First Read: Shenzhen New Industries Biomedical "2026 AIC: FY26 guide..."

Research evidence excerpt

First Read: Shenzhen New Industries Biomedical "2026 AIC: FY26 guide..."

Forecast returns

Forecast price appreciation 57.0%

Forecast dividend yield 2.8%

Forecast stock return 59.8%

Market return assumption 6.8%

Forecast excess return 53.0%

Company Description

Shenzhen New Industries Biomedical (New Industries) is one of the leading domestic

companies in China's chemiluminescence immunoassay (CLIA) analysers and reagents

market. By product category, reagents made up 72% of its revenue in 2024, and equipment

the remaining 28%. By region, domestic revenue accounted for 63% and overseas revenue

37% in 2024. Founded in 1995 and headquartered in Shenzhen, Guangdong Province, the

company went public on the ChiNext Board of the Shenzhen Stock Exchange in 2020.

Valuation Method and Risk Statement

We value New Industries using a DCF methodology.

We believe that the risks facing China's medical device industry include: 1) price reductions

and market share gains from medical device VBP programs are below expectations; 2)

weaker-than-expected demand for equipment renewal programs; 3) impact from the

anticorruption drive; 4) geopolitical risks affecting the supply chain of medical device

products; 5) slower-than-expected product R&D and technological breakthroughs.

We think the downside risks for New Industries include: 1) weaker-than-expected growth in

domestic testing volumes due to policies such as medical insurance expense control and

macroeconomic weakness; 2) price reductions and market share gains from

chemiluminescence VBP programs are below expectations; 3) slower-than-expected overseas

business growth.

First Read: Shenzhen New Industries Biomedical 28 May 2026 ab 2