In today’s briefing:
- JD.com (JD US / 9618 HK): Announced 2.8% Share Buyback In 1Q24 + My 1Q24 Preview
- Innovent Biologics(1801 HK)– More than Just a GLP-1 Play
- China Healthcare Weekly (Apr.21) – M&As in Biotech, Capital Is Bullish on Non-Tumor Sectors, Tofflon
- Monthly Chinese Express Tracker | March ASPs Fell, Again | Volumes Moderated, Including X-Border
- Xunfei Healthcare Technology Pre-IPO – Appears to Be in the Early Stages of Commercialization
- CanSino Biologics (6185.HK/688185.CH) – 2024 Is the Best Time to Bottom-Fish This Stock
JD.com (JD US / 9618 HK): Announced 2.8% Share Buyback In 1Q24 + My 1Q24 Preview
- JD.com (9618 HK) announced this week that it has repurchased 2.8% of the outstanding shares of the company in the first quarter of 2024.
- Improved shareholder returns is a key thesis for the stock, given that there is little market expectation on such given limited track record.
- A positive catalyst on full year performance could be the government’s announced stimulus policy for home appliance in April this year (trading old for new).
Innovent Biologics(1801 HK)– More than Just a GLP-1 Play
- Innovent is most well-known as the developer of mazdutide in China, however this is overshadowing a strong portfolio of oncology drugs in a very high growth market.
- China’s approach to healthcare is being defined by having the biggest diabetic population, over 4 million new cancer cases per year, and over 100 million living with obesity.
- We expect the valuation gap between the two first-to-market GLP-1 drugs, and competition to close. Oncology drug sales and valuations will continue its growth trajectory.
China Healthcare Weekly (Apr.21) – M&As in Biotech, Capital Is Bullish on Non-Tumor Sectors, Tofflon
- We have seen four transactions of MNC acquiring Chinese Biotech companies. However, this does not mean that domestic big pharmaceutical companies will also participate in the acquisition of small Biotech.
- The underlying investment logic of innovative drug is undergoing changes. Non-oncology fields, such as autoimmunity, CNS, endocrine metabolism, and ophthalmology will be the main hot directions of investment and R&D.
- Shanghai Tofflon Science A (300171 CH) is still in downward trend. We’re not optimistic about its 2023 results. We don’t recommend bottom-fish this stock unless there is a major catalyst.
Monthly Chinese Express Tracker | March ASPs Fell, Again | Volumes Moderated, Including X-Border
- ASPs remain under pressure as STO, J&T gain volume share in ground segment
- March showed a surprising slowdown in pace of international volume growth
- We believe Q423 and Q124 company-level profitability will mostly disappoint
Xunfei Healthcare Technology Pre-IPO – Appears to Be in the Early Stages of Commercialization
- Xunfei Healthcare Technology (XHT HK) is looking to raise around US$200m in its upcoming Hong Kong IPO.
- Xunfei Healthcare Technology (Xunfei), a iFlytek (Shenzhen-listed) spin-off, primarily provides solutions covering the full healthcare service cycle, with products and services mainly catered towards major stakeholders in the healthcare industry.
- In this note, we look at the firm’s past performance.
CanSino Biologics (6185.HK/688185.CH) – 2024 Is the Best Time to Bottom-Fish This Stock
- We would see CanSino’s performance pick up obviously in 2024 – Revenue of meningococcal vaccines would up about 50% YoY. Both R&D and SG&A expenses would show a declining trend.
- Starting from 2025, CanSino’s product matrix will become more diverse.Its financial performance will enter a virtuous cycle. Revenue in 2025 may exceed expectations, depending on the approval time of PCV13i.
- CanSino is one of the few domestic vaccine companies that has ability to explore the international market. Mispricing/expectation differences in the market will give investors the opportunity for excess returns.
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