How profitable is the new crown self-testing agent overseas? The performance forecast and express report released by Jiu’an Medical today can be used for reference.
Today (April 12), the new crown testing hot stock Jiu’an Medical (002432, SZ) opened with a daily limit of 74.47 yuan per share.
On the news, Jiu’an Medical disclosed the 2021 annual performance report and the 2022 first quarter performance forecast. Affected by the company’s new crown antigen home self-test OTC kit obtained by the U.S. Food and Drug Administration (FDA) Emergency Use Authorization (EUA) in November 2021, and the development of the Omicron epidemic in the United States, Jiu’an Medical will start business in 2021 The total income was 2.513 billion yuan, a year-on-year increase of 25.11%; the net profit attributable to the parent was 913 million yuan, a year-on-year increase of 276.87%; the deducted non-net profit was 832 million yuan, a year-on-year increase of 236.03%.
Also affected by the development of the epidemic in the United States, the company’s net profit attributable and non-net profit deducted in the first quarter are expected to be 14 billion to 16 billion yuan. The net profit attributable to the company increased by 367.07 to 419.66 times year-on-year, and the deducted non-net profit increased by 7384.52 to 8439.60 times year-on-year.
This astonishing figure surpassed the record of a thousand-fold increase in non-net profit in the first quarter set by the “pre-growth king” of the A-share market last year, Rejing Bio (688068.SH). However, the factors that detonated the performance of the two IVD (in vitro diagnostic products) companies are the same, namely the export business of new crown test kits.
Regarding the changes in the company’s performance in the first quarter, Jiu’an Medical said that due to the development of the epidemic in the United States, the local demand for new crown antigen detection kit products has increased significantly. The company’s iHealth US subsidiary sells iHealth’s new crown antigen detection kit products through its own channels and the Amazon platform, and signs major contracts and orders with customers. The increase in sales revenue of this product made an important contribution to the company’s performance during the reporting period.
According to the reporter’s review, since the approval of the new crown self-test kit in November last year, Jiu’an Medical has received a total of 2.108 billion US dollars of orders, which is about 13.428 billion yuan according to the real-time US dollar exchange rate of 6.37. This figure is Jiu’an Medical. It is more than double the combined income of each year from 2010 to 2020.
The abundant production capacity and stable supply of new crown self-test kits are the advantages of Jiu’an Medical in the US market. According to the production capacity information disclosed by the company at the end of last year, the monthly production capacity of the company’s new crown self-test kit was about 100 million doses at that time, and it is estimated that by the beginning of 2022, the production capacity will increase to 200 million doses per month.
However, Jiu’an Medical’s new crown self-test kit has not yet entered the domestic market. Since the release of antigen self-testing in China in mid-March, more than 20 companies, including Wanfu Bio (300482.SZ), Rejing Bio (688068.SH), and Orient Bio (688298.SH), have obtained new crown antigen detection products. Approved for listing, but Jiu’an Medical is still absent.
According to people familiar with the matter, the domestic listing of Jiu’an Medical Antigen Detection Kit is in the process of application. In addition, the reporter noticed that a number of domestic companies have recently obtained the FDA emergency use authorization for their new crown antigen self-test products. In addition to Jiu’an Medical, there are Beijing Kuer and Xiamen Bosheng Bio.
Cover image source: Daily Economic News Liu Guomei
