Markets· Equity· IPO

Sichuan Huiyu Pharmaceutical’s IPO to debut on SSE STAR Market

minutes 2021/10/25 04:23:06

Oct 25, 2021 (China Knowledge) - Sichuan Huiyu Pharmaceutical (688553) to start trading on the Shanghai Stock Exchange's STAR Market Oct 26, tomorrow. The firm has issued 63.60 mln shares priced at RMB 38.87 per share raising RMB 2.47 bln. Its price-to-earnings ratio (PE) stands at 50.7. During subscription the IPO was 3,481 times oversubscribed.

China Securities, Guodu Securities acted as the lead underwriter, and China Securities served as the sponsor for the IPO.

Sichuan Huiyu Pharmaceutical Co Ltd is a China-based company principally engaged in the research and development, production and sales of anti-tumor and injection drugs. The Company’s products are mainly anti-tumor chemical injections, including pemetrexed disodium for injection, docetaxel injection, zoledronic acid injection, irinotecan hydrochloride injection, doxorubicin hydrochloride injection liquid and azacitidine for injection. The Company's products are mainly used in the clinical treatment of various adaptive diseases. The Company distributes its products both in the domestic market and to overseas markets.

In FY 2020, Sichuan Huiyu Pharmaceutical garnered a total revenue of RMB 1.36 bln, up 93% YoY. In terms of net income, it achieved RMB 342 mln, rising 93% YoY. In H1 2021, the company reported revenue of RMB 885 mln, a YoY increase of 51%, and its net profits reached RMB 258 mln, up 59% YoY.

The company is in the pharmaceutical and biological industry that is currently made of 397 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 7,735 bln, industry’s average PE of 38 times. The pharmaceutical and biological industry’s index is up 7.07% year-to-date, ranking it the 18th place among all 29 broad industry groupings.

Shanghai Pharmaceuticals Holding Co.,Ltd (601607) takes up the top spot in terms of sales in the industry, reporting RMB 191.91 bln of sales in 2020, with a net profit of RMB 4.5 bln, at 9 times PE. The second largest is Jointown Pharmaceutical Group Co., Ltd (600998), a total revenue of RMB 110.86 bln and a net profit of RMB 3.08 bln, at 8 times PE. Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited (600332) ranked third. It garnered a total revenue of RMB 61.67 bln last year, and a net profit of RMB 2.92 bln, with 13 times PE.

The average industry’s PE for the same or similar stocks on Hong Kong Exchange (HKEx) and the U.S. stock markets for pharmaceutical and biological is 34 times and 52 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 12.44% and the U.S is up 22.71%.

There will be another 2 IPO debut tomorrow, China Resources Chemical Innovative Materials Co., Ltd. (301090) and Wayz Intelligent Manufacturing Technology Co., Ltd. (688211).

Since January, a total of 388 companies have listed on either Shanghai or Shenzhen Stock Exchange, most are mainly in the machinery equipment, electronics and pharmaceutical and biological industries.

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