Longjin Pharmaceutical (002750) IPO Pricing Report: Specialized manufacturer of Breviscapine Freeze dried Powder for Injection

Key investment points

    Company Profile

    The company is a pharmaceutical enterprise that develops and produces natural botanicals and chemical freeze-dried powder injections, and is mainly committed to the research, development, production and sales of Breviscapine freeze-dried powder injections for injection. The company has 10 varieties of breviscapine for injection, defibrase for injection, methionine and vitamin B1 for injection, and breviscapine for injection is the leading variety.

    Profit forecast

    We expect that the net profit attributable to the parent company from 2014 to 2016 will increase by - 21.88%, 16.97% and 8.84% annually, and the corresponding diluted earnings per share will be 0.88 yuan, 1.03 yuan and 1.12 yuan.

    Company valuation

    We believe that it is reasonable to give the company a valuation level of 20 times of earnings per share for 15 years. The reasonable valuation range of the company with this P/E ratio as the center and a positive negative range of 20% is 18.68-22.41 yuan, which is 21.27-25.52 times of the static P/E ratio (diluted after issuance) in 2014.

    Pricing conclusion

    The proposed public offering shall not exceed 16.75 million shares, which shall not be less than 25% of the total share capital after the offering. The original shareholders of the Company do not offer shares to the public in this offering. The total share capital after issuance shall not exceed 66.75 million shares. It is estimated that the issuance cost will be 53.13 million yuan, the net amount of funds to be raised will be 302.14 million yuan, and the issuance price will be 21.21 yuan. The corresponding PE in 2014 and 2015 is 24.15 and 20.64.