Cosino’s revenue has soared 100 times and its market value has evaporated by $100 billion.
On March 28, Consino released its 2021 results.Data show that in 2021, Consino achieved operating revenue of about 4.3 billion yuan, with a year-on-year growth of 17,174.82%.Net profit attributable to shareholders of listed companies is 1.914 billion yuan, excluding non-recurring gains and losses, net profit attributable to shareholders of listed companies is about 1.8 billion yuan, successfully realized the loss.With its first profit, Consino became the first biotech company to get a “U” off the board.But such a stellar earnings report is unlikely to lift the company’s share price.After the earnings release, Concino’s share price fell for several trading days in a row. Before that, concino’s share price fell all the way from its high of 798 yuan on June 23 last year to close at 236 yuan on April 1, 2022, losing nearly 100 billion yuan in market value.No COVID-19 vaccine bonus?On 25 February 2021, the State Medical Products Administration conditionally approved the application for the registration of the recombinant Novel Coronavirus vaccine (trade name: Kwixar) developed by Consino.The vaccine became the fourth domestic COVID-19 vaccine approved for sale in China and the first approved adenovirus vector COVID-19 vaccine.The launch of Kveisha coincided with the wave of concentrated vaccination of new vaccines in China.In the second quarter of 2021, Consino raked in $1.595 billion, compared with $467 million in the first quarter.However, with the launch of COVID-19 vaccines at home and abroad, consino’s revenue began to decline in the third and fourth quarters, reaching 1.024 billion yuan and 1.214 billion yuan respectively.In September 2021, Consino issued the “2021 restricted stock Incentive Plan” to set the minimum assessment index of “2021 revenue of 6 billion yuan”.But from the latest release of financial results, Consino achieved revenue far below expectations.As COVID-19 vaccination is nearing its end at home and abroad, the bonus period is disappearing.By the end of March 2022, more than 11 billion doses of COVID-19 vaccine had been administered globally, with a vaccine coverage rate of 64%, according to WHO.In China, by the end of February, 3.011 billion doses of COVID-19 vaccines had been administered to more than 1.26 billion people, with a vaccine coverage rate of nearly 90 percent.After the vaccination, the oral liquid is now here again.In February this year, the State Food and Drug Administration conditionally approved the import registration of Pfizer’s Novel Coronavirus treatment nematvir/ritonavir tablet combination package (Paxlovid).The first batch of 21,200 boxes of Paxlovid officially entered China on March 17 and has been distributed to several provinces, which will have a further impact on demand for COVID-19 vaccine.Despite a successful turnaround with a new coronavirus vaccine, Consino managed to turn a profit.But it also shows that the company’s revenue structure is too homogeneous.Concino is naturally aware of its shortcomings and is trying to turn them around, but most of its products are still in the early stages of development or launch.Up to now, there are three approved vaccine products of Concino in China, namely the recombinant Novel Coronavirus vaccine AD5-NCOV (adenovirus type 5 vector, Kweysa), bivalent meningococcal polysaccharide conjugate vaccine MCV2 and tetravalent meningitis conjugate vaccine MCV4, which were launched in February, June and December last year respectively.In addition, Concino is also expanding its r&d pipeline, covering 17 innovative vaccine products for the prevention of Ebola virus disease, meningitis, COVID-19, pneumonia, diphtheria, tuberculosis, shingles and other indications.Expanding the r&d pipeline means more money is needed, and vaccine development is a very expensive activity.According to statistics from foreign research institutions, the total cost of research and development of a vaccine project is about $1 billion on average, and it takes 8-10 years or more on average.Research and development is also a big part of the company’s financial report, with the company spending 429 million yuan in 2020 and 905 million yuan in 2021, accounting for 21.05 percent of revenue.In the case of the fading dividend of the epidemic, the driving effect of COVID-19 vaccine on the company’s performance is declining. On the other hand, it is necessary to maintain high investment in research and development for future development. Therefore, the short-term performance of Consino is soaring but not solid.Perhaps seeing this, major institutional investors have reduced their holdings of Consino.In February 2022, Shanghai Lilly, Suzhou Lilly, LAV Spring, LAV Bio, Lilly Asia and LAV Amber announced to reduce their holdings of Concino A shares and H shares by about 7.94 million shares.Earlier, jp Morgan sold 7.7 million consino shares at an average price of HK $374.95 per share on June 21, 2021, reducing its stake from 9.25% to 3.41%.The sixth largest shareholder, SDIC Advanced Manufacturing Investment Fund, also began to reduce its stake in Concino last year, from 3.58 percent to 2.35 percent now.(source) | dahua observation