Renhe Pharmaceutical Industry: Start the integration of directional additional placement kicked off

The company announces the directional additional plan, the issue quantity does not exceed 50 million shares, the IPO price is not less than 18.36 yuan/shares, raises the capital to be about 900 million yuan.　　Mainly used for: ① to Camphor Tree Medicine Group acquisition of Camphor Tree Pharmaceutical and medicine are all 100% of the drug industry, ② to Jiangxi Pharmaceutical capital expansion and share reform, to obtain 70% equity; ③ Xiangnen and group acquired 55% stake in medicinal plastic company and purchase office space; ④ replenish liquidity. Two-step holding Jiangxi Pharmaceutical 70% stake in the future profit improvement space is very large.　　Jiangxi Pharmaceutical to general drugs, products covered by anti-inflammatory bacteria, digestive system, antipyretic analgesia, Cardiovascular and other fields, a total of 337 approvals. Due to the heavy burden of history and backward system, in recent years, operating in the profit and loss balance, 2010 years income of 130 million yuan, net profit of 970,000 yuan. The company has invested 320 million yuan in the total investment of Jiangxi Pharmacy, to be divided into two steps: the first step to increase the capital 95 million, for debt restructuring and settlement of historical problems, to obtain 45.49% equity, the second step to increase the capital of 200 million yuan, a comprehensive transformation, the eventual acquisition of 70% equity (see table 2). Jiangxi Pharmaceutical has a long history, many varieties, more talent, in the province to accumulate rich social resources and good brand. Through this acquisition, the two sides will complement each other, helping to enhance the overall strength of the company.　　The future profit of Jiangxi Pharmacy is greatly improved, which is expected to inject new impetus into the company's rapid growth. The acquisition of Camphor Tree Pharmaceutical + Medicine Pharmaceutical Pharmaceutical Industry 100% Equity, the integration of camphor medicinal resources. Camphor Tree Pharmaceutical, medicine is the main pharmaceutical, the former is responsible for production, the latter is responsible for sales, the existing 230 varieties, of which 13 varieties of traditional Chinese medicine protection, the main products large activating pill. In 2010, the net profit of the two enterprises amounted to 15.67 million yuan, and the project investment amounted to about 300 million yuan.　　Benevolence originated in Camphor tree, the acquisition of Camphor Tree Pharmaceutical + Medicine Pharmaceutical Industry 100% Equity, to help integrate local pharmaceutical resources, enrich their product categories, create new growth points. The purchase of medicinal plastic company 55% Equity, to fulfill the group commitment.　　Pharmaceutical plastic companies to provide packaging materials, 2010-year income of 25.37 million yuan, net profit of 4.57 million yuan, the project investment amount of about 50 million yuan. After the purchase of medicinal plastic company, will be able to resolve related transactions, the group commitment.　　Other fund-raising funds are used to purchase office space (about 150 million) and to replenish liquidity (about 80 million) respectively. Start directional additional, integration kicked off, maintain overweight rating. Does not consider the issue of equity dilution, the maintenance of 2010-2012 earnings per share of 0.55 yuan, 0.82 yuan, 1.06 yuan, the year-on-year growth of 40%, 48% and 30%, corresponding to the P/E ratio of 38 times times, 26 times times, 20 times times.　　Companies to start additional, pull off the prelude to integration, mergers and acquisitions of enterprise products, marketing improved space, and the company to form complementary advantages to achieve the overall strength of the leap-type development. The company itself to continue the OTC multi-brand strategy, the promotion of "benevolence and health home" concept, expand the results of marketing reform, to achieve more flowers. The current valuation is cheap, maintaining the target price of 32.6 yuan and overweight rating.