HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>TCMTech’s business model is directly targeted at industry pain points.The innovation point lies in using AI technology and offline clinics to break the time/space limitations of traditional TCM business model. </li>
<li>The current revenue scale is small. We have already seen a sharp decline of YoY revenue growth in 24Q1-Q3, thus raising questions about the sustainability of future growth momentum.</li>
<li>Considering Gushengtang's scale, business model, and the control of core renowned physician resources have been validated by the market, we think that TCMTech’s reasonable valuation should be lower than Gushengtang.</li>
</ul>


TCMTech’s business model is directly targeted at industry pain points.The innovation point lies in using AI technology and offline clinics to break the time/space limitations of traditional TCM business model. 
The current revenue scale is small. We have already seen a sharp decline of YoY revenue growth in 24Q1-Q3, thus raising questions about the sustainability of future growth momentum.
Considering Gushengtang's scale, business model, and the control of core renowned physician resources have been validated by the market, we think that TCMTech’s reasonable valuation should be lower than Gushengtang.


Pre-IPO TCMTech - The Business Model and the Outlook

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.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of April 3rd.</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 flows for Pop Mart International, China Mobile, Meituan, Alibaba, CMB, Xiaomi.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of April 3rd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Pop Mart International, China Mobile, Meituan, Alibaba, CMB, Xiaomi.


HK Connect Flows Weekly (Apr 3rd): Pop Mart Intl, China Mobile, Meituan, Alibaba, CMB

Equity Bottom-Up

Shanghai Fosun Pharmaceutical (Group) / Equity Bottom-Up

<ul>
<li>Given new policy recommendations, it is only a matter of time before HPV vaccination is included in the national immunization program, which is detrimental to HPV vaccine companies.</li>
<li>MNCs have seen a inflection point in performance growth in 2024 in China. Although VBP/NRDL negotiation are negative factors, is it also due to any consideration to withdraw from China?</li>
<li>Fosun Pharma has agreed to sell its entire stake in United Family Healthcare to Calcite Gem Investments Group for US$124.1 million. We shared our views about the deal.</li>
</ul>


Given new policy recommendations, it is only a matter of time before HPV vaccination is included in the national immunization program, which is detrimental to HPV vaccine companies.
MNCs have seen a inflection point in performance growth in 2024 in China. Although VBP/NRDL negotiation are negative factors, is it also due to any consideration to withdraw from China?
Fosun Pharma has agreed to sell its entire stake in United Family Healthcare to Calcite Gem Investments Group for US$124.1 million. We shared our views about the deal.


China Healthcare Weekly (Mar.23)-Fosun Pharma Sells United Family Healthcare, MNC's Inflection Point

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 27th.</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 flows for Tencent, SMIC, China Mobile, ICBC, Weimob, Alibaba.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 27th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Tencent, SMIC, China Mobile, ICBC, Weimob, Alibaba.


Hong Kong Connect Flows (Dec 27th): Tencent, SMIC, China Mobile, ICBC, Weimob, Alibaba

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 20th.</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 flows for Alibaba, CCB, China Mobile, ICBC, Ping An Insurance, Meituan, Tencent.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 20th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Alibaba, CCB, China Mobile, ICBC, Ping An Insurance, Meituan, Tencent.


Hong Kong Connect Flows (Dec 20th): Alibaba, CCB, China Mobile, ICBC, Ping An Insurance, Meituan

China

Gushengtang Holdings Limted operates as a TCM (Traditional Chinese medicine) healthcare service provider. The Company operates offline medical institutions and online healthcare platforms and provides TCM healthcare services and products. Gushengtang conducts businesses in China.

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Gushengtang (2273 HK)

Pre-IPO TCMTech - The Business Model and the Outlook

TCMTech’s business model and TCM Brain have advantages. However, we doubt whether TCMTech can still maintain such high revenue in the long run....

Xinyao (Criss) Wang

HK Connect Flows Weekly (Apr 3rd): Pop Mart Intl, China Mobile, Meituan, Alibaba, CMB

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Pop Mart International, China Mobile, Meituan, Alibaba,...

Ke Yan, CFA, FRM

China Healthcare Weekly (Mar.23)-Fosun Pharma Sells United Family Healthcare, MNC's Inflection Point

National immunization program likely to include HPV vaccination. MNCs in China see an inflection point, potential withdrawal. Fosun Pharma sells...

Xinyao (Criss) Wang

Hong Kong Connect Flows (Dec 27th): Tencent, SMIC, China Mobile, ICBC, Weimob, Alibaba

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent, SMIC, China Mobile, ICBC, Weimob, Alibaba.

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Dec 20th): Alibaba, CCB, China Mobile, ICBC, Ping An Insurance, Meituan

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba, CCB, China Mobile, ICBC, Ping An Insurance,...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO TCMTech - The Business Model and the Outlook

TCMTech’s business model and TCM Brain have advantages. However, we doubt whether TCMTech can still maintain such high revenue in the long run....

Xinyao (Criss) Wang

HK Connect Flows Weekly (Apr 3rd): Pop Mart Intl, China Mobile, Meituan, Alibaba, CMB

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Pop Mart International, China Mobile, Meituan, Alibaba,...

Ke Yan, CFA, FRM

China Healthcare Weekly (Mar.23)-Fosun Pharma Sells United Family Healthcare, MNC's Inflection Point

​National immunization program likely to include HPV vaccination. MNCs in China see an inflection point, potential withdrawal. Fosun Pharma sells...

Xinyao (Criss) Wang

Hong Kong Connect Flows (Dec 27th): Tencent, SMIC, China Mobile, ICBC, Weimob, Alibaba

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent, SMIC, China Mobile, ICBC, Weimob, Alibaba.

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Dec 20th): Alibaba, CCB, China Mobile, ICBC, Ping An Insurance, Meituan

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba, CCB, China Mobile, ICBC, Ping An Insurance,...

Ke Yan, CFA, FRM

National immunization program likely to include HPV vaccination. MNCs in China see an inflection point, potential withdrawal. Fosun Pharma sells...