Contrary to the good situation of 20 consecutive trading limits at the time of listing, 18 months after listing, the total market value of Chengdu Kanghua Biological Products Co.Ltd(300841) (300841. SZ) fell from 100 billion to 15.45 billion yuan on December 24, and the share price also fell from the highest point of 996 yuan / share to 171.71 yuan / share, becoming the highest decline in A-Shares this year.
The decline continued, Chengdu Kanghua Biological Products Co.Ltd(300841) decided to buy back the company’s shares. However, recently, investors complained that “the repurchase progress is slow”. In addition, many questions have been heard, such as the company’s products are too single, the progress of R & D is slow, and the mystery of huge holdings reduction. In response to the market’s repeated doubts, Chengdu Kanghua Biological Products Co.Ltd(300841) Securities Department responded to the interview by the reporter of Huaxia times.
lonely high priced stocks
In June 2020, Chengdu Kanghua Biological Products Co.Ltd(300841) landed in A-Shares with an issue price of 70.37 yuan / share. After listing, it was overwhelming. After 20 consecutive trading limits, on August 4, Chengdu Kanghua Biological Products Co.Ltd(300841) reached a high price of 996 yuan / share.
Then the share price plummeted. According to the data, at the beginning of 2021, Chengdu Kanghua Biological Products Co.Ltd(300841) share price was 468.24 yuan / share, ranking sixth among high priced A shares. As of the closing on December 24, Chengdu Kanghua Biological Products Co.Ltd(300841) closed at 171.71 yuan / share, with a cumulative decline of 63.3% this year, ranking first among high priced A-Shares (200 yuan / share).
In response to the company’s declining share price, Chengdu Kanghua Biological Products Co.Ltd(300841) responded to the reporter of Huaxia times that the rise and fall of share price in the secondary market are affected by many factors. The fluctuation of market share price belongs to normal market behavior. At present, the company has good fundamentals, and the company will continue to make efforts to do a good job in operation and management.
In an interview with Huaxia times, Wang Yu, an analyst at a large securities firm, said that based on the unique market share of the company’s products and excellent performance, Chengdu Kanghua Biological Products Co.Ltd(300841) attracted capital attention at the beginning of listing, which led to a wave of limit trading climax. However, as the performance growth momentum is no longer, the capital is no longer optimistic about the company’s medium and short-term development, so the company’s share price plummeted.
According to public data, Chengdu Kanghua Biological Products Co.Ltd(300841) is a vaccine manufacturer integrating research, development and operation. It is the first vaccine manufacturer in China to market human diploid cell rabies vaccine. It was established in 2004.
Among them, the company’s main product freeze-dried human rabies vaccine (human diploid cells) is the core product of Chengdu Kanghua Biological Products Co.Ltd(300841) . It is also the first human diploid cell rabies vaccine to be listed and sold in China, and has become the main source of profits of the company.
According to the data of East Money Information Co.Ltd(300059) , Chengdu Kanghua Biological Products Co.Ltd(300841) is actually controlled by Wang Zhentao, who currently holds 13.78% of the company’s shares. Wang Zhentao was previously known as the “king of shoes”. In addition to Chengdu Kanghua Biological Products Co.Ltd(300841) , he also owns A-share listed company Zhejiang Aokang Shoes Co.Ltd(603001) (603001. SH).
single product
Single product is the focus of market doubt Chengdu Kanghua Biological Products Co.Ltd(300841) . According to the financial report, the revenue growth of Chengdu Kanghua Biological Products Co.Ltd(300841) is mainly due to the revenue growth generated by freeze-dried human rabies vaccine. It can be said that “both prosperity and loss.”
According to the interim report of 2021, in the first half of 2021, the revenue contributed by the company’s freeze-dried human rabies vaccine was 549 million yuan, accounting for 97.94% of the total revenue, an increase of 24.75% over the same period last year.
Although the revenue increased, the gross profit margin fell again and again. According to the data, in the first half of 2021, the gross profit margin of the company’s rabies vaccine products was 92.48%, while in 2019, the gross profit margin of the company’s rabies vaccine products was 94.80%.
Highly dependent on a single product has become a huge risk for Chengdu Kanghua Biological Products Co.Ltd(300841) . On the one hand, the gross profit margin of the product has decreased; On the other hand, the market is also cracking the previous dominant pattern, and a number of competitive products companies are “coming fiercely”.
The data show that in 2019, 2020 and the first half of 2021, Chengdu Kanghua Biological Products Co.Ltd(300841) rabies vaccine generated revenue of 538 million yuan, 1 billion yuan and 549 million yuan respectively, accounting for 96.95%, 96.27% and 97.94% of the total revenue of the current period respectively.
Several companies are entering the rabies vaccine market. Chengdu Kanghua Biological Products Co.Ltd(300841) it is mentioned in the 2021 semi annual report that at present, seven enterprises have submitted applications for clinical trials of human diploid cell rabies vaccine. If the products of potential competitors are put on the market, it will have an adverse impact on the market share and sales price of the company’s products.
Under such fierce competition, Chengdu Kanghua Biological Products Co.Ltd(300841) what are the countermeasures? The company told Huaxia times that innovative R & D is becoming one of the most important development strategies of the company, and the proportion of R & D investment in operating revenue has increased year by year in recent three years.
The reporter learned that at present, Chengdu Kanghua Biological Products Co.Ltd(300841) research projects are basically pre clinical. With the promotion of the project, R & D investment will continue to increase, especially after entering the clinic. The implementation of products under research in the future will help enrich the company’s product pipeline and increase the source of profit. At the same time, the company has established a subsidiary of animal protection to promote the development of veterinary drug business, which helps to increase the source of income of the company.
huge reduction
In view of the product competition to be faced in the future, Chengdu Kanghua Biological Products Co.Ltd(300841) believes that the company’s freeze-dried human rabies vaccine (human diploid cells) is the first human diploid rabies vaccine approved and issued by the Central People’s Procuratorate for marketing in China. In the rapid development in the past few years, all aspects have been nearly mature.
For example, the company has a wide range of business channels, established good cooperative relations with important customers, preempted the market, and gradually matured after years of development in terms of brand influence, market channels and product reputation in the rabies vaccine market.
However, the shareholders of Chengdu Kanghua Biological Products Co.Ltd(300841) do not seem to have enough confidence to wait until the next “highlight moment” of the company and start the “sell” mode after the restrictions on initial shares are lifted.
Earlier, on July 20, Chengdu Kanghua Biological Products Co.Ltd(300841) announced that Sanming Guangli, a shareholder holding more than 5%, Cai Yong, Pingtan Yingke and tiger Yingke, who acted in concert, planned to reduce their shares in the company. 4. The total number of shares to be reduced by shareholders shall not exceed 6.024 million, and the total reduction proportion shall not exceed 9.81%,
At that time, Chengdu Kanghua Biological Products Co.Ltd(300841) share price was 236.8 yuan / share. If calculated according to this, the above four shareholders may cash out nearly 1.3 billion yuan.
According to the announcement, Sanming Guangli plans to reduce its holdings of no more than 1419500 shares by means of centralized bidding, block trading and agreement transfer, and no more than 1.57% of the company’s total share capital. Cai Yong plans to reduce his holdings of no more than 2278000 shares, no more than 2.53% of the company’s total share capital. Pingtan Yingke plans to reduce its holdings of no more than 4352200 shares, no more than 4.84% of the company’s total share capital. Tiger Pacific Century intends to reduce its holdings of no more than 777800 shares, with a reduction ratio of no more than 0.86%.
At present, the reduction time is more than half. According to the announcement of more than half reduction issued on Chengdu Kanghua Biological Products Co.Ltd(300841) November 11, Cai Yong has reduced 1.14 million shares, Pingtan Yingke has reduced 1.6 million shares, and tiger Yingke has reduced 272000 shares. According to estimates, the three shareholders cashed out 556 million yuan in this wave of reduction.
The reduction is not over. Subsequently, Pingtan Yingke and tiger Yingke reduced nearly 1.8 million shares of the company through centralized bidding and block trading from November 15 to November 24 and November 26 to December 10, and cashed out more than 280 million yuan again.
(Huaxia times)
