HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Beijing Tong Ren Tang Healthcare Investment / Equity Capital Markets

Beijing Tong Ren Tang Healthcare Investment

<ul>
<li>Tong Ren Tang’s performance growth is mainly driven by M&amp;As. Its organic growth and operation management capability are not strong, leading to the concerns on the sustainability of future growth.</li>
<li>Profit margin is disappointing.If Tong Ren Tang fails to balance the interests of different parties and control costs/expenses,low profit margins will be the norm despite the growth of revenue scale.</li>
<li>From the perspectives of revenue scale, profitability, operational efficiency, business model, there’s still a gap between Tong Ren Tang and Gushengtang. Tong Ren Tang’s valuation should be lower than Gushengtang.</li>
</ul>


Tong Ren Tang’s performance growth is mainly driven by M&amp;As. Its organic growth and operation management capability are not strong, leading to the concerns on the sustainability of future growth.
Profit margin is disappointing.If Tong Ren Tang fails to balance the interests of different parties and control costs/expenses,low profit margins will be the norm despite the growth of revenue scale.
From the perspectives of revenue scale, profitability, operational efficiency, business model, there’s still a gap between Tong Ren Tang and Gushengtang. Tong Ren Tang’s valuation should be lower than Gushengtang.


Pre-IPO Tong Ren Tang Healthcare Investment - Profitability and Growth Sustainability Are Worrying

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Equity Bottom-Up

Budweiser Brewing  APAC  / Equity Bottom-Up

<ul>
<li>Hong Kong market still trades at a substantial discount to Analyst year end price targets.</li>
<li>Budweiser APAC is dependent on China's consumer to lift sales while Anta Sports is targeting increased sales from the upcoming Paris Olympics.</li>
<li>Sunny Optical is seeing substantial growth from it EV segment and Haitian continues to grow its international sales.  Shineway RX is a rare value play in the pharmaceutical sector.</li>
</ul>


Hong Kong market still trades at a substantial discount to Analyst year end price targets.
Budweiser APAC is dependent on China's consumer to lift sales while Anta Sports is targeting increased sales from the upcoming Paris Olympics.
Sunny Optical is seeing substantial growth from it EV segment and Haitian continues to grow its international sales.  Shineway RX is a rare value play in the pharmaceutical sector.


BUY/SELL/HOLD: Hong Kong Stocks Update (July 15)

China

Beijing Tong Ren Tang Healthcare Investment (TRT HK)

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Beijing Tong Ren Tang Healthcare Investment (TRT HK)

Pre-IPO Tong Ren Tang Healthcare Investment - Profitability and Growth Sustainability Are Worrying

Tong Ren Tang's growth is driven by M&As, but concerns arise over growth sustainability due to weak organic growth. Profit margin is...

Xinyao (Criss) Wang

BUY/SELL/HOLD: Hong Kong Stocks Update (July 15)

Hong Kong markets continue to trade at a 25% discount to analysts year end targets. Bud APAC, Anta Sports, Sunny Optical and Shineway RX are...

David Mudd

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Tong Ren Tang Healthcare Investment - Profitability and Growth Sustainability Are Worrying

​Tong Ren Tang's growth is driven by M&As, but concerns arise over growth sustainability due to weak organic growth. Profit margin is...

Xinyao (Criss) Wang

BUY/SELL/HOLD: Hong Kong Stocks Update (July 15)

Hong Kong markets continue to trade at a 25% discount to analysts year end targets. Bud APAC, Anta Sports, Sunny Optical and Shineway RX are...

David Mudd

Tong Ren Tang's growth is driven by M&As, but concerns arise over growth sustainability due to weak organic growth. Profit margin is...