HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>TCMTech’s business model is directly targeted at industry pain points.The innovation point lies in using AI technology and offline clinics to break the time/space limitations of traditional TCM business model. </li>
<li>The current revenue scale is small. We have already seen a sharp decline of YoY revenue growth in 24Q1-Q3, thus raising questions about the sustainability of future growth momentum.</li>
<li>Considering Gushengtang's scale, business model, and the control of core renowned physician resources have been validated by the market, we think that TCMTech’s reasonable valuation should be lower than Gushengtang.</li>
</ul>


TCMTech’s business model is directly targeted at industry pain points.The innovation point lies in using AI technology and offline clinics to break the time/space limitations of traditional TCM business model. 
The current revenue scale is small. We have already seen a sharp decline of YoY revenue growth in 24Q1-Q3, thus raising questions about the sustainability of future growth momentum.
Considering Gushengtang's scale, business model, and the control of core renowned physician resources have been validated by the market, we think that TCMTech’s reasonable valuation should be lower than Gushengtang.


Pre-IPO TCMTech - The Business Model and the Outlook

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 expansion space of BenQ is severely limited as the market has been saturated in Jiangsu Province. Due to DRG, future revenue/net profit growth would continue to be under pressure. </li>
<li>Low profit margin of general hospitals is a common problem in this industry due to pain points of business model.It’s difficult to achieve improvement.Investors need to be aware of this.</li>
<li>BenQ’s valuation should be lower than Hygeia due to weaker profitability, smaller revenue scale, lower growth outlook.Post-money valuation before IPO of US$375 million (or about RMB2.7 billion) is already expensive</li>
</ul>


The expansion space of BenQ is severely limited as the market has been saturated in Jiangsu Province. Due to DRG, future revenue/net profit growth would continue to be under pressure. 
Low profit margin of general hospitals is a common problem in this industry due to pain points of business model.It’s difficult to achieve improvement.Investors need to be aware of this.
BenQ’s valuation should be lower than Hygeia due to weaker profitability, smaller revenue scale, lower growth outlook.Post-money valuation before IPO of US$375 million (or about RMB2.7 billion) is already expensive


Pre-IPO BenQ BM Holding (PHIP Updates) - Some Points Worth the Attention

Equity Bottom-Up

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>Henlius has made a profit for the second year in a row.However, some investors are not satisfied with the quality of net profit growth in 2024 due to concerns behind.</li>
<li>The implementation of H Share Full Circulation has a positive impact on financing ability, shareholder returns, market valuation of Henlius.The next goal is to be included in HK Stock Connect</li>
<li>Lin Lijun’s continuous increase in Henlius holdings is an important reason for shares surge after privatization failure.Lin may keep pushing up share price so as to exit at higher price.</li>
</ul>


Henlius has made a profit for the second year in a row.However, some investors are not satisfied with the quality of net profit growth in 2024 due to concerns behind.
The implementation of H Share Full Circulation has a positive impact on financing ability, shareholder returns, market valuation of Henlius.The next goal is to be included in HK Stock Connect
Lin Lijun’s continuous increase in Henlius holdings is an important reason for shares surge after privatization failure.Lin may keep pushing up share price so as to exit at higher price.


Shanghai Henlius Biotech (2696 HK) - Thoughts on 2024 Results And the H Share Full Circulation

Shanghai Fosun Pharmaceutical (Group) / Equity Bottom-Up

Shanghai Fosun Pharmaceutical (Group) Co., Ltd. is a pharmaceutical company. Through its subsidiaries, the Company manufactures genetic medicines, Chinese traditional medicines, diagnostic products, and medical instruments, provides technology, marketing, and advertising services, as well as invests in import and export trading.

Shanghai Fosun Pharmaceutical (Group) (2196 HK)

<ul>
<li>2024 results appear to be improving, but there’s no large-scale/sustainable new increment with high certainty in revenue end.Fosun Pharma would rely on reducing costs/selling loss-making projects to recover profit/cash flow.</li>
<li>Financial performance in 2025 could be under pressure due to VBP. Fosun Pharm is also mired in a huge guarantee quagmire. International business expansion is facing fierce market competition.</li>
<li>There could be a “valuation discount” for Fosun Pharma due to the concerns on its business model and undervaluation could be a norm. Our recommendation is to invest Henlius directly.</li>
</ul>


2024 results appear to be improving, but there’s no large-scale/sustainable new increment with high certainty in revenue end.Fosun Pharma would rely on reducing costs/selling loss-making projects to recover profit/cash flow.
Financial performance in 2025 could be under pressure due to VBP. Fosun Pharm is also mired in a huge guarantee quagmire. International business expansion is facing fierce market competition.
There could be a “valuation discount” for Fosun Pharma due to the concerns on its business model and undervaluation could be a norm. Our recommendation is to invest Henlius directly.


Shanghai Fosun Pharmaceutical (2196 HK/600196 CH) - The Concerns Behind 2024 Results and the Outlook

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Duality Biotherapeutics / Equity Capital Markets

<ul>
<li>Duality Biotherapeutics raised HKD 1,512m (USD 194m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, April 14th.</li>
<li>In our previous note, we looked at the company's business lines of ADC products and analyzed its valuation.</li>
<li>In this note, we provide an update for the IPO before trading debut.</li>
</ul>


Duality Biotherapeutics raised HKD 1,512m (USD 194m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, April 14th.
In our previous note, we looked at the company's business lines of ADC products and analyzed its valuation.
In this note, we provide an update for the IPO before trading debut.


Duality Biotherapeutics (映恩生物) Trading Update

China Healthcare
Growing pains

Pre-IPO TCMTech - The Business Model and the Outlook

TCMTech’s business model and TCM Brain have advantages. However, we doubt whether TCMTech can still maintain such high revenue in the long run....

Xinyao (Criss) Wang

Pre-IPO BenQ BM Holding (PHIP Updates) - Some Points Worth the Attention

BenQ faces limited growth in Jiangsu Province due to market saturation. Low profit margin/ pain points of business model pose challenges.Valuation...

Xinyao (Criss) Wang

Shanghai Fosun Pharmaceutical (2196 HK/600196 CH) - The Concerns Behind 2024 Results and the Outlook

Fosun Pharma's financial performance in 2025/2026 could be under pressure due to VBP. There could be “valuation discount” due to the concerns on...

Xinyao (Criss) Wang

Duality Biotherapeutics (映恩生物) Trading Update

Duality Biotherapeutics raises $194m in global offering will list on Hong Kong Stock Exchange on April 14th. We provide an update before its...

Ke Yan, CFA, FRM

Pre-IPO TCMTech - The Business Model and the Outlook

TCMTech’s business model and TCM Brain have advantages. However, we doubt whether TCMTech can still maintain such high revenue in the long run....

Xinyao (Criss) Wang

Pre-IPO BenQ BM Holding (PHIP Updates) - Some Points Worth the Attention

​BenQ faces limited growth in Jiangsu Province due to market saturation. Low profit margin/ pain points of business model pose challenges.Valuation...

Xinyao (Criss) Wang

Shanghai Henlius Biotech (2696 HK) - Thoughts on 2024 Results And the H Share Full Circulation

Shanghai Fosun Pharmaceutical Industrial Development and related parties increased holdings of 4.7124 million shares in Henlius at an average price...

Xinyao (Criss) Wang

Shanghai Fosun Pharmaceutical (2196 HK/600196 CH) - The Concerns Behind 2024 Results and the Outlook

​Fosun Pharma's financial performance in 2025/2026 could be under pressure due to VBP. There could be “valuation discount” due to the concerns on...

Xinyao (Criss) Wang

Duality Biotherapeutics (映恩生物) Trading Update

​Duality Biotherapeutics raises $194m in global offering will list on Hong Kong Stock Exchange on April 14th. We provide an update before its...

Ke Yan, CFA, FRM

BenQ faces limited growth in Jiangsu Province due to market saturation. Low profit margin/ pain points of business model pose challenges.Valuation...

Fosun Pharma's financial performance in 2025/2026 could be under pressure due to VBP. There could be “valuation discount” due to the concerns on...

Duality Biotherapeutics raises $194m in global offering will list on Hong Kong Stock Exchange on April 14th. We provide an update before its...