PharmaTech was reduced!
November 25 evening, the global pharmaceutical R & D production outsourcing leading enterprise WuXi AppTec announced that the company's actual controller control shareholders, and with the actual controller signed a concerted action agreement with the shareholders, intends to reduce the total holdings of not more than 65 million shares, that is, not more than the company's total share capital of 2.2%.
According to the latest share price of 81.94 yuan/share calculation, if the above shareholders of WuXi Kangde top cut 65 million shares, the cash amount will be about 5.3 billion yuan. At present, the total market value of WuXi KangDe is close to 240 billion yuan.
Currently, investors are most concerned about the plan to reduce their holdings, how much impact will it have on the share price of WuXi AppTec?
Pharmtec shareholders to reduce shares
After cutting their holdings and cashing out 2.2 billion yuan a few months ago, the shareholders of PharmaTech have thrown out another plan to reduce their holdings.
November 25 evening, WuXi AppTec in the SSE announcement that, due to their own financial needs, the company's actual controller control of the shareholders and shareholders who signed a concerted action agreement with the actual controller, intends to reduce the total holdings of not more than 65 million shares, that is, not more than the company's total share capital of 2.2%.
As of now, the shareholders controlled by the actual controller of WuXi AppTec and the shareholders who have signed the agreement of acting in concert with the actual controller hold a total of 713 million A shares of the company, accounting for 24.07% of the company's total share capital. These shares, all of which were acquired before the company's IPO and by way of capitalization of capital surplus from equity distribution after the IPO, have been listed and circulated since May 10 last year.
According to the latest share price of 81.94 yuan per share of WuXi AppTec, if the shareholders reduce the top 65 million shares, the amount of cash will be about 5.3 billion yuan. After the disclosure of the above reduction plan, many investors in the stock bar and other online platforms to express concern about the company's share price, that the later share price will be under greater pressure. However, there are also investors said, "and is not at the high level of reduction, there is nothing to be afraid of."
PharmaTech is a leading global pharmaceutical R&D and production outsourcing company.2022 In the first three quarters, the company's performance is still very bright. In the first three quarters, it realized revenue of 28.395 billion yuan, up 71.87% year-on-year; net profit of 7.378 billion yuan, up 107.12% year-on-year; and net profit of 6.232 billion yuan, up 100.64% year-on-year.
Single-quarter view, the third quarter revenue to continue the momentum of growth in the ring, for the first time single-quarter revenue exceeded 10 billion yuan, 10.638 billion yuan, an increase of 77.76% year-on-year growth, an increase of 14.61%; single-quarter net profit of 2.742 billion yuan, an increase of 209.11%. early November, CITIC Securities issued a research report pointed out that the company's performance in 2022 is expected to be high growth, and raised the company's 2022 - 2022 growth rate. And raised the company's 2022-2024 EPS forecast to 3.05/3.41/4.31 yuan (the original forecast of 2.99/3.33/4.16 yuan), to give the company 34 times PE in 2023, corresponding to the target price of 116 yuan, to maintain the "buy" rating.
How much will the company's share price be affected?
The plan to reduce the holdings, how much impact will have on the share price of WuXi AppTec? Let's take a look back at how the stock price has run since the disclosure of the company's shareholders' last plan to reduce their holdings.
The last phase of WuXi AppTec's shareholders' plan to reduce their holdings was disclosed on the evening of June 10 this year. At that time, the company announced that shareholders controlled by the company's actual controller, and shareholders who have signed a concerted action agreement with the actual controller intend to reduce their holdings of no more than 3% of the company's A-share shares during the period from July 4 to September 30, that is, no more than 88.68 million shares. If the top cut, the cash out will be around 9 billion yuan.
The first trading day after the disclosure of the plan to reduce holdings, that is, June 13, WuXi A shares opened sharply lower, the plate once stopped, and finally closed down 9.56%. But more than 10 days later, the company's share price recovered the lost ground, and on July 5 hit a new multi-month high. Since then more than 3 months (July 6 to October 11), the market all the way back, the Shanghai index fell 12%, WuXi AppTec also followed the market down, during the period of the share price fell nearly 40%, when Kanglong Huacheng, Boten shares, Medici, Fosun Pharmaceuticals, Staley and other pharmaceutical stocks also fell more than 40%.
And from the final results of the reduction, WuXi AppTec the above shareholders did not top reduction, the cumulative reduction of 23.21 million shares, accounting for 0.78% of the company's total share capital, the average transaction price of 95.02 yuan/share, a total of about 2.2 billion yuan in cash. That is to say, the actual number of shareholders to reduce their holdings, less than one-third of the original plan to reduce their holdings.
From the above data, after the disclosure of the announcement of the reduction, the first 1-2 days will make the company's share price under pressure. But over a longer period of time, the impact of the announcement on the stock price is not significant. The company's medium- to long-term stock price trend is highly correlated with the overall trend of the broader market.
Can pharmaceutical stocks still be invested in?
Since the beginning of this year, the pharmaceutical sector as a whole has shown a downward trend. Most of the sub-sectors fell, of which the R & D outsourcing plate (Shenwan) fell the most, the cumulative decline of nearly 35%. API (Shenwan) plate fell more than 20%, medical equipment, in vitro diagnostics (Shenwan) plate also fell more than 11%. However, the offline pharmacy sector (Shenwan) realized a 7% gain, and the pharmaceutical distribution sector (Shenwan) fell slightly by 1.86%.
Dongfang Securities pointed out that since 2021, the valuation of the pharmaceutical and biological plate has been suppressed, in a declining process, reached a historical stage low of 20.3X at the end of September 2022, entering the fourth quarter of 2022 after the valuation is repaired, is expected to gradually return. Position, as of September 30, the pharmaceutical and biological board active equity funds in the pharmaceutical and biological positions accounted for 5.54%, down from the previous year, at a historically low level. Pharmaceutical plate is currently the overall underweight status (standardized 7.84%).
Dongfang Securities said that in the long run, health insurance fee control and normalized collection will continue, companies need to choose new varieties, fully grasp the clinical demand, so optimistic about the ability to have a truly innovative enterprises.
Everbright Securities recently released a research report pointed out that the plate valuation, institutional positions are at a historical low, superimposed on the policy margins easing, the long-term configuration of the pharmaceutical plate value highlights. Since the fourth quarter of this year, orthopedic spinal supplies state procurement, innovative drugs new indications for simple renewal, innovative devices are not included in the collection, etc., showing that the marginal easing of policy in the pharmaceutical industry, the current pharmaceutical sector has a high cost-effective investment, is expected to become a preferred long-term investment configuration. It is recommended to grasp the medical hard science and technology, Chinese medicine, innovative pharmaceuticals three main lines.