HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. / Equity Bottom-Up

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd.

<ul>
<li>In terms of the business model,the uniqueness and scarcity of Pien Tze Huang keep the market demand at high level,supporting its strong ability to raise prices and establish high moat.</li>
<li>The concerns on single product risk, scare raw materials and inadequate production capacity would cast a shadow over the Company’ future development.</li>
<li>The breakthrough point lies in whether the Company can make use of the unique advantages generated from "Pien Tze Huang" series to cultivate a second strong growth point in time.</li>
</ul>


In terms of the business model,the uniqueness and scarcity of Pien Tze Huang keep the market demand at high level,supporting its strong ability to raise prices and establish high moat.
The concerns on single product risk, scare raw materials and inadequate production capacity would cast a shadow over the Company’ future development.
The breakthrough point lies in whether the Company can make use of the unique advantages generated from "Pien Tze Huang" series to cultivate a second strong growth point in time.


Zhangzhou Pientzehuang Pharmaceutical (600436.CH) - The Strength and the Concerns

<ul>
<li>The high price of EJiao discouraged consumers, leading to increasing inventory backlog in the distribution channel and reduction in payment collection, which finally resulted in Dong-E-E-Jiao’s net loss in 2019.</li>
<li>Although the performance has showed a recovery trend since 2020,concerns on raw material shortage, low inventory turnover, single product structure, high selling expense ratio and fierce market competition still remain.</li>
<li>There is still a long way to go for the Company to get back to peak, so we are conservative about <a href="https://www.smartkarma.com/entities/dong-e-e-jiaoco-ltd-a" target="_blank" data-smartkarma-citation="entities:8470:1" rel="noopener">Dong E E Jiaoco Ltd A (000423 CH)</a>’s outlook.</li>
</ul>


The high price of EJiao discouraged consumers, leading to increasing inventory backlog in the distribution channel and reduction in payment collection, which finally resulted in Dong-E-E-Jiao’s net loss in 2019.
Although the performance has showed a recovery trend since 2020,concerns on raw material shortage, low inventory turnover, single product structure, high selling expense ratio and fierce market competition still remain.
There is still a long way to go for the Company to get back to peak, so we are conservative about Dong E E Jiaoco Ltd A (000423 CH)’s outlook.


Dong E E Jiao (000423.CH) - Could the New Chairman Turn Things Around?

Guangzhou Baiyunshan Pharmaceutical / Equity Bottom-Up

Guangzhou Baiyunshan Pharmaceutical (874 HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guangzhou-baiyunshan-pharmaceutical-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:276:1" rel="noopener">Guangzhou Baiyunshan Pharmaceutical Holdings (874 HK)</a>, mainly relying on Wang Lao Ji and Jin Ge for performance contribution, is relatively weak in risk resistance compared with other biopharmaceutical companies.</li>
<li>With the promotion of medical reform policies such as VBP, Baiyunshan’s weaknesses of R&amp;D and innovation that support the business transition would be more prominent.</li>
<li>Baiyunshan may lack the core competitiveness for future development. Therefore, we are conservative about its outlook, but investors could still trade this stock when the whole TCM sector moves up.</li>
</ul>



Guangzhou Baiyunshan Pharmaceutical Holdings (874 HK), mainly relying on Wang Lao Ji and Jin Ge for performance contribution, is relatively weak in risk resistance compared with other biopharmaceutical companies.
With the promotion of medical reform policies such as VBP, Baiyunshan’s weaknesses of R&amp;D and innovation that support the business transition would be more prominent.
Baiyunshan may lack the core competitiveness for future development. Therefore, we are conservative about its outlook, but investors could still trade this stock when the whole TCM sector moves up.


Guangzhou Baiyunshan Pharmaceutical Holdings (874.HK) - Conservative About the Outlook

<p>The share price of <a href="https://www.smartkarma.com/entities/zhangzhou-pientzehuang-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:15709:1" rel="noopener">Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)</a> has been on a roller coaster this year. After hitting a record high of RMB491.88/share in July, the stock price once fell to RMB318.56/share in September, down over 35%. After that, it rebounded and closed at RMB434.99/share by the end of October 22, 2021. On the other hand, Pien Tze Huang released its 2021Q3 financial results. In the first three quarters, the revenue was RMB6.112 billion, up 20.55% YoY. Net profit attributed to shareholders was RMB2.011 billion, up 51.36%. The highlight was the net profit after deducting non-recurring gains and losses, which reached RMB891 million in Q3 single quarter, up 92.51% YoY. The results beat the market expectations. This insight mainly analyzed the 2021Q3 results and the concerns of the Company.</p>

The share price of Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH) has been on a roller coaster this year. After hitting a record high of RMB491.88/share in July, the stock price once fell to RMB318.56/share in September, down over 35%. After that, it rebounded and closed at RMB434.99/share by the end of October 22, 2021. On the other hand, Pien Tze Huang released its 2021Q3 financial results. In the first three quarters, the revenue was RMB6.112 billion, up 20.55% YoY. Net profit attributed to shareholders was RMB2.011 billion, up 51.36%. The highlight was the net profit after deducting non-recurring gains and losses, which reached RMB891 million in Q3 single quarter, up 92.51% YoY. The results beat the market expectations. This insight mainly analyzed the 2021Q3 results and the concerns of the Company.

Pientzehuang Pharmaceutical Co., Ltd. (600436.CH) 2021Q3 - Concerns Behind The  "Double Top Secret"

Equity Capital Markets

<p>In recent years, the national policy has provided great support for the development of private healthcare providers. Meanwhile, due to the consumption upgrade, residents have raised their requirements on the level of traditional Chinese medicine (TCM), leading to a growing demand for middle and high-end services from providers. Therefore, some private healthcare providers have developed rapidly by taking advantage of the large market demand and favorable policy support, and are heading for IPO. On June 10, <a href="https://www.smartkarma.com/entities/gushengtang-cayman-ltd" target="_blank" data-smartkarma-citation="entities:33503:1" rel="noopener">Gushengtang (GUS HK), </a>a leading neo-TCM healthcare provider, formally submitted its application for listing on the main board of the HKEX. This insight mainly analyzed the industry characteristics, the business and the concerns of the Company.</p>

In recent years, the national policy has provided great support for the development of private healthcare providers. Meanwhile, due to the consumption upgrade, residents have raised their requirements on the level of traditional Chinese medicine (TCM), leading to a growing demand for middle and high-end services from providers. Therefore, some private healthcare providers have developed rapidly by taking advantage of the large market demand and favorable policy support, and are heading for IPO. On June 10, Gushengtang (GUS HK), a leading neo-TCM healthcare provider, formally submitted its application for listing on the main board of the HKEX. This insight mainly analyzed the industry characteristics, the business and the concerns of the Company.

Pre-IPO Gushengtang - Optimistic About Future Development

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)

Zhangzhou Pientzehuang Pharmaceutical (600436.CH) - The Strength and the Concerns

We analyzed the business model of Pien Tze Huang, which is mainly due to its uniqueness and scarcity that build high moat. But it still has to...

Xinyao (Criss) Wang

Dong E E Jiao (000423.CH) - Could the New Chairman Turn Things Around?

The raw material (donkey skin) shortage is a big concern for Dong-E-E-Jiao's future development, together with low inventory turnover,fierce...

Xinyao (Criss) Wang

Guangzhou Baiyunshan Pharmaceutical Holdings (874.HK) - Conservative About the Outlook

This insight analyzed Baiyunshan’s 2021Q3 performance, the core business segments, the comparison with peers, the concerns on business transition,...

Xinyao (Criss) Wang

Pientzehuang Pharmaceutical Co., Ltd. (600436.CH) 2021Q3 - Concerns Behind The "Double Top Secret"

The article mainly analyzed Zhangzhou Pien Tze Huang Pharmaceutical in terms of its 2021Q3 results and the concerns on medical efficacy, collection...

Xinyao (Criss) Wang

Pre-IPO Gushengtang - Optimistic About Future Development

This article mainly analyzed Gushengtang in terms of the industry characteristics, the business model, the comparison with peers, the potential...

Xinyao (Criss) Wang

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