Health Care: Apollo Hospitals Enterprise, Kalbe Farma, Yunkang Group, Shanghai Pulse Medical Technology and more

In today’s briefing:

NIFTY50 Index Rebalance: Apollo Hospitals to Replace IOC

As expected, Apollo Hospitals Enterprise (APHS IN) will replace Indian Oil Corp (IOCL IN) in the NIFTY Index (NIFTY INDEX) after the close of trading on 30 March.
The index methodology has been changed to make new listings eligible for index inclusion if they complete one month by the review cutoff date, down from three months earlier.
Estimated one-way turnover is 0.63% and will result in a one-way trade of around INR 14bn. Passive trackers will have a lot to trade on the stocks.

Kalbe Farma (KLBF IJ) released a reassuring set of results with sales growing +13.6% and net profit by +12.5% in 2021, with growth coming from prescription drugs and distribution
2022 should see growth picking up across all of its divisions with recovery for consumer health and nutritionals plus its digital strategies are starting to make a difference.
Kalbe Farma trades in 22.8x FY22E PER and 21.0x FY23E PER versus its 5-year average forward PER of 26.3x forward PER, making it look attractive at current levels.

Yunkang Group (YK HK) is looking to raise about US$200m in its upcoming Hong Kong IPO.
Yunkang Group is a medical operation service provider in China and as per F&S, had a market share of 3.7% in China’s medical operation service market as per 2020 revenue.
While it has managed to grow its on-site diagnostics centers, the firm has to prove that it can still thrive post-COVID.

Shanghai Pulse is a leading player in the FFR assessment in China. The company is looking to raise up to USD 200 m via a Hong Kong listing.
We look at the company’s key products QFR, OFR and UFR. We also provide our thoughts on the investment thesis.
We think the company has a decent investor backing and meanwhile we also highlight concerns on its management.

Before it’s here, it’s on Smartkarma