Endogenesis and extension at the same time, enter the first echelon of the industry
Palin Biology is mainly engaged in the research, development, production and sales of blood products, including 11 products of human serum albumin, immunoglobulin and coagulation factors. The company was officially established in 1995 and has experienced many share changes and restructuring, from Zhenxing Biochemistry to Shuanglin Biology to Pailin Biology. As of October 10, 2023, the company has 38 plasma collection stations in the camp and under construction. The number of examination and approval of pulp stations is expected to further increase during the 14th five-year Plan period. With the cooperation between Shuanglin Biology and Paisfico, the pulp collection volume of the company is expected to exceed 1000 tons in 2023, entering the first echelon and becoming a leading enterprise in blood products. We estimate that the company's homing net profit for 2023-2025 will be RMB 58733 million, and the corresponding EPS for 2023-2025 will be RMB 0.80max 1.00pm 1.16, respectively, and the current share price will be 26.9pm PE, 18.6 times. Considering that the company's future pulp production has a lot of room for improvement, the new product is expected to gradually land, covering for the first time and giving it a "Buy" rating.
The price reduction of collective mining is mild, and the industry concentration is accelerated.
In May 2022, the collection of blood products of Guangdong Union involved major products such as albumin, JingC and coagulation factors, and the overall price reduction was mild. Since 2023, the speed of industry integration has been significantly accelerated, and the degree of industry concentration has been further improved. Shaanxi Coal Group acquires Palin Biology; China Bio acquires Weiguang Biology; and Jilifu, the largest shareholder of Shanghai Lloyds, plans major issues related to the change of the company's equity. We expect that with the increasing concentration of the industry, the economies of scale of the blood products industry will gradually emerge.
The entry of Shaanxi Coal is expected to promote the further development of the company.
In May 2023, the largest shareholder of the listed company became Shengbang Yinghao, behind which was Shaanxi Coal Group, and the actual control of Shaanxi Coal Group was Shaanxi SASAC. There are 7 county-level cities and 69 county towns in Shaanxi Province, which are rich in potential pulp station resources. at present, there are only 4 pulp stations, and there is still a lot of room for excavation. We expect that with the arrival of Shaanxi Coal, the company's ability to obtain slurry stations in Shaanxi Province will be greatly enhanced. at the same time, Shaanxi Coal, as one of the world's top 500 enterprises, is strong and is expected to develop from many aspects.
Risk tips: the growth of pulp production is not as expected; the price of products is reduced; the listing of new products is not as expected; and the sales of products are not as expected.