Shengxiang Biotech is an overall solution provider for in vitro diagnosis with independent innovative genetic technology as the core, integrating diagnostic reagents, instruments, and third-party medical testing services. Based on the self-developed “one-step method” and “magnetic bead method”, the company has built a series of technical platforms such as quantitative fluorescence PCR, multiple PCR technology, and genetic sequencing. The products cover various fields such as infectious disease prevention and control, cancer prevention and control, and maternal and child health, and have potential for long-term development. This report mainly analyzes Shengxiang Biotech's performance growth logic and development opportunities from three aspects: (1) the current state of the in vitro diagnosis and molecular diagnosis industry, (2) the company's core molecular diagnosis technology and product pipeline, and (3) long-term technology platform layout.
A leading company in molecular diagnostics, with excellent overall competitiveness. The company has a self-developed high-precision molecular technology platform and a product pipeline covering a wide range of application fields, and is highly recognized by the market.
Dimension 1: The company uses the abundant cash flow it has accumulated to actively lay out upstream and downstream industries, further integrate resources from the entire industry chain, improve the upstream layout by investing in Kangde Biotech and Yuanjing Intelligent Manufacturing, etc., and consolidate its midstream position by investing in Zhenmai Biotech and Shenzhen Ansai.
Dimension 2: Adhering to independent research and development strategies, various technologies such as the “one-step method”, “magnetic bead method”, POCT, and liquid phase chip have been developed, and a series of technical platforms such as quantitative fluorescence PCR, multiple PCR technology, and gene sequencing have been built, and the technology has been deeply accumulated.
Dimension 3: The company's products cover various fields such as infectious disease prevention and control, cancer prevention and control, maternal and child health, and blood screening. Among them, viral hepatitis, respiratory infections, HPV and other related products lead the industry in performance and have significant advantages.
Incubate long-term technology platforms and transform into platform-based enterprises. The company enters fields with high potential clinical demand in a targeted manner, lays out various technology platforms, and is expected to continue to contribute to the company's performance in the future.
Dimension 1: The company invested in Shenzhen Ansai to enter the Glowing Circuit. Shenzhen Ansai has “enhanced electrochemiluminescence” platform technology with independent intellectual property rights. It has unique advantages such as higher sensitivity and faster response speed, and has launched two electrochemiluminescence instruments and supporting reagents.
Dimension 2: Actively invest in various technology platforms, cooperate with QuantumDX to consolidate the advantages of POCT diagnosis; invest in First Light Diagnostics to quickly lay out the drug sensitivity circuit to accelerate market share in the field of microbiology; invest in Zhenmai Biotech to boost the field of gene sequencing.
Steadily expand the global strategic map and promote the implementation of key projects. The company's products cover more than 160 countries and regions, and has deepened the local market through the establishment of overseas subsidiaries and overseas offices; promoted the company's signing of national project cooperation with many countries, and steadily expanded its global strategic layout.
Profit forecast: The company is expected to achieve revenue of 1.45/1.933/2.55 billion yuan and net profit to mother of 0.32/0.46/0.541 billion yuan in 2024-2026, corresponding earnings per share of 0.54/0.78/0.92 yuan/share, maintaining the company's “increased holdings” investment rating.
Risk warning: Increased market competition, product market development falling short of expectations, policy risks, etc.