In today’s briefing:
- TCM (570 HK): Inching Towards Regulatory Sign-Off
- Pre-IPO LinkChem Technology – The Business and the Concerns Behind
TCM (570 HK): Inching Towards Regulatory Sign-Off
- In its latest monthly update, China Traditional Chinese Medicine (570 HK) fleshes out the latest on the various PRC regulatory applications.
- Comparing the two most recent monthly updates side-by-side, apart from modifying the documentation for the MOC and NDRC process; the SAMR filing has been formally accepted, as previously flagged.
- The upshot? These regulatory approvals will be secured. The key question is whether this can take place before the 18th October pre-condition long stop date. Or an extension is required.
Pre-IPO LinkChem Technology – The Business and the Concerns Behind
- The sudden high growth in 2023 was benefited from the cooperation with related party Shandong LinkChem. Is the performance growth driven by LinkChem’s reliance on related party transactions sustainable?
- LinkChem relies heavily on limited number of customers to contribute performance but the customer stability is not strong.Due to “low voice” in front of customers, cash flow is under pressure.
- The barrier of terbium chloride product is not high and LinkChem will face fierce competition in the future, leading to decreasing YoY growth revenue. Valuation should be lower than peers.
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