HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Beijing Chunlizhengda Medical Instruments / Equity Bottom-Up

Beijing Chunlizhengda Medical Instruments

<ul>
<li>Last year end, <a href="https://www.smartkarma.com/entities/beijing-chunlizhengda-medical-instruments-co-ltd" target="_blank" data-smartkarma-citation="entities:7568:1" rel="noopener">Beijing Chunlizhengda Medical Instruments (1858 HK)</a> was listed on the SSE STAR Market, but fell on debut. </li>
<li>The major concerns include performance slowdown, loss of bidding in centralized procurement, problematic sales model, poor gross profit margin, single products risk and weak innovation capability and international business.</li>
<li>Our view is that there is no immediate prospect of significant improvement. With too many uncertainties and concerns, we are conservative about Chunlizhengda's outlook despite the large A/H premium.</li>
</ul>


Last year end, Beijing Chunlizhengda Medical Instruments (1858 HK) was listed on the SSE STAR Market, but fell on debut. 
The major concerns include performance slowdown, loss of bidding in centralized procurement, problematic sales model, poor gross profit margin, single products risk and weak innovation capability and international business.
Our view is that there is no immediate prospect of significant improvement. With too many uncertainties and concerns, we are conservative about Chunlizhengda's outlook despite the large A/H premium.


Chunlizhengda Medical Instruments (1858.HK) - Conservative About 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.

Quantitative Analysis

<ul>
<li>We analyse the changes of A/H premium on 135 stocks over the last week.</li>
<li>The average A/H premium changed by -0.9ppt week on week to 118.3%. </li>
<li>Biggest decline in A/H premium appeared in the Communication Services and Consumer Staples sector while the biggest increase was from the Real Estate sector</li>
</ul>


We analyse the changes of A/H premium on 135 stocks over the last week.
The average A/H premium changed by -0.9ppt week on week to 118.3%. 
Biggest decline in A/H premium appeared in the Communication Services and Consumer Staples sector while the biggest increase was from the Real Estate sector


A/H Premium Weekly: Decline in Com Service and Consumer Staple Offset by Real Estate

Thematic (Sector/Industry)

<ul>
<li>Last Friday, the 6th national volume-based purchase (VBP) for insulin released results.</li>
<li>The NHSA issued relevant documents and proposed to implement unified access management for medical consumables, which means that more medical consumables would be included in centralized procurement.</li>
<li>The NHC issued a document promoting the standardized development of digital healthcare industry, which would bring varying degrees of influence to medical institutions and enterprises providing online healthcare services.</li>
</ul>


Last Friday, the 6th national volume-based purchase (VBP) for insulin released results.
The NHSA issued relevant documents and proposed to implement unified access management for medical consumables, which means that more medical consumables would be included in centralized procurement.
The NHC issued a document promoting the standardized development of digital healthcare industry, which would bring varying degrees of influence to medical institutions and enterprises providing online healthcare services.


China Healthcare Weekly (Nov.26)-Insulin VBP Results, Key Policy On Consumables & Digital Healthcare

<p>After hitting a record high of HK$72.85/share in June, the share price of <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK) </a>has fallen continuously in the following months, down over 45% by the end of October 8, 2021. This insight mainly analyzed the 2021/1H performance, the business, the concerns and the outlook of MicroPort, including both the favorable and the unfavorable aspects.</p>

After hitting a record high of HK$72.85/share in June, the share price of Microport Scientific (853 HK) has fallen continuously in the following months, down over 45% by the end of October 8, 2021. This insight mainly analyzed the 2021/1H performance, the business, the concerns and the outlook of MicroPort, including both the favorable and the unfavorable aspects.

Microport Scientific (853.HK) - The Favorable and the Unfavorable Aspects

<p>Different from <a href="https://www.smartkarma.com/entities/ak-medical-holdings-limited" target="_blank" data-smartkarma-citation="entities:23669:1" rel="noopener">AK Medical Holdings Limited (1789 HK)</a> who was a big domestic winner in the national centralized procurement of artificial joints this month with the whole product lines successfully included in the medical insurance catalogue, <a href="https://www.smartkarma.com/entities/beijing-chunlizhengda-medical-instruments-co-ltd" target="_blank" data-smartkarma-citation="entities:7568:1" rel="noopener">Beijing Chunlizhengda Medical Instruments (1858 HK)</a> lost the bidding of its important knee joint prosthesis products in this centralized procurement. The Company's share price fell for two consecutive trading days by 17% on Sep.15 and 8.21% on Sep.16. This insight mainly analyzed the potential impact of losing the bidding, the concerns and the business outlook of Chunlizhengda.</p>

Different from AK Medical Holdings Limited (1789 HK) who was a big domestic winner in the national centralized procurement of artificial joints this month with the whole product lines successfully included in the medical insurance catalogue, Beijing Chunlizhengda Medical Instruments (1858 HK) lost the bidding of its important knee joint prosthesis products in this centralized procurement. The Company's share price fell for two consecutive trading days by 17% on Sep.15 and 8.21% on Sep.16. This insight mainly analyzed the potential impact of losing the bidding, the concerns and the business outlook of Chunlizhengda.

Chunlizhengda Medical Instruments (1858.HK) - The Concerns and the Outlook After Losing the Bidding

China

Beijing Chunlizhengda Medical Instruments Co.,Ltd. designs, develops, manufactures and markets patented implants and instruments for joint replacement, spinal fixation and trauma.

Beijing Chunlizhengda Medical Instruments (1858 HK)

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Beijing Chunlizhengda Medical Instruments (1858 HK)

Chunlizhengda Medical Instruments (1858.HK) - Conservative About the Outlook

The insight analyzed Chunlizhengda about the concerns on performance slowdown, centralized procurement, low gross profit margin, weak innovation...

Xinyao (Criss) Wang

A/H Premium Weekly: Decline in Com Service and Consumer Staple Offset by Real Estate

Biggest decline in A/H premium appeared in the Communication Services and Consumer Staples sector while the biggest increase was from the Real...

Ke Yan, CFA, FRM

China Healthcare Weekly (Nov.26)-Insulin VBP Results, Key Policy On Consumables & Digital Healthcare

This article analyzed the 6th VBP results on insulin, the new and key policies about unified access management on medical consumables and the...

Xinyao (Criss) Wang

Microport Scientific (853.HK) - The Favorable and the Unfavorable Aspects

This article mainly analyzed MicroPort in terms of the 2021/1H performance, the business, the concerns, the outlook and the advice for investors,...

Xinyao (Criss) Wang

Chunlizhengda Medical Instruments (1858.HK) - The Concerns and the Outlook After Losing the Bidding

This article mainly analyzed Chunlizhengda in terms of the potential impact of losing the bidding on the hip joint prosthesis products, the...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)