Daily Brief Health Care: Mankind Pharma, BeiGene Ltd, Shanghai Tofflon Science A and more

In today’s briefing:

Weekly Deals Digest (07 May) – Mankind, Nexus, Tata Tech, AAG, Golden Energy, Lian Beng, Penguin
BeiGene (6160.HK/BGNE.US) 23Q1 – Qualitative Changes Are Taking Place
Shanghai Tofflon Science (300171.CH) 2022/23Q1 – It’s Better Not to Go Against the Trend

Weekly Deals Digest (07 May) – Mankind, Nexus, Tata Tech, AAG, Golden Energy, Lian Beng, Penguin

A significant change in 23Q1 was not just a narrowing of net loss, but a sudden turnaround in sales profit under the rapid revenue growth, which was an important leap.
BeiGene’s commercialization capabilities largely rely on high expense level that significantly deviating from the industry average, making eventual commercialization success more difficult. BeiGene is an “outlier” even among global peers.
How to control expenses while ensuring sustained sales growth and long-term competitiveness is an important issue for BeiGene. If no new blockbuster product emerges ultimately, high valuation would not last.

Tofflon needs to go through a considerable period of adjustment after experiencing the high point of performance. Its “periodicity” is obvious, which means the performance high growth is not sustainable.
The decline in growth rate of contract liabilities suggests that the future prospects is highly uncertain. Overall margins could continue to drop due to reduction in high margin overseas orders.
Unless there’s a major catalyst, it’s difficult to see significant valuation boost in short term. Given the current downward trend in performance, valuation may continue to decline in the future.

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