HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Yonghe Medical Group / Equity Capital Markets

Modern fast pace of life and huge work pressure make hair loss anxiety spread to all kinds of groups. As people pay more attention to hair, the awareness of hair health and management is gradually awakening, and hair transplantation is one of the solutions. On June 17, <a href="https://www.smartkarma.com/entities/yonghe-medical-group-co-ltd" target="_blank" data-smartkarma-citation="entities:33521:1" rel="noopener">Yonghe Medical Group (YMG HK)</a> formally submitted its prospectus to the HKEX and planned to be listed on the main board. If everything goes well, Yonghe will be the first listed company in the field of hair transplantation in China. However, despite the promising market potential, there are some concerns of the Company that deserve investors’ attention.

Modern fast pace of life and huge work pressure make hair loss anxiety spread to all kinds of groups. As people pay more attention to hair, the awareness of hair health and management is gradually awakening, and hair transplantation is one of the solutions. On June 17, Yonghe Medical Group (YMG HK) formally submitted its prospectus to the HKEX and planned to be listed on the main board. If everything goes well, Yonghe will be the first listed company in the field of hair transplantation in China. However, despite the promising market potential, there are some concerns of the Company that deserve investors’ attention.

Pre-IPO Yonghe Medical Group - Here Are the Concerns

Equity Bottom-Up

Imeik Technology Development C / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/imeik-technology-development-co-ltd" target="_blank" data-smartkarma-citation="entities:32170:1" rel="noopener">Imeik Technology Development (300896 CH)</a> is undoubtedly one of the hottest stars in the capital market in 2021. At the beginning of 2021, its share price was once over RMB1300/share, making it the third company whose share price exceeded RMB1000/share in the history of A-share market. After that, Imeik’s share price reentered the upward trend after a period of correction. As of July 16, 2021, its share price was RMB773.19/share, with a market value of RMB167.3 billion. However, interestingly, the revenue of Imeik in 2020 was just RMB700 million and its net profit was RMB433 million. So, could Imerk support its high valuation?

Imeik Technology Development (300896 CH) is undoubtedly one of the hottest stars in the capital market in 2021. At the beginning of 2021, its share price was once over RMB1300/share, making it the third company whose share price exceeded RMB1000/share in the history of A-share market. After that, Imeik’s share price reentered the upward trend after a period of correction. As of July 16, 2021, its share price was RMB773.19/share, with a market value of RMB167.3 billion. However, interestingly, the revenue of Imeik in 2020 was just RMB700 million and its net profit was RMB433 million. So, could Imerk support its high valuation?

Imeik Technology Development (300896.CH) - The Valuation Bubble?

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>The 2021 medical insurance catalogue adjustment plan is soliciting opinions, and drugs approved for market launch during 2020.8.17 - 2021.6.30 will be eligible to participate in the negotiations.</li>
<li>Related departments issued new documents stating that from June to December this year, they will jointly carry out a special campaign to crack down on illegal medical beauty activities.</li>
<li>The General Office of the State Council issued a new document about the  development of public hospitals.</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/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, and <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a>.Market review:Last week, stock price for healthcare sector in A share decreased 2.8%, while CSI 300 decreased 2.34% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The 2021 medical insurance catalogue adjustment plan is soliciting opinions, and drugs approved for market launch during 2020.8.17 - 2021.6.30 will be eligible to participate in the negotiations.
Related departments issued new documents stating that from June to December this year, they will jointly carry out a special campaign to crack down on illegal medical beauty activities.
The General Office of the State Council issued a new document about the  development of public hospitals.
Company news:News about the updated progress on drugs of BeiGene Ltd (6160 HK), Jiangsu Hengrui Medicine (600276 CH), Innovent Biologics Inc (1801 HK), and CSPC Pharmaceutical Group (1093 HK).Market review:Last week, stock price for healthcare sector in A share decreased 2.8%, while CSI 300 decreased 2.34% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Sihuan Pharmaceutical Hldgs / Equity Bottom-Up

Since 2021, if you want to ask which sector in the healthcare industry has outstanding performance, the medical beauty sector is definitely the one. Looking at the leading companies in this sector, the market cap and P/E ratio of <a href="https://www.smartkarma.com/entities/bloomage-biotechnology-corporation-a" target="_blank" data-smartkarma-citation="entities:30390:1" rel="noopener">Bloomage Biotechnology Corporation-A (688363 CH)</a> by the end of May 28, 2021 were RMB121 billion and 175, respectively. For <a href="https://www.smartkarma.com/entities/imeik-technology-development-co-ltd" target="_blank" data-smartkarma-citation="entities:32170:1" rel="noopener">Imeik Technology Development (300896 CH)</a>, they were RMB142 billion and 250, respectively. Both were at high end and very expensive. Here is another company, <a href="https://www.smartkarma.com/entities/sihuan-pharmaceutical-hldgs" target="_blank" data-smartkarma-citation="entities:33:1" rel="noopener">Sihuan Pharmaceutical Hldgs (460 HK)</a>, whose share price was up over 318% since the beginning of 2021 on the back of its medical beauty business, with market cap of HK$32.5 billion and P/E ratio of 57.17, which is pretty eye-catching. So could the medical beauty business revalue the Company? This insight mainly analyzed the business outlook and the concerns.

Since 2021, if you want to ask which sector in the healthcare industry has outstanding performance, the medical beauty sector is definitely the one. Looking at the leading companies in this sector, the market cap and P/E ratio of Bloomage Biotechnology Corporation-A (688363 CH) by the end of May 28, 2021 were RMB121 billion and 175, respectively. For Imeik Technology Development (300896 CH), they were RMB142 billion and 250, respectively. Both were at high end and very expensive. Here is another company, Sihuan Pharmaceutical Hldgs (460 HK), whose share price was up over 318% since the beginning of 2021 on the back of its medical beauty business, with market cap of HK$32.5 billion and P/E ratio of 57.17, which is pretty eye-catching. So could the medical beauty business revalue the Company? This insight mainly analyzed the business outlook and the concerns.

Sihuan Pharmaceutical (460.HK) - Optimistic in the Short Term but Conservative in the Long Term

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

Post market close on 28 May, the China Securities Index Company announced the changes to the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX)</a> that will be effective after the close of trading on 11 June.There are 25 inclusions and exclusions in the review with an estimated one-way turnover of 3.67%.There are 10 trading days to implementation of the changes. There are 4 inclusions that will have over 1 day of ADV to buy from passive funds while there are 15 deletions that will have over 1 day of ADV to sell. The actual impact could be higher as cash and carry baskets are rebalanced and active managers reposition their portfolios to no deviate too far from their benchmark.The inclusions have outperformed the deletions by 15% over the last month and while there could be a pop in the returns over the next few sessions, we recommend gradually exiting existing positions and re-entering prior to implementation on a selloff in the trade.

Post market close on 28 May, the China Securities Index Company announced the changes to the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) that will be effective after the close of trading on 11 June.There are 25 inclusions and exclusions in the review with an estimated one-way turnover of 3.67%.There are 10 trading days to implementation of the changes. There are 4 inclusions that will have over 1 day of ADV to buy from passive funds while there are 15 deletions that will have over 1 day of ADV to sell. The actual impact could be higher as cash and carry baskets are rebalanced and active managers reposition their portfolios to no deviate too far from their benchmark.The inclusions have outperformed the deletions by 15% over the last month and while there could be a pop in the returns over the next few sessions, we recommend gradually exiting existing positions and re-entering prior to implementation on a selloff in the trade.

CSI300 Index Rebalance: 25 Changes as Long/Short Trade Does Well

China

Bloomage Biotechnology Corporation Limited develops and manufactures medical products. The Company produces fillers, mesotherapy products, bio reactive hyaluronic acids, repair soothing skin care products, and other products. Bloomage Biotechnology supplies its products in medicine, cosmetics, food manufacturing companies, medical institutions, and other fields.

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Bloomage Biotechnology Lt (688363 CH)

Pre-IPO Yonghe Medical Group - Here Are the Concerns

The article analyzed Yonghe Medical Group in terms of the concerns and challenges that deserve investors’ attention,including the business...

Xinyao (Criss) Wang

Imeik Technology Development (300896.CH) - The Valuation Bubble?

This insight mainly analyzed Imeik in terms of its hyaluronic acid product business, botulinum toxin business, other products, the future business...

Xinyao (Criss) Wang

China Healthcare Weekly (Jun.18)

The article analyzed the 2021 medical insurance catalogue adjustment plan, new document to crack down on illegal medical beauty activities, new...

Xinyao (Criss) Wang

Sihuan Pharmaceutical (460.HK) - Optimistic in the Short Term but Conservative in the Long Term

The medical beauty business outlook with high certainty is the main reason for the share price to rise three times this year.However, there are...

Xinyao (Criss) Wang

CSI300 Index Rebalance: 25 Changes as Long/Short Trade Does Well

There are 25 changes to the CSI300 Index that will be implemented at the close on 11 June. One-way turnover is 3.67% and the adds have outperformed...

Brian Freitas

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