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.

China Healthcare Weekly (Nov.24) - Gold Content Of License-Out Deals, NRDL Pricing Levels, CR Sanjiu

Akeso Biopharma Placement (9926.HK) - Would Investors Be Willing to Take a Gamble?

China Shineway Pharmaceutical (2877.HK) - Performance Pressure Is About to Emerge

Escalation of Israel-Hamas War - Here's How Investors Should Position Themselves in Dramatic Changes

WuXi AppTec (2359.HK/603259.CH) 2023 Results - Time to Prepare for the Worst

Equity Bottom-Up

China Resources Sanjiu Medical & Pharma / Equity Bottom-Up

China Resources Sanjiu Medical & Pharma (000999 CH)

<ul>
<li>Sanjiu’s 2023 performance was below expectations, mainly due to the VBP of TCM formula granules and the anti-corruption since 23Q3. But dividend payout ratio reached 51.96%, the highest since 2001.</li>
<li>The prescription drug business would be the core of Sanjiu’s performance changes in next two years, especially TCM injection business, which would be benefit from favorable medical insurance reimbursement policy.</li>
<li>Sanjiu’s management expects to achieve double-digit revenue growth in 2024, with net profit matching the level of revenue growth.We think 2024 performance growth would be lower than that in 2023.</li>
</ul>


Sanjiu’s 2023 performance was below expectations, mainly due to the VBP of TCM formula granules and the anti-corruption since 23Q3. But dividend payout ratio reached 51.96%, the highest since 2001.
The prescription drug business would be the core of Sanjiu’s performance changes in next two years, especially TCM injection business, which would be benefit from favorable medical insurance reimbursement policy.
Sanjiu’s management expects to achieve double-digit revenue growth in 2024, with net profit matching the level of revenue growth.We think 2024 performance growth would be lower than that in 2023.


China Resources Sanjiu (000999.CH) - 2023 Results Below Expectations; Short-Term Headwinds Remain