Behind the soaring share price: interactive easy reply is suspected of exaggerating publicity, and whether the product can detect the contradiction between Omicron’s reply. The revenue of the first three quarters was “halved” year-on-year, and the deduction of non net profit turned negative again. Can we turn around by covid-19 test kit?
On December 24, Andon Health Co.Ltd(002432) again received a letter of concern from Shenzhen Stock Exchange, requesting an explanation of the company’s reply to investors on the interactive platform, including providing the basis for the company to believe that the kit can detect Omicron mutant strain and whether there is any situation that induces investors to infer the overall sales of the kit. The shell finance reporter of the Beijing News noted that at present, Andon Health Co.Ltd(002432) has changed its reply to the above questions on the interactive easy platform.
This is the third time that Andon Health Co.Ltd(002432) has received a letter of concern from Shenzhen Stock Exchange in recent two months. Previously, the Shenzhen Stock Exchange had sent a letter of concern on the company’s equity incentive plan and whether the relevant replies on the kit products on the interactive easy platform were prudent and objective.
Since Andon Health Co.Ltd(002432) announced on November 8 that the covid-19 self-test OTC kit of ihealth, a U.S. subsidiary, obtained the emergency use authorization (EUA) of the U.S. Food and Drug Administration (FDA), the stock price of Andon Health Co.Ltd(002432) has gradually opened the soaring mode. Since November 15, the stock has recorded 20 daily limits in 30 trading days. As of 3 p.m. on the 24th, Andon Health Co.Ltd(002432) was 38.52 yuan per share, up 472.75% from 6.9 yuan per share on November 15. In the case of receiving the letter of concern from the Shenzhen Stock Exchange today, the increase was still as high as 9.99%.
This is not Andon Health Co.Ltd(002432) the first time that share prices have soared. As early as 2013 to 2015, the company was classified as a wearable device concept stock, and the share price climbed from nearly 4 yuan per share to more than 40 yuan per share.
Behind the soaring share price of : interactive easy reply is suspected of exaggerated publicity. Can the product detect the contradiction between Omicron reply
On November 8 this year, Andon Health Co.Ltd(002432) announced that the covid-19 self-test kit developed by its U.S. subsidiary ihealth was approved for use in the United States. U.S. residents can purchase and use it through e-commerce platforms, pharmacies, supermarkets and other channels without prescription. The instructions for using the kit on Amazon show that the kit is mainly used for rapid and qualitative detection of viruses in human anterior nasal swab samples in vitro. It can be collected and operated by individuals, and the test results can be displayed in 15 minutes. After the announcement, since November 15, Andon Health Co.Ltd(002432) share price has made rapid progress, from 6.9 yuan per share opened on the 15th to 38.52 yuan per share closed on the 24th, up 472.75%.
However, just publishing the results may not make investors so enthusiastic. More importantly, the company’s reply to investors on the interactive platform – at present, the monthly production capacity of the kit is 100 million, which is expected to increase to 200 million by the beginning of 2022, the American multi state governments have distributed the ihealth kit to the public, the California Department of public health has distributed the ihealth kit to students in school districts, and the sales of the kit ranks first on Amazon We believe that the kit can detect Omicron variant strain and so on. According to the company’s monthly production capacity of 100 million to 200 million people and the selling price of $17.98 per two people, if the production capacity is fully digested, the company’s monthly revenue can reach $899 million to $1.798 billion, totaling 5.725 billion to $11.45 billion.
Does this mean that ihealth kits are widely popular in the United States and there is a huge demand for products. At the same time, the kits can also detect mutant strains in the future, which can continuously and stably ensure sales?
However, it was soon found that there were inconsistencies in the response of Andon Health Co.Ltd(002432) .
The first is Amazon’s product sales ranking. On the one hand, the company claims that “Amazon US website will update the sales ranking of covid-19 antigen home self-test OTC kit products in real time and the sales ranking of products in the whole network. Up to now (December 1, 2021), the sales of our covid-19 testing reagent ranks first on Amazon US website”, On the one hand, it replied to other investors that “Amazon’s official US platform did not disclose the sales information of ihealth kit products”; The second is product sales. On December 21, 2021, when replying to the question about the product quality reflected by Amazon American consumers on the interactive platform, the company said, “although the sales volume of our kit in Amazon America is very small, the interests of customers are the most important, and the company will produce according to the requirements of FDA”, Later, it was corrected on December 22, 2021 as “although the number of quality feedback problems of this product in Amazon America accounts for a small proportion of Amazon’s sales in America, the interests of customers are the most important, and the company will produce according to the requirements of FDA”.
In addition, Andon Health Co.Ltd(002432) subsequently admitted that production capacity does not represent sales, let alone revenue. At present, there are more than 300 million people in the United States, and there are as many as 9 covid-19 test kit companies approved by the FDA. It is not easy to fully absorb the production capacity of Andon Health Co.Ltd(002432) kit.
After consulting on the interactive easy platform, shell finance noted that Andon Health Co.Ltd(002432) first answered the investor’s question “can we detect Omicron” on December 17 and said, “in principle, we believe that the company’s antigen detection products can detect Omicron mutant strain.”. The same reply has been maintained since then. Until December 24, when replying to similar questions, the company removed the sentence, and the rest remained unchanged, saying only that “at present, the company is waiting for the arrival of the virus strain, and the laboratory is ready. Once the virus strain is obtained, we will test it as soon as possible”. Compared with peer companies, different from Andon Health Co.Ltd(002432) “waiting for the arrival of the virus strain”, many companies including Zhejiang Orient Gene Biotech Co.Ltd(688298) said that their own covid-19 detection kit can effectively detect Omicron virus.
In terms of sales, shell finance noted that Amazon showed that ihealth kit ranked first in the best-selling list under the industrial science category, and there were 759 product reviews before publishing. Compared with other kit products under similar items, ihealth kit has the latest sale time and the lowest price, and it is currently out of stock. However, the specific sales of the kit are not displayed.
received the attention letter of Shenzhen Stock Exchange three times in two months
The contradictory interaction of Andon Health Co.Ltd(002432) easy to reply, the suspected misleading capacity publicity and the two equity repurchase plans in the short term have also attracted the attention of Shenzhen Stock Exchange. In December 24th, the Shenzhen stock exchange sent a letter of concern to Andon Health Co.Ltd(002432) again, saying that the company recently answered questions on the New Coronavirus self testing OTC kit of the company’s subsidiary products on the interactive easy platform. The company is required to verify and explain seven replies, including “believing that the kit can detect the Omicron mutant strain”, “Amazon’s official U.S. platform does not disclose the sales information of ihealth kit products” and “our company’s covid-19 test reagent ranks first in the sales of Amazon’s U.S. website”.
In 2021, Andon Health Co.Ltd(002432) twice disclosed the share repurchase plan of the company for the purpose of implementing equity incentive or employee stock ownership plan. As of November 2, 2021, the two repurchase schemes have been implemented, with a total of 25492700 shares repurchased, accounting for 5.33% of the total share capital of the company. On November 3, Shenzhen Stock Exchange issued a letter of concern on the share repurchase plan with frequent actions of Andon Health Co.Ltd(002432) , asking to explain whether the equity incentive plan of the company is reasonable.
On November 8, Andon Health Co.Ltd(002432) announced that the U.S. subsidiary ihealth covid-19 test kit was approved by the FDA for emergency use. Later, when answering investors’ questions on the interactive easy platform, it made responses such as “market demand is on the rise” and “the kit has started mass production and sold well in local spot”. Since the disclosure of the information on November 8, as of the closing of November 23, the company’s share price has increased by 121.17% for seven consecutive trading days. In this regard, the Shenzhen Stock Exchange issued a concern letter for the second time, asking the company to explain a series of replies on the interactive trading platform after the disclosure, explain the relationship between this behavior and the previous two share buybacks, and answer whether the company is suspected of raising the share price, so as to facilitate the incentive objects of the 2020 stock option incentive plan to exercise their rights independently to make profits.
On November 24, the Shenzhen Stock Exchange again issued a letter of concern, asking the company to explain whether there was any violation of the accuracy, timeliness and fairness of information disclosure, and whether there was any use of the interactive platform to cater to market hot spots and hype the company’s share price. However, the share price of Andon Health Co.Ltd(002432) after receiving the attention letter was not affected, but continued to rise by 9.9% on the same day.
return of the king of share price: previously, the share price soared with the concept of wearable device
In fact, Andon Health Co.Ltd(002432) share price soared not for the first time. As early as 2013 to 2015, due to the popularity of “wearable device concept stock”, the company’s share price rose from nearly 4 yuan per share to a maximum of more than 40 yuan per share, an increase of 900%.
In 1995, Andon Health Co.Ltd(002432) founder Liu Yi developed an electronic sphygmomanometer five years after graduation. This new product changes the disadvantage that the traditional mercury sphygmomanometer is difficult to carry. It is not only convenient and easy to carry, but also counts accurately. One month after listing, more than 1000 electronic sphygmomanometers were sold in Tianjin. Liu Yi, who made the first pot of gold, founded Andon Health Co.Ltd(002432) , and has started his own business since then.
After making a fortune by selling medical devices and hardware equipment, Andon Health Co.Ltd(002432) began to turn to export trade in order to expand sales. In 2006, the company’s order in Germany reached 1 million units, which also laid the foundation for a large proportion of the international market in the future. In 2010, Andon Health Co.Ltd(002432) was successfully listed. Shortly after listing, Liu Yi, as the chairman of the company, put forward the plan to transform into internet medical treatment, saying that this was “a good opportunity to become a leader in the world”. Subsequently, since January 2011, ihealth series of personal health management products based on mobile Internet have been launched successively. By the end of the year, ihealth sphygmomanometer, ihealth scale, etc. Ihealth series products focus on mobile and network interconnection health management, and have attracted many international giants in two years. At that time, well-known enterprises including apple and Wal Mart were customers of Andon Health Co.Ltd(002432) .
By 2013, with the popularity of wearable devices in the U.S. market, the concept of wearable devices began to ferment in China, and the A-share market also began to excavate relevant concept stocks. As Andon Health Co.Ltd(002432) products involved a wearable watch counter, Andon Health Co.Ltd(002432) also ranked among wearable concept stocks, which was sought after by funds and led the rise of a shares. There were four trading boards in one month in May of that year, with an increase of 124%. At that time, Google glasses and apple Iwatch had not yet come out.
2014 is the highlight year of Andon Health Co.Ltd(002432) . This year, Andon Health Co.Ltd(002432) reached a strategic cooperation with Xiaomi. The company’s intelligent health brand ihealth received an investment of US $25 million from Xiaomi. It will carry out in-depth cooperation with Xiaomi in terms of user experience, Xiaomi e-commerce and cloud services to jointly build a mobile health cloud platform. In this way, Andon Health Co.Ltd(002432) apple with the left hand and Xiaomi with the right hand are “invincible” in the A-share market, and the share price continues to soar, once rising to 43 yuan per share in 2015.
the revenue in the first three quarters was “halved” year-on-year, and the deduction of non net profit turned negative again. Can we turn around by covid-19 test kit?
However, the prosperity brought by concept speculation alone did not last. Since the end of December 2015, Andon Health Co.Ltd(002432) share price has continued to decline.
Behind the stock price decline is Andon Health Co.Ltd(002432) the slow growth of revenue and declining net profit after the announcement of transformation in 2010. From 2010 to 2016, the company’s revenue has been 298 million yuan, 354 million yuan, 356 million yuan, 407 million yuan, 425 million yuan, 397 million yuan and 420 million yuan respectively. During this period, the net profit of the company showed a downward trend after rising from 23 million yuan in 2010 to 70 million yuan in 2012, and once fell to a negative number in 2013 and 2015.
From the perspective of deducting non net profit, it has been negative continuously from 2013 to 2019. Until 2020, due to the impact of the epidemic, the sales volume of the company’s forehead thermometer and other epidemic prevention related products increased greatly, and the company’s revenue increased significantly. The revenue exceeded 2 billion yuan, with a year-on-year increase of 180%. However, with the improvement of the epidemic situation in 2021 and the reduction of sales of anti epidemic materials, the company’s revenue fell again in the first three quarters, with a decrease of more than 50%, and the deduction of non net profit turned negative again. It still needs time to test whether Andon Health Co.Ltd(002432) can rely on covid-19 test kit to turn over its performance again.
(Beijing News)
