"Two Big Moves" announced at the same time! Uncover Liaoning into a big capital chess game

On the evening of May 8th, Liaoning Chengda Co., Ltd. issued a number of announcements involving two big news:One is a long-rumoured IPO of its controlling subsidiary, Liaoning Chengda Biological Co., Ltd. ("Chengda Bio"), which is expected to raise 2.04 billion yuan, which is expected to become the "first stock of A-share".The other is sudden: the proposed listing transfer into Dafang Yuan Pharmaceutical Group Co., Ltd. ("Cheng Dayuan") 100% equity. At present, securities institutions in accordance with the market law for the valuation of a large square circle of 1.859 billion yuan.Two big moves at the same time official announcement, once again Liaoning into a big capital chess game to the climax.Annual income of 700 million into large biological spin-off listedvaluation or super Liaoning chengdainto large organisms have "the first stock of rabies vaccine", the main products for human rabies vaccine (Vero cells), human inactivated Ethyl vaccine (Vero cells), the profit volume is huge. Especially after the 2018 "long-term vaccine incident", as a former competitor to Changchun Changsheng Chamber, the largest beneficiaries of the big creatures, the market share quickly soared from 30% to about 70%, showing a unique situation.As a result, chengda biological performance has been climbing year after year. In 2017-2019, Chengda Bio's net profit reached 560 million yuan, 630 million yuan and 720 million yuan, respectively. Net profit attributable to shareholders of listed companies in 2019 was 720 million yuan, up 17.45 percent from a year earlier, accounting for 37.72 percent of Liaoning Chengda's profit, making it a "cash cow".However, it is worth noting that in 2019, Chengda Bio's total revenue was 1.677 billion yuan, of which rabies vaccine revenue was 1.59 billion yuan, accounting for 94.8%. Therefore, in order to break the unique pattern of rabies vaccine, into large organisms in recent years continue to accelerate the expansion of product lines, it seems to be vibrant.It is reported that at present, Chengda biological has been the brain, influenza, hepatitis A and other 5 kinds of conventional vaccine clinical approval, is expected to be in late 2021 and early 2022 will be on the market. At the same time, the company is also planning to work with Tsinghua University School of Pharmacy to develop a new coronavirus peptide vaccine, it has been reported that the study will help large organisms in the science and technology board through the green channel of epidemic prevention.In addition, research and development, chengda biological also crazy money, from the research and development data, the company last year's research and development investment of up to 132 million yuan, compared to 2018 growth of up to 93%!Because of the bright business performance, Chengda Bio has always been An important piece of Liaoning Chengda in the capital market.On December 31, 2014, Liaoning Chengda split into a big creature listed on the new three boards, and then in May 2018, Liaoning Chengda plans to continue to break into big creatures to break through the H-shares, but with the hong Kong stock cold, the science and technology board came out of the sky, into a big creature "new three boards and H" plan in July 2019 to call a halt, and then turn the war section to create a board.It is worth mentioning that, as mentioned earlier, Chengda Bio's net profit for 2019 was as high as 720 million yuan. In this regard, some investment experts said: "If according to the valuation of pharmaceutical and biological companies to give 50 times the price-earnings ratio (when new shares listed, the valuation level may be higher than 50 times), then the listing of Chengda Bio will reach about 36 billion yuan market value, will exceed the current market value of parent company Liaoning Chengda 26.9 billion yuan." It would be extremely rare for a subsidiary to be listed at a valuation that exceeds that of its parent company. Thethe new three-board market, with a total market capitalisation of only 16 billion yuan and a price-to-earnings ratio of 14.45 times. The same is the vaccine concept stock, on the main board of the market of Kantai Bio 2019 net profit of 575 million yuan, profit is not as big as big creatures, but the market value has reached 86.2 billion yuan, the price-earnings ratio of up to 180 times. Therefore, if the big creatures successfully landed on the board, there is no doubt that its market value level will be expected to be greatly improved.Public transfer into a large 100% stakecashed in 1.8 billion investment benefits into a large biological spin-off to break through the customs branch of the board rumors have been long, but the transfer into a large 100% stake news came somewhat suddenly. Data show that Cheng Dafang yuan was founded in 2000. In 2007, the company's former shareholder, Liaoning Medical Device Industry Co., D., withdrew, and Liaoning Chengda's shareholding became 100%. At present, There are 1507 in Chengda yuan country distributed throughout the country, in the newly released "2018 China's top 100 drugstore chain" list ranked 11th. As the leader of the chain of pharmacies, million did not expect that in the past year, Chengda Yuan net profit actually greatly reduced. According to the annual report, Chengda Yuan achieved sales revenue of RMB2,937 million in 2019, a decrease of 2.97% YoY, and pre-tax profit of RMB72.48 million, a decrease of 319.85 percent YoY. At the same time, it is worth noting that Liaoning Chengda's debt at the end of 2019 was 241 million yuan, an increase of 80 million yuan over the same period a year earlier, mainly due to financial loan disputes a result of Chengda Yuan, which was frozen at 66.957 million yuan due to litigation. As a result, Liaoning Chengda said, the sale is to focus resources to enhance the company's core business sector profitability and comprehensive competitiveness, while improving the company's cash reserves, improve the company's asset and liability structure, enhance the company's ability to resist risks. It is reported that Beijing China Enterprise China Asset Assessment Co., Ltd. in accordance with market law to evaluate the assets, that is, the total equity value of Chengda Yuan shareholders can reach 185,936.43 million yuan. Of course, this price is not the final transfer price. In this regard, some investors believe that: "In the current situation, Liaoning Chengda sold into a large square circle, cashing in more than 1.8 billion investment benefits, for the company's business optimization and stock market has a positive role in promoting." " In fact, Liaoning Chengda does present a complex business situation, the current main business is divided into the following four major sectors - medicine and medical treatment: covering biopharmaceuticals, pharmaceutical circulation and medical services three major sectors, respectively, by the big creatures, into a large square circle, into a large medical three subsidiaries to bear;
: invested in Guangfa Securities, a well-known shadow brokerage stock; supply chain services (trade); a large number of import and export trade business; energy development: involved in shale oil development projects.
According to the data of Liaoning Chengda Annual Report, the profit level of other major industries is very low, except for big biological and financial investment. In particular, its energy development projects are considered to be the most unstable black holes, losing money for years. Its supply chain services sector contributes a very small percentage of the company's profits at a cost of 88%. In contrast, Chengda Yuan's operating income (less than 20%), net profit (loss) and net assets accounted for relatively low in Liaoning Chengda's overall financial indicators. It is precisely because of the uneven development between the various business sectors, Liaoning Chengda has not been favored by the capital market. In 2007, Liaoning Chengda's share price reached a record high of 43 yuan, and then all the way down, the current share price is only 17.61 yuan / share, market value of 26.9 billion yuan, less than half the peak. And this time Liaoning Chengda also announced that the most valuable large biological spin-off and sale into a large circle, but also hope that the capital market for the company's different business reasonable valuation, thereby improving the company's overall valuation level. (Sina Pharmaceutical News)