Grand Pharmaceutical Clarifies Valuation Basis for RMB316 Million API Assets Acquisition

Grand Pharmaceutical Group Limited ( (HK:0512) ) has issued an announcement.

Grand Pharmaceutical Group Limited has issued a supplemental and clarification announcement regarding its previously disclosed connected transaction to acquire the entire equity interests in Hebei Yuanda Jiufu Biotechnology Co., Ltd. and Baoding Jiahe Fine Chemical Co., Ltd. for RMB316 million. The company elaborated on the valuation basis for the deal, explaining that an independent valuer used an enterprise value-to-earnings before interest and taxes (EV/EBIT) multiple, benchmarked against 17 comparable, China-based listed companies primarily engaged in sales of pharmaceutical intermediates and APIs, to appraise the target businesses at approximately RMB324 million (after adjusting for a proposed profit distribution). The clarification underscores that the targets are mature, stable-growth API and intermediate suppliers with predictable capital expenditure, and the board views the transaction as beneficial for the group’s business by aligning with its strategic focus on pharmaceutical ingredients, potentially enhancing its scale and competitiveness in the Chinese pharmaceutical intermediates market.

The most recent analyst rating on (HK:0512) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Grand Pharmaceutical Group Limited stock, see the HK:0512 Stock Forecast page.

More about Grand Pharmaceutical Group Limited

Grand Pharmaceutical Group Limited is a Bermuda-incorporated pharmaceutical company listed in Hong Kong, operating in the human health sector with a focus on pharmaceutical products. Through its subsidiaries, the group is involved in the production and sale of pharmaceutical intermediates and active pharmaceutical ingredients (APIs) for human drugs in China, aiming to strengthen its position in the domestic pharma supply chain.

Average Trading Volume: 4,890,669

Technical Sentiment Signal: Buy

Current Market Cap: HK$27.76B

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