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Markets· Equity· IPO

Guangdong Taienkang Pharmaceutical’s IPO to debut on Shenzhen Stock Exchange

CKN
minutes 2022/03/28 06:59:23
10,000+

Mar 28, 2022 (China Knowledge) - Guangdong Taienkang Pharmaceutical (301263) to start trading on the Shenzhen ChiNext Market Mar 29, tomorrow. The firm has issued 59.10 mln shares priced at RMB 19.93 per share raising RMB 1.18 bln. Its price-to-earnings ratio (PE) stands at 30.84. During subscription the IPO was 4,665 times oversubscribed.

Guotai Junan Securities acts as the lead underwriter and sponsor for the IPO.

Guangdong Taienkang Pharmaceutical Co., Ltd. operates as a pharmaceutical distribution company. The Company markets oral preparations, external preparations, medicine pieces, and other products. Guangdong Taienkang Pharmaceutical also sales medical supplies.

In FY 2020, Guangdong Taienkang Pharmaceutical garnered a total revenue of RMB 709 mln, up 43% YoY. In terms of net income, it achieved RMB 154 mln, rising 186% YoY. In H1 2021, the company reported revenue of RMB 316 mln, a YoY decrease of 12%, and its net profits reached RMB 57 mln, down 32% YoY.

The company is in the pharmaceutical and biological industry that is currently made of 435 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 7,508 bln, industry’s average PE of 37 times. The pharmaceutical and biological industry’s index is up 8.88% year-to-date, ranking it the 11th 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 13 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 7 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 25 times and 50 times, respectively. On a year-to-date basis, the industry’s index on the HKEx declines 18.65% and the U.S is up 21.14%.

There will be another 2 IPO debut tomorrow, Wankai New Materials Co.,Ltd. (301216) and Suzhou Fushilai Pharmaceutical Co.,Ltd. (301258).

Since January, a total of 81 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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