Daily Brief Equity Bottom-Up: China Healthcare Weekly (Mar.31) - 8th National VBP Result and more

In today’s briefing:

China Healthcare Weekly (Mar.31) – 8th National VBP Result, Chinese Patent Medicine VBP, AIM Vaccine
Global Payments Inc.: Initiation of Coverage – Recent Restructuring & Other Drivers
Burlington Stores Inc.: Initiation of Coverage – Business Strategy & Key Drivers

China Healthcare Weekly (Mar.31) – 8th National VBP Result, Chinese Patent Medicine VBP, AIM Vaccine

The 8th national VBP released results, with an average price reduction of 56%. On the whole, the peak period of the impact of VBP on pharmaceutical companies has passed.
VBP document of Chinese patent medicines was released, which would affect a market with scale of RMB300 billion. Enterprises with rich product matrices/new products can better cope with this VBP.
For AIM, we listed several key points. Since the management are more interested in short term capital gains rather than developing a superior portfolio, AIM doesn’t have long-term investment value.

This is our first report on Global Payments Inc., a financial technology company providing payment solutions and services in the U.S.
The company managed an all-around beat in its last result with a strong performance in Global Payments despite the increased global macroeconomic uncertainties.
The most significant development was that their core Issuer business once more produced sequential financial and operational improvement, in line with their expectations and the strongest results since their merger with TSYS in 2019.

This is our first report on Burlington Stores, Inc., one of the major off-price retailer chains in the U.S.
The company delivered a strong quarter, with sizable, consecutive improvement in its sales trends.
Comparable store sales increased by 6% and the the result was an all-around beat.

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