In today’s briefing:
- Imeik Technology Development (300896.CH) – Superficial Prosperity Hardly Masks Underlying Risks
- Otsuka Holdings (4578 JP) 1Q22: Global Products Continued Double-Digit Revenue Growth
Imeik Technology Development (300896.CH) – Superficial Prosperity Hardly Masks Underlying Risks
- Imeik keeps its outstanding financial performance in 2021/2022Q1. On the surface, it looks prosperous, but its development strategy, product layout and resilience in front of risks would bring many uncertainties.
- Considering the pandemic/lockdown and a slowing economy in China, the revenue growth in 2022 could fall to about 50%, then to about 40% and 30% in 2023 and 2024 respectively.
- Imeik’s valuation is “unreasonably high”, which is expected to be lower than Bloomage in the future. Anything that deviates from fundamentals would inevitably return to the origin.
Otsuka Holdings (4578 JP) 1Q22: Global Products Continued Double-Digit Revenue Growth
- Otsuka Holdings (4578 JP) started 2022 on a strong note, with 13% y/y revenue growth in Q1. Growth was driven by four global products, which contributed 36% of total revenue.
- Otsuka has terminated its global license agreements with Akebia Therapeutics related to vadadustat for the treatment of renal anemia and recorded an impairment loss of ¥24 billion.
- Despite the impairment losses related to vadadustat, Otsuka reiterated 2022 guidance and expects double-digit growth in operating and net profits.
Before it’s here, it’s on Smartkarma
