HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 13 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

China Resources Medical - Hard to Earn High Profits Due to Poor Business Model and Policy Risk

Micro-Tech Nanjing (688029.CH) - Potential for Reversals Despite Short-Term Pressure on Performance

China Healthcare Weekly (July.29)-Subsidy for VBP, Unpredictable NMPA, Ways for Internationalization

China Healthcare Weekly (July.1)- TCM New Policy, Private Hospitals Survival Pressure, Sino Biopharm

China Healthcare Weekly (July.15)-7th VBP, Policy Correction Signs, Orthopedic Spine Consumables VBP

Gushengtang (2273.HK) - The Development Momentum Is Good, but There Are Also Challenges

Gravity Works As WeWork Doesn't; Now Plan B

Bifurcated Chinese Express Market Developing

Equity Bottom-Up

China Traditional Chinese Medicine / Equity Bottom-Up

China Traditional Chinese Medicine (570 HK)

<ul>
<li>China Traditional Chinese Medicine released unsatisfactory 2022H1 profit warning, which was mainly due to the poor performance on both revenue and cost side of its core business concentrated TCM granules.</li>
<li>We analyzed the policy impact and business outlook. The Company’s performance would be under pressure in 2022. The VBP impact on concentrated TCM granules hasn’t shown up in financial reports.</li>
<li>Overall, we are skeptical of the Company's profitability in the long term, and its profit margin will struggle to support a significant expansion in valuation.</li>
</ul>


China Traditional Chinese Medicine released unsatisfactory 2022H1 profit warning, which was mainly due to the poor performance on both revenue and cost side of its core business concentrated TCM granules.
We analyzed the policy impact and business outlook. The Company’s performance would be under pressure in 2022. The VBP impact on concentrated TCM granules hasn’t shown up in financial reports.
Overall, we are skeptical of the Company's profitability in the long term, and its profit margin will struggle to support a significant expansion in valuation.


China Traditional Chinese Medicine (570.HK) - Short-Term Performance Pressure Is Hard to Avoid