when covid-19 continued to test the popularity of concept stocks, relevant companies disclosed a significant increase in performance.
significantly increase the performance in 2021
According to the performance forecast for 2021 disclosed in Hangzhou Biotest Biotech Co.Ltd(688767) (688767) on January 14, according to the preliminary calculation of the financial department, the net profit in the period is expected to be 810 million yuan to 910 million yuan, an increase of 375 million yuan to 475 million yuan compared with the same period of last year, an increase of 86.14% to 109.12% year-on-year; Deduct non net profit of RMB 802 million to RMB 902 million, which will increase by RMB 373 million to RMB 473 million compared with the same period of last year (legally disclosed data), with a year-on-year increase of 86.7% to 109.98%.
Hangzhou Biotest Biotech Co.Ltd(688767) landed in the capital market in September 2021. The performance in recent years mainly benefited from the explosion of demand for covid-19 testing products.
According to the prospectus of the company, affected by the covid-19 epidemic, the main business income of Hangzhou Biotest Biotech Co.Ltd(688767) in 2020 was 856 million yuan, an increase of 317.52% over the previous year; The gross profit of main business was 643 million yuan, an increase of 635.62% over the previous year. In 2018 and 2019, the company’s operating revenue did not include covid-19 products. The revenue and gross profit of the company in 2020 and January June 2021 mainly come from the revenue of covid-19 testing products.
For the reasons for the 2021 annual performance, Hangzhou Biotest Biotech Co.Ltd(688767) also said that the first half of 2021, the company’s New Coronavirus antigen detection kit has achieved significant sales in Europe. In the second half of the year, the New Coronavirus antigen family self testing kit developed by the company was registered with the European Union TGA and the Australian TGA. At the same time, affected by Delta, Omicron and other variants of covid-19 virus, the number of covid-19 infection cases in Europe, Australia and other countries and regions continued to increase significantly, and the demand for covid-19 antigen detection reagent increased significantly, which directly led to the significant increase in the company’s overseas covid-19 detection reagent revenue.
On the evening of 14, another peer listed company Zhejiang Orient Gene Biotech Co.Ltd(688298) (688298) also disclosed that it is expected to realize a net profit of 4.72 billion yuan to 5.12 billion yuan in 2021, an increase of 3.043 billion yuan to 3.443 billion yuan compared with the same period of the previous year, an increase of 181.45% to 205.31% year-on-year; Deduct non net profit of RMB 4.7 billion to RMB 5.1 billion, which will increase by RMB 3.041 billion to RMB 3.441 billion compared with the same period of last year, with a year-on-year increase of 183.30% to 207.41%.
As for the doubling of performance, Zhejiang Orient Gene Biotech Co.Ltd(688298) said that the 2021 year continued to be affected by the global COVID-19 epidemic. New Coronavirus rapid detection reagent (including family self testing) continued to be put into the epidemic prevention business. The sales performance of the products in the European market continued to increase substantially, and the operating performance in 2021 increased significantly.
covid-19 detection concept stocks continued to explode
On January 14, Hangzhou Biotest Biotech Co.Ltd(688767) shares rose sharply again, with the highest price of 152.5 yuan / share on the same day, closing at 145 yuan / share, recording an increase of 13.96%. Since January 6, the stock has risen from the lowest 67.36 yuan / share, and the cumulative maximum increase in just seven trading days has exceeded 126%.
The Zhejiang Orient Gene Biotech Co.Ltd(688298) 14 daily closed up by the daily limit, with a single day increase of 20%, and the largest increase since January 5 also exceeded 75%.
Affected by the recent opening of covid-19 rapid detection reagent in the U.S. market, some enterprises obtained overseas relevant product certification and relevant order expectations, the shares of relevant enterprises in the A-share covid-19 detection sector rose sharply as a whole.
In addition to Hangzhou Biotest Biotech Co.Ltd(688767) , Zhejiang Orient Gene Biotech Co.Ltd(688298) , on January 14, Andon Health Co.Ltd(002432) (002432) opened again, with a quotation of 75.28 yuan, a record high, and a total market value of 36.03 billion yuan. In the past two months, the share price soared from 6 yuan / share to 75.28 yuan / share, with a cumulative increase of 1155%.
Recently, it was announced that it is expected to achieve a net profit of RMB 2 billion-2.35 billion in 2021, with a year-on-year increase of Beijing Hotgen Biotech Co.Ltd(688068) (688068) of 1684.65% – 1996.97%. The share price also rose from the lowest 112.68 yuan / share on January 5 to 239.64 yuan / share on January 14, recording an increase of more than 112%.
In addition, the main business is the production, R & D and sales of chemical reagents and Xilong Scientific Co.Ltd(002584) (002584) of chemical raw material trade. Recently, the stock price soared due to being judged as covid-19 detection concept stock by the market, and hit the daily limit again on January 14. Since its recent low on December 21, 2021, the share price of the stock has almost doubled.
prompt attention to relevant company risks
Under the continuous change of stock price, relevant listed companies have also intensively prompted risks in the near future.
On January 14 Xilong Scientific Co.Ltd(002584) , it was announced that the company’s holding subsidiary Shandong aikewei Biotechnology Co., Ltd. (hereinafter referred to as “aikewei biotechnology”) and its joint-stock subsidiary Fujian Fujun gene Biotechnology Co., Ltd. (hereinafter referred to as “Fujun gene”) were involved in covid-19 detection business. Among them, Ai Kewei biological in January 2020 independently developed “New Coronavirus nucleic acid detection kit (fluorescent PCR method)” product registration information has been submitted to the State Drug Administration assessment center, is still in the approval process. Fuzhou Furui medical laboratory Co., Ltd., a wholly-owned subsidiary of Fujun gene, was approved to carry out covid-19 testing service on November 11, 2021. So far, only sporadic sales revenue has been realized.
It is noteworthy that on May 8, 2021, Xilong Scientific Co.Ltd(002584) has disclosed the announcement of transferring part of the equity of Fujun gene, the holding subsidiary of the company. The company transferred 40.5% of the equity of Fujun gene, the holding subsidiary of the company, to fulgent investment development limited, and the company’s shareholding decreased from 51% to 10.5%. Fujun gene is no longer the holding subsidiary of the company and will no longer be included in the scope of consolidated statements, The company’s remaining long-term equity investment in Fujun gene is accounted by equity method. The equity transfer has been completed in June 2021.
On December 8, 2021, Xilong Scientific Co.Ltd(002584) also disclosed the announcement on the transfer of 60% equity of aikewei biology, a holding subsidiary. After the equity transfer, the company has no joint control or significant impact on the remaining 13.7801% equity of aikewei biology, which is subsequently included in other equity tool investments.
Up to now, the company has received the first phase of equity transfer payment paid by the counterparty, and this equity transfer is in progress.
In conclusion, covid-19 detection business of Shandong aikewei Biotechnology Co., Ltd. and Fujian Fujun gene Biotechnology Co., Ltd. is expected to have no significant impact on Xilong Scientific Co.Ltd(002584) production, operation and performance.
On January 14, Hangzhou Biotest Biotech Co.Ltd(688767) said that the company’s stock had increased by more than 30% in the last two consecutive trading days, and the continuous rise of stock price had accumulated more profit adjustment risks; The number of outstanding shares of the company is 22.2108 million, accounting for 20.82% of the total shares after issuance, and the listed circulation is small. On January 14, 2022, the turnover rate of stock trading reached 45.64%, of which natural person investors accounted for a large proportion, and there was a risk of being easily hyped.
for the substantial increase in the announced performance, Hangzhou Biotest Biotech Co.Ltd(688767) also reminds investors to pay attention to investment risks, avoid following the trend of speculation, make rational decisions and invest prudently.
That night, Zhejiang Orient Gene Biotech Co.Ltd(688298) indicated that the company’s performance in 2021 mainly depended on the sales performance of New Coronavirus antigen detection reagent (including family self testing) in the European market. On December 30, 2021, the company’s covid-19 antigen self-test reagent was designated by Siemens Healthcare (hereinafter referred to as “Siemens Healthcare”) authorized by the U.S. FDA and EUA. There are many suppliers of similar products in the market, which will face the risk of fierce market competition. Whether the company’s future operating performance can continue to maintain rapid growth is subject to major uncertainty.
In addition, Beijing Hotgen Biotech Co.Ltd(688068) also indicates that the daily closing price deviation of the company’s shares has reached 100% in 10 consecutive trading days from December 31, 2021 to January 14, 2022, and the continuous rise of the share price has accumulated more profit adjustment risks. Meanwhile, the New Coronavirus self testing reagent product of the company has not yet been approved by the US market access, and there are many similar or other testing products in the European market. The products will face fierce market competition risks.
