COVID-19 detection plate continues to be detonated!

Since January 6, 688075.SH has risen by 20% for four consecutive days. On January 12, the company's share price continued to rise 4.98% and continued to rise high, with an overall increase of 117% in five days.

As a secondary new stock of Science and Technology Innovation Board, since its listing in November last year, the stock price has risen by more than 200% in less than 2 months, making it the prettiest son of Science and Technology Innovation Board and the leader of COVID-19 testing plate.

The performance of COVID-19 testing plate has greatly increased, and funds have poured in.

On the news side, there has been a high incidence of epidemics in many places around the world recently, and the recent overseas demand for novel coronavirus testing kits has appeared the phenomenon of "one box is difficult to obtain".

Ma Shuai of Anxin Securities said that reviewing the number of new tests added every month in Europe and the United States in the past two years, the emergence of new mutated strains, the promotion of family self-test products, and the liberalization of the isolation policy have played a great role in promoting the size of the COVID-19 testing market. With the spread of Omicron, the further promotion of home self-test products in the United States and the upcoming spring semester in January, the demand for COVID-19 testing will continue to be stimulated. Based on the judgment of future industry trends, the combined market size of COVID-19 testing in Europe and the United States is expected to reach US $3.391 billion, equivalent to about 22 billion yuan in 2022.

Including the approaching Spring Festival in China, the epidemic situation has also been repeated, disturbing the normal pace of life, at the same time, it has also objectively increased the demand for COVID-19 testing business, and relevant medical companies have risen accordingly.

In addition to Anxu Biology's 4-connected board, Jiu'an Medical has soared nearly 900% since the beginning of November, which is only one step away from ten times the shares. In addition, Oriental Biology has risen 141%, Botuo Bio has risen 83%, Mingde Bio has risen 29%, and so on. Plate sentiment is obviously high.

It is worth mentioning that while the share price of COVID-19 testing Company has soared, there have been continuous performance forecasts. For example, Rejing Biology is expected to achieve a net profit of 2 billion yuan to 2.35 billion yuan in 2021, an increase of 1684.65% over the same period last year to 1996.97%. The net profit of Mingde Biological is expected to increase by 177.23% 219.88%, with a profit of 1.3 billion yuan to 1.5 billion yuan. The net profit of Kip Biology is expected to increase by 120.59% Mel 137.14% over the same period last year, with a profit of 800 million yuan to 860 million yuan.

The pre-gratification of the performance further confirms the high-profile demeanor of the industry, thus boosting the speculation mood of the market, medical devices, COVID-19 testing plate has become the main line of the market in the near future.

Medical device White Horse Unit, the company built its own POCT raw material platform.

Founded in 2008, Anxu Biology, headquartered in Hangzhou, Zhejiang Province, specializes in the research and development of POCT (instant testing) reagents and instruments, and has formed POCT reagents covering drug testing, infectious disease testing, chronic disease testing, pregnancy testing, tumor testing, myocardial testing, biochemical testing, allergen testing and so on.

POCT is a branch of IVD (in vitro diagnosis), which refers to the diagnostic method of clinical and bedside tests carried out by portable reagents and instruments, and sample analysis at the sampling site. It has the advantages of shorter diagnosis time, less testing time for patients and medical staff, faster and more convenient than the traditional testing process, and helps to reduce the occupancy rate of hospital medical resources.

According to the prediction of Kalorama Information research, by 2023, the global market for self-test and professional POCT will reach 12.07 billion US dollars and 9.4 billion US dollars. The size of the domestic POCT market is expected to reach 29 billion yuan by 2024, with a compound growth rate of about 20.9% from 2019 to 2024. The epidemic has obviously accelerated this process.

During the reporting period, Anxu's biological income mainly came from independent research and development and production of POCT reagents. The company's revenue in 2018, 2019, 2020 and the first three quarters of 2021 was 164 million yuan, 210 million yuan, 1.199 billion yuan and 682 million yuan respectively, and the corresponding net profit in the same period was 33.4093 million yuan, 54.4476 million yuan, 649 million yuan and 284 million yuan respectively.

Due to the epidemic factors, the company's revenue and profits obviously broke out in 2020, but it is worth noting that the company's traditional testing business has not given up, the gross profit share of COVID-19 plate has declined, and the company's long-term development will not rely on short-term epidemic factors.

To talk about the competitive advantage of Anxu Biology, the company began to lay out the self-supply plan of core raw materials at the beginning of its establishment, built a biological raw material platform, provided raw material guarantee for the company's POCT reagents, and formed an integrated industrial chain from upstream core raw materials to diagnostic reagents.

Antigens and antibodies are the core raw materials of POCT reagents, and their properties affect the key performance indexes of POCT reagents and determine the upper limit of POCT reagents to a great extent. In terms of cost structure, core materials account for more than 75% of in vitro diagnostic materials.

In the industrial chain, the upstream raw material link belongs to the high technical barrier link. Some people in the industry have said that the raw material research and development of in vitro diagnostic reagents has high technical requirements, the research and development cycle is long, the production process is complex, and the core raw materials are almost monopolized by multinational enterprises. downstream enterprises are highly dependent on imported raw materials.

The biological raw material platform of Anxu Biology has mastered genetic engineering recombinant antigen technology, synthetic antigen technology, polyclonal antibody preparation technology and monoclonal antibody preparation technology. it has formed five categories of products, including synthetic antigens, recombinant antigens, monoclonal antibodies, polyclonal antibodies and other biomaterials (color latex microspheres, fluorescent microspheres, etc.). It covers a series of products such as drug testing, infectious disease testing, pregnancy testing, tumor testing, myocardial testing, tumor testing and chronic disease testing, realizing the self-supply of antigen and antibody raw materials for nearly 100 kinds of reagent products, accounting for more than half of the company's demand for biological raw materials.

Conclusion--

Anxu Biology is a high-quality company in medical devices, due to the integration of the layout of upstream raw materials, performance growth is relatively steady.

According to the data, Anxu's overseas revenue accounts for more than 90%, and its products are exported to many countries such as the United States, Germany, the United Kingdom, Canada, Russia, Mexico, Thailand, Indonesia and Poland. It has become one of the few suppliers of in vitro diagnostic products that can compete with multinational giants in the POCT international market. This is one of the reasons why the company's share price has performed strongly in this wave of overseas outbreaks.

However, at present, the valuation level of the company has risen sharply, and the share price is as much as three times what it was when it went public. Whether it can continue to perform in the future, and wait and see what happens.