HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Beijing Tiantan Biological Products / Equity Bottom-Up

<ul>
<li>Tiantan is a good defensive investment target in unfriendly external environment to control the pullback due to its advantageous background and resources, but its profit margin/efficiency needs to improve. </li>
<li>After a large performance decline in Q1, Tiantan recovered well in Q2, but due to the pandemic and some acquisitions/resource integration, its profit performance declined in Q3. </li>
<li>Tiantan’s performance growth is expected to slow down in 2022, with single-digit YoY revenue growth. Accordingly, the current valuation may have overdrawn certainty.</li>
</ul>


Tiantan is a good defensive investment target in unfriendly external environment to control the pullback due to its advantageous background and resources, but its profit margin/efficiency needs to improve. 
After a large performance decline in Q1, Tiantan recovered well in Q2, but due to the pandemic and some acquisitions/resource integration, its profit performance declined in Q3. 
Tiantan’s performance growth is expected to slow down in 2022, with single-digit YoY revenue growth. Accordingly, the current valuation may have overdrawn certainty.


Beijing Tiantan Biological Products (600161CH)-A Good Defensive Investment Target but May Overvalued

China Resources Pharmaceutical / Equity Bottom-Up

<ul>
<li>The distribution business is stable, but it’s difficult to achieve high growth/profits due to industry trend. Therefore, the valuation of this business is hard to increase.</li>
<li>The performance of pharmaceutical manufacturing business is important, which largely determines the overall profit margin. But it actually depends on what the subsidiaries can contribute, who are facing different challenges.</li>
<li>China Resources Pharmaceutical may need to improve its vision of asset selection and its ability to judge and grasp the long-term trend of the industry. The current valuation isn’t attractive.</li>
</ul>


The distribution business is stable, but it’s difficult to achieve high growth/profits due to industry trend. Therefore, the valuation of this business is hard to increase.
The performance of pharmaceutical manufacturing business is important, which largely determines the overall profit margin. But it actually depends on what the subsidiaries can contribute, who are facing different challenges.
China Resources Pharmaceutical may need to improve its vision of asset selection and its ability to judge and grasp the long-term trend of the industry. The current valuation isn’t attractive.


China Resources Pharmaceutical (3320.HK) - Here Are the Concerns

<ul>
<li>In the context of both the war and the pandemic, the blood products market would be a field of high-quality investment. </li>
<li>Due to strict policy supervision, the number of plasma stations is the core competitiveness of enterprises in this industry, which basically determines the scale and outlook of blood products enterprises. </li>
<li>With the background of state-owned enterprise and also having the most plasma stations among peers,<a href="https://www.smartkarma.com/entities/beijing-tiantan-biological-products-corp" target="_blank" data-smartkarma-citation="entities:5190:1" rel="noopener">Tiantan Biological Products (600161 CH) </a>has an innate advantage over other competitors, with more certainty in long term.</li>
</ul>


In the context of both the war and the pandemic, the blood products market would be a field of high-quality investment. 
Due to strict policy supervision, the number of plasma stations is the core competitiveness of enterprises in this industry, which basically determines the scale and outlook of blood products enterprises. 
With the background of state-owned enterprise and also having the most plasma stations among peers,Tiantan Biological Products (600161 CH) has an innate advantage over other competitors, with more certainty in long term.


Presentation for Impact of Russia/Ukraine War on Asian Markets-Tiantan Biological Products(600161CH)

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>Considering the importance of blood products, the 14th Five-Year Plan will accelerate the construction of plasma stations in China so as to achieve the self-sufficiency in blood products.</li>
<li>Public health is the focus of the 14th Five-Year Plan for medical reform. Among them, due to the strong demand from the downstream, the medical IT industry is expected to usher in a faster development.</li>
<li>The outbreak of COVID-19 in 2020 would accelerate Chinese consumers' awareness and attention of immunonutrition products, such as the probiotics products.</li>
</ul>Company news:News about the updated progress on drugs and new cooperation agreements of <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 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>, <a href="https://www.smartkarma.com/entities/innocare-pharma-ltd" target="_blank" data-smartkarma-citation="entities:28355:1" rel="noopener">InnoCare Pharma Ltd (9969 HK) </a>and <a href="https://www.smartkarma.com/entities/remegen-co-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Co Ltd (9995 HK)</a>.Market review:Last week, stock price for healthcare sector in A share increased 2.61%, while CSI 300 increased 0.50% over the same period of timeRisk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
Considering the importance of blood products, the 14th Five-Year Plan will accelerate the construction of plasma stations in China so as to achieve the self-sufficiency in blood products.
Public health is the focus of the 14th Five-Year Plan for medical reform. Among them, due to the strong demand from the downstream, the medical IT industry is expected to usher in a faster development.
The outbreak of COVID-19 in 2020 would accelerate Chinese consumers' awareness and attention of immunonutrition products, such as the probiotics products.
Company news:News about the updated progress on drugs and new cooperation agreements of Innovent Biologics Inc (1801 HK), Jiangsu Hengrui Medicine (600276 CH), InnoCare Pharma Ltd (9969 HK) and Remegen Co Ltd (9995 HK).Market review:Last week, stock price for healthcare sector in A share increased 2.61%, while CSI 300 increased 0.50% over the same period of timeRisk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

The COVID-19 since the end of 2019 has brought a large demand for blood products. The publicity of convalescent plasma, human immumoglobulin (PH4) for intravenous injection, albumin and other therapeutic blood products is conducive to the education of the public about blood products. At the same time, during COVID-19, they played a certain therapeutic role, reflecting the importance of blood products. Besides, blood products with high technology, high investment, and scarcity are of high clinical value. They are also subject to national supervision, which means that the entry barriers are high. Therefore, blood products market undoubtedly belong to the field of high-quality investment.

The COVID-19 since the end of 2019 has brought a large demand for blood products. The publicity of convalescent plasma, human immumoglobulin (PH4) for intravenous injection, albumin and other therapeutic blood products is conducive to the education of the public about blood products. At the same time, during COVID-19, they played a certain therapeutic role, reflecting the importance of blood products. Besides, blood products with high technology, high investment, and scarcity are of high clinical value. They are also subject to national supervision, which means that the entry barriers are high. Therefore, blood products market undoubtedly belong to the field of high-quality investment.

Industry Report - Insights on China Blood Product Industry

China

Shanghai RAAS Blood Products Co., Ltd. produces blood products. The Company develops and manufactures human albumin, human immunoglobulin, coagulation factors, tetanus human immunoglobulin, and other products. Shanghai RAAS Blood Products markets its products throughout China.

Shanghai RAAS Blood Products C (002252 CH)

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Shanghai RAAS Blood Products C (002252 CH)

Beijing Tiantan Biological Products (600161CH)-A Good Defensive Investment Target but May Overvalued

Tiantan is a good defensive target in unfriendly external macro due to its advantageous background, but performance growth would slow down in 2022....

Xinyao (Criss) Wang

China Resources Pharmaceutical (3320.HK) - Here Are the Concerns

Pharmaceutical manufacturing business is the key to drive valuation,but the subsidiaries face challenge.CR Pharma should improve its vision of...

Xinyao (Criss) Wang

Presentation for Impact of Russia/Ukraine War on Asian Markets-Tiantan Biological Products(600161CH)

We analyzed the investment opportunity (Tiantan Biological Products) that is good to consider during both war and pandemic time,covering investment...

Xinyao (Criss) Wang

China Healthcare Weekly (July.16)

The article mainly analyzed China's plan to accelerate the construction of plasma stations, promising outlook of medical IT industry...

Xinyao (Criss) Wang

Industry Report - Insights on China Blood Product Industry

This article analyzed the insights on China blood products market in terms of market potential, industry characteristics, the review of blood...

Xinyao (Criss) Wang

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