HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Guangzhou Baiyunshan Pharmaceutical Holdings / Equity Bottom-Up

Guangzhou Baiyunshan Pharmaceutical Holdings

<ul>
<li>
<a href="https://www.smartkarma.com/entities/guangzhou-baiyunshan-pharmaceutical-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:276:1" rel="noopener">Guangzhou Baiyunshan Pharmaceutical Holdings (874 HK)</a>, mainly relying on Wang Lao Ji and Jin Ge for performance contribution, is relatively weak in risk resistance compared with other biopharmaceutical companies.</li>
<li>With the promotion of medical reform policies such as VBP, Baiyunshan’s weaknesses of R&amp;D and innovation that support the business transition would be more prominent.</li>
<li>Baiyunshan may lack the core competitiveness for future development. Therefore, we are conservative about its outlook, but investors could still trade this stock when the whole TCM sector moves up.</li>
</ul>



Guangzhou Baiyunshan Pharmaceutical Holdings (874 HK), mainly relying on Wang Lao Ji and Jin Ge for performance contribution, is relatively weak in risk resistance compared with other biopharmaceutical companies.
With the promotion of medical reform policies such as VBP, Baiyunshan’s weaknesses of R&amp;D and innovation that support the business transition would be more prominent.
Baiyunshan may lack the core competitiveness for future development. Therefore, we are conservative about its outlook, but investors could still trade this stock when the whole TCM sector moves up.


Guangzhou Baiyunshan Pharmaceutical Holdings (874.HK) - Conservative About the Outlook

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. / Equity Bottom-Up

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd.

The share price of <a href="https://www.smartkarma.com/entities/zhangzhou-pientzehuang-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:15709:1" rel="noopener">Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)</a> has been on a roller coaster this year. After hitting a record high of RMB491.88/share in July, the stock price once fell to RMB318.56/share in September, down over 35%. After that, it rebounded and closed at RMB434.99/share by the end of October 22, 2021. On the other hand, Pien Tze Huang released its 2021Q3 financial results. In the first three quarters, the revenue was RMB6.112 billion, up 20.55% YoY. Net profit attributed to shareholders was RMB2.011 billion, up 51.36%. The highlight was the net profit after deducting non-recurring gains and losses, which reached RMB891 million in Q3 single quarter, up 92.51% YoY. The results beat the market expectations. This insight mainly analyzed the 2021Q3 results and the concerns of the Company.

The share price of Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH) has been on a roller coaster this year. After hitting a record high of RMB491.88/share in July, the stock price once fell to RMB318.56/share in September, down over 35%. After that, it rebounded and closed at RMB434.99/share by the end of October 22, 2021. On the other hand, Pien Tze Huang released its 2021Q3 financial results. In the first three quarters, the revenue was RMB6.112 billion, up 20.55% YoY. Net profit attributed to shareholders was RMB2.011 billion, up 51.36%. The highlight was the net profit after deducting non-recurring gains and losses, which reached RMB891 million in Q3 single quarter, up 92.51% YoY. The results beat the market expectations. This insight mainly analyzed the 2021Q3 results and the concerns of the Company.

Pientzehuang Pharmaceutical Co., Ltd. (600436.CH) 2021Q3 - Concerns Behind The  "Double Top Secret"

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>Thoughts and concerns on domestic pharmaceutical companies.</li>
<li>Quite a few policies about the VBP on Chinese patent medicine have been launched in some provinces.</li>
<li>Foreign companies have made good preparation for the upcoming 2021 medical insurance negotiation on their PD-1/L1 products. 
</li>
</ul>Company news:News about the updated progress on M&amp;A deal and new drugs of <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK),</a><a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> and <a href="https://www.smartkarma.com/entities/luye-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:488:1" rel="noopener">Luye Pharma (2186 HK)</a>.Market review:Last week, stock price for healthcare sector in A share increased 0.69%, while CSI 300 increased 1.31% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
Thoughts and concerns on domestic pharmaceutical companies.
Quite a few policies about the VBP on Chinese patent medicine have been launched in some provinces.
Foreign companies have made good preparation for the upcoming 2021 medical insurance negotiation on their PD-1/L1 products. 

Company news:News about the updated progress on M&amp;A deal and new drugs of Microport Scientific (853 HK),BeiGene Ltd (6160 HK) and Luye Pharma (2186 HK).Market review:Last week, stock price for healthcare sector in A share increased 0.69%, while CSI 300 increased 1.31% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Oct.8)-Summary of Concerns on Pharma Companies, VBP on TCM, Q4 PD-1 Bidding

Industry viewpoints:<ul>
<li>Recently, the results of the 7th demographic census was released, which is expected to drive the demand of the assisted reproduction industry.</li>
<li>The Ministry of Commerce, the State Administration of Traditional Chinese Medicine (TCM) and other seven departments jointly issued an announcement to support the development of TCM service trade and the promotion of TCM going global.</li>
<li>The room for import substitution in China chromatography packing/chromatographic medium industry would be very large.</li>
</ul>Company news:News about the updated progress on drugs and acquisition of <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, <a href="https://www.smartkarma.com/entities/shenzhen-mindray-bio-medic-a" target="_blank" data-smartkarma-citation="entities:28017:1" rel="noopener">Shenzhen Mindray Bio-Medical Electronics (300760 CH)</a>, <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a> and <a href="https://www.smartkarma.com/entities/innocare-pharma-ltd" target="_blank" data-smartkarma-citation="entities:28355:1" rel="noopener">InnoCare Pharma Ltd (9969 HK)</a>.Market review:Last week, stock price for healthcare sector in A share decreased 0.69%, while CSI 300 increased 0.46% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
Recently, the results of the 7th demographic census was released, which is expected to drive the demand of the assisted reproduction industry.
The Ministry of Commerce, the State Administration of Traditional Chinese Medicine (TCM) and other seven departments jointly issued an announcement to support the development of TCM service trade and the promotion of TCM going global.
The room for import substitution in China chromatography packing/chromatographic medium industry would be very large.
Company news:News about the updated progress on drugs and acquisition of Innovent Biologics Inc (1801 HK), Shenzhen Mindray Bio-Medical Electronics (300760 CH), Everest Medicines (1952 HK) and InnoCare Pharma Ltd (9969 HK).Market review:Last week, stock price for healthcare sector in A share decreased 0.69%, while CSI 300 increased 0.46% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

<a href="https://www.smartkarma.com/entities/zhangzhou-pientzehuang-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:15709:1" rel="noopener">Zhangzhou Pientzehuang Pharmaceutical Co (600436 CH)</a> recently released the performance report in 2020. For the whole year 2020, the revenue was RMB6.507 billion, up 13.72% YoY. Net income attributed to shareholders was RMB1.67 billion, up 21.27% YoY. Net income after deducting non-recurring gains and losses was RMB1.613 billion, up 19.11% YoY. In 2020Q4, the Company's revenue was RMB1.381 billion, up 4.11% YoY. Net income attributed to shareholders was RMB338 million, up 27.31% YoY. Net income after deducting non-recurring gains and losses was RMB292 million, up 16.36% YoY. The Company's performance was in line with the market expectation.

Zhangzhou Pientzehuang Pharmaceutical Co (600436 CH) recently released the performance report in 2020. For the whole year 2020, the revenue was RMB6.507 billion, up 13.72% YoY. Net income attributed to shareholders was RMB1.67 billion, up 21.27% YoY. Net income after deducting non-recurring gains and losses was RMB1.613 billion, up 19.11% YoY. In 2020Q4, the Company's revenue was RMB1.381 billion, up 4.11% YoY. Net income attributed to shareholders was RMB338 million, up 27.31% YoY. Net income after deducting non-recurring gains and losses was RMB292 million, up 16.36% YoY. The Company's performance was in line with the market expectation.

Pientzehuang Pharmaceutical (600436.CH) - The Only "Double Top Secret" Traditional Chinese Medicine

China

Yunnan Baiyao Group Co., Ltd. manufactures and markets traditional Chinese medicines.  The Company also operates in pharmaceutical wholesale and retail trading, empty capsules manufacturing, and hotel operation.

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Yunnan Baiyao Group Co., (000538 CH)

Guangzhou Baiyunshan Pharmaceutical Holdings (874.HK) - Conservative About the Outlook

This insight analyzed Baiyunshan’s 2021Q3 performance, the core business segments, the comparison with peers, the concerns on business transition,...

Xinyao (Criss) Wang

Pientzehuang Pharmaceutical Co., Ltd. (600436.CH) 2021Q3 - Concerns Behind The "Double Top Secret"

The article mainly analyzed Zhangzhou Pien Tze Huang Pharmaceutical in terms of its 2021Q3 results and the concerns on medical efficacy, collection...

Xinyao (Criss) Wang

China Healthcare Weekly (Oct.8)-Summary of Concerns on Pharma Companies, VBP on TCM, Q4 PD-1 Bidding

The article analyzed thoughts and concerns on domestic pharmaceutical companies, VBP on Chinese patent medicine and foreign companies' preparation...

Xinyao (Criss) Wang

China Healthcare Weekly (May.21)

The article analyzed the results and potential impact of the 7th demographic census,new policy on TCM market,insights on China chromatography...

Xinyao (Criss) Wang

Pientzehuang Pharmaceutical (600436.CH) - The Only "Double Top Secret" Traditional Chinese Medicine

The article analyzed Pien Tze Huang in terms of market potential, the scarcity, the impact of price increase, profitability comparison with...

Xinyao (Criss) Wang

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