HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

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

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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This is the latest update in a series dating back to <a href="https://skr.ma/c7hcH" target="_blank" rel="noopener">Legend's Conversion of Domestic Shares</a> in June 2018.
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To date, 28 companies have sought approval to convert their domestic shares and/or unlisted foreign shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.
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16 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Five of those have seen various degrees of movement in the converted shares.
<a href="https://www.smartkarma.com/entities/sichuan-languang-justbon-service-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:28337:1" rel="noopener">Sichuan Languang Justbon Service Group (2606 HK)</a> received approval late last year but did not convert - and was subsequently subject to an Offer. 
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To date, two companies have withdrawn their application to convert their domestic shares.  Both of these companies have now been subject to Offers.
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As always, more below the fold. 
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This is the latest update in a series dating back to Legend's Conversion of Domestic Shares in June 2018.


To date, 28 companies have sought approval to convert their domestic shares and/or unlisted foreign shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.


16 companies have now been given CSRC and Hong Kong listing approval to convert such shares. Five of those have seen various degrees of movement in the converted shares.
Sichuan Languang Justbon Service Group (2606 HK) received approval late last year but did not convert - and was subsequently subject to an Offer. 


To date, two companies have withdrawn their application to convert their domestic shares.  Both of these companies have now been subject to Offers.


As always, more below the fold. 


Full Circulation Of H-Shares: July 2021 Update

Equity Capital Markets

Shanghai MicroPort MedBot Group / Equity Capital Markets

On June 10th, 2021, <a href="https://www.smartkarma.com/entities/shanghai-microport-medbot-group-co-ltd" target="_blank" data-smartkarma-citation="entities:33485:1" rel="noopener">Shanghai MicroPort MedBot Group (MMG HK)</a> filed a prospectus with the HKEX, which greatly excited the domestic surgical robot industry. MicroPort MedBot is not the earliest entrant in the surgical robot industry, but it is developing rapidly. In 2014, <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK)</a> started to develop the laparoscopic surgery robot and incubated it as an internal project. In 2015, MicroPort MedBot was registered and established in China. After just five year’s development, MicroPort MedBot has become a globally top-tiered surgical robot company, and also the important reason for the current high valuation of MicroPort. This article mainly analyzed the industry characteristics, the core products, the business models and the concerns of MicroPort MedBot.

On June 10th, 2021, Shanghai MicroPort MedBot Group (MMG HK) filed a prospectus with the HKEX, which greatly excited the domestic surgical robot industry. MicroPort MedBot is not the earliest entrant in the surgical robot industry, but it is developing rapidly. In 2014, Microport Scientific (853 HK) started to develop the laparoscopic surgery robot and incubated it as an internal project. In 2015, MicroPort MedBot was registered and established in China. After just five year’s development, MicroPort MedBot has become a globally top-tiered surgical robot company, and also the important reason for the current high valuation of MicroPort. This article mainly analyzed the industry characteristics, the core products, the business models and the concerns of MicroPort MedBot.

Pre-IPO MicroPort MedBot - The Core Products, the Business Model and the Concerns

Industry viewpoints:<ul>
<li>Last week, the results of the 5th national volume-based purchase (VBP) were released.</li>
<li>A new announcement on the centralized procurement of artificial joints was released, and the selection rules were relatively mild.</li>
<li>Recently, China National Medical Products Administration (NMPA) released the "2020 Annual Drug Evaluation Report". 
</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/cansino-biologics-inc" target="_blank" data-smartkarma-citation="entities:27739:1" rel="noopener">CanSino Biologics Inc (6185 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>, Fosun Kite and <a href="https://www.smartkarma.com/entities/hutchmed-china-ltd" target="_blank" data-smartkarma-citation="entities:133:1" rel="noopener">Hutchmed China Ltd (13 HK)</a>. Market review:Last week, stock price for healthcare sector in A share increased 3.19%, while CSI 300 increased 2.69% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
Last week, the results of the 5th national volume-based purchase (VBP) were released.
A new announcement on the centralized procurement of artificial joints was released, and the selection rules were relatively mild.
Recently, China National Medical Products Administration (NMPA) released the "2020 Annual Drug Evaluation Report". 

Company news:News about the updated progress on drugs of BeiGene Ltd (6160 HK), CanSino Biologics Inc (6185 HK), Jiangsu Hengrui Medicine (600276 CH), Fosun Kite and Hutchmed China Ltd (13 HK). Market review:Last week, stock price for healthcare sector in A share increased 3.19%, while CSI 300 increased 2.69% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Equity Bottom-Up

Tinavi Medical Technologies / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/tinavi-medical-technologies-co-ltd" target="_blank" data-smartkarma-citation="entities:33453:1" rel="noopener">Tinavi Medical Technologies (688277 CH)</a>, currently the only and first public domestic surgical robot company, was listed on the SSE STAR Market in July 2020. After the IPO, the stock price was as high as RMB141.6/share, but now it has fallen to RMB41/share on June 8, 2021, down over 245%. In fact, the operating performance shed some light. From 2017 to 2020, Tinavi sold 16, 20, 41 and 30 robots respectively, with total sales of 107 robots in four years, and achieved revenue of RMB73 million, RMB127 million, RMB230 million and RMB136 million, and corresponding net profit/loss of RMB21 million, RMB-366,000, RMB-34 million and RMB-54 million, respectively from 2017 to 2020. This article mainly analyzed the potential reasons for poor performance, the concerns on business model and the comparison with peers.

Tinavi Medical Technologies (688277 CH), currently the only and first public domestic surgical robot company, was listed on the SSE STAR Market in July 2020. After the IPO, the stock price was as high as RMB141.6/share, but now it has fallen to RMB41/share on June 8, 2021, down over 245%. In fact, the operating performance shed some light. From 2017 to 2020, Tinavi sold 16, 20, 41 and 30 robots respectively, with total sales of 107 robots in four years, and achieved revenue of RMB73 million, RMB127 million, RMB230 million and RMB136 million, and corresponding net profit/loss of RMB21 million, RMB-366,000, RMB-34 million and RMB-54 million, respectively from 2017 to 2020. This article mainly analyzed the potential reasons for poor performance, the concerns on business model and the comparison with peers.

Tinavi Medical Technologies (688277.CH) - Time Is Running Out for Tinavi

China

Shandong Weigao Group Medical Polymer Company Limited, through its subsidiaries, researches and develops, produces, and sells single-use aseptic polymer medical products.

Shandong Weigao Group Medical Polymer Co (1066 HK)

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Shandong Weigao Group Medical Polymer Co (1066 HK)

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

Full Circulation Of H-Shares: July 2021 Update

CSRC circulation approval is an endorsement of the existing internal framework of the company. There also does appear to be some degree of...

David Blennerhassett

Pre-IPO MicroPort MedBot - The Core Products, the Business Model and the Concerns

This article analyzed MicroPort MedBot in terms of the industry characteristics, the core products, the business models (compared with Intuitive...

Xinyao (Criss) Wang

China Healthcare Weekly (Jun.25)

This article analyzed the results of 5th national volume-based purchase, the new announcement on the centralized procurement of artificial joints,...

Xinyao (Criss) Wang

Tinavi Medical Technologies (688277.CH) - Time Is Running Out for Tinavi

Before the upcoming pre-IPO MicroPort MedBot, let's discuss the business model of the only and first public domestic surgical robot...

Xinyao (Criss) Wang

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