keystone’s new opportunities for life and health industry-尊龙凯时

[this article is a reprinted article, non-original. article source: gene hui, if there is any infringement, please contact us in time]

on july 22, 2019, it was a milestone in china’s financial market. the first batch of 25 companies listed on the board of science and technology opened at the same time. at the same time, compared with the “nasdaq national market” supported by the new economic fund pool in the 1990s, there is still a lot of room for the 48-year-old kechuang board. interestingly, the life-and-health industry developed during the same period has similar characteristics. what opportunities and new requirements does the science and technology board have for the life health industry?

first, the science and technology board: new shares rose more than expected on the first day

fig. 1: the first day performance of 25 companies listed on the first batch of gem, july 22, 15:30 (source: first finance and economics)

by the end of july 22, the new shares of the first 25 companies listed on the gem had risen by more than 80%, the shares of 16 companies doubled and the turnover rate was more than 60%. the total turnover of 25 enterprises was 48.508 billion yuan, accounting for 11.71% of the total turnover of shanghai and shenzhen stock exchanges (excluding technology-based enterprises).

for both investors and founders of listed companies, the stock price and volume on the first day of the company’s opening exceeded most people’s expectations. we see that the average closing increase is 140%, the highest is andiji technologies, up to 400%, and the lowest is xinguang optoelectronics 84%. according to the statistics of wind, a financial data service company, the average price-earnings ratio of the listed companies on the gem on the first day is 104 times, and the average turnover rate is 78%.

2. the first 25 enterprises are concentrated in tmt and equipment manufacturing industry

figure 2: industry distribution of the first 25 listed companies on the gem (digital source: citic construction investment securities research)

among the 25 companies listed on the first batch of gem, according to the industry division of the sfc, the industry distribution is mainly concentrated in tmt industry and equipment manufacturing industry.

the distribution of enterprises is slightly centralized. the first batch of listed companies (14) in beijing, shanghai and soviet union accounted for 56%, followed by guangdong (3) and zhejiang (3).

figure 3: distribution of sponsors in 25 listed companies (digital source: citic construction investment securities research)

of the 25 sponsors listed on the kechuang board on the 22nd, the first three companies sponsored 12, accounting for 48%, respectively, citic construction investment securities, huatai united securities and citic securities.

figure 4: statistics of revenue, r&d expenses and net profit of the first 25 companies listed on the gem (digital source: citic construction investment securities research)

in terms of business income, about 50% of the first batches of listed scb enterprises collected rmb 1-1 billion, the largest of which was rmb 40.13 billion. in terms of growth rate, ruichuang weiner’s revenue grew fastest (147%) year on year, with two companies showing negative growth, huaxing yuanchuang (-27%) and fuguang share (-5%).

from the perspective of r&d investment, china unicom has the highest r&d expenditure (1.324 billion yuan), accounting for about 3% of revenue, because of its large volume. the r&d expenditure gap of the other 24 companies is not large: more than 50% of enterprises focus on r&d expenditure of 0.2-100 million yuan, and r&d expenditure accounts for 3-10% of revenue.

in terms of net profit deducted from non-returning to the mother, the highest net profit deducted from non-returning to the mother is 3.295 billion yuan, and most of the other enterprises are concentrated below 300 million yuan (of which the number of enterprises under 100 million yuan accounts for about 50%).

third, what mission did kechuanban undertake?

from november 5, 2018 to july 22, 2019, it only lasted 260 days from the announcement of the establishment of kechuang board and the pilot registration system to the official opening of kechuang board. according to the disclosure of the shanghai stock exchange, as of july 4, 141 companies have accepted applications for listing and 31 companies have considered applications for listing.

why should we set up a scientific innovation board?

let’s first look at the official positioning.

1) facing the world’s scientific and technological frontiers, the main battlefield of the economy and the major needs of the country

2) serve the scientific and technological innovation enterprises that conform to the national strategy, break through key core technologies and have high market recognition.

3) focus on supporting the new generation of information technology, high-end equipment, new materials, new energy, energy conservation and environmental protection, as well as high-tech industries such as biomedicine and strategic emerging industries.

in short, it has the attributes of national strategy, scientific and technological innovation and strategic emerging industries.

why do we set up a scientific innovation board now?

according to statistics, china’s economic growth rate in the second quarter was 6.2% (inflation adjusted value), a 27-year historical low (the first quarter was 6.4%).

by the end of 2018, china’s service industry employed more than 350 million people, 100 million more than industry. because of the well-known reasons, the labor advantage of the new generation has declined, which not only greatly increases the cost of service industry, but also restricts the scale of industry. at the same time, the international industrial division of labor is being reshaped. china’s accelerated transformation of the mode of economic development is not limited to supply-side reform. to cater to the new round of scientific and technological revolution and industrial change, intelligent manufacturing will become the top priority of the country, and the core infrastructure of which relies on innovative technology.

on the other hand, china’s economic tightening policy implemented in 2018 has attacked enterprises relying on shadow banks. at the same time, private financial institutions tend to be conservative in raising funds and investing, which makes the operation of some private enterprises relying on funds to support r&d extremely difficult. following the announcement of interest rate cuts by the central banks of south korea, indonesia, ukraine and south africa on july 18, according to the financial times, the federal reserve is expected to cut interest rates by 25 basis points at this month’s policy meeting to protect the u.s. economy from risks associated with trade tensions, weak global growth and sustained low inflation. it can be predicted that china will cut interest rates and develop new industries by providing credit guarantee for private enterprises through monetary easing and supportive fiscal policies.

kechuanban is undoubtedly the core role. therefore, we can see that at the opening of the market, the official appeal of the shanghai stock exchange is to “abandon the”cutting leek”and jointly protect the innovation board of the section, implement the national strategy and safeguard the results of the reform”, while raising the threshold for retail investors. on may 21, the securities regulatory commission and the shanghai stock exchange also issued the first “ticket” for the creation board of the section, and amended the recruitment of intermediary agencies in many places without authorization. the prospectus gives written warning. although this can not completely change the historical inertia in the short term, the trend is worth looking forward to and working together to promote.

iv. the impact and expectation of science creative board on life and health enterprises

we know that “life and health” is a new strategic industry based on the concept of digitalization of life put forward in recent years, relying on gene sequencing, medical informatization, medical imaging technology, and developing life information, high-end medical treatment, health management and so on. local governments in guangdong, zhejiang and other provinces have set up special life and health-related industries. administrative department.

in the field of life and health, the most concerned is the gene technology industry. starting from the industrialization of scale in 2007, the domestic high-throughput gene industry has developed for 12 years. after the “call-off” in 2014 and the “overspeed” in 2016-2017, the industry has entered a period of regression rationality in 2018-2019. the industry has entered a period of shuffling and integration, investment has been tightened, and the market is in a wait-and-see stage. according to gene hui statistics, the total amount of financing of 59 enterprises in 2018 is rmb 5.36 billion, which is 47% less than that of 2017 (details). it is expected that the financing situation will continue to decline in 2019.

on the one hand, the leading company, huada gene (sz 300676), dropped from 100.745 billion yuan in its heyday (november 14, 2017) to 23.962 billion yuan in its publication date, and suffered heavy losses in public and brand, with a total pledge rate of 34.28% as of july 19, 2019. at the same time, there are also many innovative life and health enterprises facing cash flow bottlenecks and subsequent layoffs, mergers and acquisitions and bankruptcy risks because of financing difficulties. due to the lack of technology threshold and publicity, there is a gap between industry and regulation, investment institutions and market users.

on the other hand, according to incomplete statistics, huada gene, berry gene, daan gene and other genetic enterprises are expected to be more than 6 million worldwide.