The company is a leading company in molecular diagnosis of hematological diseases in China: the company is a life science enterprise focusing on the field of oncology and has independent research and development of testing products and services. The company has been deeply engaged in the field of hematological disease detection for many years, among which the "Leukemia related Fusion Gene Detection Kit" and "Immunoglobulin Gene rearrangement Detection Kit" independently developed by the company are the first certified products in the field of leukemia and lymphoma detection. The leukemia test upgrade product "Leukemia related 15 Fusion genes Test Kit" (Barrett), which was approved for sale in March 2022, will help the company achieve iterative expansion in the hematological disease testing market. The company's core business, blood disease testing products, grew steadily, with revenue growing at a compound rate of nearly 20 per cent from 2018 to 2021. We expect that with the continuous approval of the company's research products, the approved products will open up new growth space and superimpose the new impetus brought by equity incentives and marketing reform, the company will usher in the rapid growth of performance.
The core technology strength is strong, the product market share is in the lead, and gradually begin to diversify the layout to open up the growth space:
At present, the company continues to promote the research and development of hematological disease and lymphoma testing products and promote the updating and upgrading of the products. it is revealed that leukemia testing products have entered 79 of the top 100 hematological hospitals in the country, and 15 fusion gene products will also begin to contribute revenue in 2022, and revenue is expected to exceed 100 million yuan in 2023. Lymphoma business, the company has reached cooperation with more than 130 third-class hospitals and distributors, and will gradually cooperate with more than 1000 hospitals across the country, which is expected to exceed 100 million yuan in 2024. The company's solid tumor business is actively seeking cooperation with AstraZeneca PLC and other pharmaceutical companies on the basis of existing products. T790M solid tumor testing products are expected to obtain three types of medical device certificates by the end of 2022, which will accelerate the growth of the company's solid tumor business. The company is also involved in infectious disease testing, scientific research services and other business areas, completing the "reagent + equipment + service" trinity layout. The subsidiary Sitaide Biology changed its business in time during the epidemic in Shanghai, which made a certain contribution to the company's performance. In addition, the company's layout and expansion of digital PCR instruments and other new technologies are forward-looking. With the industry-university-research development platform, the company will ensure the echelon structure of the products.
The gradual implementation of equity incentives and marketing reform has helped the company's growth into an accelerated stage: this year, the company has implemented a restricted equity incentive plan for 193 senior managers, core technical personnel, technical and business backbone personnel, covering a wide range of personnel. incentive and assessment coexist, deeply bind the interests of core employees, fully mobilize the enthusiasm of employees, and promote the high-quality development of the company. At the same time, the company carried out in-depth marketing reform, reorganized the original sales system, transferred backbone personnel to set up a development team, was responsible for the development and bidding of new hospitals and departments across the country, and carried out different marketing strategies according to the characteristics of each product. accelerate the rapid admission of products, equity incentives and marketing reform will accelerate the company's performance.
Profit forecast, valuation and rating: the company is a leading company in the diagnosis of hematological molecules, and at the same time, it also has certain technical reserves in areas such as solid tumors and infectious diseases. With the continuous introduction of new products and the opening of new market space, as well as the continuous promotion of marketing reform, we expect the company to show an accelerated growth trend. We predict that the EPS of the company in 2022-2024 will be 0.77 PE 0.99 RMB 1.36 yuan, and the current price is 22-24 times higher than that of 48-37-27, covering the company for the first time and giving the company a "buy" rating.
Risk hint: the progress of new product R & D and listing is less than expected risk, and the expansion of admission channels is not as expected.