HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Sichuan Neautus Traditional Chinese Medicine / Equity Capital Markets

Sichuan Neautus Traditional Chinese Medicine

<ul>
<li>Neautus is facing performance headwinds. Revenue growth rate is declining and profit margin is in downward trend. Net profit growth is lower than the revenue growth, indicating the weak profitability</li>
<li>VBP, increasing competition and raw materials cost are the challenges. Because of financial fraud, Neautus once failed its A-share IPO. So, there is corporate governance issue in the Company.</li>
<li>We’re conservative about the outlook of Neautus. It is already good for valuation to reach the industry average.Our forecast in 2025 is revenue to reach RMB1.4-1.5 billion (up 12-15% YoY).</li>
</ul>


Neautus is facing performance headwinds. Revenue growth rate is declining and profit margin is in downward trend. Net profit growth is lower than the revenue growth, indicating the weak profitability
VBP, increasing competition and raw materials cost are the challenges. Because of financial fraud, Neautus once failed its A-share IPO. So, there is corporate governance issue in the Company.
We’re conservative about the outlook of Neautus. It is already good for valuation to reach the industry average.Our forecast in 2025 is revenue to reach RMB1.4-1.5 billion (up 12-15% YoY).


Pre-IPO Sichuan Neautus Traditional Chinese Medicine - The Outlook Is Not Optimistic

China

Sichuan Neautus Traditional Chinese Medicine (NTCM HK)

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52-week Range	0.00 - 0.00
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Pre-IPO Sichuan Neautus Traditional Chinese Medicine - The Outlook Is Not Optimistic

​Neautus facing performance challenges with declining revenue growth and profit margin due to competition, high raw materials cost, VBP. It is...

Xinyao (Criss) Wang

Neautus facing performance challenges with declining revenue growth and profit margin due to competition, high raw materials cost, VBP. It is...