Key points:
China Pharmaceutical's investment plan continues to increase. The shareholding ratio has continued to increase in recent years. The company recently issued an announcement stating that China Pharmaceutical Investment plans to increase its stock holdings by no less than 30 million yuan from June 25, 2024 to December 24, 2024 (including the portion already increased on June 25, 2024).
Since the company introduced Sinopharm Investment as the largest shareholder in 2020, Sinopharm Investment has continuously increased its shareholding ratio from 14.81% in July 2020 to 16.95%. Sinopharm Investments continues to increase its stock holdings, reflecting industrial capital's recognition of the company's value.
The strategic positioning of Sinopharm's IVD platform enterprise is clear. The prototype of the continuous extension of production lines began in 2020. Jiuqiang Biotech introduced Sinopharm Investment as the largest shareholder to clarify the strategic position of the IVD platform enterprise. Continued increase in Sinopharm's holdings is conducive to strengthening the company's cohesion and promoting the company's sustainable development.
In recent years, in addition to strengthening the construction of biochemical product lines, Jiuqiang Biotech has also actively implemented industrial mergers and acquisitions, and has expanded its product line by entering the blood coagulation and pathological diagnosis circuit through mergers and acquisitions such as the US Innovation and Maxine Biotech. Sinopharm Investment has rich industrial mergers and acquisitions resources, which is expected to provide the company with convenient channel collaboration and help the company accelerate product market development. The company is beginning to take shape as an IVD platform.
Sinopharm invests in the pharmaceutical industry and is expected to help the company accelerate product market development. Sinopharm Investment is a wholly-owned subsidiary of Sinopharm Group. With Sinopharm Group's strong background, it is expected that Jiuqiang Biotech will collaborate in the following areas: in terms of channels, Jiuqiang's cost-effective products, plus Sinopharm Group's extensive distribution channels and customer resources, will drive the expansion of the customer range and bring significant increases in the company's sales; in terms of R&D, Sinopharm Group has leading domestic applied pharmaceutical research institutions and engineering design institutes, which can provide the company with more powerful R&D supplements; cross-circuit mergers and acquisitions of rich products On the line side, Sinopharm Investment has rich resources and experience in helping enterprises achieve cross-border mergers and acquisitions, and the company is expected to achieve rapid layout of new product lines such as molecular pathology and associated diagnosis.
Investment advice
Sinopharm's investment plan continues to increase the company's stock holdings through the secondary market, reflecting industrial capital's recognition of the company's value. It is estimated that in 2024-2026, the company's revenue will be 20.15/23.09/2,618 billion yuan, net profit attributable to mother will be 643/75/ 876 million yuan respectively, corresponding EPS will be 1.09/1.28/1.49 yuan, and corresponding PE will be 14.13X/12.03X/10.37X, respectively, maintaining the “gain” rating.
Risk warning
Industry competition increases risks; new product development and registration risks; industry policy risks.