HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

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Sonoscape Medical Corp / Equity Bottom-Up

<ul>
<li>Sonoscape’s 2022/23Q1 results were outstanding, but the performance growth slowed down significantly in 22Q4. We think this was just a temporary headwind.</li>
<li>Revenue of ultrasound could keep 10-15% YoY growth in the future, while the revenue growth of hard endoscopes and soft endoscopes could reach 50-100% YoY and 40-50% YoY respectively.</li>
<li>We updated our forecast based on 2022/23Q1 results. We think Sonoscape’s revenue in 2023 could be about RMB2.2 billion. Net profit margin could reach above 22% in 2023.</li>
</ul>


Sonoscape’s 2022/23Q1 results were outstanding, but the performance growth slowed down significantly in 22Q4. We think this was just a temporary headwind.
Revenue of ultrasound could keep 10-15% YoY growth in the future, while the revenue growth of hard endoscopes and soft endoscopes could reach 50-100% YoY and 40-50% YoY respectively.
We updated our forecast based on 2022/23Q1 results. We think Sonoscape’s revenue in 2023 could be about RMB2.2 billion. Net profit margin could reach above 22% in 2023.


2023 High Conviction Update: Sonoscape (300633.CH)-Profitability Will Improve as Scale Effect Emerge