HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>Jiangsu Provincial Medical Insurance Bureau organized the 7th round of centralized procurement of medical consumables, mainly including spring coil, endoscopic stapler, ultrasound knife and vacuum blood collection tube.</li>
<li>
<a href="https://www.smartkarma.com/entities/cstone-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:27882:1" rel="noopener">CStone Pharmaceuticals (2616 HK)</a> is considering a potential sale of the business. We analyzed the logic behind this deal.</li>
<li>For biotech, Mr Market can never be rational enough to see the big picture. Maybe we should be "dumb". Buy low and sell high works for all investors.</li>
</ul>


Jiangsu Provincial Medical Insurance Bureau organized the 7th round of centralized procurement of medical consumables, mainly including spring coil, endoscopic stapler, ultrasound knife and vacuum blood collection tube.

CStone Pharmaceuticals (2616 HK) is considering a potential sale of the business. We analyzed the logic behind this deal.
For biotech, Mr Market can never be rational enough to see the big picture. Maybe we should be "dumb". Buy low and sell high works for all investors.


China Healthcare Weekly (July22)-Jiangsu Province VBP, CStone's Potential Sale, Irrational Mr Market

<ul>
<li>The rebounds in healthcare sector is more due to oversold. Unfriendly macro environment could make stock price fluctuate largely.Investors would find better places to long than the current valuation level.</li>
<li>The new document about payment management measures for new technology out of CHS-DRG payment scope is an important “policy correction” signal, but there are still problems remain to be solved.</li>
<li>We analyzed our top picks and investment logic in CXO, pharmaceuticals and medical device industry. Overall, as a “defensive sector”, China healthcare has investment value in such complicated external environment.</li>
</ul>


The rebounds in healthcare sector is more due to oversold. Unfriendly macro environment could make stock price fluctuate largely.Investors would find better places to long than the current valuation level.
The new document about payment management measures for new technology out of CHS-DRG payment scope is an important “policy correction” signal, but there are still problems remain to be solved.
We analyzed our top picks and investment logic in CXO, pharmaceuticals and medical device industry. Overall, as a “defensive sector”, China healthcare has investment value in such complicated external environment.


2022H2 China Healthcare Investment Strategy and Top Picks

<ul>
<li>The key task of medical system reform in 2022 is to promote service price reform. There would be overall medical service price increase, but not all hospitals would be benefit.</li>
<li>The primary market financing of medical device CXO industry has become very hot in the past two years, but it could be challenging to form a complete industrial chain.</li>
<li>The lifting of lockdown in Shanghai/Beijing significantly reduces the pressure on supply chain and hospital operations. However, there would still be lockdown in places where positive cases are found. </li>
</ul>


The key task of medical system reform in 2022 is to promote service price reform. There would be overall medical service price increase, but not all hospitals would be benefit.
The primary market financing of medical device CXO industry has become very hot in the past two years, but it could be challenging to form a complete industrial chain.
The lifting of lockdown in Shanghai/Beijing significantly reduces the pressure on supply chain and hospital operations. However, there would still be lockdown in places where positive cases are found. 


China Healthcare Weekly (Jun.10) - Medical Service Price Reform, Medical Device CXO, Lockdown Lifted

Asia biased macro & technical analysis, Untying The Gordian Knot

Untying The Gordian Knot

Asia biased macro & technical analysis

A differentiated process with a primary focus on Asia. Technical Analysis as core and Macro drivers that could bring the view to fruition & changes that could make the idea fall apart. The objective is to be the best in class, hence corner shop.

Technical Analysis

<ul><li>I got Alibaba spectacularly wrong. The government allowed the release of new games and eased some restrictions on the tech sector.</li><li>The mood turned positive, helped by record inflows in Index funds and short covering. It helped Alibaba to rally spectacularly.</li><li>As I am looking for a retest of technology stocks, I will go for stop out until I get more clarity on long ideas.</li></ul>

I got Alibaba spectacularly wrong. The government allowed the release of new games and eased some restrictions on the tech sector.The mood turned positive, helped by record inflows in Index funds and short covering. It helped Alibaba to rally spectacularly.As I am looking for a retest of technology stocks, I will go for stop out until I get more clarity on long ideas.

Hang Seng Index Constituents 8th June 2022

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>With the declining number of daily new infections, most countries in APAC region are in process to relax their COVID-related restrictions and border re-opening.</li>
<li>While hospitals are the prime beneficiaries of re-opening, medical devices companies will also benefit from the resumption of elective surgeries. Monkeypox is not expected to have big adverse effect.</li>
<li>Investment thesis for four top picks in APAC healthcare sector remains intact, and their recent quarterly results depict their continued growth momentum.</li>
</ul>


With the declining number of daily new infections, most countries in APAC region are in process to relax their COVID-related restrictions and border re-opening.
While hospitals are the prime beneficiaries of re-opening, medical devices companies will also benefit from the resumption of elective surgeries. Monkeypox is not expected to have big adverse effect.
Investment thesis for four top picks in APAC healthcare sector remains intact, and their recent quarterly results depict their continued growth momentum.


APAC Healthcare – Good Bet on Re-Opening; Continued Strong Recovery in Top Picks

China

Wuxi Biologics is a global Contract Research, Development, and Manufacturing Organization (CRDMO) offering end-to-end solutions for biologics discovery, development, and manufacturing, including complex modalities like monoclonal antibodies and antibody-drug conjugates. The company provides comprehensive services from concept to commercialization, including vaccine CRDMO services. It was founded in 2010 and is headquartered in Wuxi, China.

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Wuxi Biologics (2269 HK)

China Healthcare Weekly (July22)-Jiangsu Province VBP, CStone's Potential Sale, Irrational Mr Market

Jiangsu Province released VBP results on medical consumables. CStone proposed a potential sale of the business.We analyzed the logic behind. Maybe...

Xinyao (Criss) Wang

2022H2 China Healthcare Investment Strategy and Top Picks

We analyze the investment strategy,top picks and logic in CXO,pharmaceuticals and medical device industry.As a “defensive sector”,China healthcare...

Xinyao (Criss) Wang

China Healthcare Weekly (Jun.10) - Medical Service Price Reform, Medical Device CXO, Lockdown Lifted

China medical system reform will increase overall service price; Medical device CXO is popular but has a long way to go; SH lockdown has lifted,...

Xinyao (Criss) Wang

Hang Seng Index Constituents 8th June 2022

I got Alibaba spectacularly wrong. The government allowed the release of new games and eased some restrictions on the tech sector.

Untying The Gordian Knot

APAC Healthcare – Good Bet on Re-Opening; Continued Strong Recovery in Top Picks

Amid the declining new COVID infections and economy re-opening, top picks in APAC healthcare sector are poised to benefit. Their recent quarterly...

Tina Banerjee

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