External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

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AK Medical Holdings Limited / Equity Bottom-Up

<ul><li>AK Medical reported 1H24 revenue of RMB657mn, up 1.3% YoY and largely in line with our forecast, accounting for 46% of our previous full-year estimate.</li><li>Attributable net profit increased by 5.0% YoY to RMB139mn, reaching 52% of our previous full-year estimate.</li><li>Attributable net profit margin expanded 0.8ppt YoY to 21.2% thanks to effective cost management, partially offset by a decline in gross margin.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AK Medical reported 1H24 revenue of RMB657mn, up 1.3% YoY and largely in line with our forecast, accounting for 46% of our previous full-year estimate.Attributable net profit increased by 5.0% YoY to RMB139mn, reaching 52% of our previous full-year estimate.Attributable net profit margin expanded 0.8ppt YoY to 21.2% thanks to effective cost management, partially offset by a decline in gross margin.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AK Medical (1789 HK) - Resilient Performance in 1H24, Expecting Recovery in 2H24

<ul><li>AK Medical reported 2023 revenue of RMB1,093.9mn, up 4.0% YoY. Gross profit was RMB674.5mn, up 6.0% YoY.</li><li>Gross profit margin improved 1.2 ppts to 61.7% thanks to effective cost control and an increased proportion of overseas revenue.</li><li>Attributable net profit was RMB182.1mn, down by 11.1% YoY, and the attributable net profit margin dropped by 2.8 ppts to 16.6% in 2023 mainly due to an increase in selling expense ratio as the company expanded overseas.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AK Medical reported 2023 revenue of RMB1,093.9mn, up 4.0% YoY. Gross profit was RMB674.5mn, up 6.0% YoY.Gross profit margin improved 1.2 ppts to 61.7% thanks to effective cost control and an increased proportion of overseas revenue.Attributable net profit was RMB182.1mn, down by 11.1% YoY, and the attributable net profit margin dropped by 2.8 ppts to 16.6% in 2023 mainly due to an increase in selling expense ratio as the company expanded overseas.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AK Medical (1789 HK) - The Belated Recovery Will Always Come

<ul><li>AK Medical cut its FY23 sales and net profit guidance, primarily due to the declined orthopaedic surgery volumes amid the challenging business environment in China.</li><li>The Company now expects 2023E revenue to remain flat, down from its previous guidance of 30% YoY revenue growth for 2023E.</li><li>NPM may slightly drop because the anti-corruption activities hurt the sales of highmargin non-VBP products in 2H23. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AK Medical cut its FY23 sales and net profit guidance, primarily due to the declined orthopaedic surgery volumes amid the challenging business environment in China.The Company now expects 2023E revenue to remain flat, down from its previous guidance of 30% YoY revenue growth for 2023E.NPM may slightly drop because the anti-corruption activities hurt the sales of highmargin non-VBP products in 2H23. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AK Medical (1789 HK) – 2023 Guidance Cut, Expecting Recovery in 2024

<ul><li>1H23 earnings was in line with CMBI and consensus estimates.</li><li>AK Medical reported 1H23 revenue of RMB648.7mn, up 22.1% YoY, primarily driven by the significant revenue growth of knee replacement implants and non-VBP products.</li><li>Gross profit was RMB338.5mn, up 9.8% YoY. Gross profit margin fell 1.8 ppts to 61.9% (vs. 63.7% in 1H22) due to the implementation of national VBP of joint implants since April 2022. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1H23 earnings was in line with CMBI and consensus estimates.AK Medical reported 1H23 revenue of RMB648.7mn, up 22.1% YoY, primarily driven by the significant revenue growth of knee replacement implants and non-VBP products.Gross profit was RMB338.5mn, up 9.8% YoY. Gross profit margin fell 1.8 ppts to 61.9% (vs. 63.7% in 1H22) due to the implementation of national VBP of joint implants since April 2022. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AK Medical (1789 HK) – Solid Growth Driven by Increasing Non-VBP Sales

<ul><li>Despite the negative impact of COVID-19 on surgery demand for orthopedic implants, AK Medical reported FY22E revenue of RMB1,052.0mn, up 38.2% YoY, primarily driven by the revenue growth in hip and knee implants (+44.7% YoY) after the VBP as well as the ICOS customized products (101.3% YoY). GPM was 60.5% (-5.1 ppt) due to the price reduction after VBP.</li><li>Thanks to the significant reduction in selling expense ratio after the VBP, attributable net profit increased by 121.1% YoY in FY22, 5.9%/ 4.4% above CMBI/ consensus estimates.</li><li>Strong volume growth after VBP more than offset the price cut. In 2022, sales volume of the primary hip system increased by 81% YoY and the primary knee system increased by 130% YoY, attributable to the increasing demand in primary hip and knee replacement operations after VBP.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Despite the negative impact of COVID-19 on surgery demand for orthopedic implants, AK Medical reported FY22E revenue of RMB1,052.0mn, up 38.2% YoY, primarily driven by the revenue growth in hip and knee implants (+44.7% YoY) after the VBP as well as the ICOS customized products (101.3% YoY). GPM was 60.5% (-5.1 ppt) due to the price reduction after VBP.Thanks to the significant reduction in selling expense ratio after the VBP, attributable net profit increased by 121.1% YoY in FY22, 5.9%/ 4.4% above CMBI/ consensus estimates.Strong volume growth after VBP more than offset the price cut. In 2022, sales volume of the primary hip system increased by 81% YoY and the primary knee system increased by 130% YoY, attributable to the increasing demand in primary hip and knee replacement operations after VBP.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

AK Medical (1789 HK) – Higher growth certainty in 2023E

China

Specializes in the research, development, manufacture, and sale of artificial joint prostheses & their associated surgical instruments and applications

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AK Medical Holdings Limited (1789 HK)

AK Medical (1789 HK) - Resilient Performance in 1H24, Expecting Recovery in 2H24

AK Medical reported 1H24 revenue of RMB657mn, up 1.3% YoY and largely in line with our forecast, accounting for 46% of our previous full-year...

CMB International

AK Medical (1789 HK) - The Belated Recovery Will Always Come

AK Medical reported 2023 revenue of RMB1,093.9mn, up 4.0% YoY. Gross profit was RMB674.5mn, up 6.0% YoY. Gross profit margin improved 1.2 ppts to...

CMB International

AK Medical (1789 HK) – 2023 Guidance Cut, Expecting Recovery in 2024

AK Medical cut its FY23 sales and net profit guidance, primarily due to the declined orthopaedic surgery volumes amid the challenging business...

CMB International

AK Medical (1789 HK) – Solid Growth Driven by Increasing Non-VBP Sales

AK Medical reported 1H23 revenue of RMB648.7mn, up 22.1% YoY, primarily driven by the significant revenue growth of knee replacement implants and...

CMB International

AK Medical (1789 HK) – Higher growth certainty in 2023E

Thanks to the significant reduction in selling expense ratio after the VBP, attributable net profit increased by 121.1% YoY in FY22, 5.9%/ 4.4%...

CMB International

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