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.

Guangzhou Kingmed Diagnostics (603882.CH) - There Is Still Investment Value that Cannot Be Ignored

BeiGene (6160.HK/​BGNE.US) - AbbVie‘s Patent Infringement Allegations Are Not as Simple as Imagined

Viva Biotech Holdings (1873.HK) - The Restructuring Plan Would Not Turn Things Around

Kingmed Diagnostics (603882 CH) Vs Dian Diagnostics (300244 CH) - Which One Is Better?

Zhifei Biological Products (300122.CH) - More Downside Ahead, with Untenable Logic in HPV Vaccine

China Healthcare Weekly (Oct.21) - Electrophysiology VBP; Orthodontics VBP New Progress; HPV Vaccine

Gravity Works As WeWork Doesn't; Now Plan B

Equity Bottom-Up

Guangzhou Kingmed Diagnostics / Equity Bottom-Up

Guangzhou Kingmed Diagnostics (603882 CH)

<ul>
<li>Driven by the demand for nucleic acid testing due to COVID-19, Kingmed's 22Q3 performance continued to grow. However, its accounts receivable also increased sharply, which would be a risk. </li>
<li>Kingmed has to switch business in time when the huge demand for nucleic acid testing fades away.The YoY growth of other businesses would be the key to decide its outlook.</li>
<li>The current valuation of Kingmed isn't attractive. After COVID-19 is under control, Kingmed’s YoY revenue growth could fall back to below 40%. Net profit margin could reduce to above 10%.</li>
</ul>


Driven by the demand for nucleic acid testing due to COVID-19, Kingmed's 22Q3 performance continued to grow. However, its accounts receivable also increased sharply, which would be a risk. 
Kingmed has to switch business in time when the huge demand for nucleic acid testing fades away.The YoY growth of other businesses would be the key to decide its outlook.
The current valuation of Kingmed isn't attractive. After COVID-19 is under control, Kingmed’s YoY revenue growth could fall back to below 40%. Net profit margin could reduce to above 10%.


Guangzhou Kingmed Diagnostics (603882CH)-Soaring Accounts Receivable/Potential Bad Debt Are Big Risk