HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Beijing Chunlizhengda Medical Instruments / Equity Bottom-Up

Beijing Chunlizhengda Medical Instruments

<ul>
<li>Last year end, <a href="https://www.smartkarma.com/entities/beijing-chunlizhengda-medical-instruments-co-ltd" target="_blank" data-smartkarma-citation="entities:7568:1" rel="noopener">Beijing Chunlizhengda Medical Instruments (1858 HK)</a> was listed on the SSE STAR Market, but fell on debut. </li>
<li>The major concerns include performance slowdown, loss of bidding in centralized procurement, problematic sales model, poor gross profit margin, single products risk and weak innovation capability and international business.</li>
<li>Our view is that there is no immediate prospect of significant improvement. With too many uncertainties and concerns, we are conservative about Chunlizhengda's outlook despite the large A/H premium.</li>
</ul>


Last year end, Beijing Chunlizhengda Medical Instruments (1858 HK) was listed on the SSE STAR Market, but fell on debut. 
The major concerns include performance slowdown, loss of bidding in centralized procurement, problematic sales model, poor gross profit margin, single products risk and weak innovation capability and international business.
Our view is that there is no immediate prospect of significant improvement. With too many uncertainties and concerns, we are conservative about Chunlizhengda's outlook despite the large A/H premium.


Chunlizhengda Medical Instruments (1858.HK) - Conservative About the Outlook

Global Healthcare Analyst

Tina Banerjee

Shanghai HeartCare Medical Technology / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-heartcare-medical-technology" target="_blank" data-smartkarma-citation="entities:32192:1" rel="noopener">Shanghai HeartCare Medical Technology (6609 HK)</a> has leadership positioning in China’s neuro-intervention medical device market. The company has an attractive product portfolio with large addressable market.</li>
<li>Core product, Captor is expected to earn revenue of RMB656 million in 2030. Patent infringement lawsuit against Medtronic regarding Heartcare’s core product Captor remains a major overhang on the stock.</li>
<li>Heartcare shares plunged 24% since its listing in August. The company aims to commercialize 10 products between 2022 and 2025. Investors with high-risk appetite can take position.</li>
</ul>



Shanghai HeartCare Medical Technology (6609 HK) has leadership positioning in China’s neuro-intervention medical device market. The company has an attractive product portfolio with large addressable market.
Core product, Captor is expected to earn revenue of RMB656 million in 2030. Patent infringement lawsuit against Medtronic regarding Heartcare’s core product Captor remains a major overhang on the stock.
Heartcare shares plunged 24% since its listing in August. The company aims to commercialize 10 products between 2022 and 2025. Investors with high-risk appetite can take position.


Shanghai HeartCare Medcl(6609 HK): Comprehensive Stroke Produce Portfolio Comes with a Pinch of Salt

Thematic (Sector/Industry)

<ul>
<li>Last Friday, the 6th national volume-based purchase (VBP) for insulin released results.</li>
<li>The NHSA issued relevant documents and proposed to implement unified access management for medical consumables, which means that more medical consumables would be included in centralized procurement.</li>
<li>The NHC issued a document promoting the standardized development of digital healthcare industry, which would bring varying degrees of influence to medical institutions and enterprises providing online healthcare services.</li>
</ul>


Last Friday, the 6th national volume-based purchase (VBP) for insulin released results.
The NHSA issued relevant documents and proposed to implement unified access management for medical consumables, which means that more medical consumables would be included in centralized procurement.
The NHC issued a document promoting the standardized development of digital healthcare industry, which would bring varying degrees of influence to medical institutions and enterprises providing online healthcare services.


China Healthcare Weekly (Nov.26)-Insulin VBP Results, Key Policy On Consumables & Digital Healthcare

After hitting a record high of HK$72.85/share in June, the share price of <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK) </a>has fallen continuously in the following months, down over 45% by the end of October 8, 2021. This insight mainly analyzed the 2021/1H performance, the business, the concerns and the outlook of MicroPort, including both the favorable and the unfavorable aspects.

After hitting a record high of HK$72.85/share in June, the share price of Microport Scientific (853 HK) has fallen continuously in the following months, down over 45% by the end of October 8, 2021. This insight mainly analyzed the 2021/1H performance, the business, the concerns and the outlook of MicroPort, including both the favorable and the unfavorable aspects.

Microport Scientific (853.HK) - The Favorable and the Unfavorable Aspects

Industry viewpoints:
<ul>
<li>The State Council has released a landmark document to define its medical insurance plan for the next four years.</li>
<li>It can be seen that the NHSA has clarified the direction and the coverage of "basic" medical insurance on some high-value consumables such as dental implants.</li>
<li>Related policies are released to support domestic medical devices and consumables. </li>
</ul>
Company news:
News about the updated progress on new drugs and cooperation agreement of <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/jw-therapeutics" target="_blank" data-smartkarma-citation="entities:29679:1" rel="noopener">JW Therapeutics (2126 HK)</a> and <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>.
Market review: 
Last week, stock price for healthcare sector in A share increased 0.05%, while CSI 300 increased 0.27% over the same period of time. 
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:

The State Council has released a landmark document to define its medical insurance plan for the next four years.
It can be seen that the NHSA has clarified the direction and the coverage of "basic" medical insurance on some high-value consumables such as dental implants.
Related policies are released to support domestic medical devices and consumables. 

Company news:
News about the updated progress on new drugs and cooperation agreement of Jiangsu Hengrui Medicine (600276 CH), JW Therapeutics (2126 HK) and Innovent Biologics Inc (1801 HK).
Market review: 
Last week, stock price for healthcare sector in A share increased 0.05%, while CSI 300 increased 0.27% over the same period of time. 
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Oct.1) - A Landmark Document Released, Dental Implants, Core Data Security

China

AK Medical Holdings Limited manufactures medical devices. The Company produces and sells orthopedic implants, spinal interbody cages, artificial vertebral bodies, and other products. AK Medical Holdings markets its products throughout Hong Kong.

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AK Medical Holdings Limited (1789 HK)

Chunlizhengda Medical Instruments (1858.HK) - Conservative About the Outlook

The insight analyzed Chunlizhengda about the concerns on performance slowdown, centralized procurement, low gross profit margin, weak innovation...

Xinyao (Criss) Wang

Shanghai HeartCare Medcl(6609 HK): Comprehensive Stroke Produce Portfolio Comes with a Pinch of Salt

Comprehensive and innovative product portfolio addressing large patient pool is the key positive for the company. However, ongoing patent...

Tina Banerjee

China Healthcare Weekly (Nov.26)-Insulin VBP Results, Key Policy On Consumables & Digital Healthcare

This article analyzed the 6th VBP results on insulin, the new and key policies about unified access management on medical consumables and the...

Xinyao (Criss) Wang

Microport Scientific (853.HK) - The Favorable and the Unfavorable Aspects

This article mainly analyzed MicroPort in terms of the 2021/1H performance, the business, the concerns, the outlook and the advice for investors,...

Xinyao (Criss) Wang

China Healthcare Weekly (Oct.1) - A Landmark Document Released, Dental Implants, Core Data Security

The insight analyzed a landmark document about medical insurance plan for the next four years,the direction and the coverage of basic medical...

Xinyao (Criss) Wang

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