Daily Briefs

• Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)’s IFA opines that the consortium’s HK$9.25 privatisation offer is fair and reasonable. The vote is on 10 November. 
• I previously argued that the vote carries risk due to a solid interim, the imminent surgical robot growth story, unfavourable AGM voting patterns, and emerging retail opposition.
• However, the risk has been lowered due to Bin Yuan and LYFE no longer being shareholders, along with the peer derating. At the last close, the gross/annualised spread is 3.7%/22.0%.

• Kuros Biosciences is rapidly transitioning into a high-growth, profitable medical device company, driven by the commercial success of its MagnetOs bone graft portfolio.
• Compelling Level 1 clinical data for MagnetOs, demonstrating superiority over the current gold standard (autograft) in challenging spinal fusion procedures, serves as a powerful commercial driver and solidifies its competitive advantage.
• Having recently achieved its first operating profit and positive EBITDA, the company is at a financial inflection point, with a clear path to sustained profitability and cash flow generation, significantly de-risking the investment profile.

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Key points (machine generated)

• CNC has withdrawn financial guidance due to a $1.8 billion shortfall from the Affordable Care Act and rising Medicaid costs, causing stock price to drop to $32.
• Market perception indicates a permanent earnings impairment at 4.5 times the projected adjusted EPS of $7.17 for 2024, but EPS could rebound to at least $7.06 in 18 to 24 months.
• CNC, the largest managed care organization for U.S. government-sponsored health insurance, serves 27.9 million members and has shifted its capital allocation strategy towards share repurchases since 2022.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Acotec Scientific is a leading domestic player in China’s drug-coated balloon (DCB) market, poised to benefit from the growing prevalence of vascular diseases and the increasing adoption of minimally invasive procedures.
• The company has demonstrated a strong growth trajectory, with robust revenue and net income increases, and is expanding its product pipeline and international presence, notably through a strategic partnership with Boston Scientific.
• Key risks revolve around China’s volume-based procurement (VBP) policy, which exerts significant pricing pressure, and increasing competition from both domestic and international medical device manufacturers.

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• The performance fluctuations of Cofoe in recent years are mainly due to the fade of COVID-19 dividend, excessive dependence on marketing/online channels, and insufficient investment in its own R&D.
• Yuyue’s internationalization is more mature as products are more recognized by overseas customers. Yuyue has been able to achieve internationalization through independent branding/OBM, while Cofoe is lagging behind.
• The model of “emphasizing marketing over R&D” is hard to last. We think reasonable valuation of Cofoe could be lower than Yuyue and may also be lower than Winner Medical.

• NurExone (OTC-NRXBF) is a preclinical stage biotech company that is developing a breakthrough treatment for spinal cord injuries that has the potential to dramatically improve lives.
• The technology involved also has the potential to more efficiently get other treatments to the needed area.
• The company announced that tests on its signature product, ExePTEN, showed that it produced a reproducible, dose-dependent therapeutic effect in an eye model of glaucoma.

• Duality Biotherapeutics (9606 HK)‘ s raised around US$200m in its Hong Kong listing in April 2025. The lockup on its cornerstone and pre-IPO investors is set to expire today.
• Duality is a biopharma company focused primarily on the independent discovery and development of antibody-drug conjugate (ADC) assets.
• In this note, we will talk about the lockup dynamics and possible placement.

• Context: The Fisher & Paykel Health (FPH AU) vs. ResMed Inc (RMD AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Fisher & Paykel Health (FPH AU) and short ResMed Inc (RMD AU) targets a 7% return. However, ResMed is more attractively valued on PEG ratio basis.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Mani Inc (7730 JP) FY25 revenue increased 5% YoY to ¥29.9B while Operating margin deteriorated to 27.3%, down 210bps. Dental segment reported the worst margin decline from 18.7% to 11.7%.
• The company said that the impact voluntary recall of dia-burs in China has subsided in FY25, and expects a full recovery in sales from FY26.
• FY26 guidance expect revenue rise 9% to ¥32.8B with impact of recalls subsiding. Profits and margins are also expected to witness a significant uptick.