Last year, UWG's performance was stimulated by the epidemic, revenue and net profit soared several times, the stock price rose from more than 60 yuan to nearly 200 yuan. But from July last year began to fall all the way, from the highest point to the current decline of more than 40%, close to the waist. The main reason for the decline is that the market believes that the epidemic is gradually under control, the demand for nucleic acid testing is unsustainable, the performance of high growth lack of sustained impetus. Secondly, the overall heat of the stock market has declined, and the speculative style of holding stocks has changed, leading to an overall decline in the market.
So, how will UWG's business develop after the epidemic? Is it back to the state before the epidemic? Or a higher level?
To answer this question, let's first look at what was the status of UWG's business development before the epidemic.
UW Genetics is the first listed company in the A-share market of the UW Group, and before the epidemic, its main businesses were reproductive health, tumor prevention and control, integrated solutions for precision medicine, infection prevention and control, multi-homology big data and synthesis, of which reproductive health is the core business, and is now mainly doing prenatal testing of newborns, accounting for close to half of the total income ratio. Half of this business development is not bad, but also in the national promotion, penetration rate gradually increased, but now young people do not like to have children is a bad thing, but the short-term impact is not great, the short-term growth of this business is not bad, the long-term need to continue to promote technological innovation.
Tumor prevention and control is to do the "prevention" and "control" of tumors, this piece of business market prospect is very big, is the place where soldiers must fight, alone on the early screening of tumors in this area has now achieved a few unicorn companies. UWG's current investment in this area is increasing, the current revenue accounted for a relatively small, the future is expected to become the next growth point.
Precision medicine integrated solution is to large scientific research, medical institutions to do the solution, simply put is to sell equipment and supplies. This piece is quite important, the epidemic before the proportion of revenue can account for two percent, the growth is also quite fast, mainly To B business.
Infection prevention and control business is a direct benefit of last year's epidemic of a piece of business, was not the main force of UWG, last year all of a sudden became the absolute main force, contributed the vast majority of revenue and profit, the source of income is mainly from foreign nucleic acid testing reagents demand, this year, the growth rate of this piece of business will certainly decline, but the status of this piece of business with the country's attention, it can not be the same day. Last year, UWG built big FireEye laboratories in China and abroad, which contributed a lot to the global fight against the epidemic, and at the same time, it also brought UWG's equipments and technologies to all over the world, which well demonstrated China's strength and commitment. After the epidemic, how can these laboratories continue to play their role? Can they become an important hand for overseas business? It is an important point of view for UBM in the next few years.
Multi-omics big data and synthesis business is to do scientific research outsourcing, major scientific research institutions, pharmaceutical companies, hospitals are scientific research needs, basically now do research in the field of life sciences will be done from the genetic level to do some analysis, that is, the need to do gene sequencing, and do sequencing thesis is the strength of the UWG, so naturally it has developed into a business. However, the competition in this business is relatively fierce, and the equipment and technology of gene sequencing have been popularized in the industry, which is not a particularly mysterious thing, and the earning power is general. The proportion of this business has been declining in recent years.
It should be said that, after last year's baptism, UWG has developed its business, trained its team, and gained the praise and trust of the community, and the company's morale and confidence are unprecedentedly high, but there are some shortcomings, the traditional reproductive health business by the impact of the epidemic income has declined to a certain extent, and the promotion of oncology business has not been imagined as smooth. The next three years, is a very important three years, I personally will pay attention to the following three points:
A look at how UWG transformed the anti-epidemic dividend, focusing on the overseas market
Secondly, look at the progress of the UWG tumor prevention and control business, whether there is a star product on the ground
The development process is somewhat similar to genetic mutation, with unpredictability, several leapfrogs and some potholes, but the general trend is positive. Life science is one of the most important fields that will change the world in the future, and it is also a field that the state attaches great importance to and supports. There is no need to elaborate on the prospects of the industry, but there are also many challenges facing the industry, as all countries are scrambling to seize the technological commanding heights, and as a big country, China must own its own core technologies and competitive industries, and must not be subjected to the constraints of others. As an industry leader, the development of UWG has a driving effect on the whole industry, and UWG is expected to create greater value for the society in the future, and genetic technology will benefit mankind.
This article is the author's personal opinion, not as investment and financial advice