The sales of COVID-19 antigen test kits soared as the outbreak worsened in the US
Home medical equipment developer Andon Health (002432:SZ) released an earnings forecast for Q1 on April 12, 2022. Its net profit was expected to be CNY 14 billion (USD 2.197 billion) to CNY16 billion.
Stimulated by the news, Andon Health opened the daily limit on April 12.
For the eminent year-on-year growth rate, which is expected to be 36707.43% to 41965.63%, Andon Health explained that it was due to a significant increase in local demand for COVID-19 antigen test kits in the United States.
During the reporting period, iHealth, an American subsidiary of Andon health, sold a large number of COVID-19 antigen test kits through its own channels and the e-commerce platform Amazon. The growth in sales revenue from this product made a vital contribution to the company’s results during the reported period.
Meanwhile, Andon Health released its 2021 performance report. The operating income was CNY 2.512 billion in 2021, increasing 25.11% year on year; the net profit attributable to the parent company was CNY 913 million, with a growth rate of 276.87% from the year earlier.
According to the report, the company obtained the emergency use authorization (EUA) from U.S. Food and Drug Administration (FAD) on November 5, 2021 for the COVID-19 antigen home self-test OTC kit.
“The test kits achieved mass production and are well received in the United States market. Currently, the monthly capacity achieves 100 million servings, and it is estimated to expand to 200 million servings by the beginning of 2022,” said Andon Health on the interactive platform in November 2021. Since then, the company's share price climbed rapidly.
As of January 18, 2022, Andon Health’s stock price increased over 10 times within 50 trading days, setting a new record on the A-share market. However, after hitting an all-time high of CNY 88.88 per share, Andon Health’s shares ran into a dip with severe regulatory concerns.
Andon Health rose by 10% daily limit to CNY 90.11 apiece Tuesday on the Shenzhen stock exchange, with a market value of CNY 43.13 billion.