Aegis Capital analyst Raghuram Selvaraju published a report on China Biological Products CBPO that maintained its Buy rating and raised the 15-Month price target from $22 to $28 per share.
Aegis Capital reported that, “Yesterday, China Biologic Products reported 2012
4Q and full-year results. Total revenue for 2012 was $184.8mm, surpassing
management guidance of $176mm and representing a 21% growth over 2011
revenue. Full year basic and diluted EPS were $1.73 and $1.62 per share
respectively, in line with our estimates of $1.70 and $1.65. Compared to the
previous quarters of 2012, 4Q 2012 revenue saw a dip due to a roughly onemonth
shipment delay for human immunoglobulin for intravenous injection
(IVIG), when the firm appealed to regional governments for favorable
pricing policies following a NDRC price ceiling cut in September. The
provincial governments accepted the appeals and approved the lifting of the
tender price ceilings for IVIG in late October. This was a good measure
to maintain margins for the long-run, in our view. The management also
provided guidance for 2013. Total full-year revenue is projected to be $195-
$205mm and non-GAAP net income to be $50-$53mm. Accordingly, we
have adjusted our 2013 and 2014 revenue estimates to be $205.6mm and
$235.2mm respectively. Our diluted EPS estimates for 2013 and 2014 are
$1.86 and $2.24 per share. We maintain our Buy rating and have adjusted our
price target from $22 per share to a 15-month price target of $28 per share.”
Shares of China Biological Products closed at $25.47 on Wednesday.
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