In today’s briefing:
- STAR50 Index Rebalance Preview: Four or Five Changes in December
- Simcere Pharmaceutical Group (2096.HK) 22H1 – Gloomy Outlook and Risks in Profits
STAR50 Index Rebalance Preview: Four or Five Changes in December
- Nearly 90% of the way through the review period, we see 4 changes using a 12 month minimum listing history, and 5 changes using a 6 month minimum listing history.
- There are overlaps in the inclusions using 6/12 month minimum listing history, so there is less risk if the index committee switches from 6 to 12 months at the review.
- Using a 6 month minimum listing history, one-way turnover is estimated at 5.07% and will result in a one-way trade of CNY 2,795m.
Simcere Pharmaceutical Group (2096.HK) 22H1 – Gloomy Outlook and Risks in Profits
- Simcere’s profit was mainly driven by the income of non-recurring items (investment business). Due to unfriendly external environment, investors are recommended to be prepared for further decline in net profit.
- The overall quality of Simcere’s pipeline is not high, which would be difficult to bring decent revenue in the next few years. Simcere’s transformation is not as smooth as expected.
- In fact, over the years, Simcere’s strongest capability lies in the sales rather than R&D. Since the game rule changes, we are bearish on Simcere.
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