Main points of investment
The leader of intravenous supplements with obvious advantages in the subdivision field. Based on its own R & D strength and clinical needs, the company has selected varieties with large market space and high technical threshold to carry out research and development. the leading products include 12 kinds of multivitamins for injection, potassium magnesium aspartate for injection, sucrose iron injection, potassium aspartate injection and so on. Three core technology platforms are formed, such as "New injection Technology platform", "large compound preparation Technology platform" and "New freeze drying Technology platform". It has obvious advantages in the fields of intravenous vitamin supplements, intravenous iron supplements, intravenous potassium and magnesium supplements and so on.
China's chemical pharmaceutical preparations have grown steadily, and the potential of enterprises with strong R & D strength has been further released. In recent years, the total output value of China's chemical and pharmaceutical industry has shown a steady growth trend. in the future, preparation R & D and production enterprises with R & D strength, varieties and other advantages will keep ahead in the competition through strategic transformation such as independent research and development, innovation and imitation. With the change of supervision and market environment, the potential of enterprises with strong technological R & D capability will be further released, and the market of enterprises with low technological level and weak R & D capability may be eliminated in the new market environment. The market is further concentrated to superior enterprises.
Valuation and investment advice: we expect the company's EPS in 2017-2019 (based on the issuance of 6100 million new shares) to be 0.30,0.33,0.37 respectively. Taking into account the comparable company's PE level, industry cycle and the company's profit growth, give the company 25-30 times PE in 2017, we think the company's reasonable price is about 7.5-9 yuan. According to the way of issuing new shares, the issue price is 5.53 yuan, it is recommended to apply at this price.
Risk hints: the leading products are further copied, product prices are reduced, and the risks of new drug research and development and promotion
