re: 1164.HK - Vital Biotech - HK listed - HK$0.64
Business Review
The Group is a fully integrated, multinational biopharmaceutical corporation engaged in the research, development, manufacture, sale and distribution of biopharmaceutical and conventional pharmaceutical products. Currently, the Group has business operations in Australia, Hong Kong, Macao and the PRC. With its research and development focus on downstream value adding biotechnology processing systems, the Group develops protein stabilisation and various drug delivery technologies which may be adapted to a wide range of applications, such as, in the areas of cytokines, probiotics and vaccine. In addition, the Group manufactures pharmaceutical products and distributes such products through its extensive distribution network in the PRC. This has provided the Group with a steady income stream during the Track Record Period.During the Track Record Period, the Group has utilised its technologies to develop two products, namely, Opin which was originally developed for treatment of chronic erosive cervicitis by Wuhan Tianao Pharmaceutical Factory and subsequently acquired by the Group through the acquisition of Wuhan Weiao, and Spray-On Bandage, which was originally developed by Mr. Ko for wound protection. The two platform technologies commercialised and refined by the Group are the "Protein Stabilisation and Delivery (PSD)" technology and the polymer membrane based "Skin Drug Delivery System (SDDS)" technology. The PSD technology, jointly invented by Mr. Ko and Mr. Au Yeung, is built on a micro bio-encapsulation process. This allows products to be room temperature stable and enables them to be delivered via a non-injection route, e.g. through various mucosal surface of the body. The SDDS technology, invented by Mr. Ko, is used for delivering various chemical drugs through the skin-surface. Both technologies can be used to develop products for human and veterinary applications.The Group, utilising its research and development capabilities, is co-operating and seeking to co-operate with a number of established pharmaceutical companies. Under such arrangements, the Group assists those companies to improve and expand the applications of their existing pharmaceutical products for existing and emerging markets with the intention of forming a closer business relationship with such companies at a later stage. This can be in the form of joint venture, licensing, service arrangement or joint development.Since 2000, the Group has developed an extensive distribution network of pharmaceutical products in the PRC. Currently, the Group has 28 marketing and liaison offices strategically located in various major cities in the PRC to promote the Group's products and to provide aftersales services. In order to penetrate into the vast PRC market at a faster pace and lower cost, the Group has also appointed distribution agents in the PRC to distribute its products. The Directors believe that the Group is well-positioned to expand its business by utilising its competitive advantages as follows:· proven research and development capabilities; · established and extensive distribution network; · GMP compliant production facilities; · cost effectiveness; · experienced management team; · strategic segregation of functions in different locations; and · unique platform technologies under patent applications.
Prospects
The Directors anticipate that demand for effective and affordable biopharmaceutical and conventional pharmaceutical products worldwide will continue to grow as a result of the growing worldwide population, improving living standard, longer life expectancy and general availability of data from the Human Genome Program. To capture anticipated growing opportunities, the Directors intend to:· continue to enhance its existing products and develop new products which have significant market potential; · establish strategic alliances for mutually beneficial partnerships; · further enlarge its marketing and distribution network in the PRC; · extend its presence into the international markets; and · expand its production capacity and research and development capabilities
Financial Ratios (Currency: HKD)
Recent Data (HKD)
Price 0.50
Change -
High 0.51
Low 0.50
Volume 5,370.00K
52-week High 0.55
52-week Low 0.181
Share-related items
Market Capitalization -
Shares Outstanding
Dividend Information
Dividend (HKD) 0.02
Dividend Yield 4.00
Accounting Information
Equity per share -
EPS (HKD) 0.03
Short-term Debt -
Long-term Debt -
Total Cash 57.98M
Valuation Ratios
Price/Equity
PE Ratios 14.58
Dividend Payout Ratio 58.32
Income Statements
Net Profit 40.59M
Turnover 167.97M
Profitability
Profit Margin 24.17%
Other Ratios
Return on Assets 14.41%
Return on Equity 22.99%
Current Ratio 199.58%
Long-term Debt/Equity -
Debt/Equity
Earnings Announcement
Interim Results
For the 6 months ended Jun 2003, gain attributable to shareholders for the group was HKD$ 24.956 million , a growth of 37.7%.
Announcement Date : 2003/08/29
Summary:
6 months ended 30 Jun 2003:
HKD$(million)
Turnover 125.315
Profit/ (Loss) after Tax & MI 24.956
% change over Last Period + 37.7%
EPS/(LPS)
- Basic (HKD$ cents) 2.01
- Diluted (HKD$ cents) 1.97
Extraordinary (ETD) Gain/(Loss) N/A
Dividend per share (HKD$ cents) 1
(Specify if with other option) with scrip option
Special Dividend (HKD$ cents) N/A
B/C dates for Final Dividends 15-09-2003 to 19-09-2003 bdi.
Payable Date 2003/10/28 |
