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.

CR Sanjiu (000999.CH) To Acquire Tasly Pharma (600535.CH) - SOEs Have High Enthusiasm for TCM Assets

China TCM (570.HK) Privatization Update- Pre-Conditions Won't Be “An Obstacle” to the Entire Process

Pre-IPO Midea Group H Share - Here Are the Risks Behind

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

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

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