On May 13, many stocks in the synthetic biology sector fell sharply, and Nuovezan closed down 9.16%; Azure Biotech turned off at a high level and closed down 4.90%. After the rotation of dividend stocks, gold, and cyclical commodities, the funds aimed at synthetic biology in the subdivision track. Blue Biotech is a biotechnology company whose main business is the production, R&D and sales of enzyme preparations and microecological preparations. The company recently issued 5 warnings in a row to warn of risks, but failed to stop the clarion call for capital attack, and Blue Biotech went all the way up and hit the 8-board daily limit on May 10.
For the recent concept of individual stocks by the capital to chase up sharply, the relevant researchers of the Western Profit Fund reminded that investors need to pay attention to the industrialization process of synthetic biological products of related companies is less than expected, the progress of technology research and development and the development process of the industry are uncertain, the pace of policy promotion and landing, and the intensification of industry competition and other risks.
Brokerage China reporters combed and found that many fund managers, including Deng Xiaofeng, He Shuai, Zhong Shuai, etc., have laid out synthetic biology-related concept stocks in advance. Recently, a Chinese reporter from a brokerage interviewed the director of equity research of Debang Fund, Western Lidl Fund and other relevant researchers to talk about the future development prospects of synthetic biology and dig deep into the fund manager's holdings in this sector.
Deng Xiaofeng and He Shuai bought the same concept stock
Synthetic biology concept stocks are sought after by funds all the way up, in fact, there have been many fund managers who have held the concept stocks in this sector in advance.
According to the 2023 annual report of Blue Biotech, fund managers of 17 fund companies such as Everbright Prudential, Wells Fargo, and Huatai Berry have held positions in the company. Dacheng Strategic Return C, Dacheng Zhiyuan Advantage One-Year Holding A, Dacheng Investment Strictly Selected June Holding C, Dacheng Ruixiang A, and Dacheng Competitive Advantage C managed by Dacheng fund manager Xu Yan all hold Blue Biotech.
In addition, Jinhe Industrial, a synthetic biology concept stock, was favored by Deng Xiaofeng of Gao Yi Assets, and Gao Yi Xiaofeng No. 2 Letter Fund and Gao Yi Xiaofeng Hongyuan Collective Capital Trust planned to buy 3,230,500 shares and 3,169,900 shares respectively in the first quarter, ranking seventh and eighth among the top ten circulating shareholders. Different from last year's idea of increasing holdings, He Shuai, manager of Bank of Communications Schroder Fund, chose to reduce his holdings of Jinhe Industrial in the first quarter, holding 3.0431 million shares, ranking ninth among the top ten circulating shareholders.
A-share listed company Arui announced that synthetic biology is one of the company's six major R&D platforms, which has been applied to semaglutide, remecepam, vibergerone and other products. The mid-cap growth style fund managed by Zhong Shuai, ChinaAMC Industry Boom, is among the top ten circulating shareholders of Aurisco. The China Life Security Health Science C managed by Wang Xueying bought Arusco, and Liu Xiaoming's Tianhong CSI Pharmaceutical Index Enhanced A chose to reduce its holdings in the stock.
Zhejiang Medicine, a manufacturer of APIs and preparations, has also become the object of market attention, and a quarterly report shows that the Yinhua CSI Innovative Pharmaceutical Industry ETF managed by Ma Jun and Wang Shuai bought the top ten circulating shareholders of Zhejiang Medicine, holding 5.6413 million shares. The Guotai CSI Animal Husbandry ETF managed by Liang Xing bought the top ten circulating shareholders of Boen shares and Xinghu Technology respectively, and the western Lide Xinfu A managed by Lin Jing and Du Pengzhe bought the top ten circulating shareholders of Boen shares, and the daily limit of Boen shares was held on May 10.
The reporter observed that although some fund managers have already held relevant concept stocks in advance, there are also fund managers who have reduced their holdings and sold them before the surge in Azure Biotech. Whether investors can enjoy the dividends of track growth, whether they buy the right company, and whether they buy the right time test the investment skills of all investors. Yuan Zhiyu, director of equity research of Debang Fund, said that synthetic biology is a field that is highly dependent on technological innovation, and the maturity of technology is directly related to the R&D progress and market competitiveness of products. Such enterprises have accumulated a large number of R&D data and cases in the early stage, and are more advanced in product selection and industrialization layout, and it is easier to obtain the dividends of the times in the process of industrial upgrading.
Why is synthetic biology sought after by funding?
Why has the concept of synthetic biology recently become the darling of investors?
The 2024 government work report proposes to actively cultivate emerging industries and future industries. Among them, it is actively building new growth engines such as biomanufacturing, commercial aerospace, and low-altitude economy. At the annual meeting of the 2024 Zhongguancun Forum on April 26, Tan Tianwei, president of Beijing University of Chemical Technology and academician of the Chinese Academy of Engineering, mentioned that it is currently led by the National Development and Reform Commission, and national ministries and commissions such as the Ministry of Industry and Information Technology and the Ministry of Science and Technology are jointly developing a national biotechnology and biomanufacturing action plan, and it is expected to be introduced in the near future, and "biomanufacturing +" is the key content.
"As the core of biomanufacturing, synthetic biology is expected to usher in high-level policy support and industrial development opportunities. As part of the new quality productivity, and as the development direction of advanced technologies in the future, synthetic biology has received a lot of attention. A researcher from the Western Profit Fund told reporters.
Yuan Zhiyu believes that as the engine of future growth, new quality productivity is undoubtedly one of the tracks that the capital market is most concerned about. Among them, key industries such as biomanufacturing, commercial aerospace, and low-altitude economy have issued corresponding guiding policies. As a core component of biomanufacturing, synthetic biology has a high short-term focus in the market.
Yuan further explained that from the perspective of subdivisions, synthetic biology can be divided into epigenetics, gene library, gene editing, gene sequencing, microbial engineering, alternative proteins, cell and gene therapy, etc., according to the different upstream and downstream industry chains of the business. Since synthetic biology focuses on the creation of artificial life systems that do not yet exist in nature, the freedom of the production system will be significantly improved after breaking free from the limitations of living systems, and technological innovation and new scenario applications in many fields such as medicine, chemical industry, energy, food and agriculture can be realized, so its development prospects are extremely broad. According to McKinsey, synthetic biology applications are expected to have a direct economic impact of $2 trillion to $4 trillion per year worldwide.
Researchers from the Western Leader Fund are optimistic about the development prospects of the synthetic biology industry, which has many advantages such as cost reduction and efficiency increase, green and low-carbon compared with traditional process technology, and is a technology that the world is committed to breakthroughs and development. According to many data, the market size of synthetic biology is expected to maintain a compound annual growth rate of more than 20% in the future, and it has broad application prospects in downstream applications such as chemicals, pharmaceuticals, and agriculture. In the future, biomanufacturing is expected to become the fourth wave of industrial revolution after the agricultural economy, industrial economy, and digital economy, and is expected to create a trillion-scale market space.
Editor-in-charge: Yang Yucheng
Proofreading: Yang Lilin