Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

<p>Shijiazhuang City in Hebei Province (China) recently ordered local manufacturing companies to halt production activities in order to reduce air pollution. Four pharmaceutical companies -- North China Pharmaceutical (600812 CH), CSPC Pharmaceutical (1093 HK), SSY Group (2877 HK), and China Shineway (2877 HK) -- disclosed production halts and played down the potential financial impact (assuming that the halts are brief).  The market has largely given the companies the benefit of the doubt, but the reality is that neither the companies nor the government is in control of the situation. As a result, production halts could be longer than assumed with negative effects on earnings.</p>

Shijiazhuang City in Hebei Province (China) recently ordered local manufacturing companies to halt production activities in order to reduce air pollution. Four pharmaceutical companies -- North China Pharmaceutical (600812 CH), CSPC Pharmaceutical (1093 HK), SSY Group (2877 HK), and China Shineway (2877 HK) -- disclosed production halts and played down the potential financial impact (assuming that the halts are brief).  The market has largely given the companies the benefit of the doubt, but the reality is that neither the companies nor the government is in control of the situation. As a result, production halts could be longer than assumed with negative effects on earnings.

SSY Group Ltd

What's the Definition Of "Temporary"?