HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>The National Health Commission and three other departments issued new document to promote the coordinated development of TCM and western medicine.</li>
<li>After the completion of the volume-based purchase (VBP) of chemical drugs commonly used in clinical practice, biosimilar drugs and Chinese patent medicine will gradually be included in the framework of the VBP.</li>
<li>The National Health Commission of PRC issued relevant policies and continued emphasis on the diagnosis of autoimmune diseases, which is expected to promote the rapid development of the autoimmune disease diagnosis market in China.</li>
</ul>Company news:News about the updated progress on drugs of <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>, <a href="https://www.smartkarma.com/entities/innocare-pharma-ltd" target="_blank" data-smartkarma-citation="entities:28355:1" rel="noopener">InnoCare Pharma Ltd (9969 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> and <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>. Market review:Last week, stock price for healthcare sector in A share decreased 0.8%, while CSI 300 decreased 3.03% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The National Health Commission and three other departments issued new document to promote the coordinated development of TCM and western medicine.
After the completion of the volume-based purchase (VBP) of chemical drugs commonly used in clinical practice, biosimilar drugs and Chinese patent medicine will gradually be included in the framework of the VBP.
The National Health Commission of PRC issued relevant policies and continued emphasis on the diagnosis of autoimmune diseases, which is expected to promote the rapid development of the autoimmune disease diagnosis market in China.
Company news:News about the updated progress on drugs of Innovent Biologics Inc (1801 HK), InnoCare Pharma Ltd (9969 HK), CStone Pharmaceuticals (2616 HK) and Akeso Biopharma Inc (9926 HK). Market review:Last week, stock price for healthcare sector in A share decreased 0.8%, while CSI 300 decreased 3.03% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:<ul>
<li>In the aspect of Chinese patent medicines, the main varieties of proprietary Chinese medicine are expected to be the first to be included in VBP, and medicines of stable quality are a higher priority.</li>
<li>Chemiluminescence is in the stage of rapid growth and the trend of intensive procurement of IVD consumables could drive import substitution.</li>
<li>The wellness tourism market has a good development environment and a huge growth potential.</li>
</ul>2. Company news:News about the updated progress of COVID-19 vaccine and new drugs from <a href="https://www.smartkarma.com/entities/cansino-biologics-inc" target="_blank" data-smartkarma-citation="entities:27739:1" rel="noopener">CanSino Biologics Inc (6185 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>, <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a>, and <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>.3. Market review:Last week, stock price for healthcare sector in A share decreased 8.2%, while CSI 300 decreased 7.65% over the same period of time. 4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
In the aspect of Chinese patent medicines, the main varieties of proprietary Chinese medicine are expected to be the first to be included in VBP, and medicines of stable quality are a higher priority.
Chemiluminescence is in the stage of rapid growth and the trend of intensive procurement of IVD consumables could drive import substitution.
The wellness tourism market has a good development environment and a huge growth potential.
2. Company news:News about the updated progress of COVID-19 vaccine and new drugs from CanSino Biologics Inc (6185 HK), Innovent Biologics Inc (1801 HK), Antengene (6996 HK), and Akeso Biopharma Inc (9926 HK).3. Market review:Last week, stock price for healthcare sector in A share decreased 8.2%, while CSI 300 decreased 7.65% over the same period of time. 4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Quality-first, Business-perspective Strategy, Urbem (HK) Limited

Steven Chen

Quality-first, Business-perspective Strategy

Equity Bottom-Up

Beijing Tong Ren Tang Chinese Medicine / Equity Bottom-Up

<ul>
<li>We tend to avoid turnarounds as they seldom turn;</li>
<li>But Beijing Tong Ren Tang Chinese Medicine can be a rare case in our opinion;</li>
<li>We see the company as being a wide-moat compounding machine, highly hopeful of delivering superior returns on capital when its business condition normalizes (sooner or later);</li>
<li>Simultaneously, the valuation of the share makes sense for alpha-seeking investors with a double-digit hurdle rate.</li>
</ul>


We tend to avoid turnarounds as they seldom turn;
But Beijing Tong Ren Tang Chinese Medicine can be a rare case in our opinion;
We see the company as being a wide-moat compounding machine, highly hopeful of delivering superior returns on capital when its business condition normalizes (sooner or later);
Simultaneously, the valuation of the share makes sense for alpha-seeking investors with a double-digit hurdle rate.


Beijing Tong Ren Tang Chinese Medicine: A Turnaround Worth A Look

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

For a while, the global audience has expressed their disbelief that Indonesia has 0 results for Covid-19 infection but recently, prices for ginger, turmeric, and curcuma have gone up - indicating that Indonesians are seeking a home remedy to combat Covid-19. 
Sido Muncul's top product, Tolak Angin (contains ginger), is a market leader in Indonesia. Despite trading at a premium compared to its closest peer, TSPC, it is still trading at a discount to its hospital operator peers and on par to other pharmaceutical companies such as <a href="https://www.smartkarma.com/entities/kalbe-farma-tbk-pt" target="_blank" data-smartkarma-citation="entities:6303:1" rel="noopener">Kalbe Farma (KLBF IJ)</a> and <a href="https://www.smartkarma.com/entities/kimia-farma-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:8524:1" rel="noopener">Kimia Farma Persero (KAEF IJ)</a> .

For a while, the global audience has expressed their disbelief that Indonesia has 0 results for Covid-19 infection but recently, prices for ginger, turmeric, and curcuma have gone up - indicating that Indonesians are seeking a home remedy to combat Covid-19. 
Sido Muncul's top product, Tolak Angin (contains ginger), is a market leader in Indonesia. Despite trading at a premium compared to its closest peer, TSPC, it is still trading at a discount to its hospital operator peers and on par to other pharmaceutical companies such as Kalbe Farma (KLBF IJ) and Kimia Farma Persero (KAEF IJ) . 

SIDO Muncul (SIDO): Remedy for Covid19 Scare

Analyst

Alasdair Moody

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

Our thematic research refines our unique algorithms while our single stock research focuses on examples where we discover a significant gap between published accounts and business reality.

​Bucephalus Research Partnership:
- Is an independent fee-based research service
- Does not take proprietary positions, long or short
- Does not solicit business or fees from the corporates we review

We examined ten years of accounting and valuation data for the pharmaceutical companies around the world with sales of US$100m+ and created statistics for each region based on aggregate data and for a typical company. In this trend report, we summarise the data and highlight the outliers. Assuming clients will have their own macro industry views, we used valuations and our Governance, Accounting risk and Peer performance (GAP) scores, (which help quantify the risk of creative accounting) to…

We examined ten years of accounting and valuation data for the pharmaceutical companies around the world with sales of US$100m+ and created statistics for each region based on aggregate data and for a typical company. In this trend report, we summarise the data and highlight the outliers. Assuming clients will have their own macro industry views, we used valuations and our Governance, Accounting risk and Peer performance (GAP) scores, (which help quantify the risk of creative accounting) to…

Global Pharmaceuticals: Valuations, Assets and Leverage Up - Margins Down

China

Beijing Tongrentang Co., Ltd. develops, manufactures, and markets Chinese traditional medicines and medicinal wines.  The Company also operates pharmaceutical retail businesses and provides consulting services.

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Beijing Tongrentang Co A (600085 CH)

China Healthcare Weekly (July.2)

The article analyzed the new document about the development of TCM and western medicine,potential start time of VBP on biosimilar...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.26)

This article analyzed the VBP policy on Chinese patent medicines, the growth potential in the chemiluminescence and intensive procurement of IVD...

Xinyao (Criss) Wang

Beijing Tong Ren Tang Chinese Medicine: A Turnaround Worth A Look

Beijing Tong Ren Tang Chinese Medicine can be a rare turnaround case in our opinion, thanks to its wide moat and compounding capability.

Steven Chen

SIDO Muncul (SIDO): Remedy for Covid19 Scare

For a while, the global audience has expressed their disbelief that Indonesia has 0 results for Covid-19 infection but recently, prices for ginger,...

Henry Soediarko

Global Pharmaceuticals: Valuations, Assets and Leverage Up - Margins Down

We examined ten years of accounting and valuation data for the pharmaceutical companies around the world with sales of US$100m+ and created...

Bucephalus Research Partnership

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