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 Resources Pharmaceutical (3320.HK) - Growth Recovery and SOE Advantages Improve the Outlook

Pre-IPO Laekna (PHIP Updates) - Some Key Points Worth the Attention

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

Pre IPO MicroPort Cardiac Rhythm Management - The Industry, the Business and the Challenges Ahead

Valuation System with Chinese Characteristics – the Correct Interpretation and Its Deep Meaning

Sinopharm Group Co (1099.HK) - Double-Digit Growth Is Expected in 2023; Margins Have Room to Improve

China Traditional Chinese Medicine (570.HK) - The Privatization Rumor and the Outlook

Equity Bottom-Up

Shanghai Pharmaceuticals Holding / Equity Bottom-Up

Shanghai Pharmaceuticals Holding (601607 CH)

<ul>
<li>Different from peers whose pharmaceutical assets are scattered in different listed companies, all assets/resources of SH Pharma are integrated within the Company. The intrinsic value of this model is greater.</li>
<li>SH Pharma is in a traditional industry, facing weak profitability and negative policy impacts, Thus, the Company lacks attractiveness and imagination space for investors, leading to long-term undervaluation. </li>
<li>Considering the transformation to more high-margin businesses, SH Pharma’s performance/profitability would improve. Since China hopes to establish a valuation system with Chinese characteristics, there’s valuation repair opportunity for SH Pharma.</li>
</ul>


Different from peers whose pharmaceutical assets are scattered in different listed companies, all assets/resources of SH Pharma are integrated within the Company. The intrinsic value of this model is greater.
SH Pharma is in a traditional industry, facing weak profitability and negative policy impacts, Thus, the Company lacks attractiveness and imagination space for investors, leading to long-term undervaluation. 
Considering the transformation to more high-margin businesses, SH Pharma’s performance/profitability would improve. Since China hopes to establish a valuation system with Chinese characteristics, there’s valuation repair opportunity for SH Pharma.


Shanghai Pharmaceuticals Holding (2607 HK)

Shanghai Pharmaceuticals Holding (601607.CH/2607.HK) - The Situation of Undervaluation Would Change