For stock trading, please read Jin Qilin analyst research reports. They are authoritative, professional, timely and comprehensive, helping you to tap potential theme opportunities! Produced by: Sina Finance Listed Company Research Institute Author: Tianli On the evening of April 25, Mingde Biotech released its 2023 annual report.
The report shows that the company achieved a total operating income of 750 million yuan last year, a year-on-year decrease of 92.88%; a net profit attributable to shareholders of listed companies of 74.9259 million yuan, a year-on-year decrease of 98.22%; and a net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses. The net profit was -124 million yuan, turning from a profit of 4.158 billion yuan in the same period of 2022 to a loss.
Public information shows that Mingde Biotechnology is mainly engaged in the research and development, production, sales and service of in vitro diagnostic reagents and diagnostic instruments.
Judging from the performance of previous years, Mingde Biotech\’s performance will reach a high point in recent years in 2022.
Among them, operating income increased from 176 million yuan in 2018 to 10.53 billion yuan in 2022, and net profit attributable to the parent company increased from 61 million yuan in 2018 to 4.208 billion yuan in 2022.
However, expenses did not increase significantly during the same period. The reason for the performance blowout was that the COVID-19 epidemic caused a blowout in testing demand, which drove the company\’s products to rapidly increase in volume.
As the COVID-19 epidemic becomes a thing of the past, Mingde Biotech’s performance has also fallen rapidly.
Compared with 2019, although the company\’s revenue has increased to a certain extent, the net profit level has hardly improved. In 2023, it will suffer a loss for the first time in nearly ten years.
At the same time, after relying on the \”dividends\” of the epidemic to make a lot of money, the company\’s asset size has also been rising. However, the company seems to have failed to seize the opportunity for further development, and the return on net assets has been declining. The diluted return on net assets has been diluted in 2023. As low as 1.24%.
In fact, judging from the data of the past ten years, the company\’s return on net assets before the epidemic had shown a downward trend year by year, but the surge in market demand brought about by the epidemic temporarily covered up the company\’s own problems.
The unsustainable performance and the lack of clear growth expectations have caused the company\’s stock price to decline since the peak of the epidemic, from 143.45 yuan/share in May 2022 to the current 19.91 yuan/share.
The company\’s current market value is only 4.629 billion yuan, which is lower than the company\’s net assets.
It is worth noting that while releasing the 2023 annual report, Mingde Biotechnology also issued an announcement about using idle self-owned funds for entrusted financial management.
The announcement shows that the company reviewed and approved the \”Proposal on the Use of Idle Own Funds for Entrusted Financial Management\” on April 25, 2024, and agreed to use no more than 4 billion yuan of idle own funds to purchase low-risk financial products.
The Political Bureau meeting of the Central Committee of the Communist Party of China on July 24, 2023 made important arrangements for capital market work and clearly stated that “the capital market must be activated and investor confidence boosted.”
The relevant person in charge of the China Securities Regulatory Commission said in an interview with the media on the implementation status that share buyback is an internationally accepted and important means to maintain the company\’s investment value, improve the corporate governance structure, and enrich the investor return mechanism. It is a basic system of the capital market. arrange.
We will work with relevant parties to further optimize the share repurchase system, support more listed companies to stabilize and boost stock prices through share repurchase, protect shareholders\’ rights and interests, and lay a solid foundation for the smooth operation of the market.
However, while Mingde Biologics has abundant funds and no large-scale capital expenditures, its stock price has plummeted since 2022, and its market value has broken through the net market, there is still no repurchase action, but it has spent 4 billion to purchase financial management products. Its rationality is questionable. .
