Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

China Shineway Pharmaceutical / Equity Bottom-Up

A year ago, I wrote about <a href="https://www.smartkarma.com/entities/6241" target="_blank" data-smartkarma-citation="entities:6241:1">China Shineway Pharmaceutical Group Ltd. (2877 HK)</a> that has a couple of low-cost drugs that sell in the second and third tier cities in China, limited only in Hebei Province for now but this is about to change. According to the management, the market for TCM granules is expected to be deregulated in the 3Q 2018 that sees the provincial player (currently is only allowed to sell within their home province) has the license to sell outside their home province. With strong sales staff and production capability, China Shineway is positioned to take advantage of the TCM granules deregulation. Burdened with stagnant sales growth over the past 5 years, the company can potentially turn into a growth story. In this report, we will discuss the following:<ol>
<li>Recent share price development</li>
<li>Q1 2018 update</li>
<li>Grassroots medical institution development in China</li>
<li>Update on China Shineway Pharmaceutical</li>
<li>Nationwide movement on TCM granules and Injection</li>
<li>Valuation</li>
</ol>

A year ago, I wrote about China Shineway Pharmaceutical Group Ltd. (2877 HK) that has a couple of low-cost drugs that sell in the second and third tier cities in China, limited only in Hebei Province for now but this is about to change. According to the management, the market for TCM granules is expected to be deregulated in the 3Q 2018 that sees the provincial player (currently is only allowed to sell within their home province) has the license to sell outside their home province. With strong sales staff and production capability, China Shineway is positioned to take advantage of the TCM granules deregulation. Burdened with stagnant sales growth over the past 5 years, the company can potentially turn into a growth story. In this report, we will discuss the following:
Recent share price development
Q1 2018 update
Grassroots medical institution development in China
Update on China Shineway Pharmaceutical
Nationwide movement on TCM granules and Injection
Valuation


China Shineway(2877: HK): Beneficiary from Deregulation of Non-Essential Drug in Grassroots Level

China

Shenzhen New Nanshan Holding Group Co., Ltd manufactures and designs pre-fabricated houses, products include construction sites offices and houses, special houses for energy or mining projects, urban municipal settlement houses, houses for municipal, tourism, sports exhibition and large commercial activities, and houses for military uses.

Yahgee Modular House Group (002314 CH)

China Shineway(2877: HK): Beneficiary from Deregulation of Non-Essential Drug in Grassroots Level

A year ago, I wrote about China Shineway Pharmaceutical Group Ltd. (2877 HK) that has a couple of low-cost drugs that sell in the second and third...

Henry Soediarko