HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>While the final results of 2021 national medical insurance negotiation have yet to be announced, here are what's circulating in the market.</li>
<li>The centralized procurement on spring coil in Hebei province would start soon, which means that the centralized procurement in the field of neuro-intervention in China has officially begun.</li>
<li>There is a phenomenon of "valuation upside down" in the primary and secondary market of healthcare investment, so we recommend investors to be more cautious and rational.</li>
</ul>


While the final results of 2021 national medical insurance negotiation have yet to be announced, here are what's circulating in the market.
The centralized procurement on spring coil in Hebei province would start soon, which means that the centralized procurement in the field of neuro-intervention in China has officially begun.
There is a phenomenon of "valuation upside down" in the primary and secondary market of healthcare investment, so we recommend investors to be more cautious and rational.


China Healthcare Weekly (Nov.12)-Medical Insurance Negotiation,Spring Coil VBP,Valuation Upside Down

Equity Bottom-Up

<ul class="">
<li>
<a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a> recently raised its full-year guidance, indicating the certainty of future performance growth.</li>
<li>The high quality of profit, strong global business layout, capacity, supply chain and technology platforms has helped the Company establish high moat.</li>
<li>The “reflection arc” of domestic negative policy impact, the increasing labor cost and other concerns should also be aware of by investors.</li>
<li>Like <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a>, investors are advised to get prepared in advance. </li>
</ul>



Wuxi Biologics (2269 HK) recently raised its full-year guidance, indicating the certainty of future performance growth.
The high quality of profit, strong global business layout, capacity, supply chain and technology platforms has helped the Company establish high moat.
The “reflection arc” of domestic negative policy impact, the increasing labor cost and other concerns should also be aware of by investors.
Like WuXi AppTec Co. Ltd. (2359 HK), investors are advised to get prepared in advance. 


Wuxi Biologics (2269.HK) 2021Q3 - The Strength and the Concerns Behind the New Full-Year Guidance

Hangzhou Tigermed Consulting C / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hangzhou-tigermed-consulting-co-ltd-1008d609-73bd-4d76-8315-b29502a448ff" target="_blank" data-smartkarma-citation="entities:29212:1" rel="noopener">Hangzhou Tigermed Consulting (H) (3347 HK)</a> has released its 2021Q3 results, which indicated strong growth. However, if seen from the prior years, it may not be the case.</li>
<li>Tigermed seems to be more interested in investment business and M&amp;A, but the potential risks should be aware of by investors.</li>
<li>Compared with peers (<a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK) </a>and <a href="https://www.smartkarma.com/entities/pharmaron-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:28428:1" rel="noopener">Pharmaron Beijing Co Ltd-H (3759 HK)</a>), Tigermed is lagging behind in terms of CDMO business, integration and overseas business layout.</li>
<li>We are conservative about Tigermed’s outlook based on our analysis.</li>
</ul>



Hangzhou Tigermed Consulting (H) (3347 HK) has released its 2021Q3 results, which indicated strong growth. However, if seen from the prior years, it may not be the case.
Tigermed seems to be more interested in investment business and M&amp;A, but the potential risks should be aware of by investors.
Compared with peers (WuXi AppTec Co. Ltd. (2359 HK) and Pharmaron Beijing Co Ltd-H (3759 HK)), Tigermed is lagging behind in terms of CDMO business, integration and overseas business layout.
We are conservative about Tigermed’s outlook based on our analysis.


Hangzhou Tigermed Consulting (3347.HK/300347.CH) - More of an Investment Company than a CRO

<ul>
<li>Recently, <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a> released its 2021Q3 results, and the Company maintained strong growth. </li>
<li>The “reflection arc” of domestic negative policy impact as well as the increasing labor cost have begun to slowly reflect.</li>
<li>Together with other concerns that could also cast doubts on Wuxi AppTec’s outlook, investors are advised to get prepared in advance. </li>
</ul>


Recently, WuXi AppTec Co. Ltd. (2359 HK) released its 2021Q3 results, and the Company maintained strong growth. 
The “reflection arc” of domestic negative policy impact as well as the increasing labor cost have begun to slowly reflect.
Together with other concerns that could also cast doubts on Wuxi AppTec’s outlook, investors are advised to get prepared in advance. 


WuXi AppTec (2359.HK/603259.CH) 2021Q3 - Logic Change?

In October 2021, <a href="https://www.smartkarma.com/entities/pharmaron-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:28428:1" rel="noopener">Pharmaron Beijing Co Ltd-H (3759 HK) </a>completed the new investment in Zhongke Lingrui (Zhanjiang) Biotechnology. In the CRO industry, companies such as <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a>, Pharmaron, <a href="https://www.smartkarma.com/entities/hangzhou-tigermed-consulting-co-ltd-1008d609-73bd-4d76-8315-b29502a448ff" target="_blank" data-smartkarma-citation="entities:29212:1" rel="noopener">Hangzhou Tigermed Consulting (H) (3347 HK) </a>and others are all on the hunt for acquisitions. However, investors seems to be more interested in when Pharmaron would truly achieve " integration". On the other hand, Pharmaron just released its 2021Q3 results. The revenue was RMB5.3 billion, up 47.84% YoY, and the net profit was RMB1 billion, up 31.02% YoY. This insight mainly analyzed the business and the concerns of the Company when it is compared with WuXi AppTec.

In October 2021, Pharmaron Beijing Co Ltd-H (3759 HK) completed the new investment in Zhongke Lingrui (Zhanjiang) Biotechnology. In the CRO industry, companies such as WuXi AppTec Co. Ltd. (2359 HK), Pharmaron, Hangzhou Tigermed Consulting (H) (3347 HK) and others are all on the hunt for acquisitions. However, investors seems to be more interested in when Pharmaron would truly achieve " integration". On the other hand, Pharmaron just released its 2021Q3 results. The revenue was RMB5.3 billion, up 47.84% YoY, and the net profit was RMB1 billion, up 31.02% YoY. This insight mainly analyzed the business and the concerns of the Company when it is compared with WuXi AppTec.

Pharmaron Beijing Co Ltd (3759.HK) 2021Q3 - Still Takes Time to Challenge Wuxi AppTec

China

WuXi AppTec Co., Ltd. manufactures medical products. The Company produces biological agents, antibodies, biological diagnostic reagents, and other products. WuXi AppTec also provides biological analysis, technical study, and other services.

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WuXi AppTec (2359 HK)

China Healthcare Weekly (Nov.12)-Medical Insurance Negotiation,Spring Coil VBP,Valuation Upside Down

This insight mainly analyzed some news circulating about 2021 national medical insurance negotiation results, VBP on spring coil in Hebei and...

Xinyao (Criss) Wang

Wuxi Biologics (2269.HK) 2021Q3 - The Strength and the Concerns Behind the New Full-Year Guidance

This insight mainly analyzed WuXi Biologics in terms of the new full-year guidance, CMO business, profit quality, other moats, and the concerns of...

Xinyao (Criss) Wang

Hangzhou Tigermed Consulting (3347.HK/300347.CH) - More of an Investment Company than a CRO

The article analyzed Tigermed in terms of its 2021Q3 results, business model (investment business +M&A+CRO), the weakness in CDMO and global...

Xinyao (Criss) Wang