Both fame and wealth. Ten billion orders from the United States made Andon Health Co.Ltd(002432) a “ten times Bull Stock” and a “king of performance pre increase” in the first quarter.
On April 24, Andon Health Co.Ltd(002432) announced that it had completed the delivery obligations of orders and contracts to New York and Massachusetts, and received the payment of US $175 million and US $149 million respectively, totaling more than 2 billion yuan. Up to now, the above orders and contracts have been fulfilled.
However, the company also disclosed an “episode” when announcing the performance of relevant orders. According to the announcement, recently, through the reconciliation between the two procurement entities of contracts and orders in New York State, namely the Department of health of New York State and health research incorporated, a non-profit organization in New York State, it was found that their purchase orders for ihealth kits had not been completed.
After negotiation between the US Department of health of New York State and the US subsidiary of the company, the purchase amount of orders and contracts in New York state was adjusted from the original US $185 million (including freight) to US $175 million (including freight), which was about RMB 1.132 billion after adjustment.
Andon Health Co.Ltd(002432) said that the performance of the above major contracts and orders will have a positive impact on the company’s operating revenue and operating profit in the corresponding accounting year, and the company will recognize the current revenue in the corresponding accounting period according to the relevant accounting standards for revenue recognition.
ten billion orders have been “received”
According to the announcement, Andon Health Co.Ltd(002432) the two businesses that have recently confirmed the success of “collection” are ihealth labs, a former U.S. subsidiary Sales orders and contracts of ihealth covid-19 antigen home self-test OTC kit obtained by Inc from New York and Massachusetts, USA.
Specifically, on December 21, 2021 local time, the order amount sent by the Department of health of New York State totaled US $65.31 million (including freight). Subsequently, the US subsidiary and the New York State Department of health signed a sales contract on January 10, 2022 local time to sell ihealth kit products to the New York State Department of health, with a total contract price tax of US $120 million (including freight). To sum up, the orders and contracts of the Department of health of the state of New York in the United States amount to US $185 million (including freight).
In addition, from December 3, 2021 to January 5, 2022 local time, the company obtained purchase orders from the Executive Office of the federal and Department of health and human services of Massachusetts, with a total contract price tax of US $148 million (including freight).
Up to now, Andon Health Co.Ltd(002432) has completed the delivery obligations of the orders and contracts of the above two states, and received the payment of USD 175 million (including freight) from the Department of health of New York State, about RMB 1.132 billion; Received $149 million in payment from the Commonwealth of Massachusetts (actual freight rise), about 965 million yuan.
The opportunity for the company to “take a share” of the “epidemic cake” in the United States began in November 2021 Andon Health Co.Ltd(002432) announced that the domestic self-test OTC kit of covid-19 antigen has been authorized by the U.S. Food and Drug Administration (FDA) for emergency use (EUA).
Since getting the “stepping stone”, Andon Health Co.Ltd(002432) has received five major orders totaling US $2.108 billion, or about 13.428 billion yuan.
The continuous flow of orders has opened up the imagination of the company, and the successive “falling bags” of payments have enabled the expected landing. At the beginning of this year, the company’s U.S. subsidiary signed a purchase contract and a change contract with HHS (U.S. Department of health and human services) represented by ACC (U.S. Army contract management command) on ihealth covid-19 antigen home self-test OTC kit products, with a total contract amount of 1.775 billion US dollars. As of April 18, ACC has paid a total of US $1.521 billion, or about RMB 9.715 billion, to the company’s US subsidiaries, and the above funds have been received.
In terms of production capacity, at the end of last year, Andon Health Co.Ltd(002432) disclosed that the monthly production capacity of covid-19 self-test kit was about 100 million people at that time, and planned to increase the production capacity to 200 million people per month by the beginning of 2022.
performance burst and share price soared
Andon Health Co.Ltd(002432) , which entered the American antigen market one step ahead, also won the competitive opportunity for itself.
On April 12, Andon Health Co.Ltd(002432) released the performance forecast for the first quarter of 2022. It is estimated that the net profit in the first quarter will be 14 billion yuan to 16 billion yuan, with a year-on-year increase of 3670743% to 4196563%; Deducting non net profit of 14 billion yuan to 16 billion yuan, an increase of 73845244% to 84395993% over the same period of the previous year.
what is the concept? If calculated by 90 days in a single quarter, the company makes a net profit of more than 150 million yuan per day
Looking through the performance of previous years, the total net profit of Andon Health Co.Ltd(002432) over the past ten years (20122021) was less than 1 billion yuan. Equivalent to making more than ten times the total profit of the past decade in one quarter of this year!
Together with the performance, there is the company’s share price.
From November 2021 to the beginning of 2022, Andon Health Co.Ltd(002432) share price once rose more than 12 times, becoming “hot spicy chicken”. At present, the company’s latest closing price is 82.88 yuan / share, again approaching its historical high of 88.88 yuan / share on January 18.
However, there are also hidden worries behind high growth.
it is reported that Zhejiang Orient Gene Biotech Co.Ltd(688298) , Aikang biology, Bosheng biology and other Chinese testing reagent enterprises have also obtained the FDA EUA authorization. In addition, since China liberalized the antigen self-test on March 11, covid-19 antigen testing products of many enterprises have been approved for listing, but Andon Health Co.Ltd(002432) is still absent
In this regard, Andon Health Co.Ltd(002432) chose to explore more overseas markets. On February 14, the company revealed during the institutional research that “we are actively contacting and communicating with customers in the Japanese market to see if we can open the Japanese market as soon as possible.”
In addition, Andon Health Co.Ltd(002432) Chairman Liu Yi previously said in an exclusive interview with the reporter of Shanghai Securities News that after the epidemic, covid-19 antigen self-test kit will become a regular sales product.
According to Liu Yi, the company will continue to adhere to the two core strategies, namely the promotion of diabetes care and care “O+O” new mode in China and the United States, and the new retail platform to continuously launch the ultimate cost effective explosive products. Relying on the revenue of the kit will accelerate the development of the two core strategies.
