Shengxiang Biotech Co., Ltd. announced that 2024H1 achieved operating income of 716.9576 million yuan, a year-on-year increase of 67.63%; realized net profit attributable to shareholders of listed companies of 156.7058 million yuan, an increase of 70.93% year on year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 121.1289 million yuan, an increase of 288.48% year on year.
Key points of investment
Multiple production lines work together, and respiratory products continue to lead growth, relying on technology updates+product matrixization+sales system support. In the first half of 2024, the company made continuous progress in various fields such as respiratory diseases, maternal and child health, bloodborne infectious diseases, genetic sequencing, and immunological diagnosis. The operating revenue of respiratory products in the first half of 2024 was basically the same as the total for the full year of 2023. It is also currently the company's largest revenue area, and is an important engine driving the company's performance growth. Demand for accurate outpatient and emergency diagnosis and treatment, and “Internet+Healthcare” in-home self-examination continues to be driven. Combined with recent increases in respiratory infectious diseases such as COVID-19, the annual revenue from respiratory products is expected to exceed 0.8 billion yuan.
Leading the transformation of the molecular diagnosis industry, developing and promoting molecular POCT systems
In order to expand the application scenarios and scope of molecular diagnosis, the company continues to work to promote the refinement, simplification, systematization, mobility and intelligence of molecular diagnosis technology. It has developed iPonic's mobile molecular diagnosis system, which can complete the whole process of testing in 40 minutes. The system can be developed as a new model for cervical cancer screening/clinical management. It can be used at the grassroots level for immediate screening and treatment research practices, cervical cancer screening and prevention in remote areas and areas with low health resources.
Diagnostic reagent certification registration has been implemented, and the field continues to expand
The company has obtained product registration for the drug genomics series, and has now been approved for the MTHFR gene polymorphism nucleic acid detection kit and the human ApoE gene polymorphism nucleic acid detection kit. Among them, the human ApoE gene polymorphism nucleic acid detection kit can assist in clinical monitoring of the medication effects of statins and evaluate the risk of developing Alzheimer's disease and cardiovascular diseases such as atherosclerosis, coronary heart disease, and stroke. Product registration has been implemented, and the company's business field has also expanded to chronic disease testing.
Profit forecasting
It is predicted that the company's revenue for 2024-2026 will be 1.502, 1.85, and 2.092 billion yuan, respectively, and net profit to mother will be 0.308, 0.411, and 0.521 billion yuan, respectively, EPS 0.53, 0.70, and 0.89 yuan respectively. The current stock price corresponds to PE 37.1, 27.7, and 21.9 times, respectively. Relying on the strength of respiratory testing products, the company has entered the second growth curve. With the implementation of more technology updates and reagents, the company's advantage in the field of molecular diagnosis will be Continued expansion, maintaining a “buy” investment rating.
Risk warning
The promotion of new products fell short of expectations, and sales of respiratory testing products fell short of expectations.