Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

Harmonicare Medical / Equity Capital Markets

Harmonicare Medical Holdings operates 11 private hospitals that specialize in obstetrics and gynecology services (OB/GYN.) The company is a pure-play on growing demand for high-end medical services tied to births. The growth story for the next 18 months is simple: filling existing capacity in an under-served market. The proposed valuation range of 21-24x 2016E EPS ( price range of HKD 6.80 - 7.55) is in line with Phoenix Healthcare (1515 HK) at the top of the range. Investors should fully understand the risks associated with 2017's hospital openings. We like the deal given the reasonable valuation and clean growth story through 2016.

Harmonicare Medical Holdings operates 11 private hospitals that specialize in obstetrics and gynecology services (OB/GYN.) The company is a pure-play on growing demand for high-end medical services tied to births. The growth story for the next 18 months is simple: filling existing capacity in an under-served market. The proposed valuation range of 21-24x 2016E EPS ( price range of HKD 6.80 - 7.55) is in line with Phoenix Healthcare (1515 HK) at the top of the range. Investors should fully understand the risks associated with 2017's hospital openings. We like the deal given the reasonable valuation and clean growth story through 2016.

Harmonicare IPO An Attractive Play on China Women's Health

Thematic (Sector/Industry)

Numerous press outlets report that China&rsquo;s Food &amp; Drug Administration (CFDA) will release regulations permitting online sales of pharmaceuticals soon. This action should help the Chinese government in its efforts to lower drug costs for its citizens by:<ol><li>Creating a lower-cost channel to undercut the current multi-tier distribution channel that serves state hospitals (70% of the market);</li><li>Addressing the current shortage of pharmacists (China: 1.47/10,000 population; Global average: 6.02) through creation of larger dispensing platforms that increase productivity; and</li><li>Providing a more efficient channel for retail pharmacies to compete with hospital-based pharmacies.</li></ol>The addition of E-commerce should drive much-needed reforms that will benefit leading drug distributors and retail chains. &nbsp;The road will be long and bumpy.

Numerous press outlets report that China&rsquo;s Food &amp; Drug Administration (CFDA) will release regulations permitting online sales of pharmaceuticals soon. This action should help the Chinese government in its efforts to lower drug costs for its citizens by:Creating a lower-cost channel to undercut the current multi-tier distribution channel that serves state hospitals (70% of the market);Addressing the current shortage of pharmacists (China: 1.47/10,000 population; Global average: 6.02) through creation of larger dispensing platforms that increase productivity; andProviding a more efficient channel for retail pharmacies to compete with hospital-based pharmacies.The addition of E-commerce should drive much-needed reforms that will benefit leading drug distributors and retail chains. &nbsp;The road will be long and bumpy.

Opening of E-commerce Channel to Change China's Drug Market

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.

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China Resources Medical (1515 HK)

Harmonicare IPO An Attractive Play on China Women's Health

Harmonicare Medical Holdings operates 11 private hospitals that specialize in obstetrics and gynecology services (OB/GYN.) The company is a...

Kemp Dolliver, CFA

Opening of E-commerce Channel to Change China's Drug Market

Numerous press outlets report that China’s Food & Drug Administration (CFDA) will release regulations permitting online sales of...

Kemp Dolliver, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)