The scientific service industry is the key to R & D in all walks of life, and the industry space is large enough. The scientific service industry is located in the upstream of the scientific research link. It mainly provides products and services such as scientific research reagents, high-end consumables, experimental instruments and equipment, scientific research informatization and laboratory construction for downstream enterprises, universities and research institutions engaged in scientific research and production quality control. The downstream industry is widely used, and the growth driving force is mainly from the R & D expenditure of the government and enterprises: globally, the global R & D expenditure in 2018 was US $2.19 trillion (cagr4.98% in 2014-2018); From the perspective of China, R & D expenditure is still in a period of rapid growth (cagr11.7% from 2016 to 2020). In 2021, China's R & D expenditure reached 2.79 trillion, a year-on-year increase of + 14.2%, driving the further expansion and growth of the scientific service industry. According to estimates, the scale of China's science service market has exceeded 200 billion, the industry space is broad, and relevant enterprises have great prospects.
Foreign capital monopolizes the market for a long time, and the opportunity of domestic substitution may come. The global science service industry is basically mature and highly concentrated. Relying on strong R & D advantages, complete product lines and global business networks, international giants such as Thermo Fisher, Danaher, Merck and Agilent have monopolized the global and Chinese markets for a long time, especially the localization rate of high-end products is very low and there is a wide space for domestic substitution. At present, about 90% of China's scientific research reagent market is still occupied by foreign-funded enterprises; About 73% of the market of experimental and analytical instruments need to be imported, and the import proportion of high-end precision instruments such as mass spectrometer is higher. Recently, the state revised the science and technology progress law, which clearly pointed out that government procurement should purchase domestic instruments and equipment, and high-quality domestic scientific service enterprises are expected to stand out.
The scientific service track has a long slope and thick snow, and there is a wide space for domestic substitution. Benchmarking with overseas giants, it is expected to produce domestic giants with large market value. The science service industry has a large space and high technical and capital barriers. A number of Science Service giants with a market value of 100 billion have been born all over the world. China's leading enterprises taking the lead in development are expected to achieve double-click in performance and valuation with the help of policy dividends and referring to the growth path of overseas giants. In the development history of comerfield, we believe that the following characteristics are the key: 1) have label products, which have strong technical barriers; 2) There are enough types of products and complex laboratory scenarios, and downstream customers prefer package service providers; 3) Have supporting service facilities such as warehousing and logistics to provide better customer experience; 4) Endogenous continues to increase R & D investment, expand mergers and acquisitions, and constantly open the ceiling of growth.
China's science service industry has shown a rapid growth trend in recent years. Under the catalysis of the epidemic, leading enterprises in some sub sectors have shown their edge. It is suggested to pay attention to: China's leading manufacturer of scientific research instruments Beijing Labtech Instruments Co.Ltd(688056) (688056, buy); Leader in the field of pharmaceutical special equipment Tofflon Science And Technology Group Co.Ltd(300171) (300171, not rated); China's leading supplier of recombinant protein biological reagents Acrobiosystems Co.Ltd(301080) (301080, not rated); Customized consumables supplier Zhejiang Gongdong Medical Technology Co.Ltd(605369) (605369, not rated) mainly for vacuum blood collection and experimental testing consumables; Independent R & D reagent leader Shanghai Aladdin Biochemical Technology Co.Ltd(688179) (688179, not rated).
Risk tips
The repeated epidemic has brought adverse effects on the operation of enterprises; The R & D investment dragged down by the economy is less than expected; The risk of price reduction caused by overseas manufacturers' sharp price war; Changes in assumptions affect the calculation results and other investment suggestions and investment targets
