HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

WuXi AppTec Co., Ltd. manufactures medical products. The Company produces biological agents, antibodies, biological diagnostic reagents, and other products. WuXi AppTec also provides biological analysis, technical study, and other services.

<ul>
<li>WuXi AppTec’s 2024 results are in line with guidance. TIDES business was the key driver of WuXi Chemistry. However, the downturn of “R” business cast a shadow on performance recovery.</li>
<li>2025 is a crucial year for WuXi AppTec and the entire CXO industry, as it needs to verify whether about RMB40 billion revenue and 6,000 customers represent the ceiling/growth bottleneck?</li>
<li>The disposal of WuXi XDC shares help boost WuXi AppTec’s share price. However, due to the geopolitical conflicts/recession risks, the long-term growth prospects of WuXi AppTec are still uncertain.</li>
</ul>


WuXi AppTec’s 2024 results are in line with guidance. TIDES business was the key driver of WuXi Chemistry. However, the downturn of “R” business cast a shadow on performance recovery.
2025 is a crucial year for WuXi AppTec and the entire CXO industry, as it needs to verify whether about RMB40 billion revenue and 6,000 customers represent the ceiling/growth bottleneck?
The disposal of WuXi XDC shares help boost WuXi AppTec’s share price. However, due to the geopolitical conflicts/recession risks, the long-term growth prospects of WuXi AppTec are still uncertain.


WuXi AppTec (2359.HK/603259.CH) - The Concerns Behind the 2024 Performance Rebound and 2025 Outlook

Equity Capital Markets

Soft International Group / Equity Capital Markets

Developer, manufacturer and distributor of personal single-use hygiene products

<ul>
<li>The competition intensity of the industry in which Soft International's main business operates is expected to remain high in the future. The growth rate of major markets will maintain low.</li>
<li>Soft International’s performance has shown a downward trend as it enters 2024.This is not good news for capital markets that prioritize performance sustainability.P/E of 10x is a suitable valuation level</li>
<li>Our forecast is that Soft International’s revenue could reach RMB750-800 million in 2025 and RMB850-950 million in 2026, with CAGR of 10%-15%.Net profit margin may remain low at single digit.</li>
</ul>


The competition intensity of the industry in which Soft International's main business operates is expected to remain high in the future. The growth rate of major markets will maintain low.
Soft International’s performance has shown a downward trend as it enters 2024.This is not good news for capital markets that prioritize performance sustainability.P/E of 10x is a suitable valuation level
Our forecast is that Soft International’s revenue could reach RMB750-800 million in 2025 and RMB850-950 million in 2026, with CAGR of 10%-15%.Net profit margin may remain low at single digit.


Pre-IPO Soft International Group (PHIP Updates) - Some Points Worth the Attention

Shanghai Henlius Biotech  / Equity Bottom-Up

Shanghai Henlius Biotech, Inc develops and produces drugs. The Company develops and produces monoclonal antibody biosimilar drugs, bio betters, novel monoclonal antibodys, and other drugs. Shanghai Henlius Biotech throughout China.

<ul>
<li>LVC continues to increase its holdings in Henlius, indicating that LVC remains optimistic about Henlius as its internationalization process significantly accelerated. We are interested to see Lin Lijun’s next move. </li>
<li>In the short to medium term, based on our conservative forecast on peak sales of HANQUYOU/HANSIZHUANG in overseas markets and domestic product sales, Henlius’ market value could reach RMB13-16 billion.</li>
<li>Considering other candidates(e.g. HLX15, HLX11, HLX14), indication expansion, drug combination, etc., revenue of Henlius could reach about RMB8-9 billion in the long term, with market value to reach RMB24-27 billion.</li>
</ul>


LVC continues to increase its holdings in Henlius, indicating that LVC remains optimistic about Henlius as its internationalization process significantly accelerated. We are interested to see Lin Lijun’s next move. 
In the short to medium term, based on our conservative forecast on peak sales of HANQUYOU/HANSIZHUANG in overseas markets and domestic product sales, Henlius’ market value could reach RMB13-16 billion.
Considering other candidates(e.g. HLX15, HLX11, HLX14), indication expansion, drug combination, etc., revenue of Henlius could reach about RMB8-9 billion in the long term, with market value to reach RMB24-27 billion.


Shanghai Henlius Biotech (2696 HK)- LVC Is Betting on Higher Valuation Upside Due to Business Update

Anjoy Foods Group   / Equity Capital Markets

Anjoy Foods Group Co. Ltd. operates as a food manufacturer. The Company produces and distributes individually packaged quick freezing seafood, meat, flour, rice, and other processed food products. Anjoy Foods Group mainly conducts businesses in China.

<ul>
<li>From the characteristics of quick-frozen food industry, companies usually have low pricing power. Since barriers to entry and exit are low, in the long run, the profits will be meager.</li>
<li>Anjoy’s core business model is to develop the sinking market through distributors who have been operating for many years. Revenue growth shows an upward trend, but growth momentum is decreasing.</li>
<li>Anjoy is facing performance growth pressure in China market, as well as uncertainties in terms of internationalization. High valuation becomes sustainable only when Anjoy successfully enters international markets.</li>
</ul>


From the characteristics of quick-frozen food industry, companies usually have low pricing power. Since barriers to entry and exit are low, in the long run, the profits will be meager.
Anjoy’s core business model is to develop the sinking market through distributors who have been operating for many years. Revenue growth shows an upward trend, but growth momentum is decreasing.
Anjoy is facing performance growth pressure in China market, as well as uncertainties in terms of internationalization. High valuation becomes sustainable only when Anjoy successfully enters international markets.


Pre-IPO Anjoy Foods Group - Only Successful Internationalization Can Support High Valuation

Ping An Healthcare and Technology / Equity Bottom-Up

Ping An Healthcare and Technology Company Limited provides health care software solutions. The Company offers mobile platform for online consultation, hospital referral and appointment, health management, and wellness interaction services, as well as connects consumers and patients with health care resources. Ping An Healthcare and Technology serves customers in China.

Ping An Healthcare and Technology (1833 HK)

<ul>
<li>PAGD’s 2024 performance beat expectations. The support of Ping An Group remains the key for PAGD to turning losses into profits. A breakthrough point is the Senior care services business.</li>
<li>The CAGR of PAGD’s revenue could be 12%-15% from 2025 to 2027, and revenue in 2027 may reach RMB6.5-7 billion. The peak revenue scale could be just about RMB8 billion.</li>
<li>Adjusted net profit could reach RMB250-300 million in 2025 and exceed RMB400 million in 2027.If based on P/S of 2-3x, revenue of RMB6.5-7 billion in 2027, valuation is RMB13-21 billion.</li>
</ul>


PAGD’s 2024 performance beat expectations. The support of Ping An Group remains the key for PAGD to turning losses into profits. A breakthrough point is the Senior care services business.
The CAGR of PAGD’s revenue could be 12%-15% from 2025 to 2027, and revenue in 2027 may reach RMB6.5-7 billion. The peak revenue scale could be just about RMB8 billion.
Adjusted net profit could reach RMB250-300 million in 2025 and exceed RMB400 million in 2027.If based on P/S of 2-3x, revenue of RMB6.5-7 billion in 2027, valuation is RMB13-21 billion.


Ping An Healthcare and Technology (1833 HK) - Updates on Performance Forecast and Valuation Outlook

Over 15 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)

WuXi AppTec (2359.HK/603259.CH) - The Concerns Behind the 2024 Performance Rebound and 2025 Outlook

WuXi AppTec 2024 results showed recovery, but challenges in "R" business raise concerns for 2025 growth.Geopolitical/recession risk cloud long...

Xinyao (Criss) Wang

Pre-IPO Soft International Group (PHIP Updates) - Some Points Worth the Attention

Soft International faces high competition and slow market growth, with declining performance in 2024. Single-digit net profit margin is...

Xinyao (Criss) Wang

Shanghai Henlius Biotech (2696 HK)- LVC Is Betting on Higher Valuation Upside Due to Business Update

Henlius' shares is above HK$30/share, in line with our analysis. The Offer Price is "a joke". At valuation of about RMB16bn, conservative investors...

Xinyao (Criss) Wang

Pre-IPO Anjoy Foods Group - Only Successful Internationalization Can Support High Valuation

The industry faces low pricing power and meager profit due to low barriers.Anjoy's revenue growth is slowing, with growth pressure in PRC....

Xinyao (Criss) Wang

Ping An Healthcare and Technology (1833 HK) - Updates on Performance Forecast and Valuation Outlook

Ping An Group's support has helped PAGD turn loss into profits in 2024, but the peak revenue scale may be just about RMB8 billion. Market value of...

Xinyao (Criss) Wang

WuXi AppTec (2359.HK/603259.CH) - The Concerns Behind the 2024 Performance Rebound and 2025 Outlook

​WuXi AppTec 2024 results showed recovery, but challenges in "R" business raise concerns for 2025 growth.Geopolitical/recession risk cloud long...

Xinyao (Criss) Wang

Pre-IPO Soft International Group (PHIP Updates) - Some Points Worth the Attention

​Soft International faces high competition and slow market growth, with declining performance in 2024. Single-digit net profit margin is...

Xinyao (Criss) Wang

Shanghai Henlius Biotech (2696 HK)- LVC Is Betting on Higher Valuation Upside Due to Business Update

Henlius' shares is above HK$30/share, in line with our analysis. The Offer Price is "a joke". At valuation of about RMB16bn, conservative investors...

Xinyao (Criss) Wang

Pre-IPO Anjoy Foods Group - Only Successful Internationalization Can Support High Valuation

The industry faces low pricing power and meager profit due to low barriers.Anjoy's revenue growth is slowing, with growth pressure in PRC....

Xinyao (Criss) Wang

Ping An Healthcare and Technology (1833 HK) - Updates on Performance Forecast and Valuation Outlook

​Ping An Group's support has helped PAGD turn loss into profits in 2024, but the peak revenue scale may be just about RMB8 billion. Market value of...

Xinyao (Criss) Wang

WuXi AppTec 2024 results showed recovery, but challenges in "R" business raise concerns for 2025 growth.Geopolitical/recession risk cloud long...

Soft International faces high competition and slow market growth, with declining performance in 2024. Single-digit net profit margin is...

Ping An Group's support has helped PAGD turn loss into profits in 2024, but the peak revenue scale may be just about RMB8 billion. Market value of...