Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sysmex-corp" target="_blank" data-smartkarma-citation="entities:19333:1" rel="noopener">Sysmex Corp (6869 JP)</a> has reported stellar performance for Q1FY27, with double-digit growth across key parameters. Revenue increased 24% YoY to ¥131B, mainly driven by hematology sales.</li>
<li>Challenging market environment continues in China, with the region reporting 34% YoY decline in revenue on a local currency basis. However, this remains in-line with initial assumptions.</li>
<li>In addition to strong business progress in the Americas, taking into account recent foreign exchange trends, Sysmex revised upward its earnings forecasts for H1 and FY27.</li>
</ul>



Sysmex Corp (6869 JP) has reported stellar performance for Q1FY27, with double-digit growth across key parameters. Revenue increased 24% YoY to ¥131B, mainly driven by hematology sales.
Challenging market environment continues in China, with the region reporting 34% YoY decline in revenue on a local currency basis. However, this remains in-line with initial assumptions.
In addition to strong business progress in the Americas, taking into account recent foreign exchange trends, Sysmex revised upward its earnings forecasts for H1 and FY27.


Sysmex Corp (6869 JP): Hematology Drives Robust 1Q Performance and Guidance Raise; What Lies Ahead

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>The continued drop in <a href="https://www.smartkarma.com/entities/sysmex-corp" target="_blank" data-smartkarma-citation="entities:19333:1" rel="noopener">Sysmex Corp (6869 JP)</a>'s stock price leads to a high probability of deletion from a global index at the next rebalance in May.</li>
<li>
<a href="https://www.smartkarma.com/entities/sysmex-corp-ffe73c3c-d212-47dd-bab3-0464ba1958fe" target="_blank" data-smartkarma-citation="entities:26829:1" rel="noopener">Sysmex (6869 JT)</a> has materially underperformed peers over the last 9 months and trades at cheaper valuations. There could be upside in the stock after the passive selling is done.</li>
<li>Positioning in the stock has continued to increase over the last couple of months and could become overstretched if that goes on for much longer.</li>
</ul>


The continued drop in Sysmex Corp (6869 JP)'s stock price leads to a high probability of deletion from a global index at the next rebalance in May.

Sysmex (6869 JT) has materially underperformed peers over the last 9 months and trades at cheaper valuations. There could be upside in the stock after the passive selling is done.
Positioning in the stock has continued to increase over the last couple of months and could become overstretched if that goes on for much longer.


Sysmex (6869 JP): Positioned for Global Index Deletion

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sysmex-corp" target="_blank" data-smartkarma-citation="entities:19333:1" rel="noopener">Sysmex Corp (6869 JP)</a> revenue dropped 2% YoY to ¥361.1B in 9MFY26. SG&amp;A expenses totaled ¥120.2B, up 9% YoY resulting in operating profit of ¥48.7B, down 28% YoY.</li>
<li>During 9MFY26, impacted by inventory adjustments China sales declined 20% YoY to ¥65.5B. In Japan, strong hematology instrument sales in 9MFY25 led to 14% YoY lower sales to ¥40.5B.   </li>
<li>For FY26, Sysmex revised their previous revenue guidance of ¥510B to ¥500B (down 2% YoY) mainly due to China impact and revised plans for medical robotics business in Japan.</li>
</ul>



Sysmex Corp (6869 JP) revenue dropped 2% YoY to ¥361.1B in 9MFY26. SG&amp;A expenses totaled ¥120.2B, up 9% YoY resulting in operating profit of ¥48.7B, down 28% YoY.
During 9MFY26, impacted by inventory adjustments China sales declined 20% YoY to ¥65.5B. In Japan, strong hematology instrument sales in 9MFY25 led to 14% YoY lower sales to ¥40.5B.   
For FY26, Sysmex revised their previous revenue guidance of ¥510B to ¥500B (down 2% YoY) mainly due to China impact and revised plans for medical robotics business in Japan.


Sysmex Corp (6869 JP): 9MFY26 Revenue Drop on China, Guidance Revised Downwards

Thematic (Sector/Industry)

<ul>
<li>CSPC Pharmaceutical’s Phase 3 trial of depression drug candidate HA1406 met pre-specified primary efficacy endpoint. Jiangsu Hengrui Pharmaceuticals received NMPA approval for long-acting basal insulin, sudelidec injection.</li>
<li>Otsuka Holdings secured FDA approval for Simtriyo, a once-daily extended-release capsule for ADHD. Nippon Shinyaku obtained exclusive commercialization rights for Tadekinig alfa in the U.S. for Hyperinflammatory Syndrome.</li>
<li>Pharmaessentia announced topline results from the Phase 1b clinical trial of P1101 (Besremi) and anti-PD1 in Chronic Hepatitis B or D. Cipla secured FDA approval for generic Advair Diskus.</li>
</ul>


CSPC Pharmaceutical’s Phase 3 trial of depression drug candidate HA1406 met pre-specified primary efficacy endpoint. Jiangsu Hengrui Pharmaceuticals received NMPA approval for long-acting basal insulin, sudelidec injection.
Otsuka Holdings secured FDA approval for Simtriyo, a once-daily extended-release capsule for ADHD. Nippon Shinyaku obtained exclusive commercialization rights for Tadekinig alfa in the U.S. for Hyperinflammatory Syndrome.
Pharmaessentia announced topline results from the Phase 1b clinical trial of P1101 (Besremi) and anti-PD1 in Chronic Hepatitis B or D. Cipla secured FDA approval for generic Advair Diskus.


APAC Healthcare Weekly (August 2) – CSPC, Hengrui, Otsuka, Nippon Shinyaku, PharmaEssnetia, Cipla

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/toho-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:11546:1" rel="noopener">Toho Holdings (8129 JP)</a>'s rumoured JPY200bn proposal for <a href="https://www.smartkarma.com/entities/phc-holdings-corp" target="_blank" data-smartkarma-citation="entities:34198:1" rel="noopener">PHC Holdings (6523 JP)</a> implies about JPY1,571. Mitsubishi Chemical and Mitsui sold 3.4m shares on-market near that level, signalling little faith.</li>
<li>Their selling weakens the deal's risk/reward: it signals lower deal certainty, and there would be a large overhang of about 20% of the shares if Toho walks away.</li>
<li>My fair value range remains JPY1,800–2,030, but at the last close, JPY1,595, the risk/reward is skewed to the downside.</li>
</ul>



Toho Holdings (8129 JP)'s rumoured JPY200bn proposal for PHC Holdings (6523 JP) implies about JPY1,571. Mitsubishi Chemical and Mitsui sold 3.4m shares on-market near that level, signalling little faith.
Their selling weakens the deal's risk/reward: it signals lower deal certainty, and there would be a large overhang of about 20% of the shares if Toho walks away.
My fair value range remains JPY1,800–2,030, but at the last close, JPY1,595, the risk/reward is skewed to the downside.


PHC Holdings (6523 JP): Corporate Selling Tilts the Risk/Reward to the Downside

Japan

SYSMEX CORPORATION manufactures reagents and equipment for clinical tests including hematologic (blood) and immune tests. The Company also develops, manufactures, and trades particle analyzers such as blood coagulation analyzer and related software. Manufacturing and sales outside Japan include the United States, EMEA, China and Asia Pacific regions.

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Sysmex (6869 JT)

Sysmex Corp (6869 JP): Hematology Drives Robust 1Q Performance and Guidance Raise; What Lies Ahead

Sysmex reports strong Q1FY27 result with double-digit growth in key parameters, driven by hematology sales. Despite challenges in China, the...

Tina Banerjee

Sysmex (6869 JP): Positioned for Global Index Deletion

Sysmex is a potential delete from a global index in May. The stock has underperformed peers and trades cheaper. There is positioning in the stock....

Brian Freitas

Sysmex Corp (6869 JP): 9MFY26 Revenue Drop on China, Guidance Revised Downwards

Sysmex Corp's revenue dropped 2% YoY in 9MFY26, with China and Japan sales declining. Revised FY26 revenue, operating profit and net profit...

Tina Banerjee

APAC Healthcare Weekly (August 2) – CSPC, Hengrui, Otsuka, Nippon Shinyaku, PharmaEssnetia, Cipla

Hengrui got NMPA approval for long-acting insulin. FDA approves Otsuka’s new CNS drug. Pharmaessentia announced positive topline result from Phase...

Tina Banerjee

PHC Holdings (6523 JP): Corporate Selling Tilts the Risk/Reward to the Downside

Mitsui and Mitsubishi Chemical sold near Toho's rumoured JPY1,571, cutting deal certainty and leaving a 20% overhang. Fair value is JPY1,800–2,030,...

Arun George

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Sysmex Corp (6869 JP): Hematology Drives Robust 1Q Performance and Guidance Raise; What Lies Ahead

​Sysmex reports strong Q1FY27 result with double-digit growth in key parameters, driven by hematology sales. Despite challenges in China, the...

Tina Banerjee

Sysmex (6869 JP): Positioned for Global Index Deletion

Sysmex is a potential delete from a global index in May. The stock has underperformed peers and trades cheaper. There is positioning in the stock....

Brian Freitas

Sysmex Corp (6869 JP): 9MFY26 Revenue Drop on China, Guidance Revised Downwards

​Sysmex Corp's revenue dropped 2% YoY in 9MFY26, with China and Japan sales declining. Revised FY26 revenue, operating profit and net profit...

Tina Banerjee

APAC Healthcare Weekly (August 2) – CSPC, Hengrui, Otsuka, Nippon Shinyaku, PharmaEssnetia, Cipla

Hengrui got NMPA approval for long-acting insulin. FDA approves Otsuka’s new CNS drug. Pharmaessentia announced positive topline result from Phase...

Tina Banerjee

PHC Holdings (6523 JP): Corporate Selling Tilts the Risk/Reward to the Downside

Mitsui and Mitsubishi Chemical sold near Toho's rumoured JPY1,571, cutting deal certainty and leaving a 20% overhang. Fair value is JPY1,800–2,030,...

Arun George

Sysmex reports strong Q1FY27 result with double-digit growth in key parameters, driven by hematology sales. Despite challenges in China, the...

Sysmex Corp's revenue dropped 2% YoY in 9MFY26, with China and Japan sales declining. Revised FY26 revenue, operating profit and net profit...