On December 31, Andon Health Co.Ltd(002432) shares opened at a record high price of 59 yuan / share, then fell and finally closed at 49.55 yuan / share. From the opening price of 6.6 yuan / share on November 8 to December 31, Andon Health Co.Ltd(002432) share price range increased by 725.83%. Andon Health Co.Ltd(002432) why is the stock price so crazy?
23 daily limit boards have been harvested since November 8
On November 8, Andon Health Co.Ltd(002432) announced that the covid-19 antigen home self-test OTC Kit (colloidal gold immunochromatography) of the subsidiary has obtained the emergency use authorization (EUA) of the U.S. Food and Drug Administration (FDA) and can be sold in the United States and countries / regions that recognize the U.S. EUA during the U.S. public health emergency. After the news was released, Andon Health Co.Ltd(002432) shares rose 6.5% on the same day, and the closing price on the same day was 6.39 yuan / share.
On November 11, Andon Health Co.Ltd(002432) said in an interactive and easy response to investors’ questions that according to the announcement on the website of FDA, its covid-19 antigen home self-test OTC kit currently has a monthly production capacity of 100 million people. It is planned to increase the production capacity to 200 million people per month by the beginning of 2022. The actual production plan and capacity expansion progress will be based on the market Order and raw material supply shall be adjusted in real time. On the same day, Andon Health Co.Ltd(002432) shares rose again by 5.63%.
On November 15, Andon Health Co.Ltd(002432) replied to investors that covid-19 antigen home self-test OTC kit products have started mass production, and have been hot sold locally by its subsidiary ihealth in the United States. At the same time, it is also actively negotiating orders with b-end customers and demand parties. On the same day, Andon Health Co.Ltd(002432) share price rose by the limit, which opened the “demon” rise. As of the closing on December 31, there were 23 limit boards, and the cumulative increase of share price was as high as 725.83%. During the period of soaring stock prices, Andon Health Co.Ltd(002432) successively issued 9 announcements to remind risks. From the questions raised by investors for more than a month, the main focus is Andon Health Co.Ltd(002432) the covid-19 self-test product won by EUA.
From the share prices of Chinese Listed Companies in the same industry, the share prices of Zhejiang Orient Gene Biotech Co.Ltd(688298) , Sansure Biotech Inc(688289) , Beijing Hotgen Biotech Co.Ltd(688068) and other companies have increased by different ranges after the companies disclosed that covid-19 antigen self-test OTC products have been certified by the EU.
As for the reason why the share price of covid-19 test products fluctuated greatly after it was awarded the EUA in the United States, Andon Health Co.Ltd(002432) speculated that investors may be concerned about the strict audit requirements of FDA, and the number of companies approved by the EUA of the overall covid-19 antigen kit is lower than that of European countries; It may also be concerned about the relevant information released by the U.S. government to promote rapid self-test screening and the continuous and intermittent shortage of kit products of Abbott and quidel in Amazon America. In addition, the epidemic situation in the United States is still spreading. It is inferred that there is a supply-demand gap for covid-19 antigen household self-test OTC kit in the United States; Or because the retail price of the above products is $6.99 (one person) lower than other competitive products sold on Amazon’s U.S. platform.
In fact, the performance of Andon Health Co.Ltd(002432) is not as “beautiful” as the stock price. According to the data of the third quarterly report of 2021, during the reporting period, Andon Health Co.Ltd(002432) revenue and net profit attributable to parent decreased by 50.82% and 86.19% respectively; The net profit after deducting non-profit was -24.775 million yuan, a year-on-year decrease of 106.89%. The main reason for the year-on-year decline in performance is that epidemic prevention products were sold well last year, the performance increased significantly, the shortage of epidemic prevention materials has eased this year, and the gross profit margin of epidemic prevention products has declined. In addition, the accelerated expansion of the “0+0” model of diabetes care and care also led to the growth of related expenditure.
Andon Health Co.Ltd(002432) deny catering to hot spots and hype stock prices
On November 23, Shenzhen stock exchange sent a letter of concern to Andon Health Co.Ltd(002432) asking it to explain whether the relevant replies on the kit products on the interactive platform are prudent and objective, whether they have factual basis, whether there are misleading statements or publicity, etc. In this regard, Andon Health Co.Ltd(002432) listed the current situation, demand and other relevant data of public epidemic prevention screening in the United States and the expression of production capacity, and stressed that when interacting with investors, it has repeatedly indicated that the information related to production, sales and profits belongs to undisclosed financial data, will timely fulfill the obligation of information disclosure in accordance with the regulations, and the relevant replies are in line with the regulations, prudent and objective, without misleading and exaggeration, There is no case of using the interactive platform to cater to market hot spots and hype the stock price, and it also denies that the incentive objects of the 2020 stock option incentive plan can exercise their rights independently to make profits by raising the stock price.
On December 24, Andon Health Co.Ltd(002432) received another letter of concern. The Shenzhen Stock Exchange asked Andon Health Co.Ltd(002432) to explain “the basis for believing that the kit can detect the Omicron mutant strain” and “the basis for ranking the first in the sales of kit products on Amazon’s U.S. website”, whether to induce investors to infer the overall sales situation, etc.
In this regard, Andon Health Co.Ltd(002432) replied again that the effectiveness of the kit product for the detection of Omicron virus can be inferred theoretically. However, for the sake of scientific prudence, the product will be tested and verified after obtaining the virus strain to confirm the effectiveness of the product for the detection of the virus strain. It is waiting for the arrival of the virus strain. Once the virus strain is obtained, it will be tested as soon as possible, The official announcement will be issued after confirming that the Omicron variant can be tested. The reminder was also mentioned in the recent reply to investors.
On the sales ranking of Amazon US website, Andon Health Co.Ltd(002432) gave a risk prompt in its reply, saying that Amazon US sales ranking is a comprehensive ranking based on the combination of daily sales and instantaneous sales, and the ranking will be updated in real time, which does not represent the cumulative sales. According to the query results on December 28, the sales of its kit products on this platform ranked sixth.
With the development of the epidemic in the United States, the local demand for covid-19 virus testing has increased compared with November. According to the data released by Andon Health Co.Ltd(002432) , as of December 27, U.S. time, 47.43 million government orders had been received from Massachusetts, California, New York, Washington, D.C., Washington, Louisiana, Maryland and Oregon, 8.82 million people had been shipped and $62.55 million (including advance payment) had been received. The sales amount of Andon Health Co.Ltd(002432) website and Amazon in the United States is US $68.35 million.
Andon Health Co.Ltd(002432) also reminded that the home self-test kit products of 11 companies have been authorized by the U.S. EUA, and more company products may enter the market in the future. With the change of market competition situation, the existing market share and product price of a single enterprise may be impacted, and the demand for the above products is directly related to the development of the epidemic in the United States. The development of the epidemic in the future has strong uncertainty, which may greatly affect the demand for Kit products.
(Beijing News)
