Multi-layer co-extrusion bioprocessing films
expected to drive a rerating; upgrade to ADD
■ We expect multi-layer co-extrusion bioprocessing films to drive a rerating of the Company.
■ In the next few years, the Company’s earnings will be driven by 1) the plastic ampoule series; 2) bulk medicines; and 3) multi-layer co-extrusion bioprocessing films.
■ We raised expected 2021/22/23F net profits by 1.7%/3.1%/4.6% to reflect the films’ contribution. We lift our TP from to HK$4.6 (10x 2022F P/E) to HK$7.39 (10x 2022F P/E for existing business + Rmb6.7bn for bioprocessing films). Upgrade to ADD.