Established in 2010, Kangwei Century is mainly engaged in the development and production of biological reagents with high added value and high technical content, and has realized the layout of reagents and services for the entire process of molecular testing, from preservation and purification of nucleic acid samples to testing. The founder of the company, Dr. Wang Chunxiang, is an expert in the biological reagent industry. He has participated in the drafting and formulation of many national and industry standards for the molecular testing industry. Since 2019, while consolidating the upstream molecular reagent business, the company has continuously developed digestive and respiratory disease testing products and services. It is committed to laying out a full range of product pipelines and building Kangwei's professional testing brand.
The molecular reagent business is the cornerstone of the company. The company insists on independent innovation, strives in core key fields such as molecular testing, and has completed self-production of many high-end molecular enzyme raw materials, nucleic acid preservation reagents, and nucleic acid extraction and purification reagents, breaking monopoly. It is one of the few innovative R&D enterprises in China with independent and controllable technology in the upstream field. The company's products have reached or exceeded the level of imported similar products in terms of sensitivity, stability, synthesis ability, and response efficiency. Many top research institutes such as Peking University and Tsinghua University and many academician teams use the company's products and have been cited many times by top journals such as CNS. In addition, the company's commercial customers include many in vitro diagnostic companies and medical laboratories, including Huada Gene, Perspective Life, Lepu Medical, and Boao Jingdian.
In terms of pylori testing, currently only Kangwei in China has developed a full range of pylori testing products. In the future, it is expected to be the first company to be approved with a double certificate for fecal pylori testing+drug resistance testing, and be the first to enjoy dividends. In terms of colorectal cancer screening, Kangwei Century's colorectal cancer early screening products use joint tests for multiple methylation markers to improve the sensitivity and accuracy of testing. Currently, only one early screening product for bowel cancer is on the market in China. Kang's product is undergoing clinical trials. It is expected to be marketed in the first half of next year, sharing a broad market.
Profit prediction and investment rating: Thanks to the company's deep R&D strength and independent innovation ability in the field of molecular reagents, we believe that in addition to the cornerstone business of molecular reagents itself, the digestive tract testing business will be a major area for the company's future development. The company is expected to obtain approval for a full range of products for early colorectal screening and pyloric testing next year to complete the construction of an integrated digestive tract testing platform. It is expected that the company's revenue for 2023-2025 will be 340 million yuan and 612 million yuan respectively 100 million yuan and 1,029 million yuan. Profit fluctuated due to the gradual decline in COVID-related business. Net profit for 2023-2025 is expected to be 49 million yuan, 186 million yuan, and 368 million yuan respectively. It was covered for the first time, and given a “recommended” rating
Risk warning: product development falls short of expectations; hospital promotion falls short of expectations; other systemic risks