Since 2018 the $CO stock has dropped nearly 60% (and roughly 75% since mid 2017), in this same time frame GCBC’s revenue has increased by 30.45%, their operating expenses decreased by 0.45% and their EBIT (no information on EBITDA in 2018) has risen by 88.67%. The fact that this stock fell by such a large percentage and the fact that their financials have shown tremendous growth and potential, creates a unique opportunity given the current valuations in the public equity climate.
Furthermore, GCBC stated (in 2019) that they surpassed 790,000 subscribers (each signed an 18-year contract) for the safe storage of the cord blood stem cells of their newborn babies. These contracts guarantee a continuous and reliable source of revenue for GCBC.
On January 5th, 2021, China’s National Health Commission (NHC) announced that they would no longer be accepting applications for cord blood banking licenses in 2021. This is great news for GCBC as they have 3 cord blood banking licenses, and GCBC has a 19.9% equity stake in Shandong Province Cord Blood Banking (SPCBB) who also has a cord blood banking license. In China they only give out one cord blood banking license for each province, so GCBC’s 3 licenses cover 45% of the newborn population eligible for banking (73% if you include SPCBB).
These 3 factors have influenced myself to invest in this company and beleive in the company long term. Furthermore, their financials are also tremendous and show continuous growth and healthy financial ratios.