HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The NHSA issued a Notice on the investigation and registration of dental implant charges and service fees, paving ways for the subsequent centralized procurement, which would affect companies’ profit model.</li>
<li>As the pioneer of commercial insurance,Huimin Insurance is showing a decreasing marginal effect on improving the ability to pay the bills out of NRDL and improving bargaining power of companies.</li>
<li>To improve internationalization, China Biotech can choose to “Fast Follow” differentiated BIC candidates and also start MRCT in Phase I trials. This could be a path to strive for.</li>
</ul>


The NHSA issued a Notice on the investigation and registration of dental implant charges and service fees, paving ways for the subsequent centralized procurement, which would affect companies’ profit model.
As the pioneer of commercial insurance,Huimin Insurance is showing a decreasing marginal effect on improving the ability to pay the bills out of NRDL and improving bargaining power of companies.
To improve internationalization, China Biotech can choose to “Fast Follow” differentiated BIC candidates and also start MRCT in Phase I trials. This could be a path to strive for.


China Healthcare Weekly (Aug19)-Dental Implant VBP,Commercial Insurance,Biotech Internationalization

Equity Capital Markets

Dental Doctor Medical Holding Group / Equity Capital Markets

<ul>
<li>Dental Doctor has not established core competitiveness and high moat, and has to invest more on marketing and promotion to attract customers and drive growth.</li>
<li>The lack of dentists, weak talent and training system as well as high dentist turnover rate would be big concerns for the Company’s long term development, especially for nationwide expansion.</li>
<li>This industry has not yet entered the profit mode. Most of chain dental services providers are still in the stage of cash-burning expansion. So, we are conservative about the Company’s outlook.</li>
</ul>


Dental Doctor has not established core competitiveness and high moat, and has to invest more on marketing and promotion to attract customers and drive growth.
The lack of dentists, weak talent and training system as well as high dentist turnover rate would be big concerns for the Company’s long term development, especially for nationwide expansion.
This industry has not yet entered the profit mode. Most of chain dental services providers are still in the stage of cash-burning expansion. So, we are conservative about the Company’s outlook.


Pre-IPO Dental Doctor Medical Holding Group - An Uncertain Outlook and Concerns About Profitability

Equity Bottom-Up

<ul>
<li>Arrial's positioning at high-end private dental chain indicates limited growth space. The large investment in dental professionals drags down overall margins but fails to generate good word-of-mouth and expected returns.</li>
<li>Public hospitals with NRDL reimbursement and private dental chains with high cost performance would put more pressure on Arrail. Increasing marketing/promotion expenses cannot turn things around but further reduce margins.</li>
<li>Overall, the high-end strategy cannot bring high-end returns. We are not optimistic about Arrail's prospects and profitability. The Company may even keep losing money and hard to turn profitable.</li>
</ul>


Arrial's positioning at high-end private dental chain indicates limited growth space. The large investment in dental professionals drags down overall margins but fails to generate good word-of-mouth and expected returns.
Public hospitals with NRDL reimbursement and private dental chains with high cost performance would put more pressure on Arrail. Increasing marketing/promotion expenses cannot turn things around but further reduce margins.
Overall, the high-end strategy cannot bring high-end returns. We are not optimistic about Arrail's prospects and profitability. The Company may even keep losing money and hard to turn profitable.


Arrail Group (6639.HK) - The Development Strategy Cannot Generate High Returns

Hygeia Healthcare Group / Equity Bottom-Up

<ul>
<li>Driven by the development mode of "organic growth + strategic acquisitions + cooperation with hospital partners", <a href="https://www.smartkarma.com/entities/hygeia-healthcare-group" target="_blank" data-smartkarma-citation="entities:28875:1" rel="noopener">Hygeia Healthcare Group (6078 HK)</a> could rapidly expand nationwide, with solid business logic. </li>
<li>Hygeia's delicacy management and the strength in operation help the Company to break the limits of the expansion of private hospitals, helping shorten the time it takes to break even.</li>
<li>However, the high uncertainties on policy and State’s attitude towards private hospitals cast shadow on Hygeia's long-term prospects, but investors could still trade this stock in short term.</li>
</ul>


Driven by the development mode of "organic growth + strategic acquisitions + cooperation with hospital partners", Hygeia Healthcare Group (6078 HK) could rapidly expand nationwide, with solid business logic. 
Hygeia's delicacy management and the strength in operation help the Company to break the limits of the expansion of private hospitals, helping shorten the time it takes to break even.
However, the high uncertainties on policy and State’s attitude towards private hospitals cast shadow on Hygeia's long-term prospects, but investors could still trade this stock in short term.


Hygeia Healthcare Group (6078.HK) 2021 Results - Solid Business Logic Comes with Policy Risk

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.

<ul>
<li>Arrail Group raised HKD 589.9 million (USD 75m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, Mar 22nd.</li>
<li>In our previous notes, we looked at the company's background, its operation, its financials, and its expansion plan, compared its key metrics with peers and provided thoughts on valuation.</li>
<li>In this note, we look at the updates since our last note and prior to debut.</li>
</ul>


Arrail Group raised HKD 589.9 million (USD 75m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, Mar 22nd.
In our previous notes, we looked at the company's background, its operation, its financials, and its expansion plan, compared its key metrics with peers and provided thoughts on valuation.
In this note, we look at the updates since our last note and prior to debut.


Arrail Group (瑞尔集团) IPO Trading: Weak Demand, Rich Valuation

China

China National Medicines Corp. Ltd. wholesales and retails chemical material medicines, western medicine preparations, biochemical medicines, biological products, and Chinese traditional medicines.  Through its subsidiaries, the Company also manufactures pharmaceuticals including injections, capsules, tablets, and other related products under the CNCM brand name.

Tibet Rhodiola Pharmaceutical Holding Co. develops, manufactures, and markets Tibet medicines.  The Company's products include Rhodiola capsules, Rhodiola pellets, and other related medicines.

Zhejiang Dian Diagnostics Co., Ltd. provides medical diagnostic solutions, as an outsourcer, to various general hospitals, specialized hospitals, community health service centers (stations), township (county) hospitals, medical centers,  disease prevention and control centers.

Shenzhen Neptunus Bioengineering Co., Ltd. develops, manufactures, and markets biochemical pharmaceuticals, biological products, traditional Chinese medicines, and healthcare products.  Through its subsidiaries, the Company also manufactures food.

Searainbow Holding Corp., produces chemical fibers and other textile products. The company, through its subsidiaries, also provides medical e-commerce and on-line games.

Nanjing Pharmaceutical Co. Ltd. distributes a broad range of drugs. The Company also manufactures medicines,medical apparatus, chemical reagents, and glassware.

Guangxi Liuzhou Pharmaceutical Co. Ltd. manufactures pharmaceuticals. The Company researches, develops, produces, processes, and distributes capsules, granules, tablets, pills, plasters, and raw material medicines.

Jinxin Fertility Group Limited provides assisted reproductive services. The Company offers vitro fertilization services, embryo transfer services, management services, and other services. Jinxin Fertility Group also provides ancillary medical services.

China Resources Medical Holdings Company Limited operates hospitals and clinics. The Company offers clinical treatment, healthcare management, public sanitary, and other medical health services. China Resources Medical Holdings also operates supply chain management, financing, real estate development, consumption, and other businesses.

Cachet Pharmaceutical Co., Ltd manages pharmaceutical services, wholesale and retail businesses.  The Company also operates the logistics services related to pharmacy.

Mitra Keluarga Karyasehat Tbk PT engages in hospital management and business services. The Company operates hospitals located in the Greater Jakarta Area, Surabaya and Tegal.

Alfresa Holdings Corporation is a holding company established through the merger of Azwell Inc. and Fukujin Co., Ltd.  The Company's subsidiaries mainly wholesale and manufacture medical related products including medicines, reagents, and medical tools and equipment.

SUZUKEN CO., LTD., a subsidiary of Medca Japan, wholesales and manufactures pharmaceutical products mainly to hospitals and practitioners.  The Company also provides medical equipment such as electro-cardiogram and blood pressure measurement.  Suzuken provides construction and repair works to hospitals and maintains patients' clinical records through information systems services.

AMN Healthcare Services, Inc., a temporary healthcare staffing company, provides travel nurse staffing services. The Company places nurses and allied health professionals on temporary assignments at hospitals and healthcare facilities throughout the United States.

Amedisys, Inc. is a multi-regional provider of alternate-site health care services.  The Company offers home health care nursing, home infusion therapy, and ambulatory surgery centers.  Amedisys operates offices within a network of subsidiaries in the southern and southeastern United States.

Dr. Lal PathLabs Limited operates clinical laboratories. The Company offers medical diagnostic, cardiology, radiology, pathology and imaging, health checkup, blood test, and customer care services. Dr. Lal PathLabs conducts its business in India.

Narayana Hrudayalaya Limited operates a network of hospitals. The Company offers cardiac surgery, cardiology, diabetes and endocrinology, gastroenterology, general surgery, neuroscience, facial surgery, nephrology, obstetrics and gynecology, orthopedics, oncology, pediatrics, transplant, and urology services. Narayana Hrudayalaya serves patients worldwide.

Progyny, Inc. operates as a fertility benefits management company in the US with its headquarters in New York City. The Company offers patients a benefits solution with education and guidance from a Patient Care Advocate and access to a network of fertility specialists. Progyny also aims to reduce healthcare costs for employers through their operations.

KPJ Healthcare Berhad is an investment holding company. Through its subsidiaries, the Company operates specialist medical centers and also provides pathology and laboratory services, hospital management services, drug and medical distribution along with operating a nursing college.

PT Siloam International Hospitals Tbk owns and operates hospitals. The Company offers a comprehensive range of specialist medical services including laboratory services, radiology, imaging and complex surgical procedures. Siloam International operates its hospitals throughout Indonesia.

Topchoice Medical Investment Corporation provides dental and oral health care services.

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Topchoice Medical (600763 CH)

China Healthcare Weekly (Aug19)-Dental Implant VBP,Commercial Insurance,Biotech Internationalization

Dental implant VBP will affect companies' profit model/valuation elasticity. Commercial medical insurance faces challenges. China Biotech's...

Xinyao (Criss) Wang

Pre-IPO Dental Doctor Medical Holding Group - An Uncertain Outlook and Concerns About Profitability

Dental Doctor hasn't established core competitiveness.The lack of dentists/low profitability hinder expansion.As a reliable profit model hasn't...

Xinyao (Criss) Wang

Arrail Group (6639.HK) - The Development Strategy Cannot Generate High Returns

Arrail's development strategy cannot generate high returns, with limited growth space.High labor cost and marketing/promotion expense drag down...

Xinyao (Criss) Wang

Hygeia Healthcare Group (6078.HK) 2021 Results - Solid Business Logic Comes with Policy Risk

The growth prospects and endogenous growth logic are better than Topchoice. The overall development pace is also not as radical as Aier. However,...

Xinyao (Criss) Wang

Arrail Group (瑞尔集团) IPO Trading: Weak Demand, Rich Valuation

We look at the updates of Arrail Group IPO since our last note and prior to debut. The company is a leading premium dental chain in China.

Ke Yan, CFA, FRM

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