The pharmaceutical stock opened its subscription today and is expected to have a net profit of more than $380 million for the full year

【Pharmaceutical Network Pharmaceutical Stock Market】News on December 16, Chuanning Biotechnology, the "R&D and transformation platform" in the field of synthetic biology under Kelun Pharmaceutical, opened the application today, with an issue price of 5.
0 yuan / share, a single account application limit of 42,000 shares, and a market value of 420,000 yuan
for Dingge application.
According to the announcement of Chuanning Biotech's initial public offering and listing on the Growth Enterprise Market, the company is the core enterprise in the field of antibiotic intermediates, and is one of the main production bases and main suppliers of antibiotic intermediates in China, which is of great significance
to the stable supply of domestic antibiotic products.
The company has obvious technical advantages, focusing on the research and development and industrialization of biological fermentation technology, with 61 patents and more than 30 key core technologies of biological fermentation with independent intellectual property rights, especially the overall production and preparation technology of biological fermentation antibiotic intermediates has a strong competitive advantage
in the domestic biological fermentation sub-industry.
It is worth mentioning that Chuanning Biotech belongs to the "A to A" type spin-off listed company
.
In June 2021, the shareholders' meeting of Kelun Pharmaceutical agreed to spin off its subsidiary Chuanning Biotech to be listed
on the Growth Enterprise Market.
In August of the same year, Chuanning Biotech's listing application was accepted
by the Growth Enterprise Market.
The company's operating performance is relatively stable, the company's net profit attributable to the owners of the parent company in 2021 was 111 million yuan, and the net profit attributable to the owners of the parent company after deducting non-recurring profits and losses was 180 million yuan
。 In addition, the company achieved a net profit attributable to the owners of the parent company of 332 million yuan in the first three quarters of 2022, a net profit attributable to the owners of the parent company after deducting non-recurring profits and losses of 371 million yuan, and is expected to achieve a net profit attributable to the owners of the parent company of 382 million yuan to 411 million yuan in 2022, and a net profit attributable to the owners of the parent company after deducting non-recurring profits and losses of 420 million yuan to 449 million yuan, and the company's expected performance completion in 2022
。 At the same time, the company's cash flow is good
.
In 2020 and 2021, the Company's net cash flow from operating activities after turning notes into cash was $1,598 million and $939 million, respectively.
During the Reporting Period, the overall ratio of net cash flow from operating activities to net profit after the company virtualized the notes into cash was 414.
90%, and it is expected that the company's net cash flow from operating activities after the virtual conversion of notes to cash will exceed RMB71 billion in 2022, with high
profit quality.
It is reported that the company will publicly issue no more than 222.
8 million A shares this time, and intends to raise 600 million yuan for the construction project of the Shanghai Research Institute and the repayment of bank loans
.
Some analysts believe that Chuanning Biotech launched the IPO this time, or achieved over-offering, thereby alleviating the financial pressure
of Chuanning and its parent company Kelun Pharmaceutical.
During the reporting period, compared with comparable listed companies in the same industry, Chuanning Biotech had a high asset-liability ratio, a low current ratio and a quick ratio, and the relevant solvency indicators were lower than those of comparable listed companies
in the same industry.
Its parent company, Kelun Pharmaceutical, has also suffered setbacks in recent years, and its net profit has been negative for
two consecutive years.
From 2018 to 2020, Kelun Pharmaceutical achieved revenue of 16.
35 billion yuan, 17.
64 billion yuan and 16.
46 billion yuan, respectively, a year-on-year increase of 43%, 7.
86% and -6.
65%; The net profit was 1.
213 billion yuan, 938 million yuan and 628 million yuan, a year-on-year increase of 62.
04%, -22.
68% and -11.
57% respectively
.
However, in 2021, the net profit increased by 32.
94%
year-on-year.
According to the third quarterly report of 2022, the owner-operated income of Kelun Pharmaceutical was 13.
858 billion yuan, an increase of 9.
24% over the same period last year; net profit attributable to owners was RMB1.
411 billion, up 66.
33% year-on-year; Non-net profit was RMB1.
377 billion, up 71.
42% year-on-year; Among them, in the third quarter of 2022, the company's main revenue in a single quarter was 4.
734 billion yuan, a year-on-year increase of 6.
29%; The net profit attributable to the parent in a single quarter was 543 million yuan, a year-on-year increase of 52.
72%.

Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.