Kailaiying (002821) Company Research: Gao Ying Capital’s Full Subscription for Win-Win Cooperation to Promote the Company to a New Level

Kailaiying (002821) Company Research: Gao Ying Capital’s Full Subscription for Win-Win Cooperation to Promote the Company to a New Level

Event: On the evening of February 16, the company announced the company’s 2020 non-public offering of stock plans.

Funds Raised: 23.

1.1 billion; Pricing: 123.

56 yuan / share, the benchmark date for the non-public offering of shares is the date of the announcement of the resolution of the 33rd meeting of the third board of directors of the company, and the issue price is not less than 80% of the average price of the company’s stock trading 20 trading days before the benchmark date;; Number of non-public offering of shares: not more than 18.7 million shares; Issued object: 1 specific object, Hillhouse Capital Management Ptd.

Limited company

).

Total share capital after issuance: 2.

500 million shares.

Sale restriction period: 18 months.

Use of funds: The full amount will be used to supplement the company’s working capital after deducting the issuing expenses.

Viewpoint: The strategic investor is a star institution in the primary market, and the company is expected to reach another level.

The primary market star institutions subscribed for all non-publicly issued shares in cash, and the win-win cooperation between Gao Ye Capital and Gloria Engel is of great significance.

After the initial public offering, Gaofeng Capital will become a shareholder holding more than 5% of the company’s shares and establish a comprehensive and in-depth strategic cooperation relationship with the company in the field of global innovative drugs.

Relying on its accumulated technology, experience, capacity and platform system in the field of innovative drug services, Gloriad can provide alternative CMC R & D and production services for innovative drug companies invested by Gao Capital and its related parties.

For Gloriain, Gaofeng Capital can actively promote Gloriain to significantly improve the breadth and depth of serving innovative pharmaceutical companies, and to launch in new business areas such as nucleic acid, biopharmaceutical CDMO, and innovative pharmaceutical clinical research servicesIn-depth strategic cooperation can be described as a win-win situation.

It will increase supplementary liquidity to provide sufficient guarantee for subsequent strategic layout and technology research and development.

The company’s next phase of business strategy includes macromolecules, small molecules (API + preparation integration), CRO + CDMO integration, and full life cycle service for drug development.

In terms of customers, it is necessary to strengthen the pipeline penetration rate of major European and American pharmaceutical companies, and to further increase the “breadth” of customers and expand small and medium-sized innovative drug companies.

In terms of technology, the company will further increase research and development investment to maintain the company’s leading position in the 苏州夜网论坛 industry.

The fixed increase will provide sufficient capital guarantee for the company’s various aspects of layout, help the company to increase efficiency and speed up, and accelerate the increase of the company’s market share and industry share.

Earnings forecasts and investment advice.

It is expected that the company’s net profit attributable to the parent in 2019-2021 will be 5 respectively.

7.3 billion, 7.

6.9 billion, 10.

26 ppm, an increase of 33.

8%, 34.

1%, 33.

5%.

EPS are 2 respectively.

48 yuan, 3.

32 yuan, 4.

44 yuan, corresponding PE is 65x, 48x, 36x.

If the additional diluted shares are considered, the EPS is 2 respectively.

29 yuan, 3.

08 yuan, 4.

10 yuan, corresponding to PE is 69x, 51x, 39x.

We believe that the company is a technology-driven domestic CDMO leader and benefits from the continuous advancement of the domestic MAH system.

In the next few years, the company is expected to achieve faster growth in the performance of commercialization projects. The depth and breadth of service innovation companies after the war is set to increase the set date is full of strength.
The growth rate of results in the next three years is expected to maintain 30% -35%, and maintain a “Buy” rating.
Risk reminder: project risk in clinical phase; project risk in commercialization phase; expected risk of macromolecular CDMO strategy implementation; risk of project issuance less than expected.