Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

Shenton Research

Shenton Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of CSI 100 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on CHINA VANKE, COSCO SHIPPING, CHINA STATE CONSTRUCTION ENGINEERING, Longi Green, POWERCHINA, AVIC SHENYANG AIRCRAFT.</li>
</ul>


We analysed the earning revision of component stocks of CSI 100 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on CHINA VANKE, COSCO SHIPPING, CHINA STATE CONSTRUCTION ENGINEERING, Longi Green, POWERCHINA, AVIC SHENYANG AIRCRAFT.


CSI 100 Index Earning Revision (Sep): CHINA VANKE, COSCO SHIPPING, Longi Green, POWERCHINA

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>By comparing medical insurance expenditure and income, as well as the pharmaceutical manufacturing revenues and profits for the same period, we find something interesting. </li>
<li>Due to COVID-19, the sales of TCM in 22Q4 and 23Q1 surged. But in 23Q2-Q4, people's demand could change. Therefore, the performance of related TCM company would also switch. </li>
<li>New generation weight loss drugs represented by Semaglutide would change the logic and supply-demand relationship of the entire market. This is a situation that investors need to be aware of.</li>
</ul>


By comparing medical insurance expenditure and income, as well as the pharmaceutical manufacturing revenues and profits for the same period, we find something interesting. 
Due to COVID-19, the sales of TCM in 22Q4 and 23Q1 surged. But in 23Q2-Q4, people's demand could change. Therefore, the performance of related TCM company would also switch. 
New generation weight loss drugs represented by Semaglutide would change the logic and supply-demand relationship of the entire market. This is a situation that investors need to be aware of.


China Healthcare Weekly (Jul.14)-TCM Demand Switch, 8% Benchmark Growth Rate, GLP-1 Change Game Rule

<ul>
<li>Policies will determine the development direction of the industry, which would then determine the profit model of companies. Companies that align with policy direction would outperform in the coming cycle.</li>
<li>The prosperity of the industry would determine the development trend of companies. For China healthcare, without a significant policy shift, it would be difficult for industry beta to emerge.</li>
<li>Domestic companies cannot achieve successful commercialization/internationalization mainly because they don’t have excellent enough products. It must be innovation that keeps companies alive and then thrive, rather than relying on policy changes.</li>
</ul>


Policies will determine the development direction of the industry, which would then determine the profit model of companies. Companies that align with policy direction would outperform in the coming cycle.
The prosperity of the industry would determine the development trend of companies. For China healthcare, without a significant policy shift, it would be difficult for industry beta to emerge.
Domestic companies cannot achieve successful commercialization/internationalization mainly because they don’t have excellent enough products. It must be innovation that keeps companies alive and then thrive, rather than relying on policy changes.


The Cyclicality of China Healthcare - Policy Environment, the Industry, and Investment Opportunities

<ul>
<li>The overvaluation or undervaluation of China core assets cannot be explained solely by valuation models such as PE/PB/DCF etc., but rather by considering the deep meaning represented by them.</li>
<li>The so-called policy, strategic, and systemic importance are playing increasingly important role in stock picking process. It's not wise to just analyze it from bottom-up perspective without considering top-down perspective.</li>
<li>There’s no eternal,universal,absolute truth in this world. We’re in the midst of a "unprecedented upheaval in a century".It's time to change mindset so investors don't miss the next valuation takeoff.</li>
</ul>


The overvaluation or undervaluation of China core assets cannot be explained solely by valuation models such as PE/PB/DCF etc., but rather by considering the deep meaning represented by them.
The so-called policy, strategic, and systemic importance are playing increasingly important role in stock picking process. It's not wise to just analyze it from bottom-up perspective without considering top-down perspective.
There’s no eternal,universal,absolute truth in this world. We’re in the midst of a "unprecedented upheaval in a century".It's time to change mindset so investors don't miss the next valuation takeoff.


Valuation System with Chinese Characteristics – the Correct Interpretation and Its Deep Meaning

<ul>
<li>The current policy environment determines that TCM is the core asset of pharmaceuticals, not innovative drugs. We think it is necessary to take a fresh look at TCM industry.</li>
<li>TCM formula granules have more opportunities. Exclusive variety of branded OTC TCM has better outlook. TCM medical services also deserve investors’ attention, because hospitals are the main channels for TCM. </li>
<li>China's pharmaceutical industry has its unique features. We recommend investors to leave a place in the portfolio to invest in TCM companies, which could outperform in the current pharmaceutical environment.</li>
</ul>


The current policy environment determines that TCM is the core asset of pharmaceuticals, not innovative drugs. We think it is necessary to take a fresh look at TCM industry.
TCM formula granules have more opportunities. Exclusive variety of branded OTC TCM has better outlook. TCM medical services also deserve investors’ attention, because hospitals are the main channels for TCM. 
China's pharmaceutical industry has its unique features. We recommend investors to leave a place in the portfolio to invest in TCM companies, which could outperform in the current pharmaceutical environment.


China Traditional Chinese Medicine (TCM) Industry - TCM Is Becoming Indispensable in the Portfolio

China

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. manufactures and markets Chinese traditional medicines, including Pientzehuang, Pientzehuang capsules, Pientzehuang lozenge, cough syrup, and other related products.

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)

CSI 100 Index Earning Revision (Sep): CHINA VANKE, COSCO SHIPPING, Longi Green, POWERCHINA

We analyzed CSI 100's consensus for Sep 2026 and highlighted changes of EPS in CHINA VANKE, COSCO SHIPPING, CHINA STATE CONSTRUCTION ENGINEERING,...

Ke Yan, CFA, FRM

China Healthcare Weekly (Jul.14)-TCM Demand Switch, 8% Benchmark Growth Rate, GLP-1 Change Game Rule

8% could be a benchmark growth rate for future healthcare industry. People's TCM demand switch will lead to changes in TCM company's performance....

Xinyao (Criss) Wang

The Cyclicality of China Healthcare - Policy Environment, the Industry, and Investment Opportunities

Without industry beta, China healthcare companies still have opportunity to achieve countercyclical breakthrough.Investors need to be in line with...

Xinyao (Criss) Wang

Valuation System with Chinese Characteristics – the Correct Interpretation and Its Deep Meaning

Many investors do not have a deep understanding of the "valuation system with Chinese characteristics". It is necessary to provide some...

Xinyao (Criss) Wang

China Traditional Chinese Medicine (TCM) Industry - TCM Is Becoming Indispensable in the Portfolio

The current policy environment in China indicates that TCM is core asset of pharmaceuticals, not innovative drug R&D. It''s time to take TCM...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)