Chengda Pharmaceutical Co., Ltd
Initial public offering and listing on GEM
Special announcement on investment risk
Sponsor (lead underwriter): Everbright Securities Company Limited(601788)
According to the industry classification guidelines for listed companies (revised in 2012) issued by the CSRC, Chengda pharmaceutical belongs to "C27 pharmaceutical manufacturing industry". As of January 4, 2022 (T-4), the average static P / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. was 38.90 times. The issuance price of 72.69 yuan / share corresponds to the issuer's diluted P / E ratio of the net profit attributable to the shareholders of the parent company in 2020, whichever is lower before and after deducting non recurring profits and losses, which is 83.10 times higher than the static average p / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on January 4 (T-4) 2022, with an excess range of 113.62%. The issuer and the recommendation institution (lead underwriter) remind investors to pay full attention to the risk factors contained in the marketization of pricing, know that the stock may fall below the issue price after listing, effectively improve the risk awareness, strengthen the value investment concept, avoid blind speculation, carefully study and judge the rationality of issue pricing, and make rational investment decisions.
The application of Chengda Pharmaceutical Co., Ltd. (hereinafter referred to as "the issuer") for the initial public offering of no more than 24174035 ordinary shares (A shares) (hereinafter referred to as "the offering") has been examined and approved by the GEM Listing Committee of Shenzhen Stock Exchange (hereinafter referred to as "Shenzhen Stock Exchange"), It has been approved for registration by China Securities Regulatory Commission (hereinafter referred to as "CSRC") (zjxk [2021] No. 3857).
After negotiation between the issuer and Everbright Securities Company Limited(601788) (hereinafter referred to as the "sponsor (lead underwriter)"), it is determined that the number of shares issued this time is 24174035, all of which are new shares issued to the public, and the shareholders of the issuer will not transfer their old shares. The shares issued this time are planned to be listed on the gem of Shenzhen Stock Exchange.
The issuer and the recommendation institution (lead underwriter) specially draw investors' attention to the following contents:
1. The issuance adopts directional placement to strategic investors (hereinafter referred to as "strategic placement") Offline inquiry and placement to qualified investors (hereinafter referred to as "offline issuance") and online pricing issuance to social public investors holding non restricted A-Shares and non restricted depositary receipts in Shenzhen market (hereinafter referred to as "online issuance"). The strategic placement, preliminary inquiry and online and offline issuance of this offering shall be organized and implemented by the sponsor (lead underwriter). Strategic placement shall be conducted at the sponsor (lead underwriter); The preliminary inquiry and offline issuance shall be conducted through the offline issuance electronic platform of Shenzhen Stock Exchange（ https://eipo.szse.cn. ）And the registration and settlement platform of China Securities Depository and Clearing Co., Ltd. Shenzhen Branch (hereinafter referred to as "CSDCC Shenzhen Branch"); Online issuance is carried out through the trading system of Shenzhen Stock Exchange.
2. The issuer and the recommendation institution (lead underwriter) directly determine the issuance price through offline preliminary inquiry, and offline cumulative bidding inquiry is no longer conducted.
3. According to the preliminary inquiry results, the issuer and the recommendation institution (lead underwriter) shall, in accordance with the elimination rules agreed in the announcement on preliminary inquiry and promotion of Chengda Pharmaceutical Co., Ltd. initial public offering of shares and listing on the gem, eliminate the placing objects whose proposed subscription price is higher than 98.00 yuan / share after excluding the quotation of unqualified investors; The proposed subscription price is 98.00 yuan / share, and all placing objects with the proposed subscription quantity of less than 7 million shares are eliminated; Among the placing objects with a proposed subscription price of 98.00 yuan / share and a proposed subscription amount of 7 million shares, all placing objects whose subscription time is later than 13:15:33:736 on January 4, 2022 are eliminated; Among the placing objects with a proposed subscription price of 98.00 yuan / share, a proposed subscription quantity of 7 million shares and a subscription time of 13:15:33:736 on January 4, 2022, 8 placing objects are excluded from the back to the front according to the order of placing objects automatically generated by the offline subscription platform. A total of 115 placing objects were excluded in the above process, and the total number of proposed shares to be excluded was 4900 million shares, accounting for 1.01% of the total number of proposed shares to be purchased after excluding invalid quotations in this preliminary inquiry. The excluded part shall not participate in offline and online subscription.
4. According to the preliminary inquiry results, the issuer and the recommendation institution (lead underwriter) comprehensively consider the effective subscription multiple, the issuer's fundamentals, the issuer's industry, market conditions, the valuation level of comparable listed companies in the same industry, the demand for raised funds and underwriting risks, and negotiate to determine that the issuance price is 72.69 yuan / share, and the offline issuance will not conduct cumulative bidding inquiry.
Investors are requested to make online and offline subscription at this price on January 10, 2022 (t day), and there is no need to pay the subscription fund. The offline issuance and Subscription Date and the online subscription date are the same as January 10, 2022 (t day), in which the offline subscription time is 9:30-15:00, and the online subscription time is 9:15-11:30 and 13:00-15:00.
5. The issuing price of this offering shall not exceed the median and weighted average of the quotations of offline investors after excluding the highest quotation, as well as the Securities Investment Fund (hereinafter referred to as "public fund"), the National Social Security Fund (hereinafter referred to as "social security fund"), the basic old-age insurance fund (hereinafter referred to as "pension") established through public offering after excluding the highest quotation The enterprise annuity fund (hereinafter referred to as "enterprise annuity fund") established in accordance with the measures for the administration of enterprise annuity fund and the insurance fund (hereinafter referred to as "insurance fund") in accordance with the measures for the administration of the use of insurance funds, whichever is lower. Therefore, the relevant subsidiaries of the sponsor need not participate in the follow-up investment, and the number of shares initially participated in the follow-up investment of the relevant subsidiaries of the sponsor will be transferred back to the offline issuance.
According to the final price, the senior management and core employees of the issuer participated in the special asset management plan established by the strategic placement, and the final number of strategic placement was 907965 shares, accounting for about 3.76% of the number of shares issued this time.
To sum up, the initial number of strategic placement shares issued in this issuance is 3.626105 million shares, accounting for 15.00% of this issuance. According to the final price, the final strategic placement number of this issuance is 907965 shares, accounting for about 3.76% of the total number of this issuance. The difference between the initial strategic placement quantity and the final strategic placement quantity of 2718140 shares will be transferred back to offline issuance.
6. The issue price is 72.69 yuan / share, and the price earnings ratio corresponding to this price is:
(1) 43.50 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by an accounting firm in 2020 in accordance with Chinese accounting standards by the total share capital before this issuance);
(2) 62.33 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by an accounting firm in accordance with Chinese accounting standards in 2020 by the total share capital before the issuance);
(3) 58.01 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company before deducting non recurring profits and losses audited by an accounting firm in 2020 in accordance with Chinese accounting standards by the total share capital after the issuance);
(4) 83.10 times (earnings per share is calculated by dividing the net profit attributable to shareholders of the parent company after deducting non recurring profits and losses audited by an accounting firm in 2020 in accordance with Chinese accounting standards by the total share capital after this issuance).
7. The issue price is 72.69 yuan / share. Investors are requested to judge the rationality of the issue price according to the following conditions.
(1) According to the industry classification guidelines for listed companies (revised in 2012) of the CSRC, the industry of the issuer is "C27 pharmaceutical manufacturing industry". As of January 4, 2022 (T-4), the average static P / E ratio of "C27 pharmaceutical manufacturing industry" released by China Securities Index Co., Ltd. in the latest month was 38.90 times. The issuance price of 72.69 yuan / share corresponds to the issuer's diluted P / E ratio of net profit attributable to the shareholders of the parent company in 2020 after deducting non recurring profits and losses, which is 83.10 times, higher than the static average p / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. on January 4 (T-4) 2022, with an excess range of 113.62%. There are three reasons: first The company is mainly committed to providing cdmo services for key pharmaceutical intermediates for multinational pharmaceutical enterprises and pharmaceutical R & D institutions, and engaged in the R & D, production and sales of L-carnitine series products. In recent years, with the vigorous development of the pharmaceutical industry and the increasingly complex drug molecular structure, cdmo industry has become an important part of the global pharmaceutical industry; In order to narrow the technical gap with European and American developed countries in the field of pharmaceutical industry, the national support for cdmo and other pharmaceutical industries has been increasing, which has directly promoted the rapid development of cdmo industry. Second, the core value of the company's cdmo business is reflected in the development, optimization and industrial application of pharmaceutical technology. After more than 20 years of development, the company has formed a technical system with water-soluble small molecular amino acid separation and purification technology, drug chiral synthesis technology, transition metal catalyzed coupling reaction technology, diversified chemical synthesis production technology and equipment transformation technology in line with the implementation of industrialization. With advanced technology R & D experience, the company has become Incyte Helsinn, Lilly / Evonik and other important partners of multinational pharmaceutical enterprises. Third, the company is one of the world's major suppliers of L-carnitine. The pharmaceutical grade L-carnitine produced by the company has been registered in China, the United States, Europe, Japan, Canada, the United Kingdom, Italy, Greece, Malta and other countries or regions. Among them, the company's L-carnitine products have passed the on-site inspection of FDA for three times, and the on-site inspection of China's drug registration and GMP compliance. The L-carnitine produced by the company was jointly rated as a national key new product by the Ministry of science and technology. In 2020, the global market share reached 14.25%. It is the world's main supplier of L-carnitine and has a good international reputation. (2) As of January 4, 2022 (T-4), the P / E ratio of comparable listed companies is as follows:
T-4 day stock 2020 deduction 2020 deduction corresponding static corresponding static securities code securities abbreviation closing price non front EPS non back EPS P / E ratio (Times) (yuan / share) (yuan / share) (yuan / share) - deduction non front - deduction non back
603259.SH Wuxi Apptec Co.Ltd(603259) 108.801.00150.8070108.64134.82
002821.SZ Asymchem Laboratories (Tianjin) Co.Ltd(002821) 391.502.74482.4478142.63159.94
300363.SZ Porton Pharma Solutions Ltd(300363) 76.620.59590.5294128.58144.73
603456.SH Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) 51.050.45710.3871111.68131.88
688076.SH Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) 40.500.57900.443269.9591.38
Average 112.30132.55
Data source: wind information, data as of January 4, 2022 (T-4)
Note 1: if there is mantissa difference in the calculation of P / E ratio, it is caused by rounding;
Note 2: EPS before / after deduction of non recurring profit and loss in 2020 = net profit attributable to the parent before / after deduction of non recurring profit and loss in 2020 / total share capital on T-4 day.
The issuance price of 72.69 yuan / share corresponds to the lower net profit diluted P / E ratio of the issuer before and after deducting non recurring profits and losses in 2020, which is 83.10 times higher than the average static P / E ratio of the industry in the latest month released by China Securities Index Co., Ltd. It is 132.55 times lower than the average static P / E ratio of comparable listed companies, but there is still a risk that the decline of the issuer's share price will bring losses to investors in the future. The issuer and the recommendation institution (lead underwriter) remind investors to pay attention to investment risks, carefully study and judge the rationality of issuance pricing, and make investment decisions rationally. (3) Investors are reminded to pay attention to the difference between the issue price and the quotation of offline investors. For the quotation of offline investors, please refer to China Securities Journal, Shanghai Securities News, securities times, securities daily and cninfo (www.cn. Info. Com.. CN) published on the same day Announcement of Chengda Pharmaceutical Co., Ltd. on initial public offering and listing on GEM (hereinafter referred to as the "issuance announcement").
(4) This offering follows the principle of market-oriented pricing. In the preliminary inquiry stage, offline institutional investors quote based on the real subscription intention. The issuer and the recommendation institution (lead underwriter) comprehensively consider the effective subscription multiple, the issuer's fundamentals, the issuer's industry, market conditions, the valuation level of Listed Companies in the same industry, according to the preliminary inquiry results The issue price shall be determined through negotiation based on the demand for raised funds, underwriting risk and other factors. The offering price shall not exceed the lower of the median and weighted average of offline investors' quotations after excluding the highest quotation and the median and weighted average of public funds, social security funds, pensions, enterprise annuity funds and insurance funds after excluding the highest quotation. If any investor participates in the subscription, it shall be deemed that it has accepted the issue price. If there is any objection to the issue pricing method and issue price, it is recommended not to participate in this issue.
(5) Investors should fully close their accounts
