Main points of investment:
Dual-core drive of cells and genes to create the whole industry chain of life and health. Vcanbio is the first enterprise to invest in biological resources storage project. after years of deep ploughing, it has developed into a leading enterprise in the domestic stem cell storage industry. Since 2014, the company has promoted the development of dual-core cell and gene drive and implemented the "611" model, that is, to create six characteristic businesses of storage, gene testing and clinical reagents, tumor immunotherapy, cosmetics and health products, informationization (Internet +) and pharmaceuticals (Zhongyuan Pharmaceutical), and to build the whole industry chain of life and health through endogenesis and epitaxy.
Based on cell storage and gene detection in vitro diagnosis business, actively expand stem cell therapy. The company actively develops along the double main lines of cell and gene. (1) as a leader in stem cell storage in China, cell storage is the company's main business. The company operates 3 cord blood public banks (Tianjin, Zhejiang and Gansu), has more than 20 cell resource banks and stores more than 300,000 cord blood. At the same time, the company actively develops the mid-stream preparation and treatment technology of the stem cell industry chain. At present, a number of stem cell products, including umbilical cord mesenchymal stem cell anti-hepatic fibrosis injection, have been declared, which is in a leading position in China. (2) gene detection and in vitro diagnosis. Sequencing service has covered neonatal deafness gene screening, non-invasive prenatal screening, tumor and other common disease susceptibility gene sequencing, etc., and has become a fast-growing new business of the company, contributing nearly 10 million yuan in profits over the past 15 years. Through the acquisition of Shanghai Zhicheng Bio-extension cut into the in vitro diagnosis industry. Chengcheng Bio promises a profit of 6483 yuan in 15 years and 83.25 million yuan in 16 years (expected to make a profit of 67.68 million in 15 years), which will greatly improve the performance of the company.
The new force of tumor immunotherapy. The company invests 13% equity of Beike Biology and Shanghai Collison Company (after participating in the M & A fund, the fund is transferred 100% equity) layout tumor immunotherapy. The immune technologies currently involved in the company include tumor infiltrating lymphocyte therapy (TIL), induced killer cells (CIK), DC-CIK, and chimeric antigen receptor modified T cell therapy (CAR-T). Collison partnered with third-class hospitals to set up a biotherapy laboratory that complies with GMP standards, which is expected to provide the company with an important channel for technological transformation.
Profit forecast: excluding extension, we predict that the company's revenue growth in 15-17 years will be 77.1%, 64.4% and 16.0% respectively, and the growth rate of net profit will be 466.18%,-1.73% and 33.83% respectively, which is 201 million, 197 million and 264 million. We believe that Vcanbio is highly qualified, as a domestic precision medical leading enterprise, is the only cell and gene binuclear-driven company in the market, has a complete upstream, middle and downstream layout of stem cells, and continues to expand the genetic field, and the extension is expected to be strong. We should give a certain valuation premium, it is suggested to give Vcanbio the first target price 100 times valuation, corresponding to the stock price of 53 yuan, the first time to increase the rating.
Risk hints: stem cell policy uncertainty, new drug approval risk, extension lower than expected and so on.