Main points of investment

On Tuesday, October 11, an inquiry was made by Kang Wei Century, a listed company of Science and Technology Innovation Board.

Kangwei Century (688426): the company's core products include molecular detection enzyme raw materials, nucleic acid preservation reagents, nucleic acid extraction and purification reagents and molecular diagnostic kits, as well as the screening and diagnosis of digestive tract diseases and respiratory infectious diseases. The integrated layout of molecular detection "core enzyme raw materials + kits + testing services" has been realized. From 2019 to 2021, the company achieved operating income of 74 million yuan / 233 million yuan / 338 million yuan, YOY of 32.44%, 215.41% and 45.13%, respectively, and the annual compound growth rate of three years' operating income was 82.34%. The net profit of homing was 9 million yuan / 108 million yuan / 126 million yuan, the YOY was 36.44%, 1105.55% and 16.36%, respectively, and the annual compound growth rate of three years' net profit was 167.49%. During the latest reporting period, 2022H1 achieved an operating income of 266 million yuan, an increase of 110.23% over the same period last year, and a net profit of 100 million yuan, an increase of 142.75% over the same period last year. The company expects the net profit attributed to the shareholders of the parent company from January to September 2022 to be 145 million yuan to 150 million yuan, an increase of 64.47% to 70.14% over the same period last year.

Investment highlights: 1. The company is one of the few domestic enterprises with integrated product layout around molecular detection, with the supply capacity from raw material enzymes to nucleic acid preservation reagents, nucleic acid extraction and nucleic acid extraction and purification reagents.

Based on the field of molecular detection for more than ten years, the company is one of the few domestic manufacturers with the ability to provide the whole product chain of molecular detection. The core products include molecular detection enzyme raw materials, nucleic acid preservation reagents, nucleic acid extraction and purification reagents and so on. At present, the company has accumulated a good reputation in the molecular testing industry. In the field of scientific research, the company's customers include Peking University, Tsinghua University, Chinese Academy of Sciences and many other top research institutes, including a number of academician teams. The products have been cited many times in Nature, Science, Cell, PNAS and other top international journals. Commercial customers include BGen, Shengxiang Biology, Tuojing Life, Le Pu Medical and Boao Jingdian, including a number of well-known in vitro diagnostic companies and medical laboratories at home and abroad. 2. The company is in the leading position in the field of nucleic acid preservation reagents and nucleic acid extraction and purification reagents. It is one of the most complete enterprises and one of the main suppliers of nucleic acid extraction and purification reagents in China. The company has more than 70 nucleic acid preservation products, which is one of the enterprises with the most complete nucleic acid preservation products in China, of which the domestic market share of free DNA preservation reagents is 7.5%, and the proportion of pathogenic microbial nucleic acid preservation is 4%. In the field of nucleic acid extraction and purification, the founder of the company, Dr. Wang Chunxiang, is one of the pioneers of the domestic nucleic acid extraction industry, and participated in the drafting of two national standards, three industry standards and one group standard. At present, the company has more than 200 kinds of nucleic acid extraction reagents, and has obtained medical device filing certificates for 34 different types of extraction kits, basically covering all the biological sample types needed for testing at present. now the company has become one of the major domestic suppliers of nucleic acid extraction and purification reagents, ranking fourth among domestic manufacturers, with a domestic market share of 3.9%.

3. With the advantage of upstream, the company has cut into the downstream field of molecular detection, developed respiratory tract and digestive tract kit products and screening and diagnostic services, and the business developed well during the reporting period. The company relies on the upstream advantage, cut into the downstream respiratory tract and digestive tract screening, diagnosis. At present, the company mainly focuses on the screening and diagnosis of Helicobacter pylori and colorectal cancer. In 2021, the company began to carry out the detection of Helicobacter pylori based on fecal samples and early screening of colorectal cancer. By the end of the reporting period, 100,000 samples had been collected and tested, which is the first related research on fecal samples of a planned and organized public population in China. During the reporting period, the company successively launched a number of Helicobacter pylori nucleic acid detection kits and achieved certain sales revenue, and the company's existing two Helicobacter pylori rapid detection kits have entered the stage of clinical evaluation or evaluation and approval. It is expected to be listed within 2 years. In addition, the company continues to develop Helicobacter pylori testing and colorectal cancer screening technical services, including Jiangsu Provincial Government Procurement Center, Nanjing first Hospital, Taizhou High-tech Zone and Gaogang District Health Committee and other customers during the reporting period.

Comparison with listed companies in the same industry: the company's main business is molecular testing products and molecular testing services. According to the similarity of business, Eddard Biology, Nuoweizan and Tuojing Life are selected as comparable listed companies. According to the above comparable companies, the average income of the same industry in 2021 is 1.147 billion yuan, PE-TTM (arithmetic average) is 31.19X, and the gross profit margin of sales is 77.38%. Comparatively speaking, the revenue scale and gross profit margin of the company are lower than the average level of the industry.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data selection may have interpretation deviation, specific listed company risk is displayed in the text content, and so on.