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To play the new first unicorn next Tuesday

April 17th, 2018 00:00
Author: Dan Cheng true
source: Brokerage China
edit:Oriental Wealth Network

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Summary
Next Tuesday, playing the new first unicorn to see the drug Ming Kant returns to the six major focuses. In just 70 days, WuXi PharmaTech, which owns the “medical industry Huawei”, got a ticket to land A shares, which can be described as “Lightning” listing. On April 16, WuXi PharmaTech issued a letter of intent for a prospectus on the Shanghai Stock Exchange. The expected issuance date is April 24, which means that the new date will be the next Tuesday. (Dealer China)

The unicorn really came! Next Tuesday, A shares will usher in the first unicorn under the "Unicorn New Deal" - WuXi.

In just 70 days, WuXi PharmaTech, which owns the “medical industry Huawei”, got a ticket to land A shares, which could be described as “Lightning” listing. On April 16, WuXi PharmaTech issued a letter of intent for a prospectus on the Shanghai Stock Exchange. The expected issuance date is April 24, which means that the new date will be the next Tuesday.

Specifically, the WuXi PharmaTech purchase code is 732259. Calculated at a 23x P/E ratio, the expected issuance price is 21.6 Yuan per share, and Top Grid purchase requires 310,000 Shanghai Stock Market Value.

It should be noted that on March 8th, Foxconn passed the meeting; on March 27, WuXing Mingkang passed the meeting.

WuXiangKangde, who had a meeting 19 days later than Foxconn, got the IPO approval first. Why Foxconn could not get approval has become a topic of concern in the market. According to analysis by industry insiders, the "costs" of WuXi PharmaTech's issuance is that the fund-raising amount of 5.74 billion yuan has dropped to 2.13 billion yuan, a drop of 63%.

We must know that Foxconn plans to raise the fund-raising scale of 27.2532 billion yuan. The company may communicate with regulators about important information such as issue size, questionable information in the prospectus, and issuance of share capital. In addition, market participants expected that the amount of fund-raising in the Ningde era, which was to be funded for 13.12 billion yuan just after the meeting, would soon become a high probability event.

What is the sacredness of WuXi Pharmacology, known as the "medical industry Huawei"? There are six highlights of this super unicorn:

Has 66 holding subsidiaries

Parent company has a total of 45 patents

80% of employees are R&D personnel

Over 70% of undergraduate and undergraduate employees

High-level employees earn over one million

R&D costs exceeding 300 million yuan, accounting for 3.94% of revenue

......

  Focus one:

To play a new unicorn next Tuesday, top purchase requires 310,000 market value

Next Tuesday, A shares will usher in the first unicorn under the "Unicorn New Deal" - WuXi.

On April 16th, WuXi PharmaTech's prospectus published on the Shanghai Stock Exchange showed that the release date is April 24th.Purchase of new sharesThe date is April 24, which is the next Tuesday.

Specifically, the WuXi PharmaTech purchase code is 732259, which is calculated based on a 23x P/E ratio. The expected issuance price is 21.6 Yuan/share. If you want to top purchase, you need 310,000 Shanghai stock market value.

According to the previous 5.741 billion yuan fund-raising plan, and its related data, the price-earnings ratio has soared to 50 times. However, after the reduction in the size of WuXi PharmaTech's fundraising, the issuance P/E ratio may fall to about 22.99 times, which is below the red line of the 23X issued P/E ratio.

It is worth noting that the price-earnings ratio of WuXi PharmaTech when it was delisted from privatization in the United States was about 30 times.

Even so, there are still many market speculations that due to possessing the concept of "unicorn", the listed company's price-earnings ratio may still rise to a higher level.

  Focus two

Fundraising scale dropped by 63% from 5.741 billion to 2.13 billion

According to the WuXing Kangde prospectus, the number of IPOs issued will not exceed 104 million shares. It is expected that the amount of funds raised will be 2.13 billion yuan.

It is worth noting that according to the prospectus of the prospectus issued by the previous drug Ming Kant, WuXi PharmaTech intends to plan to raise funds of 5.741 billion yuan. The fund-raising scale was reduced to 2.13 billion yuan, a drop of 63%.

Specifically, WuXi PharmaTech issues raised funds after deducting issuance costs, and will invest in the following four major projects: Suzhou Drug Safety Evaluation Center Expansion Project, Tianjin Chemical R&D Labs Expansion and Upgrade Project, WuXi PharmaTech Headquarters Base, and Analytical Diagnostics Service R&D Center (91#, 93#), additional working capital.

Interestingly, the previous drug Ming Kant planned to raise 5.741 billion yuan, and the corresponding investment projects had as many as ten, and now there are only four. If the WuXing Kangde prospectus shows, it will invest in the following items.

  Focus three:

Why did Foxconn, who had already passed the conference, fail to get approval, raising a fund of 27.25 billion?

In just 70 days, WuXi PharmaTech got a ticket for landing A shares, which can be described as "Lightning" listing.

This company, known as the potential "unicorn" in the field of biomedicine, was not the first new economic enterprise to have ever attended the conference. Before it, Foxconn, which had the concept of industrial Internet, had already passed the meeting.

But why did WuXi MingKang get approval earlier than Foxconn and why Foxconn, the first meeting ever, did not approve the news?

In accordance with the issuance review process, after the issuance of the review committee meeting, it is necessary to perform certain post-meeting matters to obtain the approval. Some are to adjust the key points for the members of the vetting committee to focus on the trial, while others are to make amendments to the issuance issues. Ming Kant is to make adjustments to the amount of funds raised in this link, and after obtaining an approval in accordance with the supervision and approval of the issuing arrangements.

Some market analysts have analyzed that Foxconn may communicate with regulators on important issues such as issue size, questioning information in the prospectus, and issuing share capital. The "costs" of WuXi PharmaTech's issuance is that the fund-raising amount of 5.74 billion yuan has fallen to 2.13 billion yuan, a 63% drop.

From the information previously disclosed, Foxconn plans to raise 27.2532 billion yuan, respectively, to invest in industrial Internet, cloud computing, data centers, communications networks, Internet of things, smart manufacturing new technologies, smart manufacturing upgrades, smart manufacturing capacity expansion.

Such a large amount of funds raised in the current market environment can be described as “big head”. To successfully issue and “depressurize” the market, it is more feasible to reduce the amount of funds raised. After the company is listed, it can solve financing needs by issuing bonds. Some market participants expected that the amount of fund-raising in the Ningde era, which was planned to raise 13.12 billion yuan just after the meeting, will also become a high probability event.

  Focus four:

Reduce the “big” fundraising scale or become the norm

At present, the A-share market continues to oscillate. Due to the consideration of market affordability and investor confidence, the regulator intends to adjust the pace of issuance of new shares and the issuance scale.

Since the beginning of last year, the Securities Regulatory Commission has issued a new stock approval document on Friday every week that has become a stable expectation. However, in terms of issuance size, it will reach a maximum of more than RMB 6 billion, at least only RMB 1 billion, and an average of no more than RMB 5 billion. The average fundraising size is about 1.09 billion yuan. In particular, recently, the decline in the IPO rate and the weakness of the market, the regulator repeatedly reduced the number of new share approvals and fundraising to ease market pressure.

Looking at the current enterprises, Hualin Securities, Great Wall Securities, CSC, Nanjing Securities, and Tianfeng Securities, Guolian Securities, Hongta Securities and Zhongtai Securities will all become the highlights of this year. The super giant Chinese People's Insurance will also bring unprecedented pressure on the market. On February 5th this year, Huaxi Securities, which was funded by Shenzhen Stock Exchange and raised 4.967 billion yuan, became a new high for new stocks since 2017.

The current capital market, the new economy “Unicorn”, has shown a welcome trend. It is also one of the key elements considered by the regulators to minimize the possible risks while protecting the good companies.

Reducing the “bulk” fundraising amount can increase the ability of the capital market to serve the real economy, open umbrellas for investors, allow the market to adapt to new economic enterprises, and let unicorns better fit the development of A-shares, which may pose risks. Do a good job of early warning, do a good job in risk prevention while improving the tolerance of the market system, keep good companies behind, and block the pseudo-innovation concept outside of A shares. This is also due to the Chinese capital market serving the new economy.

  Focus five:

In the end, WuXi PharmaTech was "Who's Divine"

What is the sacredness of WuXi Pharmacology, known as the "medical industry Huawei"?

WuXi PharmaTech was founded in 2000 and is a giant of domestic CRO (Contract Research Organization). It is mainly engaged in the discovery, development, and production of small molecule chemical drugs. According to the disclosure of the prospectus, in 2015, the company’s CRO service market share ranks 11th in the world and 1st in China.

CRO Industry Introduction

The CRO company is responsible for implementing all or part of the activities involved in the drug development process. Its basic purpose is to perform all or part of scientific or medical research on behalf of the drug company customers, mainly providing preclinical research and clinical data including new drug product discovery, research and development, and development. Professional technical service support such as management, new drug registration application, etc., to obtain commercial or remuneration based on the relationship between the trustee and the trustee.

According to the disclosure of the prospectus, WuXi PharmaTech currently has 24 research and development production bases/branches throughout the world, serving more than 3,000 customers including the world’s top 20 largest pharmaceutical companies (June Johnson, the top ten customers during the reporting period. Merck, Roche, and Pfizer are multinational pharmaceutical giants.

WuXi PharmaTech has basically completed the layout of the entire industry chain of CRO, providing comprehensive laboratory research and development and production services for drug discovery, development and marketization in the fields of pharmaceuticals, biotechnology and medical devices. According to the type of business, the main business of WuXi PharmaTech can be divided into two major sections and a total of four business units:

In terms of performance, WuXi PharmaTech's data is also very bright. According to the prospectus, from 2015 to 2017, WuXi PharmaTech's operating income was 4.883 billion yuan, 6.116 billion yuan and 7.765 billion yuan respectively; the net profits attributable to shareholders of the parent company were 349 million yuan, 975 million yuan, and 1.227 billion yuan respectively.

  Focus six:

Super Unicorn Six Aspects

1. Has 66 holding subsidiaries

Specifically, as of December 31, 2017, WuXi PharmaTech has a total of seven first-level subsidiaries, including Shanghai YiMing, Suzhou YaoMing, Wuhan YaoMing, Tianjin YiMing, and WA-HongKong (Hong Kong). WA-INT (PharmaTech) and Chengdu Yaoming.

2, the parent company has a total of 45 patents

Specifically, Shanghai Yiming has 27 patents; Wuhan Yiming has 3; Suzhou Yiming owns 6; Tianjin Yiming owns 3; and its subsidiary has 6 in total.

3, Bacheng employees are R&D personnel

As of the end of 2015, the end of 2016, and the end of 2017, the total number of employees of the issuer and its holding subsidiaries was 9,291, 11,613, and 14,763 employees respectively. As of December 31, 2017, R&D personnel accounted for nearly 80% of the total.

4. Over 70% of undergraduate and undergraduate employees

5, high-level employees annual salary of over a million

In the prospectus, the company’s employees’ salary levels at all levels are given. Among them, the annual salary of senior employees is as high as RMB 1.094 million.

The prospectus also gives the salary status of employees in different positions. The highest annual salary for management personnel is 264,500 yuan, followed by sales personnel, which is 235,300 yuan.

6, R & D costs over 300 million yuan, accounting for 3.94% of revenue

The prospectus shows that in 2017, the drug research and development expenses of WuXi PharmaTech were 306 million yuan, accounting for 3.94% of the revenue. The prospectus also mentioned that the company's R&D expenses increased significantly in 2016 and 2017. The main reason was that while the company's business scale was continuously expanding, it also increased investment in research and development of the technology platform to better enhance the ability of serving customers. .

  Related reports>>>

  First order! There is a big wave on the road of the IPO of the pharmaceutical stocks of Akemi Pharmaceuticals.

  WuXiang Kangde Lightning Nearly 30% off the amount of funds raised The new competition period or arrival of CRO industry

  Raises 2.1 billion investment in four major projects

                (Editor: DF075)

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