Omicron Drives Strong Profits for China’s Covid Testing Companies

Several Chinese companies that provide Covid-19 testing have posted strong profits in the first quarter, as the authorities rolled out repeated rounds of citywide testing in Shanghai and beyond to suppress the country’s worst outbreak in two years.

Dian Diagnostics Group Co. Ltd. (300244.SZ) reported a 754 million yuan ($114.1 million) net profit attributable to shareholders for the period, up 122.6% from a year earlier. Its revenue rose 62.1% over the same period thanks to its expanding Covid testing business, according to the earnings report.