The continuous breakthroughs in synthetic biotechnology have brought unprecedented broad prospects and infinite possibilities for future innovation and application fields.
On May 6th, Ulan Biotech once again hit the daily limit up, with over 300000 orders closed on the intraday limit up. As of the close, the stock has recorded four consecutive limit up sessions, becoming one of the stocks with the most consecutive limit up sessions during the same period.
In addition to Blue Biology, the synthetic biology sector saw a collective rise today. The stock price of Chuanning Biotechnology has hit the limit up of 20cm, and the last trading day before the holiday was also in a 20cm limit up state. The latest closing price has reached a historical high, and the market value of A-shares has exceeded 35 billion yuan. As of the close, the concept stocks with a limit up in stock prices include Boen Group and Shengda Biotechnology.
Borrowing synthetic biotechnology
The production cost of hyaluronic acid has significantly decreased
On the news front, according to Wuxi Daily, with the efforts of the Synthetic Biology Innovation Team at the Future Food Science Center of Jiangnan University, China has become the first country capable of producing all types of hyaluronic acid. The team has achieved technological breakthroughs and used cell factories to produce "everything", significantly reducing raw material costs and making many cosmetic raw materials no longer rely on traditional animal and plant extraction.
Hyaluronic acid, also known as hyaluronic acid, is a natural high molecular weight polysaccharide composed of N-acetylglucosamine and D-glucuronic acid as structural units. It is widely present in the vitreous, joints, umbilical cord, skin and other parts of the human body, and its content gradually decreases with age.
According to members of the innovation team, hyaluronic acid was first discovered and extracted from the eyes of cows, and it is very expensive, costing tens of thousands of yuan per kilogram. Nowadays, the team utilizes synthetic biology technology and microbial fermentation to produce ordinary molecular weight hyaluronic acid, reducing the cost to several hundred yuan per kilogram and achieving large-scale promotion and application of hyaluronic acid. The team has redesigned and modified existing and naturally occurring biological systems through artificial synthesis methods, even creating "biological structures" that do not exist in nature, greatly increasing production.
The synthetic biology industry is expected to become a new golden track
Synthetic biology is an emerging discipline in the field of life sciences in the 21st century, regarded as the "third biological science revolution" after the discovery of DNA double helix structures and genome sequencing. In recent years, synthetic biology has changed traditional industrial production methods and has been widely applied in fields such as medicine, energy, materials, chemical industry, agriculture, etc. in a greener and more efficient way. It is expected to become a new "golden track".
According to McKinsey Consulting, synthetic organisms can generate approximately $1.8 trillion to $3.6 trillion in direct economic impact annually from 2030 to 2040. According to BCC Consulting's forecast, the global synthetic biology market size will reach $9.5 billion in 2021, and is expected to reach $30.7 billion by 2026. The compound growth rate from 2021 to 2026 is expected to reach 26.5%.
In the A-share market, several listed companies have taken the lead in laying out the synthetic biology industry.
China Resources Shuanghe established the Synthetic Biology Research Institute in 2023 and initiated the construction of a synthetic biology pilot base at Shenzhou Biotechnology, constructing a three-level industrial system of research and development pilot, pilot, and industrialization.
Meihua Biotechnology is a full chain synthetic biology company specializing in amino acid products. Currently, its products include animal nutritional amino acids, food additives, human medical amino acids, colloidal polysaccharide products, etc.
The groundbreaking ceremony for the annual production of 30000 tons of synthetic biological products by Henan Muyuan Anliang Synthetic Biotechnology Co., Ltd., a subsidiary of Muyuan Group, was held on December 19, 2023. Trial production is expected to begin in the second half of 2024. This project focuses on reducing soybean meal substitution and other bio based products, creating an industrial platform for biological fermentation and bio products.
Jiabiyou has created a complete technology chain for biological manufacturing with synthetic biology technology as its core. Based on the synthetic biology platform, the company has also expanded its product research and development, developing a series of new products such as human milk oligosaccharides (HMOs), carotenoids, astaxanthin, etc.
Boen Group has been committed to the research and development of bio fermented feed for a long time. The company has been awarded the "Key Laboratory of Feed Synthesis Biotechnology by the Ministry of Agriculture and Rural Affairs" and is the only key laboratory of feed synthesis biotechnology among enterprises in the national agricultural field.
7 concept stocks are highly regarded by institutions
According to Securities Times Data Treasure, among the concept stocks of synthetic biology, there were 18 stocks with a year-on-year increase in net profit (including turning losses into profits) in the first quarter of this year, accounting for more than 60%. Fuxiang Pharmaceutical's net profit in the first quarter was 1.47 million yuan, turning losses into profits year-on-year. Chuanning Biotechnology, Kaisai Biotechnology, Jiabiyou, Jincheng Pharmaceutical, Bowling Treasure, Kanghong Pharmaceutical and other companies have seen a net profit growth rate of over 30%.
As an emerging track, synthetic biology concept stocks have gained a lot of attention from institutions. According to Data Treasure statistics, a total of 20 concept stocks have received institutional research since the beginning of this year, among which East China Pharmaceutical, Angel Yeast, and Muyuan Group have received institutional research more than three times.
Many securities firms have released research reports focusing on synthetic biology concept stocks. Data shows that over half of the concept stocks are covered by research reports from five or more institutions. Angel Yeast has the most coverage in institutional research reports, with a total of 28 institutions mentioning this stock in their research reports. Next are Kailaiying, Huadong Pharmaceutical, Muyuan Group, Huaheng Biotechnology, etc.
According to the unanimous prediction of more than 5 institutions, there are 7 concept stocks with a net profit growth rate expected to exceed 20% in 2024 and 2025, namely Kaisai Biology, Huaheng Biology, Lanxiao Technology, Huaxi Biology, Jiabiyou, Lianlong, and Shuiyang Shares.