Healthcare equity analyst - emerging & dev mkts, daaimon

Avien Pillay

Healthcare equity analyst - emerging & dev mkts

daaimon

daaimon is an independent research company focusing on healthcare and consumer sectors across developed and emerging markets. We produce insightful research which challenges conventional thinking. In particular, we look for new ideas by testing consensus forecasts and markets expectations.

Equity Bottom-Up

The United Laboratories International Holdings Limited / Equity Bottom-Up

The United Laboratories International Holdings Limited

<ul>
<li>At a 4.6 FPE, you would expect to find some real concerns, however there are no gremlins anywhere?  </li>
<li>What you are buying is an antibiotic developer and distributor who is performing better than expected, given that the antibiotic market is thriving.</li>
<li>The extensive pipeline including GLP-1 drugs is still at an early stage/midway through development, however at this valuation, you are probably not paying for it!</li>
</ul>


At a 4.6 FPE, you would expect to find some real concerns, however there are no gremlins anywhere?  
What you are buying is an antibiotic developer and distributor who is performing better than expected, given that the antibiotic market is thriving.
The extensive pipeline including GLP-1 drugs is still at an early stage/midway through development, however at this valuation, you are probably not paying for it!


The United Laboratories Company Ltd (3933 HK) - A Sub Five PE Bargain!

Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>We have screened for APAC (ex-China) healthcare companies using their respective Smart Score, a compound score for a company indicating its overall outlook based on key factors.</li>
<li>Smart Score screens the stock based on five major components including value, dividends, growth, resilience, and momentum. It also provides a cumulative score, which puts equal weightage on each parameter.  </li>
<li>Parameters used to screen the stocks: market cap≥ $800M and smart score≥ 3.5. We have seen stocks having high smart score has strong growth prospects and qualify for investment proposition.</li>
</ul>


We have screened for APAC (ex-China) healthcare companies using their respective Smart Score, a compound score for a company indicating its overall outlook based on key factors.
Smart Score screens the stock based on five major components including value, dividends, growth, resilience, and momentum. It also provides a cumulative score, which puts equal weightage on each parameter.  
Parameters used to screen the stocks: market cap≥ $800M and smart score≥ 3.5. We have seen stocks having high smart score has strong growth prospects and qualify for investment proposition.


Top APAC (Ex-China) Investment Worthy Healthcare Companies Using Smartkarma’s Smart Score Screener

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

The United Laboratories International Holdings Limited / Equity Capital Markets

<ul>
<li>Last year, United Lab mainly relied on antibiotics to make money. However, after the pandemic is under control, antibiotic sales may decline. United Lab’s performance could be under pressure.</li>
<li>As a late comer, sales of United Lab’s weight management products could be lower than expected in the future under increasing competition. The veterinary drugs business requires time to cultivate.</li>
<li>RMB12 billion market value of United Lab has priced in all positive factors.There could be a pullback in valuation. RMB6 billion market value is a safe place to go long.</li>
</ul>


Last year, United Lab mainly relied on antibiotics to make money. However, after the pandemic is under control, antibiotic sales may decline. United Lab’s performance could be under pressure.
As a late comer, sales of United Lab’s weight management products could be lower than expected in the future under increasing competition. The veterinary drugs business requires time to cultivate.
RMB12 billion market value of United Lab has priced in all positive factors.There could be a pullback in valuation. RMB6 billion market value is a safe place to go long.


United Laboratories International Holdings Placement (3933.HK) - Valuation Pullback Seems Inevitable

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>Wide dispersion of returns has meant that industry sector investing  was a major performance contributor in Hong Kong</li>
<li>
<a href="https://www.smartkarma.com/entities/lygend-resources-technology" target="_blank" data-smartkarma-citation="entities:36493:1" rel="noopener">Lygend Resources &amp; Technology (2245 HK)</a> brokeout after Indonesia announced a moratorium on new nickel mining permits.  <a href="https://www.smartkarma.com/entities/sino-biopharmaceutical" target="_blank" data-smartkarma-citation="entities:230:1" rel="noopener">Sino Biopharmaceutical (1177 HK)</a> broke its falling wedge pattern after announcing results.
</li>
<li>
<a href="https://www.smartkarma.com/entities/wynn-macau-ltd" target="_blank" data-smartkarma-citation="entities:473:1" rel="noopener">Wynn Macau Ltd (1128 HK)</a> broke to a new low after announcing a disappointing 2Q EBITDA.  The sector is also affected by a crackdown on illegal money exchange operations.
</li>
</ul>


Wide dispersion of returns has meant that industry sector investing  was a major performance contributor in Hong Kong

Lygend Resources &amp; Technology (2245 HK) brokeout after Indonesia announced a moratorium on new nickel mining permits.  Sino Biopharmaceutical (1177 HK) broke its falling wedge pattern after announcing results.


Wynn Macau Ltd (1128 HK) broke to a new low after announcing a disappointing 2Q EBITDA.  The sector is also affected by a crackdown on illegal money exchange operations.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 15)

<ul>
<li>The GLP-1 market is evolving at a rapid pace, and we have quickly moved onto the development of a triple agonist drug.</li>
<li>First mover advantage is expected to lose steam as more effective GLP-1s are launched.</li>
<li>Scary side effects; challenged patents and strong competition will favour the cost-effective producers.</li>
</ul>


The GLP-1 market is evolving at a rapid pace, and we have quickly moved onto the development of a triple agonist drug.
First mover advantage is expected to lose steam as more effective GLP-1s are launched.
Scary side effects; challenged patents and strong competition will favour the cost-effective producers.


Hong Kong

The United Laboratories International Holdings Limited produces and distributes pharmaceutical products. The Company's products include finished products, APIs, intermediates, and capsules.

The United Laboratories International Holdings Limited (3933 HK)

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The United Laboratories International Holdings Limited (3933 HK)

The United Laboratories Company Ltd (3933 HK) - A Sub Five PE Bargain!

TUL is a sub five PE company that is growing strongly, cash generative, paying 35% of earnings as dividends, and has an extensive pipeline...

Avien Pillay

Top APAC (Ex-China) Investment Worthy Healthcare Companies Using Smartkarma’s Smart Score Screener

We have screened APAC (ex-China) healthcare companies with market cap≥$800M using Smartkarma’s Smart Score and picked up 2 investable ideas by...

Tina Banerjee

United Laboratories International Holdings Placement (3933.HK) - Valuation Pullback Seems Inevitable

United Lab is facing a performance decline when the dividend period of the pandemic has subsided. Weight management/veterinary drug businesses have...

Xinyao (Criss) Wang

Technically Speaking, Breakouts and Breakdowns: HONG KONG (AUGUST 15)

Successful returns in Hong Kong has meant getting the industry right! Lygend benefits from moratorium on new nickel mine permits. Sino Bio RX...

David Mudd

GLP-1s - Update 1

The GLP-1 market is evolving at a rapid pace and strong competition, patent challenges, and pressure to solve the obesity epidemic will favour the...

Avien Pillay

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