This report is read as follows:
It is estimated that the offering price of Huluwa IPO is 5.19 yuan.
Summary:
According to the letter of intent of Huluwa, the company's IPO expects to raise 151.0397 million yuan, offering underwriting and other expenses totaling 57.0794 million yuan, totaling 208.1191 million yuan. In the audited 2019 annual report, the net profit attributable to the owner of the parent company is 90.3276 million yuan after deducting non-recurring profits and losses, and the diluted EPS is 0.23 yuan. It plans to issue 40.1 million shares, which is calculated at a price of 5.19 yuan per share based on the total amount of capital raised, and the corresponding PE is 22.99 times.
Corresponding to the C27 industry (C27), the static PE is 43.68 times, and the inverted fund-raising price of Cucurbita is lower than that of industry PE. It is estimated that the issuance price of IPO of C27 is 5.19 yuan.
Huluwa is a leading pharmaceutical manufacturer in the field of pediatric medicine. The company has 24 varieties of oral pediatric drugs and 17 varieties of oral pediatric drugs, covering respiratory diseases, digestive system, anti-infective drugs, etc., which is in the forefront of the pediatric pharmaceutical industry. It is estimated that the market size of children's drugs will reach 175 billion yuan (YOY+8.7%) in 2020. In the field of respiratory medicine, children's lung heat cough and asthma products achieved sales income of 523.58 million yuan, ranking second in the industry with a market share of 26.64%. Children's lung heat Kechuan granule ranks first in the industry with a market share of 47.91%; in the field of digestive system medicine, there is an oligopoly pattern of two pharmaceutical companies, Kangnbe and Huluwa, and the company ranked second with a market share of 8.84% in 2018. Huluwa focuses on the research and development of pediatric drugs, mainly proprietary Chinese medicine and the rapid development of chemicals, and the company has strong product research and development capability. covering 3500 second-level medical institutions, 9600 grass-roots medical institutions, 200000 individual clinics, 150000 chain and single drugstores, established a nationwide marketing network system, and the product layout extended from pediatric medicine to adult medicine and gynecological medicine. Create "Huluwa", "Hulu Dad", "Hulu Mom" three series of brands. The compound growth rate of the company's revenue and return net profit in the past three years is 41.20% and 133.19% respectively, maintaining rapid growth.
Taking into account the disclosure of the prospectus and the above analysis, we selected 002644.SZ, 002424.SZ, 600572.SH, 002737.SZ, 603669.SH, 300584.SZ, 002437.SZ and 300006.SZ as comparable companies with an average price-to-earnings ratio of 26.07. According to the amount of capital raised in the prospectus, the offering price of Huluwa is 5.19 yuan, corresponding to 22.99 times the net profit PE in the 2019 annual report. The valuation of Huluwa is lower than the industry PE and the average PE of comparable companies, and the offering is not expected to be delayed. It is estimated that the total share capital after the issue will not exceed 400 million shares, and the market value after the issue is estimated to be 2.077 billion yuan.
Risk hints: (1) the release rhythm of IPO is delayed by force majeure, and (2) the risk of raw material price fluctuation.
