Author: Yang Lei, Editor: Xiao Shimei
On March 7, the concept of assisted reproduction rose against the market, and Yuexin Health (002162) rose and stopped in 4 days and became a hot topic. According to a securities software, the company rose more than 110% in 22 trading days, and its stock price doubled.
On the news side, the three-child favorable proposal at the heavy meeting caused heated discussion in society. In addition, the Beijing Municipal Medical Insurance Bureau and other departments recently jointly issued documents to incorporate 16 assisted reproductive technologies such as artificial insemination and embryo transfer into Beijing medical insurance.
Yuexin Health is related to the concept of assisted reproduction because it has invested in an artificial reproduction center in Los Angeles, USA, which provides legal IVF medical services.
At present, the development of assisted reproduction industry has become a social need. According to the agency, the domestic infertility rate is more than 16%, the number of patients is close to 50 million, and the penetration rate of assisted reproduction is less than 8%, far lower than that of the United States.
In 2020, the size of China's assisted reproduction IVF market is about 33 billion yuan, and the agency predicts that it will exceed 50 billion yuan by 2023.
It is understood that the upstream of assisted reproduction is mainly for testing reagents, biomedicine, and medical devices.
In the drug market, as of 2018, overseas pharmaceutical giant Merck Sherano accounted for 50% of the domestic market share, while A-share company Lizhu Group (000513) had a market share of 20% and Xianju Pharmaceutical (002332) had a market share of 5%. Overseas pharmaceutical companies are in a dominant position.
In recent years, there have been new players in China involved in the market of assisted reproductive drugs. At the end of 2020, Changchun High-tech (000661) announced that Kinsey Pharmaceuticals had obtained all the technical ownership and intellectual property rights of "recombinant human follicle-stimulating hormone-CTP fusion protein injection" in mainland China.
The middle reaches of assisted reproduction are "Internet + assisted reproduction" products, such as grapefruit, aunt, shell, fertility and so on.
The downstream of assisted reproduction is an assisted reproduction institution, mainly public hospitals in China, while the representative of private institutions is Jinxin Fertility (01951. HK）。
According to the brokerage research report, in 2018, medical institutions in Jinxin Fertility China carried out a total of more than 20,000 IVF egg retrieval cycles, ranking first among domestic non-public assisted reproductive service providers. At present, the company has successively laid out assisted reproduction business in the United States and Laos and other regions.
In any industrial chain in the upstream, middle and lower reaches, Yuexin Health is facing strong competitors in the subdivision field. In terms of market share and product commercialization, Yuexin Health is not as good as its peers.
In fact, the main business of pleasant health is not assisted reproduction. As of the first half of 2021, the ceramic tile business accounted for 85.66% of revenue, and the proportion of big health (medical pension) was only 7.16%. The company also warned the risk that "the company's pension service business income and obstetrics and reproductive business income are currently small in revenue."
In the past two years, the performance of Yuexin Health has fluctuated greatly. In 2020, the company's net profit attributable to the mother was 57.195 million yuan, an increase of 51.02% year-on-year. In the first three quarters of 2021, the net profit attributable to the mother was 43.45 million yuan, down 18.49% year-on-year.
In addition, the profitability of Yuexin Health is declining. In 2016, the company's gross profit margin reached 35.06%, and by the first three quarters of last year, it had fallen to 27.42%.
On the whole, the round of market of Yuexin Health is not affected by fundamentals, but is driven by news. At present, the company's price-earnings ratio is more than 135 times, and the industry's average price-to-earnings ratio is less than 25 times.
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