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The improvement will be because of maiden earnings contribution from Acumen Diagnostics (Acumen), in which Aoxin has a 49% stake.
Aoxin can also expect an improved performance of its core dental business, which should start contributing earnings of about RMB6 million in 2022, from a potential loss in 2021.
Cheong also expects Aoxin to have the potential to expand into providing Covid-19 ART testing services, further lifting its earnings.
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The company is already providing Polymerase Chain Reaction (PCR) testing and has “a respectable market.”
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On an assumption of a 10% market share and a 40% net margin, this new business could contribute an additional $9 million to Aoxin’s FY2022 earnings, potentially lifting 2022 earnings by another 80%.
Aoxin shares traded at 26.5 cents as at 10.47 am, down 1.85%.
