Just announced that the partner covid-19 antigen detection kit was approved for sale in Japan, Shenzhen Yhlo Biotech Co.Ltd(688575) (688575) quickly won a large order of more than 300 million yuan in Japan.
On February 13, the company announced that the Institute of medical biology of Co., Ltd. (hereinafter referred to as “MBL”) had sent a purchase order on February 11 to purchase covid-19 antigen detection kit from the company, with a total price and tax of US $52.9417 million, about 337 million yuan. If the above-mentioned contracts can fully recognize the operating revenue, it will account for 33.7% of the Shenzhen Yhlo Biotech Co.Ltd(688575) overall revenue in 2020. In the secondary market, Shenzhen Yhlo Biotech Co.Ltd(688575) post festival performance was eye-catching, with an increase of 38% since February 7.
obtained 300 million yuan of orders
According to the announcement, the promotion of Shenzhen Yhlo Biotech Co.Ltd(688575) covid-19 kit products in Japan adopts the mode of joint promotion with local partner MBL, which will enter the market as a designated manufacturer.
On February 10, the covid-19 antigen kit products produced by Shenzhen Yhlo Biotech Co.Ltd(688575) designated by MBL obtained the certification of Japan PMDA (Japan independent administrative legal person comprehensive organization of pharmaceutical products and medical devices), which means that the relevant products can be sold in Japan for medical testing and home self-test.
On February 11, the day after the sales license was finalized, MBL immediately sent a purchase order to purchase covid-19 antigen kit with a total price and tax of 52.9417 million US dollars from Shenzhen Yhlo Biotech Co.Ltd(688575) , equivalent to about 337 million yuan. The data show that the revenue scale of Shenzhen Yhlo Biotech Co.Ltd(688575) 2020 is 1 billion yuan. If the above contract is fulfilled, the contributed revenue will exceed 30% of the revenue in 2020.
Located in Tokyo, Japan, MBL is mainly engaged in the R & D, production and sales of in vitro diagnostic products. Previously, MBL had a certain basis of cooperation with Shenzhen Yhlo Biotech Co.Ltd(688575) . From 2019 to 2021, the amount of products purchased from the latter was 445200 yuan, 23776800 yuan and 6963900 yuan respectively.
According to the contract, Shenzhen Yhlo Biotech Co.Ltd(688575) will complete the delivery within 30 days after receiving the advance payment from MBL, and the latter will pay the remaining payment within 30 days after receiving the goods. The company said that it has the above-mentioned order production capacity at this stage, and the fulfillment of orders will have a positive impact on the operating performance in 2022. However, in the previous announcement, Shenzhen Yhlo Biotech Co.Ltd(688575) also warned about the risks of the company’s products sold in Japan. So far, similar reagent products of many enterprises have obtained PMDA certification in Japan. The market competition is fierce, superimposed with the unpredictable risks of epidemic development, and the impact on future performance cannot be predicted temporarily.
Or stimulated by the above news, Shenzhen Yhlo Biotech Co.Ltd(688575) has performed well in the secondary market in the past two days, with an increase of 38% in the opening after the festival, and the latest closing was 43.43 yuan / share, with a market value of 17.6 billion yuan. Recently, the company implemented the equity incentive plan and granted 1633000 restricted shares to 63 incentive objects at 16 yuan / share. According to the current stock price, the floating profit of the above shares has reached 171%.
internationalization accelerated
As a leading provider of in vitro diagnostic products in China, Shenzhen Yhlo Biotech Co.Ltd(688575) main products are immunodiagnostic instruments and reagents, of which the core products are chemiluminescence instruments and supporting reagents. From the perspective of market structure, the company started relatively late overseas, and the proportion of overseas sales is not high at present. However, taking the R & D and production of covid-19 antibody products as an opportunity, Shenzhen Yhlo Biotech Co.Ltd(688575) has increased its influence in the overseas market, and the pace of internationalization continues to accelerate. According to the data, Shenzhen Yhlo Biotech Co.Ltd(688575) in 2019, the overseas business income was only 41.4047 million yuan, accounting for only 4.8% of the overall revenue. In 2020, it soared to 200 million yuan, accounting for 21.38%. Among them, the overseas sales revenue of covid-19 testing related products in that year reached 90.567 million yuan, nearly contributing half of the overseas region.
In addition to the aforementioned certification and orders obtained in Japan, Shenzhen Yhlo Biotech Co.Ltd(688575) covid-19 antigen home self-test OTC kit independently developed also obtained EU CE certification in December last year, and can be sold in EU countries and countries that recognize EU CE certification. At present, the company has not released the announcement of obtaining orders in the EU region. Before obtaining CE certification, the company’s related products have been exported in small quantities to some countries in Europe, Africa and the Asia Pacific region through the green channel. However, the competition of similar products in the EU market is also very fierce. China Beijing Hotgen Biotech Co.Ltd(688068) , Guangzhou Wondfo Biotech Co.Ltd(300482) and Baotai biology have taken the lead in the market, obtained EC certification, and have achieved sales and taken the lead in the market. Whether Shenzhen Yhlo Biotech Co.Ltd(688575) can catch up from behind remains to be investigated.
In addition to covid-19 testing products, Shenzhen Yhlo Biotech Co.Ltd(688575) other products have also made progress in overseas markets. On October 23, 2021, the company announced that 14 chemiluminescence kit products such as procalcitonin determination kit (chemiluminescence method) have obtained ivdrce certificate; On December 16, iflash 1800 chemiluminescence immunoanalyzer and iflash total applied with American partner diazyme company β HCG (human chorionic gonadotropin) kit has passed the review of FDA and is allowed to be sold in the U.S. market.
It is worth mentioning that in the first half of the year, the gross profit margin of Shenzhen Yhlo Biotech Co.Ltd(688575) overseas business decreased rapidly due to the intensification of overseas epidemic and market competition. Among them, the gross profit margin of covid-19 related products decreased from 94.50% to 42.11%, the gross profit margin of non covid-19 overseas business decreased from 52.64% to 32.03%, which dragged down the company’s comprehensive gross profit margin to 55.3%, down 4.04 percentage points year-on-year.
Although the gross profit margin of overseas business has declined, Shenzhen Yhlo Biotech Co.Ltd(688575) performance remains stable. In the first three quarters of 2021, the operating revenue reached 857 million, a year-on-year increase of 20.9%; The net profit was 155 million, a year-on-year increase of 4%. Excluding covid-19 business, the operating revenue was 772 million, a year-on-year increase of 23%.
