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DBS: Consun Pharmaceutical Group Ltd – Buy Target Price HK$9.00

Posted on July 26, 2022July 26, 2022 By alanyeo No Comments on DBS: Consun Pharmaceutical Group Ltd – Buy Target Price HK$9.00
News alert: Consun Pharm (1681 HK)’s chairman & CEO selling 29.5% stake at price 160% above closing price yesterday (positive)
  • Consun Pharm (1681 HK)’s chairman & CEO agreed to sell 29.5% stake at HK$10.64 per share to Wanbangde Pharm (002082 CH)
  • If the deal can be done, stake of the chairman and the CEO are estimated to remain at 13.6% and 1.9%
  • The selling price is 160% above closing price yesterday, expect share price to react positively 
  • Our current recommendation is BUY, TP HK$9.00
What’s new? 

Consun Pharm (1681 HK)’s chairman Mr. An Meng & CEO Ms. Li Quan agreed to sell 29.5% stake at HK$10.64 per share to Wanbangde Pharm (002082 CH). The price may be adjusted subject to the result of due diligence by the potential buyer. 

If the deal can be done, stake of the chairman and the CEO are estimated to remain at 13.6% and 1.9%.

Introduction of Wanbangde Pharm (002082 CH): principally engaged in development, manufacturing and sales of pharmaceutical products including modern Chinese medicines and active pharmaceutical ingredient (API) and medical devices. Wanbangde Pharm and Consun Pharm are on the Top 100 Chinese medicine enterprises in 2021. The cardio and cerebrovascular products of Wanbangde Pharm and the nephrology products of Consun Pharm are all for the treatment of chronic diseases. Company website: ??????????????? (wepon.com.cn)

Our view:

As the selling price is 160% above closing price yesterday, we expect share price to react positively. Market anticipation of synergy with Wanbangde Pharm will drive Consun Pharm’s share price too. 

Our current rating is BUY and TP HK$9.00

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Research - Equities Tags:Consun Pharmaceutical Group

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