HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>Thirteen important departments formulated the “Work Plan for Supporting the High-quality Development of State-owned Enterprise (SOE)-run Medical Institutions”(the “Work Plan”), which reflects a significant change in government's attitude towards SOE-run hospitals.</li>
<li>The core goal of “Work Plan” is to make public medical system bigger and stronger.Changes will occur with the participation of central enterprises. It's time to change the thinking mode.</li>
<li>Government-Run hospitals/SOE-run hospitals are still the main force of China's medical service market. Their status will be higher than that of private hospitals, whose development space would be further squeezed.</li>
</ul>


Thirteen important departments formulated the “Work Plan for Supporting the High-quality Development of State-owned Enterprise (SOE)-run Medical Institutions”(the “Work Plan”), which reflects a significant change in government's attitude towards SOE-run hospitals.
The core goal of “Work Plan” is to make public medical system bigger and stronger.Changes will occur with the participation of central enterprises. It's time to change the thinking mode.
Government-Run hospitals/SOE-run hospitals are still the main force of China's medical service market. Their status will be higher than that of private hospitals, whose development space would be further squeezed.


Reform in China's Medical Service Industry: SOE-Run Hospitals Usher in a Critical Turning Point

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.

Equity Bottom-Up

Jinxin Fertility Group  / Equity Bottom-Up

<ul>
<li>Jinxin Fertility is a leading IVF service provider in China. It has done a series of M&amp;A in the past two years.</li>
<li>We examine the thesis of the company for a trade into 2023.</li>
<li>We believe the company has big potential to realize its synergy post acquisition and ramp up post expansion. More favorable policy to come.</li>
</ul>


Jinxin Fertility is a leading IVF service provider in China. It has done a series of M&amp;A in the past two years.
We examine the thesis of the company for a trade into 2023.
We believe the company has big potential to realize its synergy post acquisition and ramp up post expansion. More favorable policy to come.


Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of October 14th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight inflows into Tencent (700 HK), and Li Auto (2015 HK). </li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of October 14th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight inflows into Tencent (700 HK), and Li Auto (2015 HK). 


Hong Kong Connect Flows (Oct 14th): Tencent, Li Auto

Hygeia Healthcare Group / Equity Bottom-Up

<ul>
<li>Hygeia had good performance in 2022H1,mainly because its business layout is mostly in lower-tier cities and its medical services belong to rigid demand. So, the impact of pandemic was limited.</li>
<li>Hygeia is better than Topchoice and Aier Eye Hospital. The business model of specialized hospital is better than that of general hospital. Among for-profit hospitals, we are bullish on Hygeia.</li>
<li>We think Hygeia will keep strong growth momentum in the future due to high demand. But pandemic and policy risk would weigh on valuations/sustainable bullish sentiment. Short-term trades are recommended.</li>
</ul>


Hygeia had good performance in 2022H1,mainly because its business layout is mostly in lower-tier cities and its medical services belong to rigid demand. So, the impact of pandemic was limited.
Hygeia is better than Topchoice and Aier Eye Hospital. The business model of specialized hospital is better than that of general hospital. Among for-profit hospitals, we are bullish on Hygeia.
We think Hygeia will keep strong growth momentum in the future due to high demand. But pandemic and policy risk would weigh on valuations/sustainable bullish sentiment. Short-term trades are recommended.


Hygeia Healthcare Group (6078.HK) 22H1 - The Logic and the Outlook

China Resources Medical / Equity Bottom-Up

<ul>
<li>China Resources Medical has more advantages than ordinary private medical institutions in terms of its State-owned Key Enterprises background, delicacy management, cost reduction and efficiency increase, resources/talents, industrial chain layout.</li>
<li>However, due to the policy environment, China Resources Medical just represents “a small area of relatively little risk in a large area that is clearly risky”. </li>
<li>General hospitals have poor business model and profitability. Despite its strength, we are conservative about the outlook of China Resources Medical, which is difficult to achieve a higher valuation.</li>
</ul>


China Resources Medical has more advantages than ordinary private medical institutions in terms of its State-owned Key Enterprises background, delicacy management, cost reduction and efficiency increase, resources/talents, industrial chain layout.
However, due to the policy environment, China Resources Medical just represents “a small area of relatively little risk in a large area that is clearly risky”. 
General hospitals have poor business model and profitability. Despite its strength, we are conservative about the outlook of China Resources Medical, which is difficult to achieve a higher valuation.


China Resources Medical - Hard to Earn High Profits Due to Poor Business Model and Policy Risk

China

China Resources Medical Holdings Company Limited operates hospitals and clinics. The Company offers clinical treatment, healthcare management, public sanitary, and other medical health services. China Resources Medical Holdings also operates supply chain management, financing, real estate development, consumption, and other businesses.

Price Gauge
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China Resources Medical (1515 HK)

Reform in China's Medical Service Industry: SOE-Run Hospitals Usher in a Critical Turning Point

Government's attitude towards SOE-run hospitals has a significant change as new policy is released,aiming to make public medical system bigger...

Xinyao (Criss) Wang

2023 High Conviction: Jinxin Fertility

Jinxin Fertility is a leading IVF service provider in China. It has done a series of M&A in the past two years. We examine the thesis of the...

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Oct 14th): Tencent, Li Auto

We analyzed the Hong Kong Connect Scheme for last week and highlight flows for Tencent Holding (700 HK), and Li Auto (2015 HK).

Ke Yan, CFA, FRM

Hygeia Healthcare Group (6078.HK) 22H1 - The Logic and the Outlook

Hygeia's business layout is in lower-tier city and its medical service belong to rigid demand,making business volume more stable.It's our top pick...

Xinyao (Criss) Wang

China Resources Medical - Hard to Earn High Profits Due to Poor Business Model and Policy Risk

General hospitals have poor business model, profitability and policy risk. Despite its strength, we are conservative about China Resources...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)