In today’s briefing:
- Quiddity Primer for SSE 50/180/380 Index Rebalance Events
- China Healthcare Weekly (Aug.4) – TCM Rally Ends, P/E Ratio Becomes Ineffective, IRay Technology
Quiddity Primer for SSE 50/180/380 Index Rebalance Events
- SSE 50 and SSE180, respectively, aim to represent the performance of the 50 and 180 largest and most liquid A-share stocks listed on Shanghai Stock Exchange.
- SSE 380 consists of 380 mid-cap stocks which are selected from the remaining Shanghai listed A-shares after the constituents of SSE 180 Index.
- In this insight, we take a brief look at the index selection methodology and the historical price and volume performance of the SSE 50/180/380 index rebalance baskets.
China Healthcare Weekly (Aug.4) – TCM Rally Ends, P/E Ratio Becomes Ineffective, IRay Technology
- The rally of TCM companies has probably come to an end. But we think there would be good trading opportunities in 23Q4. Things could become challenging again in 24Q1.
- If P/E is used when calculating the valuation of innovative pharmaceutical companies, unreasonable situations may arise. Sales profit rather than net profit could be a better choice for P/E.
- Although iRay’s current P/E has fallen in reasonable range, due to concerns about its long-term growth prospects, valuation could further decline in long term. So, just short-term trade is recommended.
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