InvestIdeas

Rheumatic diseases drug maker Lansen Pharmaceutical opens its retail books today to tap up to HK$553 million.

It plans to sell 141.35 million shares at HK$2.95 to HK$3.91 each, of which 29.25 percent or 41.35 million shares are existing shares to be sold by its parent company and a substantial shareholder.

The firm, set to go public on May 7, said it has no dividend policy, but a dividend of US$6.6 million (HK$51.48 million) was declared for the year ended December 31 on net profit of US$7.38 million.

Lansen's parent, London-listed Cathay International Holdings, will sell 31.35 million secondary shares in the global offerings.

The minimum cost for a board lot of 1,000 shares is HK$3,949.45.

Source: The Standard HK

From Phillips:-


Risk
- Effect of China healthcare reform on pharmaceutical industry.
- Depends on agency distribution arrangements for some products
- Pafulin and Tuoshu contribute substantial portions of sales revenue.


Valuation

Compared to peers as shown below, the industrial average of 2009PE is 25.05x (Sinopharm is excluded) that is closes to the company's 2009PE: 23.5x, according to the mean of offering price.

We set 2010PE and EPS of the company to be 21x and HK$: 0.2278. Our year-end target price is HK$ 5.01, implying 28.13% of upside potential relative to the upper end of offering price ranged from HK$2.95 to HK$3.91.

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Not vested.

DJ MARKET TALK: Lansen Pharma +21.5%; SHKF Eyes Huge Potential

1105 [Dow Jones] NEW LISTING: Lansen Pharmaceutical (0503.HK) +21.5% at HK$4.75 vs offer price of HK$3.91, with shares moving between HK$4.63 and HK$5.19, given strong IPO response with retail tranche 852X oversubscribed, offer price set at high end of HK$2.95-HK$3.91 indicative range.

Sun Hung Kai Financial notes huge potential in rapidly growing rheumatology market likely supportive to Lansen, as rheumatoid arthritis is 4th most prevalent chronic disease in China.

Says Lansen has extensive sales and distribution network covering 25 provinces and 4 municipalities; "this helps it launch new products and penetrate new markets more efficiently." But adds likely an idea to sell into strength, as offer price represents 21X FY10 P/E, or 18% premium to HK-listed pharaceutical sector average.

Source: Dow Jones Newswire

Vested

Big buyer of 94,000 shares thru DBS @ 3.27

Vested

Big Elephant selling 121,000 shares at 2.85 thru BOCI

Another big elephant selling 100,000 shares at 2.84 through China Everbright

Big elephant selling 130,000 shares @ 2.81 through Hang Seng

winston wrote:Vested

Big Elephant selling 121,000 shares at 2.85 thru BOCI

Same big elephant trying to sell 238,000 shares now @ 2.84 thru BOCI now ?

Vested

Share price up 5.5%

Rev +21%
EPS +8%

http://www.hkexnews.hk/listedco/listcon ... 325055.pdf

Vested

Big elephant selling 100,000 shares thru MS