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UPDATE: China Medical System (CMS, 867 HK) – A Cheap Play on China’s Pending Health Care Crisis

Asian Healthcare Spend as a Percentage of GDP – the Laggards

Healthcare Equity Analyst - Emerging & Dev Markets, daaimon

Avien Pillay

Healthcare Equity Analyst - Emerging & Dev Markets

Independent Insight Provider

Equity Bottom-Up

<ul>
<li>Since our <a href="https://www.smartkarma.com/insights/update-china-medical-system-cms-867-hk-a-cheap-play-on-china-s-pending-health-care-crisis" target="_blank" rel="noopener">initiation on 5 June 2024</a>, China Medical Sytem’s share price is up 113% and the FPE has moved from less than 8 to close to 16 times.</li>
<li>The gap valuation between US drug companies and CMS has largely closed with CMS trading at a premium to a number of US counterparts.</li>
<li>The earnings outlook is largely flat since the initiation, implying the share price appreciation has been driven by a re-rating.</li>
</ul>


Since our initiation on 5 June 2024, China Medical Sytem’s share price is up 113% and the FPE has moved from less than 8 to close to 16 times.
The gap valuation between US drug companies and CMS has largely closed with CMS trading at a premium to a number of US counterparts.
The earnings outlook is largely flat since the initiation, implying the share price appreciation has been driven by a re-rating.


China Medical System (867 HK) – From an 8 to a 16 FPE