Equity Analysis /

CN : Amoy Diagnostics - Solid 2020; reiterate ADD

    Harry He
    Harry He

    Research Analyst

    13 April 2021
    Published by

    AmoyDx’s 2020 results were in line with its preannouncement in February. We reiterate our positive view on AmoyDx because of 1) its leading position in China's oncology companion diagnostic niche market; 2) its solid balance sheet (no goodwill, zero debt, high ROE); 3) its solid RD based on four platforms: PCR, NGS, FISH and IHC; and 4) its good management execution record (steady business development and dividend payout, and >15% RD investment each year). We just fine-tuned our numbers. We change our TP from of Rmb92.68 (3x 2021F PEG, based on 20­–22F CAGR of 22.2%) to Rmb94.6 (3x 2022F PEG, based on 2021–23F CAGR of 20.6%), equivalent to ~72x/60x/50x 2021/22/23F P/E.