Research Coverage on Small and Micro-Cap Companies, Zacks Small Cap Research

Zacks Small Cap Research

Research Coverage on Small and Micro-Cap Companies

Zacks Small Cap Research provides research coverage on small- and micro-cap companies that are “under-followed” or “under-valued” by Wall Street. We produce high quality equity research for the institutional and retail investor on microcap firms we believe are well positioned for future growth. The Zacks SCR analyst team has an average of 20 years of experience in investment research. We conduct significant due diligence in an effort to maintain the highest quality small-cap universe.

Equity Bottom-Up

SBC Medical Group Holdings  / Equity Bottom-Up

SBC Medical Group Holdings Incorporated operates as a blank check company. The Company aims to acquire one and more businesses and assets, via a merger, capital stock exchange, asset acquisition, stock purchase, and reorganization.

<ul><li>Among other growth measures SBC intends to add new services, often leveraging a multi-branding strategy to broaden its target market and retain strategic pricing power as it targets new demographics - some from rising medical tourism - & enhance its outreach by increasing social media marketing.</li><li>The company believes its strong market position & financial position ($125m in cash at YE24) can enable it to successfully expand its footprint domestically, internationally and into new services.</li></ul>

Among other growth measures SBC intends to add new services, often leveraging a multi-branding strategy to broaden its target market and retain strategic pricing power as it targets new demographics - some from rising medical tourism - & enhance its outreach by increasing social media marketing.The company believes its strong market position & financial position ($125m in cash at YE24) can enable it to successfully expand its footprint domestically, internationally and into new services.

SBC: Recent Growth Measures Include Multi-Brand Strategy

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

China Traditional Chinese Medicine / Equity Bottom-Up

China Traditional Chinese Medicine Co. Limited, through its subsidiaries, manufactures and sells medicine and pharmaceutical products in China.

China Traditional Chinese Medicine (570 HK)

<ul>
<li>TCM finished drugs and TCM decoction pieces businesses could be the second and third growth curve of China TCM when the concentrated TCM granules business is facing VBP headwinds.</li>
<li>2024 would be the performance low point. Due to 2024 low base, we would see positive growth in 2025.Performance recovery is expected in next three years based on our forecast.</li>
<li>Annual profit of RMB1 billion is achievable. If based on 10x P/E, market value is RMB10 billion.We think if valuations fall below RMB10 billion, investors can consider buying on dips.</li>
</ul>


TCM finished drugs and TCM decoction pieces businesses could be the second and third growth curve of China TCM when the concentrated TCM granules business is facing VBP headwinds.
2024 would be the performance low point. Due to 2024 low base, we would see positive growth in 2025.Performance recovery is expected in next three years based on our forecast.
Annual profit of RMB1 billion is achievable. If based on 10x P/E, market value is RMB10 billion.We think if valuations fall below RMB10 billion, investors can consider buying on dips.


China TCM (570.HK) - Updates on Performance Forecast and Valuation Outlook Based on 2024 Results

Rani Therapeutics Holdings  / Equity Bottom-Up

Rani Therapeutics Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, focuses on development of orally administered biologics to transform medicine and improve patient outcomes. Rani Therapeutics Holdings serves customers in the United States.

<ul><li>Rani is a clinical-stage biotherapeutics company developing the ingestible robotic RaniPill (RP) that enables oral delivery of biologics & other large molecules.</li><li>Its pipeline features clinical assets RT-102 (teriparatide for osteoporosis) & RT-111 (ustekinumab for psoriasis).</li><li>Both programs have completed Ph1 trials characterizing safety tolerability & pharmaco-kinetics.</li></ul>

Rani is a clinical-stage biotherapeutics company developing the ingestible robotic RaniPill (RP) that enables oral delivery of biologics & other large molecules.Its pipeline features clinical assets RT-102 (teriparatide for osteoporosis) & RT-111 (ustekinumab for psoriasis).Both programs have completed Ph1 trials characterizing safety tolerability & pharmaco-kinetics.

Cocrystal Pharma, Inc. operates as a biotechnology company. The Company focuses on developing novel antiviral therapeutics for hepatitis, influenza viruses, and noroviruses. Cocrystal Pharma serves patients in the United States.

<ul><li>On March 31, 2025, Cocrystal Pharma, Inc. (COCP) announced financial results for 2024 and provided a business update.</li><li>Following the release of favorable safety and tolerability results for CDI-988, the company's novel, broad-spectrum protease inhibitor being developed for the treatment of noroviruses and coronaviruses, we anticipate topline results from the high-dose healthy volunteer cohort in the second quarter of 2025 and for a human challenge study as a norovirus treatment and prophylaxis later in 2025.</li><li>Cocyrstal's Phase 2a influenza human challenge study of CC-42344, the company's development candidate for the treatment of pandemic and seasonal influenza A infections, is continuing after the company reported a lower than expected influenza infection rates among study participants.</li></ul>

On March 31, 2025, Cocrystal Pharma, Inc. (COCP) announced financial results for 2024 and provided a business update.Following the release of favorable safety and tolerability results for CDI-988, the company's novel, broad-spectrum protease inhibitor being developed for the treatment of noroviruses and coronaviruses, we anticipate topline results from the high-dose healthy volunteer cohort in the second quarter of 2025 and for a human challenge study as a norovirus treatment and prophylaxis later in 2025.Cocyrstal's Phase 2a influenza human challenge study of CC-42344, the company's development candidate for the treatment of pandemic and seasonal influenza A infections, is continuing after the company reported a lower than expected influenza infection rates among study participants.

COCP: Norovirus Challenge Study Planned for 2025 

Evaxion Biotech A/S operates as a biotechnology company. The Company develops AI-immunology platform for decoding human immune system to discover and develop immunotherapies for cancer and infectious diseases treatment. Evaxion Biotech serves patients in Denmark.

<ul><li>EVAX is a clinical stage company that has proprietary AI models designed to more efficiently and more accurately target much-needed treatments.</li><li>The company has two streams of possible revenue: from the treatments themselves and from the licensing of AI technology.</li><li> The company released its full-year 2024 results and updated investors on the tremendous progress made.</li></ul>

EVAX is a clinical stage company that has proprietary AI models designed to more efficiently and more accurately target much-needed treatments.The company has two streams of possible revenue: from the treatments themselves and from the licensing of AI technology. The company released its full-year 2024 results and updated investors on the tremendous progress made.

EVAX:  Company Lays Out Ambitious 2025 Plan