Incidents: 1) Jiuqiang Biotech issued an announcement on December 20, holding Sun Company and Elitech Group Inc.

(hereinafter referred to as EGI) signed a product distribution agreement, and EGI purchased the fully automated immunohistochemical staining systems Titan and Titan S from its subsidiary Maixin Biotech, as well as related supporting test reagents and cleaning solutions; 2) On October 9 and November 21, Jiuqiang Biotech issued announcements on obtaining medical device registration certificates, and three self-developed fully automated chemiluminescence immunoanalyzers were approved for sale and officially entered the chemiluminescence testing circuit.

Maixin signed a distribution agreement, and the product went overseas to achieve a new breakthrough: On December 14, Lumatas BioSystems, Inc., a holding subsidiary of Maixin Biotech, a wholly-owned subsidiary of Jiuqiang Biotech, signed a “Product Distribution Agreement” with the Utah company EGI. It was agreed that from December 14, 2023 to December 14, 2028, EGI will purchase fully automated immunohistochemical staining systems Titan and Titan S, as well as related supporting test reagents and cleaning solutions. During the term of the agreement, EGI has exclusive distribution rights for this product within the authorized area.

Since the main business scope of EGI and the business scope of Jiuqiang Biotech are highly collaborative, the cooperation between the two parties can reduce the sales and promotion costs of related products and help increase brand awareness. The signing of a product distribution agreement will help Maixin Biotech, a subsidiary of Jiuqiang Biotech, open up overseas markets, increase overseas sales scale and market share, and help the company enter a new stage of overseas expansion.

The fully automatic chemiluminescence instrument was approved, and the chemiluminescence track was laid out: On October 9 and November 21, Jiuqiang Biotech issued an announcement on obtaining medical device registration certificates. The fully automated chemiluminescence immunoanalyzers Gi 1600, Gi 2000, and Gi 9000 were approved separately, and officially entered the field of chemiluminescence. As the mainstream technology for immunological diagnosis, chemiluminescence occupies a high-quality IVD circuit. Driven by policies such as collection, there is broad scope for import substitution. The expansion of chemiluminescence business helps to create synergies with the company's biochemical business, and opens up space for the company's growth through diversified layouts, further enhances the company's performance, and guarantees the company's long-term steady development.

Profit forecasting, valuation and ratings: We continue to be optimistic about the company's post-epidemic recovery, and the continued empowerment of Sinopharm, and the long-term growth space that overseas and new business expansion have opened up for the company. We maintain the 2023-2025 net profit forecast of 5.22/6.73/834 million yuan. The current price corresponding to 23-25 PE is 23/18/14 times, maintaining the company's “buy” rating.

Risk warning: Risk of price reduction exceeding expectations, risk of changes in sales models, risk of new product development and listing progress falling short of expectations, and risk of stock price instability due to irregularities.