HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Beijing Wantai Biological Phar / Equity Bottom-Up

By the end of July 13, 2021, the stock price of <a href="https://www.smartkarma.com/entities/beijing-wantai-biological-a" target="_blank" data-smartkarma-citation="entities:30129:1" rel="noopener">Beijing Wantai Biological-A (603392 CH) </a>was closed at RMB279.1/share, up 3090% compared with its IPO price (RMB8.75/share) in April, 2020. Last week, Wantai announced that its wholly-owned IVD subsidiary planned to invest RMB1.336 billion to build a new industrial base. After the completion of the project, it will have a reagent production capacity of 500 million persons per year and a inspection equipment production capacity of 9000 units/year. This insight mainly analyzed the outlook of Wantai’s IVD business and its core HPV vaccine business and the related concerns.

By the end of July 13, 2021, the stock price of Beijing Wantai Biological-A (603392 CH) was closed at RMB279.1/share, up 3090% compared with its IPO price (RMB8.75/share) in April, 2020. Last week, Wantai announced that its wholly-owned IVD subsidiary planned to invest RMB1.336 billion to build a new industrial base. After the completion of the project, it will have a reagent production capacity of 500 million persons per year and a inspection equipment production capacity of 9000 units/year. This insight mainly analyzed the outlook of Wantai’s IVD business and its core HPV vaccine business and the related concerns.

Beijing Wantai Biological (603392.CH) - How to Support Its High Valuation?

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>Recently, the CDE issued a new document about the guidelines for clinical R&amp;D of anti-tumor drugs based on clinical value, which is expected to bring changes to the industry.</li>
<li>The NDRC issued the implementation plan for the construction of a high-quality and efficient medical and healthcare service system during the 14th Five-Year Plan period.</li>
<li>There is a high possibility that the PD-1 price reduction in 2021 negotiation could be larger than that in the negotiations of the previous two years.</li>
</ul>Company news: News about the updated progress on drugs of <a href="https://www.smartkarma.com/entities/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a>, <a href="https://www.smartkarma.com/entities/cstone-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:27882:1" rel="noopener">CStone Pharmaceuticals (2616 HK)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, and <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>.Market review:Last week, stock price for healthcare sector in A share decreased 4.05%, while CSI 300 decreased 0.23% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
Recently, the CDE issued a new document about the guidelines for clinical R&amp;D of anti-tumor drugs based on clinical value, which is expected to bring changes to the industry.
The NDRC issued the implementation plan for the construction of a high-quality and efficient medical and healthcare service system during the 14th Five-Year Plan period.
There is a high possibility that the PD-1 price reduction in 2021 negotiation could be larger than that in the negotiations of the previous two years.
Company news: News about the updated progress on drugs of Akeso Biopharma Inc (9926 HK), CStone Pharmaceuticals (2616 HK), Innovent Biologics Inc (1801 HK), and BeiGene Ltd (6160 HK).Market review:Last week, stock price for healthcare sector in A share decreased 4.05%, while CSI 300 decreased 0.23% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Equity Capital Markets

Neusoft Medical Systems / Equity Capital Markets

On May 31, 2021, <a href="https://www.smartkarma.com/entities/neusoft-medical-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:33446:1" rel="noopener">Neusoft Medical Systems (NMS HK)</a> filed a prospectus with the Hong Kong Stock Exchange to be listed on the Main Board. This is the second time for Neusoft to submit a prospectus in a year. In June, 2020, Neusoft had applied for listing on the SSE STAR Market, but withdrew in November, 2020. For the reason of the withdrawal, the Company said that due to the outbreak of COVID-19, due diligence and other procedures for overseas subsidiaries of Neusoft cannot be carried out, and the Company also planned to prioritize potential acquisitions. So will it go well this time? This insight mainly analyzed the industry characteristics, the business, the financial position and the concerns of the Company.

On May 31, 2021, Neusoft Medical Systems (NMS HK) filed a prospectus with the Hong Kong Stock Exchange to be listed on the Main Board. This is the second time for Neusoft to submit a prospectus in a year. In June, 2020, Neusoft had applied for listing on the SSE STAR Market, but withdrew in November, 2020. For the reason of the withdrawal, the Company said that due to the outbreak of COVID-19, due diligence and other procedures for overseas subsidiaries of Neusoft cannot be carried out, and the Company also planned to prioritize potential acquisitions. So will it go well this time? This insight mainly analyzed the industry characteristics, the business, the financial position and the concerns of the Company.

Pre-IPO Neusoft Medical Systems - Promising Market but Full of Challenges

Industry viewpoints:<ul>
<li>The 2021 medical insurance catalogue adjustment plan is soliciting opinions, and drugs approved for market launch during 2020.8.17 - 2021.6.30 will be eligible to participate in the negotiations.</li>
<li>Related departments issued new documents stating that from June to December this year, they will jointly carry out a special campaign to crack down on illegal medical beauty activities.</li>
<li>The General Office of the State Council issued a new document about the  development of public hospitals.</li>
</ul>Company news:News about the updated progress on drugs of <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK), </a><a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, and <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a>.Market review:Last week, stock price for healthcare sector in A share decreased 2.8%, while CSI 300 decreased 2.34% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The 2021 medical insurance catalogue adjustment plan is soliciting opinions, and drugs approved for market launch during 2020.8.17 - 2021.6.30 will be eligible to participate in the negotiations.
Related departments issued new documents stating that from June to December this year, they will jointly carry out a special campaign to crack down on illegal medical beauty activities.
The General Office of the State Council issued a new document about the  development of public hospitals.
Company news:News about the updated progress on drugs of BeiGene Ltd (6160 HK), Jiangsu Hengrui Medicine (600276 CH), Innovent Biologics Inc (1801 HK), and CSPC Pharmaceutical Group (1093 HK).Market review:Last week, stock price for healthcare sector in A share decreased 2.8%, while CSI 300 decreased 2.34% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Shenzhen Lifotronic Technology-A / Equity Bottom-Up

Since this year, major shareholders of <a href="https://www.smartkarma.com/entities/shenzhen-lifotronic-techno-a" target="_blank" data-smartkarma-citation="entities:30395:1" rel="noopener">Shenzhen Lifotronic Techno-A (688389 CH)</a> have reduced their holdings by 4.22 million shares, which still hasn't affected the performance of its stock price. Lifotronic’s share price was up about 34.6% by the end of June 11, 2021, thanks to the Company's strong growth. From 2016 to 2020, Lifotronic's revenue increased from RMB175 million to RMB554 million, with a CAGR of 33.47%. The net profit increased from RMB33.4 million (excluding the share-based payment of RMB23.5 million) in 2016 to RMB144 million in 2020, with a CAGR of 44.12%. The operating cash flow increased from RMB28 million in 2016 to RMB136 million in 2020, with a CAGR of 48.57%. Considering Lifotronic’s solid performance for years, this company deserves investors’ following.

Since this year, major shareholders of Shenzhen Lifotronic Techno-A (688389 CH) have reduced their holdings by 4.22 million shares, which still hasn't affected the performance of its stock price. Lifotronic’s share price was up about 34.6% by the end of June 11, 2021, thanks to the Company's strong growth. From 2016 to 2020, Lifotronic's revenue increased from RMB175 million to RMB554 million, with a CAGR of 33.47%. The net profit increased from RMB33.4 million (excluding the share-based payment of RMB23.5 million) in 2016 to RMB144 million in 2020, with a CAGR of 44.12%. The operating cash flow increased from RMB28 million in 2016 to RMB136 million in 2020, with a CAGR of 48.57%. Considering Lifotronic’s solid performance for years, this company deserves investors’ following.

Shenzhen Lifotronic Technology (688389.CH)-A Dark Horse in Both IVD and Therapeutical Medical Device

China

Shenzhen Mindray Bio-Medical Electronics Co., Ltd. manufactures and distributes medical equipment. The Company produces life information supporting, in vitro diagnostic, and medical imaging equipment equipment. Shenzhen Mindray Bio-Medical Electronics also produces supporting reagents.

Shenzhen Mindray Bio-Medical Electronics (300760 CH)

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Shenzhen Mindray Bio-Medical Electronics (300760 CH)

Beijing Wantai Biological (603392.CH) - How to Support Its High Valuation?

This article mainly analyzed Wantai in terms of the two core business IVD and HPV vaccine, their business outlook, the market pattern and the...

Xinyao (Criss) Wang

China Healthcare Weekly (July.9)

The article analyzed the new policy about R&D of anti-tumor drugs based on clinical value, construction of high-quality medical service system, and...

Xinyao (Criss) Wang

Pre-IPO Neusoft Medical Systems - Promising Market but Full of Challenges

The article mainly analyzed Neusoft Medical Systems in terms of the industry characteristics (market potential/policies), the business (comparison...

Xinyao (Criss) Wang

China Healthcare Weekly (Jun.18)

The article analyzed the 2021 medical insurance catalogue adjustment plan, new document to crack down on illegal medical beauty activities, new...

Xinyao (Criss) Wang

Shenzhen Lifotronic Technology (688389.CH)-A Dark Horse in Both IVD and Therapeutical Medical Device

This article analyzed "a dark horse" in IVD and therapeutical medical device, Lifotronic, including business analysis, drivers for revenue,...

Xinyao (Criss) Wang

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