\u3000\u3000 Guizhou Sanli Pharmaceutical Co.Ltd(603439) (603439)
Event:
On February 6, 2022, the company announced that it planned to become the bankruptcy reorganization investor of dechangxiang and made a one-time investment of 232 million yuan to obtain 95% equity of dechangxiang.
Analysis and comments
After one-time contribution to get rid of debt, dechangxiang went to battle light
The company invested 232 million yuan at one time to obtain 95% equity of dechangxiang, with a corresponding asset value of 79.7428 million yuan and a premium rate of 190.94%. The investment fund will be used to pay off the undisputed creditor’s rights confirmed by the people’s court, the litigation related (suspended) creditor’s rights confirmed by the effective judgment document of the people’s court, and pay the expenses of bankruptcy reorganization.
After the liquidation, dechangxiang has no other liabilities except for three liabilities (a total of 11.81 million, mainly the pension, medical and insurance expenses reserved for retirees during the restructuring of Guiyang traditional Chinese medicine factory in 2000, which need to be paid in the future production and operation). The time-honored dechangxiang is light.
Participation in investment in the restructuring of dechangxiang has made rapid progress
Reviewing the progress of the company’s participation in the bankruptcy reorganization of dechangxiang, it took only two months from the decision issued by the court to the implementation of the final plan, demonstrating the company’s determination and execution ability.
On December 3, 2021, Guiyang intermediate people’s Court issued the decision, in which the manager publicly recruited dechangxiang restructuring investors.
On December 15, 2021, the company plans to participate in the public recruitment of investors in the bankruptcy reorganization of dechangxiang.
The draft reorganization plan formulated by the company on January 18, 2022 was approved by the first creditors’ meeting, and the company will officially become the reorganization investor of dechangxiang.
On January 28, 2022, the company received the civil ruling of Guizhou Guiyang intermediate people’s court and approved the reorganization plan of Guiyang dechangxiang Pharmaceutical Co., Ltd.
On February 6, 2022, the company plans to become the bankruptcy reorganization investor of dechangxiang and make a one-time investment of 232 million yuan to obtain 95% equity of dechangxiang.
Brand value highlights, which greatly complements the company’s product line
Dechangxiang is the only century old pharmaceutical company in Guizhou Province. It is a well-known time-honored brand in Guizhou and a well-known trademark in China. Its profound historical and cultural heritage will bring significant brand effect to listed companies.
Dechangxiang, formerly known as Guiyang traditional Chinese medicine factory, has many high-quality drug approvals. At present, dechangxiang has a total of 69 drug approval numbers, including 9 exclusive varieties and 41 medical insurance varieties. Its “Longfeng Baodan traditional Chinese medicine production technology” gynecological reconstruction pill and Eucommia ulmoides butiansu pill are provincial intangible cultural heritage.
The core variety of Guizhou Sanli Pharmaceutical Co.Ltd(603439) is Kai Yan Jian spray series, and its product structure is relatively concentrated. Dechangxiang has a rich product line, covering Gynecology, andrology, pediatrics, respiratory and other departments, and has a large number of OTC varieties, which effectively complements the product line of Guizhou Sanli Pharmaceutical Co.Ltd(603439) . At the same time Guizhou Sanli Pharmaceutical Co.Ltd(603439) after years of development and accumulation, the resources of thousands of commercial companies, thousands of grade hospitals, tens of thousands of pharmacies, clinics and grass-roots medical institutions in China can quickly increase the market share of dechangxiang.
Investment advice
We maintain the company’s profit forecast. It is estimated that the company’s revenue from 2021 to 2023 will be 1.03/12.6/1.51 billion yuan respectively, with a year-on-year increase of 63.9% / 21.7% / 20.0% respectively, and the net profit attributable to the parent company will be 1.5/2.1/280 billion yuan respectively, with a year-on-year increase of 63.6% / 37.2% / 31.7% respectively. The corresponding EPS from 2021 to 2023 will be 0.38/0.52/0.68 yuan, with a corresponding valuation of 36x / 26x / 20x. Maintain the “buy” investment rating.
Risk tips
Marketing expansion is less than expected; Large variety dependence risk; The implementation of acquisition strategy is less than expected risk, etc.
