HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Recently, <a href="https://www.smartkarma.com/entities/autobio-diagnostics-co-ltd" target="_blank" data-smartkarma-citation="entities:30185:1" rel="noopener">Autobio Diagnostics Co Ltd (603658 CH)</a> released the 2020 and 2021Q1 financial results. In 2020, the revenue was RMB2.98 billion, up 11.15% YoY. Net income was RMB757 million, down 3.79% YoY. In 2021Q1, Autobio achieved revenue of RMB817 million, up 48.44% YoY, and net income was RMB175 million, up 91.23% YoY. Due to the COVID-19, the performance of Autobio was affected in 2020, but the sales recovered gradually quarter by quarter. In 2021Q1, the domestic pandemic was basically stable with occasional regional recurrence, and the frequency of routine diagnosis and treatment in medical institutions recovered to about 80%-90% of the normal situation, so Autobio also achieved a rapid growth. Obviously, the Company is gradually getting rid of the adverse impact brought by COVID-19, and its leading position in IVD (chemiluminescence) has not changed. With the recovery of routine diagnosis and treatment in medical institutions, Autobio's performance is expected to get back on track.

Recently, Autobio Diagnostics Co Ltd (603658 CH) released the 2020 and 2021Q1 financial results. In 2020, the revenue was RMB2.98 billion, up 11.15% YoY. Net income was RMB757 million, down 3.79% YoY. In 2021Q1, Autobio achieved revenue of RMB817 million, up 48.44% YoY, and net income was RMB175 million, up 91.23% YoY. Due to the COVID-19, the performance of Autobio was affected in 2020, but the sales recovered gradually quarter by quarter. In 2021Q1, the domestic pandemic was basically stable with occasional regional recurrence, and the frequency of routine diagnosis and treatment in medical institutions recovered to about 80%-90% of the normal situation, so Autobio also achieved a rapid growth. Obviously, the Company is gradually getting rid of the adverse impact brought by COVID-19, and its leading position in IVD (chemiluminescence) has not changed. With the recovery of routine diagnosis and treatment in medical institutions, Autobio's performance is expected to get back on track.

Autobio Diagnostics (603658.CH) - The Turning Point Is Quietly Approaching

Thematic (Sector/Industry)

1. Industry viewpoints:<ul>
<li>In the aspect of Chinese patent medicines, the main varieties of proprietary Chinese medicine are expected to be the first to be included in VBP, and medicines of stable quality are a higher priority.</li>
<li>Chemiluminescence is in the stage of rapid growth and the trend of intensive procurement of IVD consumables could drive import substitution.</li>
<li>The wellness tourism market has a good development environment and a huge growth potential.</li>
</ul>2. Company news:News about the updated progress of COVID-19 vaccine and new drugs from <a href="https://www.smartkarma.com/entities/cansino-biologics-inc" target="_blank" data-smartkarma-citation="entities:27739:1" rel="noopener">CanSino Biologics Inc (6185 HK)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a>, and <a href="https://www.smartkarma.com/entities/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a>.3. Market review:Last week, stock price for healthcare sector in A share decreased 8.2%, while CSI 300 decreased 7.65% over the same period of time. 4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
In the aspect of Chinese patent medicines, the main varieties of proprietary Chinese medicine are expected to be the first to be included in VBP, and medicines of stable quality are a higher priority.
Chemiluminescence is in the stage of rapid growth and the trend of intensive procurement of IVD consumables could drive import substitution.
The wellness tourism market has a good development environment and a huge growth potential.
2. Company news:News about the updated progress of COVID-19 vaccine and new drugs from CanSino Biologics Inc (6185 HK), Innovent Biologics Inc (1801 HK), Antengene (6996 HK), and Akeso Biopharma Inc (9926 HK).3. Market review:Last week, stock price for healthcare sector in A share decreased 8.2%, while CSI 300 decreased 7.65% over the same period of time. 4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Compared with developed countries, China's IVD industry started relatively late, and the overall technical level still lags far behind that of developed countries in Europe and America. However, in recent years, with the acceleration of the aging problem and the continuous growth of residents' income, the IVD has become one of the most active and fastest growing industries in China.

Compared with developed countries, China's IVD industry started relatively late, and the overall technical level still lags far behind that of developed countries in Europe and America. However, in recent years, with the acceleration of the aging problem and the continuous growth of residents' income, the IVD has become one of the most active and fastest growing industries in China. 

Industry Report - Insights on China IVD Industry

China

Autobio Diagnostics Co., Ltd. manufactures medical reagents and equipment. The Company designs, produces, and sells clinical diagnostic products, rapid test devices, and other related instruments around the world.

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Autobio Diagnostics (603658 CH)