Andon Health Co.Ltd(002432) (002432. SZ) has become a well deserved “demon king”.
Following the previous day’s limit, the opening of Andon Health Co.Ltd(002432) on January 14 was a word limit. This is the 27th daily limit of the stock since mid November 2021, during which the share price soared 10 times. At present, the total market value has reached 36 billion yuan, and the market value has increased by more than 30 billion yuan in two months.
welcome another 8 billion U.S. big orders and 27 trading boards
On the morning of January 14, Andon Health Co.Ltd(002432) reported that its U.S. subsidiary ihealth labs Inc and American ACC (US Army contract management headquarters) signed a procurement contract (hereinafter referred to as the “contract”) on January 13, 2022 local time to sell ihealth kit products to them. The total amount of contract price tax is USD 1.275 billion, about RMB 8.1 billion, which has exceeded 50% (RMB 1.004 billion) of the company’s audited main business revenue in 2020.
The announcement said that in signing the contract, the American ACC represents the American HHS (United States Department of health and human services), the American HHS is the administrative department of the federal government that maintains the health of American citizens and provides public services, the health security agency of the federal government and the official management agency of the American medical system.
Previously, on January 12, Andon Health Co.Ltd(002432) said that the U.S. subsidiary received two purchase orders for ihealth kits from the Department of health of New York State on December 21, 2021 local time, with a total order amount of about 416 million yuan; On January 10, 2022 local time, an order for selling ihealth kit products was signed with the Department of health of New York State, with a total contract price tax of about 764 million yuan. Meanwhile, from December 3, 2021 to January 5, 2022 local time, the U.S. subsidiary obtained the purchase order of ihealth kit from the Executive Office of the Federal Department of health and human services in Massachusetts, with a total contract price tax of about 944 million yuan. The cumulative amount of orders reached RMB 2.124 billion.
in this way, on January 12 and January 14, 2022, Andon Health Co.Ltd(002432) signed 10 billion orders.
It is worth noting that in 2020 and 2021 has no business dealings with American ACC and American HHS, and Andon Health Co.Ltd(002432) has not disclosed the relevant information related to covid-19 test kit of its American subsidiary. Until November 7, 2021, Andon Health Co.Ltd(002432) suddenly announced that it was informed by the early morning of November 6, 2021 Beijing time that the emergency authorization was obtained by the New Coronavirus (SARS-CoV-2) antigen self testing OTC Kit (colloidal gold immunochromatography) of the US subsidiary company, authorized by the food and Drug Administration (FDA). After obtaining the U.S. emergency use authorization (EUA), the product can be sold in the United States and countries / regions that recognize the U.S. EUA during the U.S. public health emergency.
The news then fermented, making Andon Health Co.Ltd(002432) harvest 9 limit plates continuously from November 15 to November 25, 2021, and then continue to “detonate” the market. The share price rose from 6.9 yuan / share opened on November 15, 2021 to 75.28 yuan / share on January 14, 2022, an increase of nearly 10 times.
With regard to the continuous sharp rise of the stock price, Andon Health Co.Ltd(002432) has received many inquiries or letters of concern from the regulators. The company was issued with letters of concern or letters of supervision by the regulators on November 23, December 14, December 24 and January 12, 2022, respectively. But this still can’t stop the soaring trend of this demon stock.
According to the statistics of interface journalists, Andon Health Co.Ltd(002432) has been on the dragon and tiger list 25 times since November 16, 2021. Many of the brokerage business departments have made many changes when trading the stock, and have also been listed on the dragon and tiger list . Among them, China stock market news securities listed 35 times in the first securities business department of Lhasa East Ring Road, China stock market news securities listed 24 times in the second securities business department of Lhasa East Ring Road , China stock market news securities listed 13 times in Shanghai Dongfang Road Securities Business Department, and Huaxin securities listed 10 times in Shenzhen Yitian Road Securities Business Department, Galaxy Securities Beijing Xueyuan South Road Securities Business Department was listed 9 times, Northeast Securities Co.Ltd(000686) Hainan Branch was listed 7 times, China International Capital Corporation Limited(601995) Shanghai branch and China Industrial Securities Co.Ltd(601377) Shaanxi Branch were listed 6 times.
During the period from late November 2021 to December 31, 2021, according to incomplete statistics by interface journalists, China stock market news securities business departments 1 and 2 of Lhasa East Ring Road bought a total of 2.22 billion yuan and sold a total of 1.87 billion yuan. among them, China stock market news securities Lhasa East Ring Road first securities business department bought 1.4 billion yuan and sold 1.193 billion yuan. China stock market news securities Lhasa East Ring Road No. 2 securities business department has purchased 820 million yuan and sold 680 million yuan.
From November 17, 2021 to January 13, 2022, Andon Health Co.Ltd(002432) issued 12 stock trading risk warning announcements of the company. In the announcement of stock trading changes and risk warning on January 13, 2022, the company said that investors should note that the single month performance of the kit product does not represent the annual performance, and the historical performance of the product does not represent the future performance. The company believes that it is necessary to carry out risk warning again, including the risk of uncertainty in the development of the epidemic in the United States, the risk of uncertainty in market competition Rationality risk of valuation model, reliability risk of information, etc.
Andon Health Co.Ltd(002432) also said that in its previous announcement, the company mentioned the epidemic prevention related plans issued by the U.S. government, as well as the relevant policies, procurement and distribution plans and conditions of covid-19 antigen household self-test kit products. The relevant information and procurement involved in these contents are not only for the company. In addition, there are many rumors about the Internet platform, so investors should not calculate the company’s performance and future trend without basis. There are many factors affecting the stock price of the secondary market, and the development of the epidemic in the United States in the future is still uncertain. The sales of kit products are affected by many factors.
planned to launch the equity incentive plan long ago? Performance has been inquired for 6 consecutive years
Andon Health Co.Ltd(002432) was established in 1995 and listed in 2010. It is registered in Nankai District, Tianjin, and the actual controller is Liu Yi.
He holds 22.88% of the company’s shares through Shihezi Sanhe equity investment partnership (limited partnership). The company’s products are household medical and health electronic products.
Top 10 shareholders of Andon Health Co.Ltd(002432) in the first three quarters of 2021
Source: choice financial terminal
It is worth noting that before the stock price soared, Andon Health Co.Ltd(002432) took action to launch the employee stock ownership plan.
On October 28, 2021, the company launched the 2021 stock option incentive plan, with 353 people granted. The exercise price of granted stock options was 6.49 yuan / share , and the number of granted stock options reached 7.37 million. The current share price has exceeded 75 yuan / share. According to the company, the first exercise period of stock options is from the first trading day after 16 months from the grant date to the last trading day within 28 months from the grant date. The assessment requirements for the first exercise period are based on the company’s operating revenue in 2019, and the growth rate of operating revenue in 2022 shall not be less than 40%. The company’s operating revenue in 2019 was 706 million yuan, which means that the company’s minimum revenue in 2022 should reach 990 million yuan. Combined with its business orders with American companies, it is not a big problem to complete the revenue in 2022.
The current grant date has been completed. The company announced that as of January 14, 2022, the company had completed the grant registration of 2021 stock option incentive plan. This means that after the middle of May 2023, Andon Health Co.Ltd(002432) more than 350 people can reduce their holdings, accounting for 25% of 7.37 million, or 1.84 million. According to the current stock price of 75.28 yuan / share, 140 million yuan can be cashed out. Insiders said that in the future Andon Health Co.Ltd(002432) will have more power to raise the stock price.
Andon Health Co.Ltd(002432) exercise period and assessment conditions of stock option incentive plan
Source: company announcement
In terms of performance, from 2013 to 2019, Andon Health Co.Ltd(002432) net profit after deduction of non-profit suffered losses for seven consecutive years. After the net profit after deduction of non-profit was RMB 242 million in 2020, in the first three quarters of last year, Andon Health Co.Ltd(002432) net profit after deduction of non-profit suffered another loss of RMB 24.775 million. since 2013, the company’s net cash flow from operating activities has been basically negative, and this index exceeded 400 million yuan in 2020 alone, which means that over the years, Andon Health Co.Ltd(002432) ‘s main business has hardly brought real gold and silver precipitation.
In terms of employment performance, the regulator has issued annual report inquiry letters for six consecutive years to inquire about the annual reports of 2014, 2015, 2016, 2017, 2018 and 2019.
Andon Health Co.Ltd(002432) net profit attributable to parent company after deduction of non
Source: choice terminal
taking 2019 as an example, the regulatory inquiry involves the company’s net profit after deducting non-profit, loss for seven consecutive years, heavy dependence on the first supplier, the risk of high goodwill storm of the acquired company, and significant provision for inventory falling price, etc. regulators said:
The company’s net profit attributable to the shareholders of the listed company alternates between profit and loss for many years, and the net profit attributable to the shareholders of the listed company after deducting non profits has suffered losses for seven consecutive years. The analysis shows the specific reasons for the sharp fluctuation of the company’s performance and the continuous loss of the main business.
The company’s purchase amount from the top five suppliers accounts for 41.33% of the total annual purchase amount, of which the purchase amount from the first supplier accounts for 17.1% of the total purchase amount. Please explain the reasons for the high concentration of suppliers and whether there is significant dependence on major suppliers in combination with the company’s business characteristics and industry.
The net goodwill formed by the company’s acquisition of France edevice in the early stage is 359 million yuan, accounting for 21.62% of net assets. Please fully remind us of the risk of goodwill impairment in the future.
The book balance of the company’s inventory at the end of the reporting period was 233 million yuan, and the provision for inventory falling price in the current period was 36.0276 million yuan, a year-on-year increase of 241.96%. Please explain the specific reasons for the significant increase in the provision for inventory falling price.
it is worth pondering whether the business cooperation between Andon Health Co.Ltd(002432) and American ACC is only a flash in the pan? For small and medium-sized investors, is the crazy speculation on Andon Health Co.Ltd(002432) a knife licking blood?
