Many animal models have been independently developed, and a wide range of application scenarios can be expected: since its establishment, the company has developed more than 10,000 genetically modified animal models in the fields of genetic function research and drug development such as tumors, neurodegenerative diseases, mental diseases, metabolic diseases, inflammation, and rare diseases. Among them, the company has independently developed more than 6,000 models. In particular, it has established humanized mice and related disease models in immunological checkpoints such as PD-1, PD-L1, CTLA-4, CD47, TIGIT, etc., and cutting-edge and key disease research fields such as APOE4 Alzheimer's disease and A/B hemophilia, which have been widely used by scientific research institutes and drug development enterprises.
Among them, sales of standardized models are growing rapidly, and overseas deployment has also entered a period of acceleration.
The market for genetically modified animal model services is broad: genetically modified animal model services are an important field in the animal model market. According to GMI data estimates, the market size of genetically modified animal model services in 2019 was about 10 billion US dollars, and is expected to increase to 14.1 billion US dollars in 2023, accounting for about 67% of the animal model service market; the 2015-2023 CAGR is about 9.34%, and the scale growth rate is slightly higher than the animal model service market. The company's genetically-modified animal model service is the most important field of animal model services. It has broad market space and a continuous growth trend.
High-quality customer resources: The company has accumulated a number of high-quality customer resources and has established good cooperative relationships with famous scientific institutions such as the Chinese Academy of Sciences, Fudan University, Shanghai Jiao Tong University, Zhejiang University, Tsinghua University, Peking University, etc., famous hospitals such as Ruijin Hospital, Zhongshan Hospital, Huashan Hospital, and well-known innovative drug R&D companies and CRO companies such as Yaoming Biology, Cinda Biology, Hengrui Pharmaceutical, BeiGene, China and the US Crown.
Profit forecast: The company focuses on R&D, sales and related services of genetically modified animal models. Currently, customer resources are abundant and sales models are mature. It is expected that the future genetically modified animal model market in China will have great growth potential. We expect the company's 2021-2023 EPS to be 0.71, 1.23 yuan, and 1.51 yuan. Corresponding to PE of January 27, 2022, PE was 84.2X, 48.8X, 39.7X, and was covered for the first time, giving it a “prudent increase” rating.
Risk warning: technical risk; business risk; internal control risk; financial risk; legal risk
