Xi Niu Cai Jing·2025-05-28 06:44Core Viewpoint - The acquisition of 64.81% stake in Imexpharm Corporation (IMP) by Lijuz Group for 1.587 billion yuan has sparked market discussions primarily due to its high valuation [1]. Group 1: Acquisition Details - The transaction price corresponds to a price-to-earnings (P/E) ratio of 27.6 times IMP's projected net profit for 2024, significantly higher than Lijuz Group's own P/E ratio of 15 times [4]. - If calculated based on the annualized net profit for the first quarter of 2025, the dynamic P/E ratio rises to 29.7 times [4]. - The acquisition price represents a premium of 293.79% over IMP's net assets at the end of 2024, indicating a control premium and a bet on the potential of the Vietnamese pharmaceutical market [4]. Group 2: Company Background and Market Position - IMP, established in 1977, is a leading pharmaceutical company in Vietnam, with core products including antibiotics (first in market share) and cardiovascular drugs (fifth in market share), covering over 80% of medical institutions in Vietnam [4]. - In 2024, IMP reported revenue of 696 million yuan and a net profit of 88.83 million yuan; for the first quarter of 2025, revenue was 186 million yuan with a net profit of 20.61 million yuan [4]. Group 3: Strategic Rationale - The acquisition aims to complement Lijuz Group's existing product lines in antibiotics and cardiovascular drugs, allowing both companies to share research and development resources as well as sales channels [4]. - The Vietnamese pharmaceutical market is growing at an annual rate exceeding 10%, and IMP holds EU GMP certification, which could provide Lijuz Group with a gateway to Southeast Asian and European markets [4]. - Lijuz Group's revenue in 2024 decreased by 4.97% year-on-year, primarily due to price reductions from centralized procurement and a decline in demand for antiviral drugs, necessitating the search for new growth opportunities [4].