Covid-19 bull stocks have new developments!
On the morning of the 27th, Andon Health Co.Ltd(002432) announced that on January 26 local time, the US subsidiary signed a change contract with the US ACC (US Army contract management command) on the original procurement contract, and the total contract amount increased from US $1.275 billion to US $1.775 billion (about RMB 11.226 billion).
The US order is added, and the new contract amount is about 10 times the expected net profit in 2021, or to provide guarantee for the performance in 2022.
excited by this news, Andon Health Co.Ltd(002432) once rose the limit on the 27th, up 7.39% to 56.10 yuan / share. Change the previous sharp decline in several consecutive trading days.
the contract amount increased to 11.2 billion yuan
According to the announcement of Andon Health Co.Ltd(002432) , on January 26 local time in the United States, the U.S. subsidiary signed a change contract with the U.S. ACC (U.S. Army contract management command) on the original purchase contract. On the basis of the purchase of 250 million ihealth kit products in the original contract, 104 million ihealth Kit products were purchased. Due to the above changes, The total contract amount increased from US $1.275 billion to US $1.775 billion, about RMB 11.226 billion.
The ihealth kit products purchased additionally shall be delivered before March 14, 2022, and the delivery method shall be Fob origin.
Andon Health Co.Ltd(002432) said that the performance of the above contract will have a positive impact on the operating revenue and operating profit in 2022. But at the same time, it is suggested that during the execution of orders and contracts, there may be a risk that the contract can not be performed on schedule or in full due to the impact of local epidemic changes, policy changes, changes in the company’s supply chain capacity, logistics and transportation risks, the terms that the U.S. government has the right to terminate the contract at any time due to its own factors, as well as unforeseen or force majeure.
Benefiting from the significant increase in sales of the company’s testing kit products in the U.S. market, the company expects a significant increase in performance in 2021. On the evening of January 19, Andon Health Co.Ltd(002432) disclosed the performance forecast for 2021. It is estimated that the net profit attributable to the parent company in 2021 will be RMB 900 million to RMB 1.2 billion, with a year-on-year increase of 271.4% to 395.19%; The net profit deducted from non parent company was 850 million yuan to 1.15 billion yuan, with a year-on-year increase of 243.46% to 364.68%.
the US order has been added, and the new contract amount is about 10 times the expected net profit in 2021, or provide guarantee for the performance in 2022.
share price rose up to 14 times
On the evening of November 7, 2021, Andon Health Co.Ltd(002432) announced that the U.S. subsidiary ihealth home covid-19 self-test kit obtained the emergency use authorization (EUA) of the U.S. Food and Drug Administration (FDA). After that, the company’s share price sat on the “helicopter” and continued to rise the limit, hitting record highs.
After the beginning of 2022, Andon Health Co.Ltd(002432) shares continued to rise sharply, closing five consecutive boards from January 11 to January 17. From the lowest 5.8 yuan on October 29, 2021 to the highest 88.88 yuan on January 18 this year, the cumulative increase of Andon Health Co.Ltd(002432) in two and a half months exceeded 14 times.
Recently, the stock price of Andon Health Co.Ltd(002432) which has soared continuously has been adjusted. From January 18 to January 26, the company’s stock price has fallen by nearly 40% from the high point of 88.88 yuan / share.
The reporter noted that some investors asked the company on the interactive platform: May I ask the Secretary, at present, the company’s kit is sold in the United States. Due to large government orders, will it affect the normal supply of offline supermarket pharmacies, American self company websites and orders from the state government?
Andon Health Co.Ltd(002432) said on the investor interaction platform on January 27 that at present, the company’s kit products are sold normally. The company will comprehensively consider market conditions, orders, raw material supply, labor supply and other factors to reasonably arrange matters related to production and sales.
Other investors asked on the interactive platform: does the company have a production base in the United States? Andon Health Co.Ltd(002432) on January 26, the company said on the investor interaction platform that it had no production base in the United States.
the chairman responded to the stock price
Recently, Andon Health Co.Ltd(002432) founder and Chairman Liu Yi received an exclusive interview with the reporter of China entrepreneur and responded to questions such as stock price.
On the question of whether Andon Health Co.Ltd(002432) is a demon stock, chairman Liu Yi said that now the relatives and friends of the employees around him at least don’t say that Andon Health Co.Ltd(002432) is a demon stock, and began to say that it is a bull stock.
Liu Yi also responded to the question why Andon Health Co.Ltd(002432) got the purchase order from the US government. He said: first, we must first pass the FDA. At present, only 12 FDA are qualified. The United States has high access requirements. For example, Germany is two points, Britain is five points, and the difficulty coefficient of FDA in the United States is very high. We are the first one in China to take it as a Chinese manufacturing factory. We have companies in the United States, local advantages and clinical organization capabilities.
Second, we have the conditions in terms of production capacity, product design, product performance and rapid response of China US teams.
Therefore, at that time, when the US government invited bids, we put in a maximum bid of 250 million. The epidemic situation in China is relatively stable and production is relatively normal; China’s large-scale production capacity is relatively strong, the design and production of electronic products are relatively easy, the supply of raw materials is relatively sufficient, and there is no bottleneck. We are in China and we are the first company that can respond quickly.
With the difficulty of FDA certification, the surge in market demand caused by Omicron, and the foundation of China’s production capacity – supply chain supporting capacity, strong epidemic prevention and control, and more workers can be mobilized, we are fast.
