In today’s briefing:
- Hang Seng Indexes: Rebalances Today; Recent Trading Data
- 3SBio Inc (1530 HK): Hair Product Acts as the Savior; Marginal Growth of Flagship Drug
- Job Hunting App Operator’s Earnings Fall Despite End to National Security Probe
- Volume, Call Options, Tencent, and China Overseas
- Pre-IPO MedSci Healthcare Holdings – The Investment Logic, the Business Analysis and the Risks
Hang Seng Indexes: Rebalances Today; Recent Trading Data
- The December rebalance of the HSI INDEX, HSCEI INDEX and HSTECH INDEX takes place at the close today. One-way flow is estimated at HK$8.4bn.
- There are 3 adds for the HSI INDEX and 4 adds/ 4 deletes for the HSCEI INDEX. There are float changes for a few stocks as well as capping changes.
- There is excess volume on most adds/deletes post announcement and short interest has also picked up significantly.
3SBio Inc (1530 HK): Hair Product Acts as the Savior; Marginal Growth of Flagship Drug
- Mandi, OTC alopecia drug of 3SBio Inc (1530 HK), reported revenue growth of 42% y/y in 1H22 and gained 70bps market share over the last six months.
- With the resurgence of COVID-19 in China interrupting the regular operations of outpatient services at medical institutions, 3SBio’s performance is expected to be affected in near-term.
- 3SBio is preparing to launch its new drug nalfuraphine hydrochloride orally disintegrating tablets for liver and kidney disease pruritus in China.
Job Hunting App Operator’s Earnings Fall Despite End to National Security Probe
- The operator of Chinese recruitment app Boss Zhipin reported drops in third-quarter revenue and profit after restarting new user registrations following a nearly one-year suspension as part of a national security probe.
- During the three months through September, Nasdaq-listed Kanzhun Ltd.logged a net profit of 211.7 million yuan ($29.8 million), representing a year-on-year drop of 26%
- The firm generated about 99% of its revenue, or 1.16 billion yuan, from sales of recruitment services to corporate clients — a 2.7% year-on-year decrease.
Volume, Call Options, Tencent, and China Overseas
- Volume picked up on Tuesday, 29th November, just slightly below the 15th November volume, the previous buying climax.
- Wednesday’s Volume fell 10% with new price highs.
- The erratic rather than trending Volume without capitulation volume on the 31st October price lows are hallmarks of a bear market rally.
Pre-IPO MedSci Healthcare Holdings – The Investment Logic, the Business Analysis and the Risks
- The large physician network is actually the cornerstone for MedSci Healthcare (MHH HK)’s precision omni-channel marketing solutions and RWS solutions, and also the key to support the overall investment logic.
- In fierce competition, how to retain physician network for a long time, convert them into business value continuously and achieve the high growth trend expected by the market is challenging.
- In terms of valuation, MedSci’s valuation could be higher than Medlive due to its stronger physician platform solutions business and medical professional network, but could be lower than HUAYIWANG.
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