Daily Brief China: BYD, CSPC Pharmaceutical Group, Tencent, Central China Real Estate, Cryofocus Medtech (Shanghai) and more

• A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand, Korea and Chinese ADRs.
• On the ECM front, Tianqi Lithium (9696 HK) listed its H Shares, WCP (WCP KS) plans to launch a KRW900 billion (US$692 million) IPO in August. 
• Event-Driven developments at Link Administration (LNK AU), DTAC/True, BYD (1211 HK), Genting Singapore (GENS SP), Tassal (TGR AU), Resapp Health (RAP AU), Dongzheng Automotive Finance (2718 HK).      

• CSPC Pharmaceutical Group (1093 HK) reported Q1 results, with revenue growth of 17% y/y to RMB8 billion, driven by a 15% y/y growth in finished drugs revenue.
• Oncology, with 34% contribution to finished drug revenue remained the main growth engine. Oncology revenue grew 15% y/y. The company has launched one new innovative oncology drug in Q1.
• CSPC’s net profit declined 5% y/y to RMB1.40 billion, dragged by fair-value losses of RMB133 million on its financial assets. Without considering one-off charge, net profit would have increased 10%.

• Tencent’s games gave only three hours a week to juveniles in school summer vacation.
• Tencent and NetEase did not get new game licenses for the third time this year.
• Kingsoft censors files on users’ computers, which will benefit Microsoft Office.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Central China Securities
• China South City

• The cryoablation market accounts for about 1/3 of the total tumor ablation market overseas, while this percentage is less than 1/10 in China, indicating promising growth potential in the future.
• Cryofocus Medtech (Shanghai) (CFM HK)’s products and candidates do have technical advantages, offering more choices for patients and doctors.
• However, the commercialization outlook remains to be seen because of the potential large price reduction after entering national medical insurance coverage and the uncertainties over acceptance by patients and doctors.