Market capitalization of Chinese IVD listed companies in the first half of 2023

Looking at the overall environment, the receding of the COVID-19 testing dividend, the slowdown of conventional business growth, and the pressure from the collection policy have all brought the IVD industry into an adjustment period.

With the announcement of 2023 Q1 results, many companies' performance fell precipitously year-on-year, resulting in lower valuations and record low share prices for many IVD companies. However, as the IVD industry with nearly 70 listed companies, there are some companies with falling valuations, and naturally there are also many companies that have achieved substantial growth in market capitalization.

According to the data from the beginning of 2023 to June 8, 2023, the changes of market capitalization of IVD companies in China are as follows:

The top 10 company in total market capitalization were Mindray (355 billion), Wantai (76.4 billion), Snibe (44.1 billion), MGI (36.9 billion), KingMed (32.9 billion), Autobio (31.8 billion), BGI (23.2 billion), andon (19.3 billion), Daan Gene (16.6 billion), and Sinocare (15.6 billion).

During the statistical period, the market capitalization of BSBE, Runda, Dirui, Lifotronic, Edan, Snibe, Righton, BGI increased by more than 10%. Among them, BSBE grew 40% and ranked first. By combing through the company announcements of BSBE, the positive news for the stock price includes the increase of shareholder Sinopharm and the acquisition of several registration certificates. In the first quarter of 2023, the net profit of BSBE was increased.

Runda Medical's market capitalization increased by 37%. The company reported a 96% increase in net profit in the first quarter of 2023. Dirui’s market capitalization grew 34% and the company reported year-over-year growth of more than 46% in the first quarter of 2023.

The above three companies have state-owned background. It seems that in the current changing environment, the state-owned background of the enterprise more stable investor confidence.

BGI is part of the “COVID-19 Testing Concept” stock, the company's performance and market valuation had also declined. However, in 2023, the company caught up with the AI and GPT concepts, making the company's share price rise several times.

Most of the companies with large market capitalization declines are those whose COVID-19 testing business has accounted for a relatively large share of their performance in the past three years, such as andon, Orient Gene, Daan Gene, and BioPerfectus. Because of the gradual receding of COVID-19 dividend to the IVD industry, the company's business underperformed in the first quarter of 2023, which led to the decline in market valuation.