In the "Active Stocks" section, China National Pharmaceutical opened 3% higher, planning to indirectly acquire a 5% stake in Chengda Tianqing involving nearly 4.5 billion RMB

According to the Economic News Agency on the 14th, China Biologic Products Holdings (01177) is currently up 3.4%, trading at HKD 5.43, with a transaction volume of approximately 280,000 shares, involving HKD 1.54 million.

China Biologic Products announced that the company (through the buyer) intends to acquire a 5% stake in the target company Sino Harmony Ventures Limited. Today, the company's wholly-owned subsidiary Chia Tai Pharmaceutical (Lianyungang) Company Limited (as the buyer) entered into a sale and purchase agreement with the seller's executive director and major shareholder, Xie Chengrun, regarding the sale of the target equity. According to this agreement, the buyer conditionally agrees to purchase, and the seller conditionally agrees to sell the target equity (equivalent to 100% of the total issued shares of the target company) for a consideration of RMB 4.48 billion, which is approximately 19 times the LTM PE for acquiring a 5% stake in the target company.

Zhengda Tianqing is a subsidiary of the company, and upon completion of the transaction, the company's indirect ownership in Zhengda Tianqing will increase from 60% to 65%. Based on the adjusted net profit attributable to the parent company of Zhengda Tianqing for the LTM ending June 2026, this acquisition is expected to enhance the group's adjusted net profit attributable to the parent company by approximately 7.4% (approximately RMB 350 million). The seller is an executive director and major shareholder of the company, thus the seller is a related party of the company.

Currently, the Hang Seng Index is at 24,701, down 104 points or 0.4%, with a main board turnover exceeding HKD 3 billion. The National Enterprises Index is at 8,213, down 33 points or 0.4%. The Hang Seng Tech Index is at 4,290, down 29 points or 0.7%. (vs)