HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Eyebright Medical Technology / Equity Bottom-Up

<ul>
<li>We analyzed the centralized procurement of IOL and the potential impact on <a href="https://www.smartkarma.com/entities/eyebright-medical-technology-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:33455:1" rel="noopener">Eyebright Medical Technology Beijing (688050 CH)</a>.</li>
<li>The OK lens and cosmetic contact lenses have strong consumption attribute, indicating "immune" to centralized procurement policy.</li>
<li>We are optimistic about the outlook for Eyebright and there could still be upside potential of its stock price.</li>
</ul>


We analyzed the centralized procurement of IOL and the potential impact on Eyebright Medical Technology Beijing (688050 CH).
The OK lens and cosmetic contact lenses have strong consumption attribute, indicating "immune" to centralized procurement policy.
We are optimistic about the outlook for Eyebright and there could still be upside potential of its stock price.


Eyebright Medical Technology (688050.CH) -The Impact Of Centralized Procurement and Business Outlook

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

<div>The <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR 50 (STAR50 INDEX)</a> is a free float market cap weighted and is made up of the 50 largest stocks based on full market cap that are listed on the STAR Market.</div><div>
The review period for the December rebalance ends on 31 October, the results of the rebalance are likely to be announced on 26 November and the changes will be implemented at the close of trading on 10 December.
There are 191 stocks that will be listed longer than 12 months by 31 October and we expect the index committee to use a 12 month minimum listing history for the December review.
With 11 days remaining in the review period, potential inclusions are <a href="https://www.smartkarma.com/entities/xinjiang-daqo-new-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:34163:1" rel="noopener">Xinjiang Daqo New Energy (688303 CH)</a>, <a href="https://www.smartkarma.com/entities/jiangsu-goodwe-power-supply-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:34165:1" rel="noopener">Jiangsu GoodWe Power Supply Technology (688390 CH)</a>, <a href="https://www.smartkarma.com/entities/infovision-optoelectronics-kunshan-co-ltd" target="_blank" data-smartkarma-citation="entities:34164:1" rel="noopener">InfoVision Optoelectronics Kunshan (688055 CH)</a>, <a href="https://www.smartkarma.com/entities/eyebright-medical-technology-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:33455:1" rel="noopener">Eyebright Medical Technology Beijing (688050 CH)</a> and <a href="https://www.smartkarma.com/entities/beijing-huafeng-test-control-technology-a" target="_blank" data-smartkarma-citation="entities:30367:1" rel="noopener">Beijing Huafeng Test &amp; Control Technology-A (688200 CH)</a>. <a href="https://www.smartkarma.com/entities/shanghai-medicilon-inc" target="_blank" data-smartkarma-citation="entities:30368:1" rel="noopener">Shanghai Medicilon Inc (688202 CH)</a> is a very close add currently.
The potential deletions are <a href="https://www.smartkarma.com/entities/willfar-information-technology-a" target="_blank" data-smartkarma-citation="entities:30341:1" rel="noopener">Willfar Information Technology-A (688100 CH)</a>, <a href="https://www.smartkarma.com/entities/appotronics-corp-ltd" target="_blank" data-smartkarma-citation="entities:28235:1" rel="noopener">Appotronics Corp Ltd (688007 CH)</a>, <a href="https://www.smartkarma.com/entities/espressif-systems-shanghai-co-ltd" target="_blank" data-smartkarma-citation="entities:30311:1" rel="noopener">Espressif Systems Shanghai (688018 CH)</a>, <a href="https://www.smartkarma.com/entities/xiamen-amoytop-biotech-co-ltd" target="_blank" data-smartkarma-citation="entities:30377:1" rel="noopener">Xiamen Amoytop Biotech Co Ltd (688278 CH)</a> and <a href="https://www.smartkarma.com/entities/anji-microelectronics-tech-a" target="_blank" data-smartkarma-citation="entities:30312:1" rel="noopener">Anji Microelectronics Tech-A (688019 CH)</a>.
In the unlikely event that the index committee decides to continue using a 6 month minimum listing history, the potential inclusions are <a href="https://www.smartkarma.com/entities/xinjiang-daqo-new-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:34163:1" rel="noopener">Xinjiang Daqo New Energy (688303 CH)</a>, <a href="https://www.smartkarma.com/entities/zwsoft-guangzhou-co-ltd" target="_blank" data-smartkarma-citation="entities:34166:1" rel="noopener">ZWSOFT Guangzhou (688083 CH)</a>, <a href="https://www.smartkarma.com/entities/chengdu-xgimi-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:34167:1" rel="noopener">Chengdu XGimi Technology (688696 CH)</a>, <a href="https://www.smartkarma.com/entities/opt-machine-vision-tech-co-a" target="_blank" data-smartkarma-citation="entities:33148:1" rel="noopener">OPT Machine Vision Tech Co-A (688686 CH)</a> and <a href="https://www.smartkarma.com/entities/jiangsu-goodwe-power-supply-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:34165:1" rel="noopener">Jiangsu GoodWe Power Supply Technology (688390 CH)</a>, while <a href="https://www.smartkarma.com/entities/infovision-optoelectronics-kunshan-co-ltd" target="_blank" data-smartkarma-citation="entities:34164:1" rel="noopener">InfoVision Optoelectronics Kunshan (688055 CH)</a> is a close add. There is no change to the list of potential deletions from the index.
One-way turnover at the December rebalance is estimated at 11.04% assuming that CSI &amp; SSE use a 12 month minimum listing history.
</div>

The SSE STAR 50 (STAR50 INDEX) is a free float market cap weighted and is made up of the 50 largest stocks based on full market cap that are listed on the STAR Market.
The review period for the December rebalance ends on 31 October, the results of the rebalance are likely to be announced on 26 November and the changes will be implemented at the close of trading on 10 December.
There are 191 stocks that will be listed longer than 12 months by 31 October and we expect the index committee to use a 12 month minimum listing history for the December review.
With 11 days remaining in the review period, potential inclusions are Xinjiang Daqo New Energy (688303 CH), Jiangsu GoodWe Power Supply Technology (688390 CH), InfoVision Optoelectronics Kunshan (688055 CH), Eyebright Medical Technology Beijing (688050 CH) and Beijing Huafeng Test &amp; Control Technology-A (688200 CH). Shanghai Medicilon Inc (688202 CH) is a very close add currently.
The potential deletions are Willfar Information Technology-A (688100 CH), Appotronics Corp Ltd (688007 CH), Espressif Systems Shanghai (688018 CH), Xiamen Amoytop Biotech Co Ltd (688278 CH) and Anji Microelectronics Tech-A (688019 CH).
In the unlikely event that the index committee decides to continue using a 6 month minimum listing history, the potential inclusions are Xinjiang Daqo New Energy (688303 CH), ZWSOFT Guangzhou (688083 CH), Chengdu XGimi Technology (688696 CH), OPT Machine Vision Tech Co-A (688686 CH) and Jiangsu GoodWe Power Supply Technology (688390 CH), while InfoVision Optoelectronics Kunshan (688055 CH) is a close add. There is no change to the list of potential deletions from the index.
One-way turnover at the December rebalance is estimated at 11.04% assuming that CSI &amp; SSE use a 12 month minimum listing history.


STAR50 Index Rebalance Dec 21 Preview: Big Turnover & Moderate Impact

Xinjiang Daqo New Energy  Lt / Index Rebalance

<div>
The <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR 50 (STAR50 INDEX)</a> is a free float market cap weighted and is made up of the 50 largest stocks based on full market cap that are listed on the STAR Market.
</div>
<div>
The review period for the December rebalance ends on 31 October, the results of the rebalance are likely to be announced on 26 November and the changes will be implemented at the close of trading on 10 December.
With 191 stocks listed for longer than 12 months by the review cut-off date, the minimum listing history should reset higher from 6 months to 12 months.
Potential inclusions are <a href="https://www.smartkarma.com/entities/xinjiang-daqo-new-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:34163:1" rel="noopener">Xinjiang Daqo New Energy (688303 CH)</a>, <a href="https://www.smartkarma.com/entities/infovision-optoelectronics-kunshan-co-ltd" target="_blank" data-smartkarma-citation="entities:34164:1" rel="noopener">InfoVision Optoelectronics Kunshan (688055 CH)</a>, <a href="https://www.smartkarma.com/entities/jiangsu-goodwe-power-suppl-a" target="_blank" data-smartkarma-citation="entities:34165:1" rel="noopener">Jiangsu Goodwe Power Suppl-A (688390 CH)</a>, <a href="https://www.smartkarma.com/entities/beijing-huafeng-test-control-technology-a" target="_blank" data-smartkarma-citation="entities:30367:1" rel="noopener">Beijing Huafeng Test &amp; Control Technology-A (688200 CH)</a> and <a href="https://www.smartkarma.com/entities/eyebright-medical-technology-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:33455:1" rel="noopener">Eyebright Medical Technology Beijing (688050 CH)</a>. <a href="https://www.smartkarma.com/entities/shanghai-medicilon-inc" target="_blank" data-smartkarma-citation="entities:30368:1" rel="noopener">Shanghai Medicilon Inc (688202 CH)</a> is a close add at the moment.
Potential deletions are <a href="https://www.smartkarma.com/entities/willfar-information-techno-a" target="_blank" data-smartkarma-citation="entities:30341:1" rel="noopener">Willfar Information Techno-A (688100 CH)</a>, <a href="https://www.smartkarma.com/entities/appotronics-corp-ltd" target="_blank" data-smartkarma-citation="entities:28235:1" rel="noopener">Appotronics Corp Ltd (688007 CH)</a>, <a href="https://www.smartkarma.com/entities/xiamen-amoytop-biotech-co-ltd" target="_blank" data-smartkarma-citation="entities:30377:1" rel="noopener">Xiamen Amoytop Biotech Co Ltd (688278 CH)</a>, <a href="https://www.smartkarma.com/entities/espressif-systems-shanghai-co-ltd" target="_blank" data-smartkarma-citation="entities:30311:1" rel="noopener">Espressif Systems Shanghai (688018 CH)</a> and <a href="https://www.smartkarma.com/entities/anji-microelectronics-tech-a" target="_blank" data-smartkarma-citation="entities:30312:1" rel="noopener">Anji Microelectronics Tech-A (688019 CH)</a>.
If, for some reason, the index committee decides to continue to use a 6 month minimum listing history, potential inclusions are <a href="https://www.smartkarma.com/entities/xinjiang-daqo-new-energy-co-ltd" target="_blank" data-smartkarma-citation="entities:34163:1" rel="noopener">Xinjiang Daqo New Energy (688303 CH)</a>, <a href="https://www.smartkarma.com/entities/zwsoft-co-ltd-guangzhou" target="_blank" data-smartkarma-citation="entities:34166:1" rel="noopener">ZWSOFT Co Ltd Guangzhou (688083 CH)</a>, <a href="https://www.smartkarma.com/entities/chengdu-xgimi-technology-c-a" target="_blank" data-smartkarma-citation="entities:34167:1" rel="noopener">Chengdu Xgimi Technology C-A (688696 CH)</a>, <a href="https://www.smartkarma.com/entities/opt-machine-vision-tech-co-a" target="_blank" data-smartkarma-citation="entities:33148:1" rel="noopener">Opt Machine Vision Tech Co-A (688686 CH)</a> and <a href="https://www.smartkarma.com/entities/infovision-optoelectronics-kunshan-co-ltd" target="_blank" data-smartkarma-citation="entities:34164:1" rel="noopener">InfoVision Optoelectronics Kunshan (688055 CH)</a> while there is no change to the list of potential deletions.
One-way turnover at the December rebalance is estimated at 10.17% assuming that CSI/SSE use a 12 month minimum listing history.
</div>


The SSE STAR 50 (STAR50 INDEX) is a free float market cap weighted and is made up of the 50 largest stocks based on full market cap that are listed on the STAR Market.


The review period for the December rebalance ends on 31 October, the results of the rebalance are likely to be announced on 26 November and the changes will be implemented at the close of trading on 10 December.
With 191 stocks listed for longer than 12 months by the review cut-off date, the minimum listing history should reset higher from 6 months to 12 months.
Potential inclusions are Xinjiang Daqo New Energy (688303 CH), InfoVision Optoelectronics Kunshan (688055 CH), Jiangsu Goodwe Power Suppl-A (688390 CH), Beijing Huafeng Test &amp; Control Technology-A (688200 CH) and Eyebright Medical Technology Beijing (688050 CH). Shanghai Medicilon Inc (688202 CH) is a close add at the moment.
Potential deletions are Willfar Information Techno-A (688100 CH), Appotronics Corp Ltd (688007 CH), Xiamen Amoytop Biotech Co Ltd (688278 CH), Espressif Systems Shanghai (688018 CH) and Anji Microelectronics Tech-A (688019 CH).
If, for some reason, the index committee decides to continue to use a 6 month minimum listing history, potential inclusions are Xinjiang Daqo New Energy (688303 CH), ZWSOFT Co Ltd Guangzhou (688083 CH), Chengdu Xgimi Technology C-A (688696 CH), Opt Machine Vision Tech Co-A (688686 CH) and InfoVision Optoelectronics Kunshan (688055 CH) while there is no change to the list of potential deletions.
One-way turnover at the December rebalance is estimated at 10.17% assuming that CSI/SSE use a 12 month minimum listing history.


STAR50 Index Rebalance December Preview: 12 Month or 6 Month Listing History, That Is The Question

Post market close on 27 August, the Shanghai Stock Exchange and China Securities Index Company announced the changes to the <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR 50 (STAR50 INDEX)</a>. The changes will be effective after the close of trading on 10 September.There are 5 inclusions and 5 exclusions in the review. The inclusions are <a href="https://www.smartkarma.com/entities/pylon-technologies-co-ltd" target="_blank" data-smartkarma-citation="entities:33153:1" rel="noopener">Pylon Technologies Co Ltd (688063 CH)</a>, <a href="https://www.smartkarma.com/entities/3peak-inc" target="_blank" data-smartkarma-citation="entities:33460:1" rel="noopener">3peak (688536 CH)</a>, <a href="https://www.smartkarma.com/entities/bestechnic-shanghai-co-ltd" target="_blank" data-smartkarma-citation="entities:33459:1" rel="noopener">Bestechnic Shanghai (688608 CH)</a>, <a href="https://www.smartkarma.com/entities/zhejiang-supcon-technology-co" target="_blank" data-smartkarma-citation="entities:33457:1" rel="noopener">Zhejiang Supcon Technology (688777 CH)</a> and <a href="https://www.smartkarma.com/entities/tianneng-battery-group-co-ltd" target="_blank" data-smartkarma-citation="entities:33458:1" rel="noopener">Tianneng Battery Group (688819 CH)</a>, while the deletions are <a href="https://www.smartkarma.com/entities/guangzhou-fangbang-electronics-a" target="_blank" data-smartkarma-citation="entities:30313:1" rel="noopener">Guangzhou Fangbang Electronics-A (688020 CH)</a>, <a href="https://www.smartkarma.com/entities/piesat-information-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:30328:1" rel="noopener">Piesat Information Technology (688066 CH)</a>, <a href="https://www.smartkarma.com/entities/shanghai-shen-lian-biomedical" target="_blank" data-smartkarma-citation="entities:30339:1" rel="noopener">Shanghai Shen Lian Biomedical (688098 CH)</a>, <a href="https://www.smartkarma.com/entities/shenzhen-lifotronic-technology-a" target="_blank" data-smartkarma-citation="entities:30395:1" rel="noopener">Shenzhen Lifotronic Technology-A (688389 CH)</a> and <a href="https://www.smartkarma.com/entities/farasis-energy-gan-zhou-co-a" target="_blank" data-smartkarma-citation="entities:28385:1" rel="noopener">Farasis Energy Gan Zhou Co-A (688567 CH)</a>. The changes imply that a 6 month minimum listing was used. This is surprising (but not totally unexpected) since there were 141 stocks that were listed for longer than 1 year and that number was at the upper end of the 100-150 range where the methodology would change to use a minimum 12 month listing history.Even more surprising is the deletion of <a href="https://www.smartkarma.com/entities/farasis-energy-gan-zhou-co-a" target="_blank" data-smartkarma-citation="entities:28385:1" rel="noopener">Farasis Energy Gan Zhou Co-A (688567 CH)</a>. The stock ranks much higher than other index constituents and we cannot see any reason for its deletion from the index.The inclusions, exclusions and capping changes will result in a one-way turnover of 10.46% and result in a one-way trade of CNY4.05bn.

Post market close on 27 August, the Shanghai Stock Exchange and China Securities Index Company announced the changes to the SSE STAR 50 (STAR50 INDEX). The changes will be effective after the close of trading on 10 September.There are 5 inclusions and 5 exclusions in the review. The inclusions are Pylon Technologies Co Ltd (688063 CH), 3peak (688536 CH), Bestechnic Shanghai (688608 CH), Zhejiang Supcon Technology (688777 CH) and Tianneng Battery Group (688819 CH), while the deletions are Guangzhou Fangbang Electronics-A (688020 CH), Piesat Information Technology (688066 CH), Shanghai Shen Lian Biomedical (688098 CH), Shenzhen Lifotronic Technology-A (688389 CH) and Farasis Energy Gan Zhou Co-A (688567 CH). The changes imply that a 6 month minimum listing was used. This is surprising (but not totally unexpected) since there were 141 stocks that were listed for longer than 1 year and that number was at the upper end of the 100-150 range where the methodology would change to use a minimum 12 month listing history.Even more surprising is the deletion of Farasis Energy Gan Zhou Co-A (688567 CH). The stock ranks much higher than other index constituents and we cannot see any reason for its deletion from the index.The inclusions, exclusions and capping changes will result in a one-way turnover of 10.46% and result in a one-way trade of CNY4.05bn.

STAR50 Index Rebalance: If You Obey All The Rules, You Miss All The Fun

The field of high-value ophthalmic consumables has always been one of the focus of investors. Among them, <a href="https://www.smartkarma.com/entities/eyebright-medical-technology-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:33455:1" rel="noopener">Eyebright Medical Technology Beijing (688050 CH)</a>, which is committed to the R&amp;D, production and commercialization of intraocular lens (IOL) and orthokeratology lens (OK lens) as its core products, attracts continuous attention. Since its listing in July 2020, the stock price of Eyebright had once been as high as RMB398.86/share. As of July 30, 2021, the share price of Eyebright was closed at RMB274.1/share, up about 717% compared with the issue price of RMB33.55/share, with the market value of RMB28.8 billion and P/E ratio of 200.66. So could Eyebright continue to support its high valuation? This insight mainly analyzed the industry characteristics, the business, and thoughts on valuation of Eyebright.

The field of high-value ophthalmic consumables has always been one of the focus of investors. Among them, Eyebright Medical Technology Beijing (688050 CH), which is committed to the R&amp;D, production and commercialization of intraocular lens (IOL) and orthokeratology lens (OK lens) as its core products, attracts continuous attention. Since its listing in July 2020, the stock price of Eyebright had once been as high as RMB398.86/share. As of July 30, 2021, the share price of Eyebright was closed at RMB274.1/share, up about 717% compared with the issue price of RMB33.55/share, with the market value of RMB28.8 billion and P/E ratio of 200.66. So could Eyebright continue to support its high valuation? This insight mainly analyzed the industry characteristics, the business, and thoughts on valuation of Eyebright.

Eyebright Medical Technology (688050. CH) - A Good Company but The Valuation Is Too High

China

Eyebright Medical Technology (Beijing) Co., Ltd. produces and sells medical devices. The Company manufactures and sells implantable ophthalmic supplies, surgical instruments, and other products. Eyebright Medical Technology (Beijing) markets its products throughout China.

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Eyebright Medical Technology (688050 CH)