Shanghai Junshi Biosciences Co.Ltd(688180) (688180)
Event: on December 16, 2021, the company announced that its wholly-owned subsidiary juntuo biology planned to increase its registered capital by 140366972 yuan, Gongqingcheng Ruiji phase VI investment partnership (limited partnership) and other 14 round a investors intend to subscribe for the above increased registered capital of juntuo biology with RMB 1275 million. After the completion of this transaction, the company and round a investors hold 68.125% and 31.875% of the equity of juntuo biology respectively.
The capital increase injected new impetus, and the innovation and R & D of subsidiaries continued to accelerate. Founded on August 6, 2021, juntuo biology focuses on innovative research and development of biomedicine and vaccine. This transaction will provide financial support for the R & D and production of juntuo biology’s biological vaccine and anti infective drug pipeline, accelerate the product R & D process of its subsidiaries, and improve the company’s layout in the biological vaccine sector. Actively introducing investors can make full use of the rich financial support provided by them to improve the platform development, establish technical advantages, improve the business vitality and operation efficiency of subsidiaries, and help realize the continuous acceleration of independent innovation and development of subsidiaries.
The upgrading of asset allocation escorts the stable and sustainable development of the company. Round a investors have senior investment experience in the field of biomedicine, which will create richer development channels for the business of subsidiaries and help extend the development radius; Optimize the management mechanism and business structure of subsidiaries and improve the overall operation efficiency. The independent development of subsidiaries will save management costs for the overall operation of the company, help to realize the overall collaborative progress of other businesses, and the overall development rhythm of the company will make a new chapter. Actively introducing investors will effectively optimize the company’s asset allocation, improve risk response ability, and help the company achieve stable and sustainable development as a whole.
Juntuo’s overall valuation reached 4 billion yuan, catalyzing the revaluation of the company’s value. Round a investors subscribed 31.875% equity of juntuo biology with RMB 1.275 billion, indicating that the overall valuation of juntuo biology has reached RMB 4 billion. As an emerging biotechnology company established only in April, the overall value of juntuo biology has been highly recognized by investors. With the continuous acceleration of the development of juntuo biology and the gradual accumulation of value, it is possible to carry out independent capital operation in the future. This transaction reveals the development prospect of juntuo biology and effectively widens the advance space of the subsidiary; Reflect the forward-looking layout of the company’s business development and have clear ideas for long-term development. Juntuo’s capital increase subscription process is expected to catalyze the revaluation of the company as its holding company.
Profit forecast and investment rating. It is estimated that the company’s revenue from 2021 to 2023 will reach 4.147 billion yuan, 3.382 billion yuan and 4.197 billion yuan respectively, with a year-on-year increase of 160%, – 18.4% and 24.1% respectively; The net profit attributable to the parent company is -72 million yuan, – 173 million yuan and 124 million yuan respectively, and the corresponding EPS is -0.08, -0.19 and 0.14 yuan respectively, maintaining the “buy” rating.
Risk tip: R & D and operation teams are still being established; There may be a risk that the subsequent promotion of the transaction requires approval or filing, but has not been approved or filed by relevant departments.
