Daily BriefsHealthcare

Daily Brief Health Care: Angelalign Technology, Jupiter Wellness and more

In today’s briefing:

  • Angelalign Technology (6699 HK): 1H22 Profit Drops As Challenging Operating Environment Continued
  • Jupiter Wellness – Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 09/22
  • Angelalign Technology (6699.HK) 22H1 – Still “Bubble” in Valuation; The Era of High Margin Is Over

Angelalign Technology (6699 HK): 1H22 Profit Drops As Challenging Operating Environment Continued

By Tina Banerjee

  • Angelalign Technology (6699 HK) has reported muted H1 2022 results, which were negatively impacted by the resurgence of the COVID-19 pandemic in China and the corresponding restrictions.
  • Revenue from core business of clear aligner treatment grew just 3% y/y. However, lower ASP and higher cost of sales, pulled down the gross profit margin by 930bps to 60.2%.
  • Thus far in H2 2022, China has imposed lockdowns in multiple major cities. With the uncertainty over the duration of COVID, no immediate respite is seen in Angelalign’s business.

Jupiter Wellness – Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 09/22

By Baptista Research

  • This is our first report on Jupiter Wellness and we look to provide a detailed account of the various drivers that will be responsible for the company’s growth in the coming years.
  • With all of these developments, a stock priced at 63 cents appears to be highly affordable and supports our positive outlook.
  • Overall, we believe that Jupiter has phenomenal growth prospects and is an excellent investment prospect.

Angelalign Technology (6699.HK) 22H1 – Still “Bubble” in Valuation; The Era of High Margin Is Over

By Xinyao (Criss) Wang

  • Due to declining performance, lack of core competitiveness and increasing competition, the market has to re-examine the growth potential and outlook of Angelalign.The era of high margin is fading away.
  • Angelalign’s low-price strategy is easily hit by similar products with lower prices. Once its price loses advantage, it will directly lead to a rapid and substantial decline in overall performance.
  • Due to its worse-than-expected 2022H1 performance and economic downturn, we lowered our 2022 forecast of Angelalign. Angelalign shouldn’t be valued that much higher than Align Technology, expecting more downside ahead. 

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