Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

China Traditional Chinese Medicine / Event-Driven

<div>
<p><a href="https://www.smartkarma.com/entities/china-traditional-chinese-medicine" target="_blank" data-smartkarma-citation="entities:351:1" rel="noopener">China Traditional Chinese Medicine (570 HK)</a> ("CTCM") is the Traditional Chinese Medicine (TCM) arm of China National Pharmaceutical Group Corporation (CNPGC), one of the largest healthcare groups in China, managed directly by SASAC.</p>
<p>Shares in CTCM were suspended in afternoon trading today "<em>pursuant to Rule 13.09(2)</em>"*. </p>
<p>According to a Reuters article, Sinopharm Group Hongkong Co, an indirect wholly-owned subsidiary of CNPGC and CTCM’s major shareholder, is teaming up with the next two biggest stockholders, Ping An Insurance Group Co and executive director Wang Xiaochun, collectively holding a 49.4% stake, to take CTCM private.</p>
<p>The rumoured price tag is $5.10/share, a 19% premium to the last close of $4.30/share. CTCM's shares were up 6.7% ahead of the suspension.</p>
</div>
<div>As always, more below the fold.</div>
<div><hr></div>
<div>* <a href="https://en-rules.hkex.com.hk/rulebook/1309-0" target="_blank" rel="noopener"><em>Rule13.09(2)</em></a>
<ol style="list-style-type: lower-alpha;">
<li><em>Where an issuer is required to disclose inside information under the Inside Information Provisions, it must also simultaneously announce the information.</em></li>
<li><em>An issuer must simultaneously copy to the Exchange any application to the Commission for a waiver from disclosure under the Inside Information Provisions, and promptly upon being notified of the Commission's decision copy the Exchange with the Commission's decision.</em></li>
</ol>
</div>


China Traditional Chinese Medicine (570 HK) ("CTCM") is the Traditional Chinese Medicine (TCM) arm of China National Pharmaceutical Group Corporation (CNPGC), one of the largest healthcare groups in China, managed directly by SASAC.
Shares in CTCM were suspended in afternoon trading today "pursuant to Rule 13.09(2)"*. 
According to a Reuters article, Sinopharm Group Hongkong Co, an indirect wholly-owned subsidiary of CNPGC and CTCM’s major shareholder, is teaming up with the next two biggest stockholders, Ping An Insurance Group Co and executive director Wang Xiaochun, collectively holding a 49.4% stake, to take CTCM private.
The rumoured price tag is $5.10/share, a 19% premium to the last close of $4.30/share. CTCM's shares were up 6.7% ahead of the suspension.

As always, more below the fold.

* Rule13.09(2)

Where an issuer is required to disclose inside information under the Inside Information Provisions, it must also simultaneously announce the information.
An issuer must simultaneously copy to the Exchange any application to the Commission for a waiver from disclosure under the Inside Information Provisions, and promptly upon being notified of the Commission's decision copy the Exchange with the Commission's decision.



Trad Chi Med (570 HK): Sinopharm's Feverish Proposal

Quality-first, Business-perspective Strategy, Urbem (HK) Limited

Steven Chen

Quality-first, Business-perspective Strategy

Equity Bottom-Up

Beijing Tong Ren Tang Chinese Medicine / Equity Bottom-Up

<ul>
<li>We tend to avoid turnarounds as they seldom turn;</li>
<li>But Beijing Tong Ren Tang Chinese Medicine can be a rare case in our opinion;</li>
<li>We see the company as being a wide-moat compounding machine, highly hopeful of delivering superior returns on capital when its business condition normalizes (sooner or later);</li>
<li>Simultaneously, the valuation of the share makes sense for alpha-seeking investors with a double-digit hurdle rate.</li>
</ul>


We tend to avoid turnarounds as they seldom turn;
But Beijing Tong Ren Tang Chinese Medicine can be a rare case in our opinion;
We see the company as being a wide-moat compounding machine, highly hopeful of delivering superior returns on capital when its business condition normalizes (sooner or later);
Simultaneously, the valuation of the share makes sense for alpha-seeking investors with a double-digit hurdle rate.


Beijing Tong Ren Tang Chinese Medicine: A Turnaround Worth A Look

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>Upside momentum continues to wane for global equities. Price action this week has indeed confirmed lower highs for now in the MSCI ACWI, ACWI ex-US, EAFE, and EM indexes. These lower highs increase the probability for breakdowns and a deeper pullback, but we do not want to get ahead of ourselves. Until we see breakdowns we still view global equities as being in a period of consolidation. We outline important technical levels across markets and highlight actionable set ups within Technology, Health care and Staples.</p>

Upside momentum continues to wane for global equities. Price action this week has indeed confirmed lower highs for now in the MSCI ACWI, ACWI ex-US, EAFE, and EM indexes. These lower highs increase the probability for breakdowns and a deeper pullback, but we do not want to get ahead of ourselves. Until we see breakdowns we still view global equities as being in a period of consolidation. We outline important technical levels across markets and highlight actionable set ups within Technology, Health care and Staples.

Global Equity Strategy: Stay Defensive With Technology, Health Care, Staples

MSCI Emerging Markets Index / Technical Analysis

<p>China (MSCI China, Shanghai Comp., Shenzhen A Share) continues to offer many attractive setups and is a major focus in today’s EM Strategy report. Additionally, Taiwan (TAIEX) continues to be worthy of an overweight within the EM universe with the RS uptrend intact. We highlight several attractive set ups.</p>

China (MSCI China, Shanghai Comp., Shenzhen A Share) continues to offer many attractive setups and is a major focus in today’s EM Strategy report. Additionally, Taiwan (TAIEX) continues to be worthy of an overweight within the EM universe with the RS uptrend intact. We highlight several attractive set ups.

EM Strategy and Chartbook: Remain Overweight EM Vs. EAFE

<p>While the major averages are stalling below major resistance and their direction is unclear, there are many individual stocks that continue to act well and that are offering fantastic entry points at current levels. <strong>Health Care </strong>and <strong>Technology </strong>remain our two favorite global Sectors, and they are outperforming across all major markets including the US, Europe, Japan, and China. Remain overweight/add exposure. <strong>Consumer Staples </strong>is another leadership Sector, particularly in the Asia/Pacific region. Lastly, we are also continuing to expand our recommendations to include <strong>bottom-up ideas within several other Sectors </strong>as the market goes through a bottoming process.</p>

While the major averages are stalling below major resistance and their direction is unclear, there are many individual stocks that continue to act well and that are offering fantastic entry points at current levels. Health Care and Technology remain our two favorite global Sectors, and they are outperforming across all major markets including the US, Europe, Japan, and China. Remain overweight/add exposure. Consumer Staples is another leadership Sector, particularly in the Asia/Pacific region. Lastly, we are also continuing to expand our recommendations to include bottom-up ideas within several other Sectors as the market goes through a bottoming process.

China

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. manufactures and markets Chinese traditional medicines, including Pientzehuang, Pientzehuang capsules, Pientzehuang lozenge, cough syrup, and other related products.

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd.

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Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)

Trad Chi Med (570 HK): Sinopharm's Feverish Proposal

Share currently suspended, so there's nothing to be done as such. The insight is labeled bullish as an Offer appears forthcoming.

David Blennerhassett

Beijing Tong Ren Tang Chinese Medicine: A Turnaround Worth A Look

Beijing Tong Ren Tang Chinese Medicine can be a rare turnaround case in our opinion, thanks to its wide moat and compounding capability.

Steven Chen

Global Equity Strategy: Stay Defensive With Technology, Health Care, Staples

Upside momentum continues to wane for global equities. Price action this week has indeed confirmed lower highs for now in the MSCI ACWI, ACWI...

Vermilion Research

EM Strategy and Chartbook: Remain Overweight EM Vs. EAFE

China (MSCI China, Shanghai Comp., Shenzhen A Share) continues to offer many attractive setups and is a major focus in today’s EM Strategy report....

Vermilion Research

Global Equities: Lower Highs Forming

While the major averages are stalling below major resistance and their direction is unclear, there are many individual stocks that continue to act...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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