HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

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.

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

Beijing Chunlizhengda Medical Instruments / Equity Bottom-Up

Beijing Chunlizhengda Medical Instruments

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.

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

AK Medical Holdings Limited / Equity Bottom-Up

On September 14, 2021, the results of the national centralized procurement of artificial joints was released. This is the second national centralized procurement on high-value consumables organized by the State after the coronary stents last year. <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>, one of the leading companies in the field of joint implants, offered low prices in several rounds of bidding and its products were successfully included in the medical insurance catalogue. On that day, AK Medical’s share price increased over 20%. This insight mainly analyzed the industry characteristics, the impact of centralized procurement on AK Medical’s business and the outlook of the Company.

On September 14, 2021, the results of the national centralized procurement of artificial joints was released. This is the second national centralized procurement on high-value consumables organized by the State after the coronary stents last year. AK Medical Holdings Limited (1789 HK), one of the leading companies in the field of joint implants, offered low prices in several rounds of bidding and its products were successfully included in the medical insurance catalogue. On that day, AK Medical’s share price increased over 20%. This insight mainly analyzed the industry characteristics, the impact of centralized procurement on AK Medical’s business and the outlook of the Company.

AK Medical Holdings Limited (1789.HK) - A Safe Landing After the Centralized Procurement

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>A new round of rebalancing may still take some time.</li>
<li>Last week, the results of centralized procurement of artificial joints was released.</li>
<li>The added value of consumer genetic testing is that it could be a reference rather than an essential treatment or evidence.</li>
</ul>Company news:News about the updated progress on new drugs and cooperation agreement of <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>, <a href="https://www.smartkarma.com/entities/cstone-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:27882:1" rel="noopener">CStone Pharmaceuticals (2616 HK)</a> and <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a>.Market review: Last week, stock price for healthcare sector in A share increased 2.63%, while CSI 300 decreased 3.14% over the same period of time. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
A new round of rebalancing may still take some time.
Last week, the results of centralized procurement of artificial joints was released.
The added value of consumer genetic testing is that it could be a reference rather than an essential treatment or evidence.
Company news:News about the updated progress on new drugs and cooperation agreement of BeiGene Ltd (6160 HK), CStone Pharmaceuticals (2616 HK) and Everest Medicines (1952 HK).Market review: Last week, stock price for healthcare sector in A share increased 2.63%, while CSI 300 decreased 3.14% over the same period of time. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Sep17) - A New Round of Rebalancing, Artificial Joints VBP, Genetic Testing

Industry viewpoints:<ul>
<li>Last week, the results of the 5th national volume-based purchase (VBP) were released.</li>
<li>A new announcement on the centralized procurement of artificial joints was released, and the selection rules were relatively mild.</li>
<li>Recently, China National Medical Products Administration (NMPA) released the "2020 Annual Drug Evaluation Report". 
</li>
</ul>Company news:News about the updated progress on drugs of <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>, <a href="https://www.smartkarma.com/entities/cansino-biologics-inc" target="_blank" data-smartkarma-citation="entities:27739:1" rel="noopener">CanSino Biologics Inc (6185 HK)</a>, <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, Fosun Kite and <a href="https://www.smartkarma.com/entities/hutchmed-china-ltd" target="_blank" data-smartkarma-citation="entities:133:1" rel="noopener">Hutchmed China Ltd (13 HK)</a>. Market review:Last week, stock price for healthcare sector in A share increased 3.19%, while CSI 300 increased 2.69% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
Last week, the results of the 5th national volume-based purchase (VBP) were released.
A new announcement on the centralized procurement of artificial joints was released, and the selection rules were relatively mild.
Recently, China National Medical Products Administration (NMPA) released the "2020 Annual Drug Evaluation Report". 

Company news:News about the updated progress on drugs of BeiGene Ltd (6160 HK), CanSino Biologics Inc (6185 HK), Jiangsu Hengrui Medicine (600276 CH), Fosun Kite and Hutchmed China Ltd (13 HK). Market review:Last week, stock price for healthcare sector in A share increased 3.19%, while CSI 300 increased 2.69% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

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)

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

AK Medical Holdings Limited (1789.HK) - A Safe Landing After the Centralized Procurement

The article mainly analyzed AK Medical in terms of the industry characteristics of joint implants in China,the impact of centralized procurement on...

Xinyao (Criss) Wang

China Healthcare Weekly (Sep17) - A New Round of Rebalancing, Artificial Joints VBP, Genetic Testing

The article mainly analyzed the logic of volume-based purchase (VBP) and healthcare sector rebalancing, the results of centralized procurement of...

Xinyao (Criss) Wang

China Healthcare Weekly (Jun.25)

This article analyzed the results of 5th national volume-based purchase, the new announcement on the centralized procurement of artificial joints,...

Xinyao (Criss) Wang

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