Industry perspective
There are many kinds of biological reagents, the demand continues to rise, and the industry boom is high. Biological reagent is the core tool of life science research, which has the characteristics of many categories and complex quantities. According to different uses, it can be divided into general reagents, analytical reagents, diagnostic reagents, teaching reagents, experimental reagents, molecular biology reagents, etc. The scale of China's biological reagent market continues to expand and grow rapidly. According to Frost & Sullivan's data, the scale of China's biological reagent market has increased from 7.2 billion yuan in 2015 to 13.6 billion yuan in 2019, with an overall compound annual growth rate of 17.1%, and is expected to reach 24.6 billion yuan in 2024.
The demand for scientific research market is broad, and the industrial user market is rising rapidly. Users of biological reagents are mainly divided into scientific research users and industrial users. The demand for scientific research is broad. In recent years, under the guidance of policies, the gap between China's research capital investment and developed countries has been narrowing. According to Frost & Sullivan's data, the research capital investment in the field of life sciences increased from 43.4 billion yuan in 2015 to 86.6 billion yuan in 2019, with a compound annual growth rate of 18.8%, which is far higher than the global level in the same period. In addition, under the catalysis of anti epidemic demand, the demand for industrial user reagents is increasing, and the market is rising rapidly. In the future, the industrial user market is expected to maintain a high growth trend.
Molecular reagents: dominated by foreign-funded enterprises, there is a broad space for domestic substitution. The distribution of molecular reagent related enterprises in the Chinese market is relatively scattered. Due to the late start of Chinese reagent manufacturers, the current market is still dominated by foreign-funded enterprises, and the four enterprises of semefeld, Kaijie, Takara and BioRad account for more than 40%. Domestic enterprises are mainly represented by Nanjing Vazyme Biotech Co.Ltd(688105) , all gold and Kang as reagents, aiboqinke and Yiyu biology. Among them, Nanjing Vazyme Biotech Co.Ltd(688105) has a market share of only 4.0%, and its market share is still low. However, in recent years, domestic enterprises have continuously increased their R & D efforts. In the future, with the continuous improvement of product quality, performance and technical services of domestic enterprises, the localization rate is expected to increase significantly.
Protein reagents: antibody is the largest sub field, and the market scale of recombinant protein is growing rapidly. Protein reagents mainly include antibodies, recombinant proteins, protein chips, etc. Among them, antibody is the largest segment of China's protein reagent market. In 2019, the antibody market reached 2.7 billion yuan, accounting for 67.0%. In addition, the recombinant protein market has grown rapidly. From 400 million yuan in 2015 to 900 million yuan in 2019, with a compound annual growth rate of 20.0%, it is expected that the growth trend will continue in the future, and the market scale will reach 1.9 billion yuan in 2024.
Investment advice
We believe that in the short term, the global demand for covid-19 detection and prevention is still strong, and the demand for upstream raw materials is expected to remain high. In the medium and long term, China's R & D investment in biomedicine has increased year by year, and the long-term growth is considerable; The industrial end technology continues to iterate, and the products extend to multiple dimensions. In the future, the demand for reagent raw materials at the industrial end is expected to continue to expand.
The upstream raw material supply chain of biological reagent has large import substitution space, and the demand of the industrial chain can not be fully met during the anti epidemic period. Making up for the short board has become an important goal. The upstream biological reagent industry is expected to achieve rapid development under the condition of technological progress, policy support and sufficient funds.
Key companies: Nanjing Vazyme Biotech Co.Ltd(688105) , Sino Biological Inc(301047) , Acrobiosystems Co.Ltd(301080) , Feipeng Biology (to be listed), etc.
Risk tips
Market competition intensifies risks; The growth rate of the industry is lower than expected; Import substitution is less than expected; Declining demand, etc.
