Health Yuan (600380): Repurchase shares show confidence and focus on the progress of rehabilitation preparations

Health Yuan (600380): Repurchase shares show confidence and focus on the progress of rehabilitation preparations

Event: Recently, Health Yuan intends to repurchase the company’s shares by means of centralized bidding, with a repurchase amount of 1.

500 million to 300 million.

40% of the repurchased stock is used for employee shareholding and 60% is used for equity incentive plans.

The repurchase period is within one year after the performance of the board of directors is passed.

The repurchase price does not exceed 15 yuan / share.

Investment Highlights: Repurchased shares demonstrate confidence.

The company’s stock closed at 10 on February 10.

49 yuan, the upper limit of the repurchase price is 43% higher than the closing price; calculated based on the upper limit of the repurchase price, the overall repurchase program accounts for 0% of the company’s total share capital.

51% -1.

03%; the number of shares repurchased, showing the company’s previous confidence in the merger.

Long-term optimistic about the company’s development of rehabilitation agents.

In 2019, Health Yuan has two injectable preparations that replace bromotoluene, and levosalbutamol is on the market. Looking forward to 2020, budesonide suspensions will be filed in February 2019, and will be issued in November.Health Yuan and China Biopharmaceuticals; domestic cost of this species exceeds 4 billion US dollars, and only one original research.

There are more than 20 research and development reserves of health yuan extract preparation products, which is expected to continue the business development of the supplement preparation sector in recent years.

At present, listed companies have fewer participants in injectable preparations, and the absorption preparations have higher barriers than oral dosage forms. Under the background of centralized procurement, the layout is better.

Maintain the “Recommended” level.

In the short term, it is expected that the antiviral particles and test kits (Rizhu) in new coronary pneumonia will perform better; in the long term, the company and its subsidiary Livzon Group propose a medium and long-term partner shareholding plan, and the prospects for self-implantation are goodOverlapping the growth expectations of Livzumab, long-term optimistic about the company’s development.

It is expected that the EPS for 2019-2020 will be 0.

45 yuan, 0.

50 yuan, 0.

58 yuan, corresponding to the closing price on February 10, PE is 23, 21, 18 times.

Maintain the “Recommended” level.

Risk warning 7-ACA price reduction risk; the application of the recovery preparation is less than expected; the risk of the product entering the national collective procurement