drugs, such as disodium phosphate, etc. The company's preparations will gradually form a rich anti-tumor drug product group. B, oncology medical service. Hold hands with Peking University Cancer Hospital to set up an oncology hospital management company, and use the latter as a platform to establish an oncology specialist medical network with "Peking University tumor" as the brand. 14 acquisition of high-end cancer medical services, qualified new mileage cancer hospital, the first time to set foot in oncology medical services. It is expected that the extension of oncology medical service will appear in the later stage. C, distribution and circulation business. At the shareholder level, the Medical Department of Peking University has 8 affiliated hospitals and 13 teaching hospitals; Peking University Medical has 6 hospitals such as Peking University International Hospital (the new Peking University Medical Luzhong Hospital). More than 30 hospital projects are being promoted and the future "Peking University Oncology" specialist hospital network, the distribution and circulation business of drugs and medical equipment is huge. The policy of separation of medicine and medicine has a great impact in the country, and the docking and distribution business will share the profits of the old model of the hospital. At present, the distribution business has been well carried out in the people's hospitals and international hospitals, and is expected to be extended to the above-mentioned hospitals when the operation is mature, so the profitability of the distribution business is considerable.

Valuation rating: the company strips off APIs, focuses on preparations, distribution, and medical services, and improves the profitability of the consolidated statements and the valuation center. Due to the uncertainty of integrated health care, we temporarily estimate that the EPS for 15-17 years will be 0.13,0.20,0.24 yuan respectively, corresponding to PE of 116,73,61 times, to maintain the overweight rating.

Risk hint: uncertainty of an all-in-one medical program.