UPDATE: Aegis Capital Maintains China Biological Products at Buy, Raises PT on 4Q Earnings

Aegis Capital analyst Raghuram Selvaraju published a report on China Biological Products

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.