Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Thematic (Sector/Industry)

<ul>
<li>From peak allocations of over 8% at the height of the COVID-19 pandemic, China &amp; HK Health Care allocations have fallen back in to their long-term range</li>
<li>Greater China managers have actively rebalanced portfolios away from China &amp; HK Health Care over the last 6-months, with Taiwan Tech the key beneficiary</li>
<li>Venus MedTech and Jiangsu Hengrui Medicine led the exodus, but it wasn't completely one-sided, with Mindray Bio-Medical Electronics and Aier Eye Hospital Group capturing new investment from Greater China managers.</li>
</ul>


From peak allocations of over 8% at the height of the COVID-19 pandemic, China &amp; HK Health Care allocations have fallen back in to their long-term range
Greater China managers have actively rebalanced portfolios away from China &amp; HK Health Care over the last 6-months, with Taiwan Tech the key beneficiary
Venus MedTech and Jiangsu Hengrui Medicine led the exodus, but it wasn't completely one-sided, with Mindray Bio-Medical Electronics and Aier Eye Hospital Group capturing new investment from Greater China managers.


Greater China Funds: China Health Care Reversal

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Aier Eye Hospital Group / Equity Bottom-Up

<ul>
<li>According to public news, the recent bribery scandal of <a href="https://www.smartkarma.com/entities/aier-eye-hospital-group-co-ltd" target="_blank" data-smartkarma-citation="entities:1103:1" rel="noopener">Aier Eye Hospital Group (300015 CH)</a> has raised widespread concern. Shenzhen stock Exchange also issued a letter of inquiry.</li>
<li>The development model based on M&amp;A funds helps rapid expansion, but also leads to profit orientation and large goodwill balance, indicating potential risks.</li>
<li>The biggest risk is the revolutionary technology/drugs to disrupt the business value of Aier’s medical services. So, Aier could be a short-term trade, but not a long-term hold. </li>
</ul>


According to public news, the recent bribery scandal of Aier Eye Hospital Group (300015 CH) has raised widespread concern. Shenzhen stock Exchange also issued a letter of inquiry.
The development model based on M&amp;A funds helps rapid expansion, but also leads to profit orientation and large goodwill balance, indicating potential risks.
The biggest risk is the revolutionary technology/drugs to disrupt the business value of Aier’s medical services. So, Aier could be a short-term trade, but not a long-term hold. 


Aier Eye Hospital Group (300015.CH) - More than Just Bribery Scandal

Equity Capital Markets

Beijing Airdoc Technology / Equity Capital Markets

<ul class="">
<li>The performance of stock price of <a href="https://www.smartkarma.com/entities/beijing-airdoc-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:33524:1" rel="noopener">Beijing Airdoc Technology (2251 HK)</a> after listing in HKEX was not satisfactory.</li>
<li>The real turning point for the commercialization of AI medical imaging market has not arrived.</li>
<li>Together with other concerns such as fierce competition, data security issue, the lack of medical insurance coverage and insufficient recognition in hospital market, etc., we are conservative about the outlook of Airdoc at the current stage.</li>
</ul>


The performance of stock price of Beijing Airdoc Technology (2251 HK) after listing in HKEX was not satisfactory.
The real turning point for the commercialization of AI medical imaging market has not arrived.
Together with other concerns such as fierce competition, data security issue, the lack of medical insurance coverage and insufficient recognition in hospital market, etc., we are conservative about the outlook of Airdoc at the current stage.


Beijing Airdoc Technology (2251.HK) - Here Are the Concerns

<p>In August, <a href="https://www.smartkarma.com/entities/aier-eye-hospital-group-co-ltd" target="_blank" data-smartkarma-citation="entities:1103:1" rel="noopener">Aier Eye Hospital Group (300015 CH)</a> released its 2021 interim report. The revenue was RMB7.348 billion, up 76.47% YoY. Net profit attributed to shareholders was RMB1.116 billion, up 65.03% YoY. Net profit after deducting non-recurring gains and losses was RMB1.227 billion, up 111.92% YoY. The Company maintained high growth momentum. However, Aier’s share price was closed at RMB51.88/share on September 24, which was down about 28% from its all-time high of RMB72/share in February this year. This insight mainly analyzed the performance in 2021/1H and the concerns of the Company.</p>

In August, Aier Eye Hospital Group (300015 CH) released its 2021 interim report. The revenue was RMB7.348 billion, up 76.47% YoY. Net profit attributed to shareholders was RMB1.116 billion, up 65.03% YoY. Net profit after deducting non-recurring gains and losses was RMB1.227 billion, up 111.92% YoY. The Company maintained high growth momentum. However, Aier’s share price was closed at RMB51.88/share on September 24, which was down about 28% from its all-time high of RMB72/share in February this year. This insight mainly analyzed the performance in 2021/1H and the concerns of the Company.

Aier Eye Hospital Group (300015.CH) - The Concerns Behind the High Growth Momentum

Hygeia Healthcare Group / Equity Bottom-Up

<p>Recently, <a href="https://www.smartkarma.com/entities/hygeia-healthcare-group" target="_blank" data-smartkarma-citation="entities:28875:1" rel="noopener">Hygeia Healthcare Group (6078 HK)</a> released its 2021/1H financial report. The revenue increased by 47.4% to RMB931.7 million, and the net profit increased by 8,450.0% to RMB205.2 million. The non-IFRS adjusted net profit increased by 53.1% to RMB205.2 million. It can be seen that, as the number of patient visits and the average spending per outpatient and inpatient visit continued to increase, Hygeia maintained its strong growth momentum. This insight mainly analyzed the business, doctor resources and outlook of the Company.</p>

Recently, Hygeia Healthcare Group (6078 HK) released its 2021/1H financial report. The revenue increased by 47.4% to RMB931.7 million, and the net profit increased by 8,450.0% to RMB205.2 million. The non-IFRS adjusted net profit increased by 53.1% to RMB205.2 million. It can be seen that, as the number of patient visits and the average spending per outpatient and inpatient visit continued to increase, Hygeia maintained its strong growth momentum. This insight mainly analyzed the business, doctor resources and outlook of the Company.

Hygeia Healthcare (6078.HK) 2021H1 - Efficient Expansion and Management Support the Positive Outlook

China

Aier Eye Hospital Group Co., Ltd provides ophthalmological services.  The Company's services include ophthalmological diagnosis and treatments.

Price Gauge
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Aier Eye Hospital Group (300015 CH)

Greater China Funds: China Health Care Reversal

Greater China managers have actively rebalanced portfolios away from China & HK Health Care over the last 6-months, with Taiwan Tech the key...

Steven Holden