HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>Entering 2024, more provinces/regions have included assisted reproductive medical service projects into medical insurance reimbursement scope. It is expected that the government will accelerate the introduction of supporting measures ahead.</li>
<li>Livzon’s performance in 2023 was disappointing.For BGI, even if the BIOSECURE Act passes and BGI is sanctioned by the US, the overall impact on the company is limited and controllable.</li>
<li>Jinxin has gradually recovered from the negative impact of COVID-19.With the recovery of international flights and the increase in the number of patients, the Company would be back on track. </li>
</ul>


Entering 2024, more provinces/regions have included assisted reproductive medical service projects into medical insurance reimbursement scope. It is expected that the government will accelerate the introduction of supporting measures ahead.
Livzon’s performance in 2023 was disappointing.For BGI, even if the BIOSECURE Act passes and BGI is sanctioned by the US, the overall impact on the company is limited and controllable.
Jinxin has gradually recovered from the negative impact of COVID-19.With the recovery of international flights and the increase in the number of patients, the Company would be back on track. 


China Population Policies Impact on Healthcare Companies Series – Part 4

Equity Capital Markets

Belle Fashion Group / Equity Capital Markets

<ul>
<li>The core of Belle's transformation is to inject “digitalization” into existing massive store assets, with strategy of “omnichannel+multi brands”. Belle also devotes significant resources to online channels and online-to-offline integration.</li>
<li>Benefiting from the DTC retail model, Belle increases the probability of success when launching products. Licensing/acquisition are important ways to empower new brands and promote growth. Belle’s performance has rebounded.</li>
<li>However, the path of transformation hasn't yet been completed. Belle still mainly relies on heavy asset mode and is exposed to inventory risks. There ‘s still room for further improvement.</li>
</ul>


The core of Belle's transformation is to inject “digitalization” into existing massive store assets, with strategy of “omnichannel+multi brands”. Belle also devotes significant resources to online channels and online-to-offline integration.
Benefiting from the DTC retail model, Belle increases the probability of success when launching products. Licensing/acquisition are important ways to empower new brands and promote growth. Belle’s performance has rebounded.
However, the path of transformation hasn't yet been completed. Belle still mainly relies on heavy asset mode and is exposed to inventory risks. There ‘s still room for further improvement.


Pre-IPO Belle Fashion Group - Performance Has Picked Up, but Not yet Reversed

BenQ BM Holding Cayman Corp. / Equity Capital Markets

BenQ BM Holding Cayman Corp., a subsidiary of Qisda Group, listing in Hong Kong.

<ul>
<li>The business model for general hospitals is not good (e.g. heavy assets, challenging operations, low profits, difficult to replicate and expand nationwide), which has never been a profitable business.</li>
<li>BenQ’s profitability is not attractive if compared with for-profit specialized hospitals. The “benefit chain” of hospitals is actually very complicated, which makes it challenging to attract/retain good medical talents.</li>
<li>BenQ’s overall revenue growth could slow down in the future. Its profit margin is also not attractive. It would be difficult for BenQ to achieve a high valuation after IPO. </li>
</ul>


The business model for general hospitals is not good (e.g. heavy assets, challenging operations, low profits, difficult to replicate and expand nationwide), which has never been a profitable business.
BenQ’s profitability is not attractive if compared with for-profit specialized hospitals. The “benefit chain” of hospitals is actually very complicated, which makes it challenging to attract/retain good medical talents.
BenQ’s overall revenue growth could slow down in the future. Its profit margin is also not attractive. It would be difficult for BenQ to achieve a high valuation after IPO. 


Pre-IPO BenQ BM Holding - Profitability Will Be Disappointing Due To "Flaws" In Business Model

Equity Bottom-Up

Innovent Biologics Inc / Equity Bottom-Up

Innovent Biologics, Inc. operates as a biopharmaceutical company. The Company develops, manufactures, and distributes monoclonal antibody drug candidates for the treatment of oncology, ophthalmology, autoimmune, cardiovascular, and other diseases. Innovent Biologics serves customers in China.

<ul>
<li>23H2 net loss significantly widened as cost control was not as tight as in 23H1. Expenses would remain high in 2024, since Innovent would continue expanding team in CVM field.</li>
<li>Innovent may think that not many players will join the competition of weight loss drug in short-term, but the actual commercialization of mazdutide after launch could be full of uncertainties.</li>
<li>It’s already good for Innovent to be breakeven in 2025. If Innovent breaks even in 2024, it will exceed expectations.Considering major policy shift, Innovent could experience a leap in valuation.</li>
</ul>


23H2 net loss significantly widened as cost control was not as tight as in 23H1. Expenses would remain high in 2024, since Innovent would continue expanding team in CVM field.
Innovent may think that not many players will join the competition of weight loss drug in short-term, but the actual commercialization of mazdutide after launch could be full of uncertainties.
It’s already good for Innovent to be breakeven in 2025. If Innovent breaks even in 2024, it will exceed expectations.Considering major policy shift, Innovent could experience a leap in valuation.


2024 High Conviction Update: Innovent (1801.HK) - Breakeven Is Still on Track Despite Soaring Costs

<ul>
<li>The Israel-Hamas war could be presented “in a new way” or in a way that people cannot understand,which could get out-of-control since the US cannot stand idly by this time.</li>
<li>The timing of the Israel-Hamas war coincided with the turning point of Sino-US game as well as the turning point of global economic downturn - Global depression may erupt next year.</li>
<li>Crisis is a danger for the weak, but an opportunity for the strong and a gift for the prepared.We listed key points to help investors understand the logic/prepare in advance.</li>
</ul>


The Israel-Hamas war could be presented “in a new way” or in a way that people cannot understand,which could get out-of-control since the US cannot stand idly by this time.
The timing of the Israel-Hamas war coincided with the turning point of Sino-US game as well as the turning point of global economic downturn - Global depression may erupt next year.
Crisis is a danger for the weak, but an opportunity for the strong and a gift for the prepared.We listed key points to help investors understand the logic/prepare in advance.


Escalation of Israel-Hamas War - Here's How Investors Should Position Themselves in Dramatic Changes

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

Xinyao (Criss) Wang
HK/China Healthcare Analyst (ex-Fosun Pharma)

China Population Policies Impact on Healthcare Companies Series – Part 4

Different provinces expand coverage for assisted reproductive services in medical insurance. Livzon missed expectation in 2023.US sanction on BGI...

Xinyao (Criss) Wang

Pre-IPO Belle Fashion Group - Performance Has Picked Up, but Not yet Reversed

After years of accumulation/continuous optimization, Belle’s DTC omnichannel retail network has solidified foundation of performance growth. But...

Xinyao (Criss) Wang

Pre-IPO BenQ BM Holding - Profitability Will Be Disappointing Due To "Flaws" In Business Model

General hospitals like BenQ face challenges due to their business model, with low profits and difficulty attracting/retaining talent, leading to...

Xinyao (Criss) Wang

2024 High Conviction Update: Innovent (1801.HK) - Breakeven Is Still on Track Despite Soaring Costs

Loose cost control led to an expansion of losses in 23H2, but the goal of breakeven in 2025 is still within the plan, which could be achieved...

Xinyao (Criss) Wang

Escalation of Israel-Hamas War - Here's How Investors Should Position Themselves in Dramatic Changes

Iran's attack on Israel is just the start.The escalation of Middle East conflict seems inevitable. In 24H2, we may see a series of "beyond...

Xinyao (Criss) Wang

China Population Policies Impact on Healthcare Companies Series – Part 4

​Different provinces expand coverage for assisted reproductive services in medical insurance. Livzon missed expectation in 2023.US sanction on BGI...

Xinyao (Criss) Wang

Pre-IPO Belle Fashion Group - Performance Has Picked Up, but Not yet Reversed

After years of accumulation/continuous optimization, Belle’s DTC omnichannel retail network has solidified foundation of performance growth. But...

Xinyao (Criss) Wang

Pre-IPO BenQ BM Holding - Profitability Will Be Disappointing Due To "Flaws" In Business Model

​General hospitals like BenQ face challenges due to their business model, with low profits and difficulty attracting/retaining talent, leading to...

Xinyao (Criss) Wang

2024 High Conviction Update: Innovent (1801.HK) - Breakeven Is Still on Track Despite Soaring Costs

Loose cost control led to an expansion of losses in 23H2, but the goal of breakeven in 2025 is still within the plan, which could be achieved...

Xinyao (Criss) Wang

Escalation of Israel-Hamas War - Here's How Investors Should Position Themselves in Dramatic Changes

Iran's attack on Israel is just the start.The escalation of Middle East conflict seems inevitable. In 24H2, we may see a series of "beyond...

Xinyao (Criss) Wang

Different provinces expand coverage for assisted reproductive services in medical insurance. Livzon missed expectation in 2023.US sanction on BGI...

General hospitals like BenQ face challenges due to their business model, with low profits and difficulty attracting/retaining talent, leading to...