\u3000\u3 Guocheng Mining Co.Ltd(000688) 131 Shanghai Haoyuan Chemexpress Co.Ltd(688131) )
Key investment points
Event: the company plans to acquire 100% equity of YaoYuan Pharmaceutical by issuing shares and paying cash to Wangyuan, Shanghai Yuanmeng, Qidong Yuanli and Ningbo Jiusheng. Among them, Shanghai Haoyuan Chemexpress Co.Ltd(688131) the consideration paid by shares is 64.09%, totaling 269 million yuan, and the cash payment ratio is 35.91%, totaling 151 million yuan. The price of the underlying assets of this transaction is expected to be no more than 420 million yuan. In addition, the company plans to issue shares to the controlling shareholder Anxi information to raise supporting funds, with a total amount of no more than 50 million yuan, which will be used to pay the expenses related to the restructuring, investment in new projects and supplement working capital. The issue price of the raised matching funds is 151.33 yuan / share.
It is expected to promote the company’s business to extend to the field of preparations and build an integrated service platform. Drug source drugs have been deeply cultivated in the CMC business field for 18 years. It is a high-tech enterprise focusing on the R & D, registration and industrialization services of API and preparation pharmaceutical technology, especially in the field of preparation CMC. The drug source has mastered a number of industry-leading technologies and has a multi-functional preparation production platform, including four oral solid preparation platforms and one external preparation platform. The preparation production platform has passed the EU QP quality audit and successfully accepted the drug registration and GMP two in one dynamic inspection of the State Food and Drug Administration and Jiangsu food and drug administration, which provides a guarantee for the large-scale production of preparations. After the acquisition of drug source drugs, it will not only create an integrated service platform of “intermediate API preparation”, but also improve the large-scale production capacity of the company.
Strong synergy between businesses and similar genes of the company. The company attaches importance to research and development. In 2021, there were 107 R & D teams, accounting for 64% of the total employees. The backbone employees have more than 10 years of process and quality research experience. The equity incentive system ensures the relative stability of the R & D team and is conducive to further increasing the technical barriers of the company. In addition, Shanghai Haoyuan Chemexpress Co.Ltd(688131) the same source drugs can share procurement channels, customer resources and advanced management experience to promote the coordinated development of business.
Thickening the company’s performance, profitability is expected to improve. The performance commitment party intends to promise that the net profit of drug source drugs in 2022, 2023 and 2024 will be no less than 20 million yuan, 26 million yuan and 38 million yuan respectively, with a total of no less than 84 million yuan. With the successful completion of the above commitments, the company’s performance will be further improved and the sustainable development of the company will be promoted.
Profit forecast and investment rating: the company continues to expand and improve the whole industrial chain of CXO. This acquisition event is expected to improve the company’s valuation. Regardless of the performance growth brought by the acquisition, we expect the net profit attributable to the parent company in 2022 and 2023 to be RMB 275 million and RMB 385 million, and the current share price (RMB 157.50) corresponds to 43 and 30 times of PE.
Risk tips: risks related to performance commitments, acquisition and integration risks, increased industry competition risks, etc.
