HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Beijing Wantai Biological Phar / Equity Bottom-Up

By the end of July 13, 2021, the stock price of <a href="https://www.smartkarma.com/entities/beijing-wantai-biological-a" target="_blank" data-smartkarma-citation="entities:30129:1" rel="noopener">Beijing Wantai Biological-A (603392 CH) </a>was closed at RMB279.1/share, up 3090% compared with its IPO price (RMB8.75/share) in April, 2020. Last week, Wantai announced that its wholly-owned IVD subsidiary planned to invest RMB1.336 billion to build a new industrial base. After the completion of the project, it will have a reagent production capacity of 500 million persons per year and a inspection equipment production capacity of 9000 units/year. This insight mainly analyzed the outlook of Wantai’s IVD business and its core HPV vaccine business and the related concerns.

By the end of July 13, 2021, the stock price of Beijing Wantai Biological-A (603392 CH) was closed at RMB279.1/share, up 3090% compared with its IPO price (RMB8.75/share) in April, 2020. Last week, Wantai announced that its wholly-owned IVD subsidiary planned to invest RMB1.336 billion to build a new industrial base. After the completion of the project, it will have a reagent production capacity of 500 million persons per year and a inspection equipment production capacity of 9000 units/year. This insight mainly analyzed the outlook of Wantai’s IVD business and its core HPV vaccine business and the related concerns.

Beijing Wantai Biological (603392.CH) - How to Support Its High Valuation?

Zhejiang Orient Gene Biotech C / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/zhejiang-orient-gene-biotech-a" target="_blank" data-smartkarma-citation="entities:30379:1" rel="noopener">Zhejiang Orient Gene Biotech-A (688298 CH) </a>(Orient Biotech) is a company specializing in the R&amp;D, production and sales of IVD products, with main business in the field of POCT (point-of-care testing). According to its financial reports, Orient Biotech achieved high growth in both 2020 and 2021Q1. In 2020, the revenue was RMB3.265 billion, up 788.83% YoY. Net profit attributed to shareholders was RMB1.677 billion, up 1,942.94% YoY. In 2021Q1, the Company achieved revenue of RMB2.236 billion, up 1925.91% YoY. Net profit attributed to shareholders was RMB1.186 billion, up 2601.42% YoY. This insight mainly analyzed the industry characteristics, the business, the valuation and the key risks of Orient Biotech.

Zhejiang Orient Gene Biotech-A (688298 CH) (Orient Biotech) is a company specializing in the R&amp;D, production and sales of IVD products, with main business in the field of POCT (point-of-care testing). According to its financial reports, Orient Biotech achieved high growth in both 2020 and 2021Q1. In 2020, the revenue was RMB3.265 billion, up 788.83% YoY. Net profit attributed to shareholders was RMB1.677 billion, up 1,942.94% YoY. In 2021Q1, the Company achieved revenue of RMB2.236 billion, up 1925.91% YoY. Net profit attributed to shareholders was RMB1.186 billion, up 2601.42% YoY. This insight mainly analyzed the industry characteristics, the business, the valuation and the key risks of Orient Biotech.

Zhejiang Orient Gene Biotech (688298.CH) - Clearly Undervalued with Attractive Upside Potential

Thematic (Sector/Industry)

Compared with traditional diagnostic products, the value and competitive advantage of POCT (point-of-care testing) diagnostic products are more obvious: for example, small instruments, easy to operate, no pollution, easy maintenance, and faster detection speed. The following mainly analyzed the POCT market and related investment opportunities in China.

Compared with traditional diagnostic products, the value and competitive advantage of POCT (point-of-care testing) diagnostic products are more obvious: for example, small instruments, easy to operate, no pollution, easy maintenance, and faster detection speed. The following mainly analyzed the POCT market and related investment opportunities in China. 

Industry Report: Insights on China IVD Industry - The POCT Market

1. Industry viewpoints:
<ul>
<li>As the population ages, it is expected that the domestic dental prosthesis market has a great potential for development.</li>
<li>In the future, the market of China medical beauty has a broad space for growth.</li>
<li>POCT (point-of-care testing) has gained popularity in recent years and has become one of the fastest growing IVD tracks.</li>
</ul>
2. Company news:
News from <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> , <a href="https://www.smartkarma.com/entities/shanghai-fosun-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:8045:1" rel="noopener">Shanghai Fosun Pharmaceutical (Group) (2196 HK)</a>, Aravive and <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology Company Limited (1833 HK)</a> about the progress of new drugs, vaccine for COVID-19, new license agreement and the establishment of the Internet Eye Center.
3. Market review:
Last week, stock price for healthcare sector in A share decreased 1.23%, while CSI 300 decreased 0.59% over the same period of time. 
4. Risk Disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:

As the population ages, it is expected that the domestic dental prosthesis market has a great potential for development.
In the future, the market of China medical beauty has a broad space for growth.
POCT (point-of-care testing) has gained popularity in recent years and has become one of the fastest growing IVD tracks.

2. Company news:
News from BeiGene Ltd (6160 HK) , Shanghai Fosun Pharmaceutical (Group) (2196 HK), Aravive and Ping An Healthcare and Technology Company Limited (1833 HK) about the progress of new drugs, vaccine for COVID-19, new license agreement and the establishment of the Internet Eye Center.
3. Market review:
Last week, stock price for healthcare sector in A share decreased 1.23%, while CSI 300 decreased 0.59% over the same period of time. 
4. Risk Disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China

Wuhan Easydiagnosis Biomedicine Co., Ltd. operates as a vitro diagnostics manufacturing company. The Company researches and develops POCT rapid diagnostic reagents and other related equipment. Wuhan Easydiagnosis Biomedicine markets its products in Asia, the European Union, South America, and other related regions.

Wuhan Easydiagnosis Biomed-A (002932 CH)

Beijing Wantai Biological (603392.CH) - How to Support Its High Valuation?

This article mainly analyzed Wantai in terms of the two core business IVD and HPV vaccine, their business outlook, the market pattern and the...

Xinyao (Criss) Wang

Zhejiang Orient Gene Biotech (688298.CH) - Clearly Undervalued with Attractive Upside Potential

This article mainly analyzed Zhejiang Orient Gene Biotech in terms of the industry characteristics, the business, the comparison with peers, the...

Xinyao (Criss) Wang

Industry Report: Insights on China IVD Industry - The POCT Market

The article analyzed China POCT market in terms of market potential, market segmentations (infectious diseases, cardiac biomarkers,diabetes,blood...

Xinyao (Criss) Wang

China Healthcare Weekly (Nov.13)

The article summarized the major industry viewpoints, company news and capital market review for China healthcare industry in the week of November...

Xinyao (Criss) Wang