On the evening of July 21, Novizan (688105) released the 2022 semi-annual performance forecast. It is expected that the company will achieve an operating income of 1.6 billion yuan to 1.65 billion yuan in the first half of the year, a year-on-year increase of 93.81% to 99.86%; net profit of 600 million yuan to 6.3 100 million yuan, an increase of 53.12% to 60.77% year-on-year; deducted non-net profit of 560 million yuan to 590 million yuan.
New crown detection product revenue soars
Novozymes is one of the main suppliers of core enzyme raw materials for new crown nucleic acid detection in China. In the first half of the year, Novozymes’ revenue increased significantly, mainly due to the increase in revenue from new crown testing-related products.
On March 12 this year, the State Food and Drug Administration issued a notice approving changes in the application of self-testing applications for 5 new coronavirus antigen products. Since then, five new crown antigen self-test products have been officially launched, including products from A-share companies such as Novozymes and Wanfu Bio.
In March of this year, after the outbreak of the epidemic in Shanghai, Jilin and other places, Shanghai distributed a large number of antigen testing products to citizens, including Novozymes’ antigen testing kits.
In today’s performance forecast, Novozymes stated that in the first half of 2022, the company actively responded to the adverse impact of the new crown epidemic, while maintaining the increase in sales of advantageous products and services, and further realizing the sales transformation of products and services in growth business areas. The company’s regular business maintained steady growth as a whole.
Novi praised that in the first half of the year, the demand for new crown detection-related biological reagents and terminal detection reagents in my country increased significantly compared with the same period last year. Growth in operating income and net profit during the reporting period.
In the investment event in June this year, Novozymes introduced the status of the new crown-related business.
Novi praised that, on the one hand, the domestic epidemic situation is still repeated, and on the other hand, in line with the national policy guidance for the normalization of new crown nucleic acid detection, the demand for new crown nucleic acid detection terminals is still relatively continuous, and the company’s new crown nucleic acid detection enzyme raw materials The sales situation is relatively continuous compared with the same period in 2021. Stablize.
The company also stated that with the control of the new crown epidemic in Shanghai, Jilin and other regions, the demand for new crown antigen detection reagents has declined. The overall impact of the new crown-related business on the company’s performance this year also needs to be comprehensively considered in combination with the relationship between volume and price, subsequent changes in the epidemic situation, testing policy guidelines, market competition, and many other factors. There is great uncertainty in the sales and sustainability of the company’s related products.
Growth slowed in the second quarter
Except for Novizan, other companies related to COVID-19 testing products generally achieved rapid growth in the first half of this year. Taking Mingde Biology as an example, the performance forecast announced on July 15 shows that in the first half of the year, the company achieved a net profit of 2.4 billion to 2.75 billion yuan attributable to shareholders of listed companies, a year-on-year increase of 314.11%-374.5%.
Mingde Bio said that in 2022, the outbreak of Omicron in many places at home and abroad, the comprehensive group of the joint prevention and control mechanism of the new crown epidemic of the State Council decided to add antigen testing on the basis of nucleic acid testing as a supplement, and most of the major cities in the country will implement normal Nucleic acid detection policies have been adopted to control the spread of the epidemic, and the demand for new crown detection products at home and abroad has increased significantly.
Mingde Bio’s new crown antigen detection reagents have become important anti-epidemic materials in Shanghai, Jilin and other outbreak areas, and the export of overseas antigen detection reagents has also achieved substantial year-on-year growth, driving the company’s rapid growth in performance.
However, since the second quarter, the revenue growth of some new crown testing-related companies has slowed down.
Now Novizan has achieved revenue of 975 million yuan in the first quarter of this year, an increase of 80% year-on-year. Realized non-net profit of 412 million yuan, a year-on-year increase of 25.79%. Combining the first quarter report, it is not difficult to find that its revenue growth in the second quarter has slowed down significantly.
In the first half of this year, Yahuilong achieved operating income of 2.337 billion yuan, a year-on-year increase of 326.5%; deducted non-net profit of 610 million yuan, a year-on-year increase of 326.5%. Among them, the new crown business achieved a turnover of 1.82 billion yuan, a year-on-year increase of 3046.6%. The main reason is that the company’s new coronavirus antigen detection kits have successively obtained relevant access certifications at home and abroad and obtained multiple orders, which is caused by the sharp increase in the sales of this product.
However, the company’s previously released quarterly report showed that the company’s revenue in the first quarter of this year was 1.37 billion yuan, a year-on-year increase of 481.6%; non-net profit after deduction was 510 million yuan, a year-on-year increase of 1366%. This means that its revenue growth in the second quarter has slowed down compared to the first quarter, and the profit growth rate has also dropped significantly.
On the one hand, since late March, the number of domestically approved antigen detection reagent products has been increasing. According to data from the State Food and Drug Administration, by the end of April, 31 new coronavirus antigen detection reagent products had been approved.
As market competition continues to increase, the terminal sales prices of related testing products have also dropped significantly from the beginning of the market. A reporter from Securities Times · e company learned that in early March this year, when antigen detection reagents were first listed in pharmacies, the retail price of a single copy generally reached 19 yuan or even more than 20 yuan. At present, the retail price of a single copy in pharmacies and other terminals is less than 10 yuan.
Centrally purchased antigen testing products are cheaper. In May of this year, among the emergency procurement results of epidemic prevention and control materials announced in some regions, the quotations of new crown antigen detection kits from some manufacturers have been as low as 2.8 yuan per person. This means that the profits of related companies will also be squeezed.