Summary of FuquetHuitai Medical did not buy when it fell to 140 yuan shares, and now it is 47112 yuan share acquisition.
Author |Sichuan fan fake.
As the first M&A case in the medical industry in 2024, after the announcement of Mindray Medical's acquisition of control of Huitai Medical, the industry was shocked, not only because of Mindray Medical's premium of 25%, but also because the market responded with Mindray Medical's **5% after the acquisition news was announced.
For Mindray Medical, the acquisition of Huitai will help it enter new fields such as electrophysiology and cardiovascular intervention, and enrich the consumable business, but the high premium and poor capital market environment still make it difficult for investors to have sufficient confidence in Mindray Medical.
On the evening of January 28, Mindray Medical announced that it intends to acquire 2112%, the transfer amount is about 66500 million yuan, all the transaction funds are ** from Mindray's own funds. The consolidated valuation of this transaction is 30.2 billion, and the transfer is **47112 yuan shares, corresponding to the premium rate of 25% of Huitai Medical's ** price on January 26.
Regarding the acquisition, Mindray Medical said that it was based on the future development direction of the industry, and said that this is a premium acquisition of a controlling stake, and it is an international practice for a controlling stake acquisition to occur at a premium.
According to public information, Mindray Medical's acquisition was not a temporary idea, and since the middle of last year, Mindray Medical has begun to acquire shares of Huitai Medical through a limited partnership.
Mindray Medical has three major business areas with life information and support, in vitro diagnostics and medical imaging as the core, and the company also focuses on cultivating seed businesses such as minimally invasive surgery, animal medicine, AED (automated external defibrillator), and orthopedics, and is a leading enterprise in the field of A-share medical devices.
Huitai Medical's main business structure is electrophysiology, coronary access, peripheral intervention, etc., and among domestic manufacturers, Huitai Medical has the largest market share in the electrophysiology market, and this acquisition is an important horizontal extension of Mindray Medical's business.
Huitai Medical also has a good performance, thanks to the company's new product listing and localization opportunities brought by centralized procurement, Huitai Medical's revenue has continued to grow in recent years, and it has crossed the billion mark in one fell swoop, from 47.9 billion to 121.6 billion yuan, and the attributable net profit also exceeded 3 from less than 100 million yuan500 million.
Huitai Medical's revenue data in recent years
Just before the change of control, Huitai Medical also announced a favorable performance forecast, and it is expected to achieve a net profit of 5 net profit attributable to the parent company in 2023100 million to 56.5 billion yuan, compared with the same period last year, an increase of 4245% to 5781%。
As for the post-acquisition plan, Mindray Medical said that it will use this to enter the cardiovascular field and use its accumulation and talent reserve in the field of medical devices to help Huitai Medical improve its R&D capabilities. Combined with the advantages of global marketing resource coverage, we will promote the development of cardiovascular business such as Huitai Medical electrophysiology and related consumables. At the same time, it will lay the foundation for the company's future horizontal business expansion.
Mindray Medical has strong overseas channel sales capabilities and strategic, capital and marketing strengths, and Huitai Medical has benefited from domestic substitution in the context of domestic centralized procurement, and its performance has continued to improve.
Even though this is a mutually beneficial merger and acquisition, and because both parties are A-share listed companies, it is the first case of "cash A to A" this year, but from the perspective of the capital market, it does not seem optimistic. Mindray Medical fell 5% on January 29, the first trading day after the news was announced, although Huitai Medical rose 4% on the same day57%** is a momentum of opening high and going low.
In January 2021, Huitai Medical officially landed on the Science and Technology Innovation Board of the Shanghai Stock Exchange, and its stock price rose by nearly 300% in the year of listing. With the change of ownership of the company, it has been just three years since Huitai Medical Company went publicIt is worth noting that on February 2 this year, Huitai Medical will have 917170,000 shares of the original shareholders of the initial offering restricted shares will be lifted, and Huitai Medical will usher in the lifting of the ban.
After the acquisition, the controlling shareholder of Huitai Medical will be changed to Shenmai Holdings, a subsidiary of Mindray Medical, and the actual controllers will be changed to Li Xiting and Xu Hang, the two co-founders of Mindray Medical.
For Mindray Medical, this acquisition will be a major layout in the market in the cardiovascular-related field, and for Huitai Medical, it will be a good tree.
However, all the potential risks are left to Mindray Medical. According to data from the Prospective Industry Research Institute, the leading enterprise in China's electrophysiology device industry is Johnson & Johnson of the United States, and its market share from 2020 to 2022 has been declining year by year, with a market share of about 43% in 2022. The market share of the first-tier companies Abbott, Medtronic, Huitai Medical, and Microelectrophysiology in 2022 is respectively. 2%。
It can be seen that although Huitai Medical is the first domestic manufacturer, it has not opened a gap with the second domestic microelectrophysiology, and there is a big gap with the foreign leader.
With the continuous strengthening of the competitiveness of leading domestic enterprises, the domestic substitution process of China's electrophysiology device market is accelerating, and Mindray Medical needs to invest more funds and resources to maintain the upward momentum of Huitai Medical.
The premium of about 25% is more reasonable than the sunrise industry of electrophysiology and coronary access in which Huitai Medical is located. It's just that in the past year, Huitai Medical's share price has gone from a peak of 464 in 202119 yuan shares, in 2022** to 140 yuan shares, now it has risen to nearly 400 yuan shares.
Although Mindray Medical is optimistic about the future industrial development of Huitai Medical, if it is affected by centralized procurement, Huitai Medical has to "exchange price for volume", and the company's performance will be affected by product price reduction, which will cause Mindray Medical to bear the loss caused by Huitai Medical's stock price.
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