Alor Broker published an analytical study on Gemabank (IMCB, MOEX: GEMA) with a "buy" recommendation, a target price of RUB 1,619.4 per one ordinary share. Upside +49.6%.
Gemabank occupies a leading position in the market for storing cord stem cells in Russia. According to analysts, maintaining a dominant position against the backdrop of a progressive increase in the penetration of personal cord blood storage services will allow the company to increase revenue by 2.3 times, EBITDA by 2.16 times, and net profit by 2.3 times by 2033.
Russia ranks 49th with a penetration rate of personal cord blood preservation services of 0.3%. This is lower than, for example, in Iran (2.2%), Georgia (1.0%) and Turkey (0.36%). In the moderate scenario, Alor Broker analysts suggest that the penetration rate will gradually increase and reach 0.6% by 2033. At the same time, the entry of effective stem cell-based drugs into the market and widespread media coverage will give impetus to increased penetration. Using Iran as an example, penetration can practically double over a 4-year horizon.
Gemabank occupies a leading position: the Company's share in the sample storage market is estimated at 40%+, in the volume of new storage ~ 55%. Gemabank has the most extensive regional network (85 cities and 1,260 maternity hospitals), including all major cities of the country. Gemabank is represented in the regions much more than any other player, and in many cities it is the only one. Using cord blood samples stored in Gemabank, 57 successful transplantations were performed, including abroad.
IMCB is part of the Artgen Biotech group of companies (MOEX: ABIO), and, under the Gemabank brand, is engaged in the personal storage of biomaterials, primarily hematopoietic stem cells. The company is also developing gene therapy drugs to treat blood and immune system diseases.