HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>Mega should establish core competitiveness via entering hospital market and being recognized by hospitals. It’s not a long-term solution to exploit the market by mainly relying on Meinian.</li>
<li>Although Mega’s competitive advantage in the channels is still more obvious due to Meinian, it is actually a double-edged sword, especially when Meinian is in financial difficulty.</li>
<li>Without Meinian, whether Mega can develop independently is a question mark. In terms of valuation, BGI and Berry could be comparable companies, and Mega’s valuation could be lower than Berry.</li>
</ul>


Mega should establish core competitiveness via entering hospital market and being recognized by hospitals. It’s not a long-term solution to exploit the market by mainly relying on Meinian.
Although Mega’s competitive advantage in the channels is still more obvious due to Meinian, it is actually a double-edged sword, especially when Meinian is in financial difficulty.
Without Meinian, whether Mega can develop independently is a question mark. In terms of valuation, BGI and Berry could be comparable companies, and Mega’s valuation could be lower than Berry.


Pre-IPO Mega Genomics - Immature Market and Over-Reliance on Meinian Put Future Performance in Doubt

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>A new round of rebalancing may still take some time.</li>
<li>Last week, the results of centralized procurement of artificial joints was released.</li>
<li>The added value of consumer genetic testing is that it could be a reference rather than an essential treatment or evidence.</li>
</ul>Company news:News about the updated progress on new drugs and cooperation agreement 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/cstone-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:27882:1" rel="noopener">CStone Pharmaceuticals (2616 HK)</a> and <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a>.Market review: Last week, stock price for healthcare sector in A share increased 2.63%, while CSI 300 decreased 3.14% over the same period of time. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
A new round of rebalancing may still take some time.
Last week, the results of centralized procurement of artificial joints was released.
The added value of consumer genetic testing is that it could be a reference rather than an essential treatment or evidence.
Company news:News about the updated progress on new drugs and cooperation agreement of BeiGene Ltd (6160 HK), CStone Pharmaceuticals (2616 HK) and Everest Medicines (1952 HK).Market review: Last week, stock price for healthcare sector in A share increased 2.63%, while CSI 300 decreased 3.14% over the same period of time. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Sep17) - A New Round of Rebalancing, Artificial Joints VBP, Genetic Testing

Hong Kong

Mega Genomics Limited operates consumer grade genetic testing businesses. The Company provides nutrition and metabolism, cancer risk assessment, chronic disease susceptibility, cancer screening, and infectious disease diagnosis services. Mega Genomics conducts businesses in Beijing and Hong Kong.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Mega Genomics (6667 HK)

Pre-IPO Mega Genomics - Immature Market and Over-Reliance on Meinian Put Future Performance in Doubt

Consumer genetic testing market is immature. Mega hasn't established core competitiveness or recognized by hospitals. The over-reliance on Meinian...

Xinyao (Criss) Wang

China Healthcare Weekly (Sep17) - A New Round of Rebalancing, Artificial Joints VBP, Genetic Testing

The article mainly analyzed the logic of volume-based purchase (VBP) and healthcare sector rebalancing, the results of centralized procurement of...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)