Source: Photo.com
Recently, Haier Group or its designated affiliates will acquire approximately 1.329 billion shares (20% of the total share capital) held by Grifols, S.A. (hereinafter referred to as "Grifols"), a shareholder of Shanghai RAAS, the "blood king" of China, at a total price of 12.5 billion yuan, and obtain the corresponding voting rights of about 437 million shares (6.58% of the total share capital).
If the above transaction is completed, Haier Group will control a total of 1.766 billion shares (accounting for 26.58% of the total share capital) of Shanghai RAAS and will become the actual controller of the listed company.
As a listed company, Shanghai RAAS has a high degree of attention in the industry. This is because the company's main products are human blood albumin, intravenous human immunoglobulin, etc., which are all hot and even snapped up "star" products in the epidemic. Among the listed blood products companies in China, Shanghai RAAS is in a leading position, with a market value of 120 billion yuan at its peak. The net profit attributable to the parent company in the first three quarters of 2023 reached 1.788 billion yuan, and it is known as the "blood king" of China's blood products industry.
It is worth noting that in the field of medical and health, Haier Group already has the "Yingkang Life" brand, which includes two listed companies, including Yingkang Life and Haier Biotechnology. Regarding the acquisition, Haier Group replied that the blood product industry chain includes all links from component collection, storage, preparation, diagnosis, and clinical application, and Yingkang Life has formed an industrial ecology in the fields of plasma blood component collection, storage, preparation, cold chain transportation and clinical application. The conclusion of this strategic cooperation will deepen the layout in the preparation, diagnosis and other links.
The sales volume of major enterprises in the blood products industry is growing
From 2017 to 2021, the sales volume of major enterprises in China's blood products industry showed an upward trend as a whole, with the sales volume of Tiantan Biotechnology being 12.475 million bottles, Hualan Biotechnology being 10.29 million bottles, Shanghai RAAS selling 12.472 million bottles, Boya Biotechnology being 2.96 million bottles, Weiguang Biotechnology being 4.4 million bottles, Palin Biotech being 6.94 million bottles, and Boffin Innovation being 1.34 million bottles.
By 2027, the market size is expected to exceed 78 billion yuan
With the continuous release of downstream demand in China's blood products industry, the number of blood products issued in batches will show an increasing trend, based on the shortage of supply in the blood products industry, the average price of products will also increase within a certain range, due to price control, the average price growth will not be too large.
According to the market size of China's blood products industry, which is calculated by multiplying the number of batches of blood products issued each year by the average number of batches issued and then multiplying by the average price of the blood products industry, it is estimated that the market size of China's blood products industry is expected to exceed 78 billion yuan by 2027.
Liang Zhenpeng, an observer of the electricity industry, said that Haier, Midea and other home appliance companies are diversifying, and acquisition is an important way. Haier started as a refrigeration equipment and has done well in the B-end cold chain logistics business, while blood products belong to the upstream industry of the cold chain logistics business, and this acquisition is an extension and supplement of Haier's medical industry sector.
Ping An Securities pointed out that the blood products industry has resource attributes and has broad growth space for immunoglobulin. The brokerage predicts that 1) the market concentration of the blood products industry will continue to increase, and the Matthew effect of the industry will be obvious. 2) There is a big gap between the use of static propylene in mainland China and overseas, and it is expected to further become the core driving force for the growth of the industry. At present, there are few approved indications for intravenous propylene in China, and there is room for improvement in the treatment coverage of intravenous propylene C, and companies with a high market share of intravenous propylene may have stronger potential in the future;3) There are still some vacancies of blood products in the mainland, and enterprises with strong R&D capabilities are expected to contribute new growth momentum to the industry and have strong sustainable growth capabilities.
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For more research and analysis of this industry, please refer to the "Production and Marketing Demand and Investment Forecast Analysis Report of China's Blood Products Industry" by Qianzhan Industry Research Institute
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