The medical dividend is still alive and well.
With the popularity of the new crown antigen detection kit, Jiu'an Medical has dominated the popularity of popular products for a long time. Taking advantage of the first-mover advantage in the US market, it has received orders from multiple channels such as the government, commercial customers, and Amazon's e-commerce platform, and has also made huge profits.
Half-year net profit reached 15.2 billion yuan, and Jiu'an Medical made a profit
A few days ago, Jiu'an Medical released its 2022 semi-annual report. The report data shows that its revenue during the reporting period was 23.267 billion yuan, an increase of 3989.07% compared to the same period last year; its net profit attributable to the company was 15.244 billion yuan, an increase compared to the same period last year. 27728.49%.
Looking at the financial reports of 112 A-share medical device companies in the first half of 2022, the total revenue achieved was 166.6 billion yuan, and the net profit was 54.3 billion yuan. It can be seen that the profit of Jiu'an Medical alone accounts for 28% of the total profit of the entire medical device sector, which is enough to see the profitability of Jiu'an Medical.
And Jiu'an Medical also pointed out in the report that an important reason for the increase in its performance is that its sales of new crown antigen detection kits have increased significantly, and the gross profit margin is as high as 81.66%. It is reported that its kit is one of iHealth’s series of products. The revenue of this series of products in the first half of the year exceeded 25 billion, accounting for 99.08% of the revenue.
On the second day after the results were announced, its stock price rose all the way, with a maximum increase of more than 9%. In fact, since Jiu'an Medical received large orders, its stock price has been rising continuously. It has risen from less than 6 yuan in November 2021 to nearly 100 yuan in April this year, but it has fallen back recently.
After comparing its performance in the first half of the year, the editor found that although Jiu'an Medical's performance in the first half of the year grew rapidly, its revenue and profit growth were mainly from January to March this year. Its operating income in the first quarter of this year was 21.737 billion yuan, and the net profit attributable to listed companies was 14.312 billion yuan, an increase of 6646.79% and 37527.35% respectively compared with the same period last year.
However, in the second quarter of this year, Jiu'an Medical's operating income was only 1.53 billion yuan, and its net profit attributable to shareholders of listed companies was 930 million yuan. It can be seen that 90% of its performance in the first half of the year came from the performance growth in the first quarter. , the performance of the second quarter also slowed down significantly.
In addition, Jiu'an Medical 's revenue composition /OEM products , such as traditional hardware products, mobile medical communication equipment sales and services, and new retail businesses , all declined to varying degrees.
As an enterprise that has been deeply involved in the field of medical devices for more than 20 years, Jiu'an Medical has launched a variety of home medical and health products covering blood pressure, blood sugar, body temperature, blood oxygen, etc. Its product orders have not only the US government, commercial customers, etc. In addition to B-end customers, it also sells through C-end channels such as Amazon and the official website of its US subsidiary .
On Amazon, the forehead thermometer product of iHealth, a brand of Jiu'an Medical , has sold 20,000 units in a single day . "The achievements of the iHealth kit are another successful practice of the company's core strategy of popular products following the forehead thermometer," Jiu'an Medical said in its semi-annual report.
It is reported that the brand’s kits have been on the Amazon BSR list for a long time, and have accumulated more than 170,000 ratings. At the same time, with the significant increase in the influence of the iHealth brand in the United States, products such as the Internet of Things blood pressure monitor under its brand are also selling well on the Amazon e-commerce platform in the United States.
The United States suspends the distribution of test kits, and the development potential of Jiu'an Medical still exists
Jiu'an Medical's test kits have always been the company's trump card products. They are sold well in various markets, especially the United States, and are also trusted by consumers. However, a news announced by the US free application for new crown test kit website recently attracted the attention of investors.
According to the news, the United States has temporarily stopped providing free new coronavirus testing kits from September 2 this year . As for the reason for the suspension , it explained that " the country's Congress has not provided additional funds to replenish the stock of test kits ."
As soon as this news came out, many investors were slightly worried about the future sales of Jiu'an Medical in the US market: whether it would have an impact. In response, Jiu'an Medical also responded on the investor interactive platform.
Jiu'an Medical said that its company has been closely monitoring the changes in the epidemic situation and epidemic prevention policies in the United States, and has also noticed the news about the suspension of test kits in the country. But from the point of view of the reason, because the government needs to keep a certain amount of inventory to deal with the recurrence of the epidemic in autumn and winter, the Congress has not approved the budget. In addition, as of now, the epidemic in the country has not been effectively controlled, and stopping the distribution of free test kits will bring about commercial changes. In the short term, there will be more commercial demand, and business opportunities for the company's kit products will increase; in the long run, changes in the US epidemic are an important factor affecting the sales of kits.
At the beginning of this year, the number of people infected with the epidemic in the United States continued to increase, which had a considerable impact on local medical care and people's lives. The New York Times previously reported that with the emergence of highly contagious strains, it is difficult for local people to test for the new crown , and the supply of test kits is not timely.
Under this circumstance, the government announced the purchase of 1 billion test kits in batches and plans to distribute them free of charge in two installments. It is understood that the amount spent on the procurement is in the billions of dollars. Many people started to order on the platform early. In order to meet the distribution needs, the relevant logistics providers in the country have also dispatched thousands of additional staff.
In addition to the sales of kit products, the news of Jiu'an Medical's construction of a factory in the United States has also attracted the attention of the industry.
Judging from the public information (recent research activity information disclosed by Jiu'an Medical), its US subsidiary will use automated equipment to produce internal and external packaging of products after building a factory in the United States, thereby reducing the dependence on labor and improving the local market. supply efficiency. It is worth noting that Jiu'an Medical has now completed the site selection for the establishment of a factory in the United States, and is in the process of equipment installation and commissioning. The operation time may be in the second half of this month.
If the work of building a factory in the United States is carried out smoothly, it will have a more positive impact on the future development of Jiu'an Medical. In the US market, Jiu'an Medical can be said to have occupied the advantage of products. If it is added with the blessing of local factories, it can be said to be the icing on the cake. Not only the supply efficiency has been accelerated, but its reputation in the local market will also improve simultaneously.
In recent years, with the increasing number of overseas brands in the medical industry, the development situation is also getting better. For Jiu'an Medical, there are more and more business opportunities provided by the market. However, under the industry dividend, competitors will naturally increase. Next, how to develop more advantageous products, increase market share, and increase the ability to resist various uncertain risks is very important for Jiu'an Medical.