In today’s briefing:
- Beauty Farm Medical (BFM HK): Expectations Are Flying Too High; 1H23 Result Will Set the Path
- Quiddity Flow Expectations for DAX Jun 23 Rebal: Evotec Is the Main Surprise
- Pre-IPO Kelun Biotech (PHIP Updates) – Some Points Worth the Attention
- HCG: Emerging Centers Are Inching Closer to Maturity
Beauty Farm Medical (BFM HK): Expectations Are Flying Too High; 1H23 Result Will Set the Path
- Beauty Farm Medical and Health Industry (BFM HK) reported decline in revenue and net profit in 2022, due to the implementation of nationwide pandemic prevention and control policies.
- The company is seeing recovery in 2023. During January–May, customer traffic and average transaction value achieved double-digit growth YoY, while customer spending increased 20%+ YoY.
- In 2023, revenue and EPS are expected to grow 34% and 106%, YoY, respectively. The preliminary business operation overview seems to fall short of the expectations.
Quiddity Flow Expectations for DAX Jun 23 Rebal: Evotec Is the Main Surprise
- The June 2023 index changes for the DAX index family were confirmed after the close yesterday.
- As expected, there were no changes announced for the DAX index.
- There will be four changes for MDAX, one change for SDAX, and one change for TecDAX.
Pre-IPO Kelun Biotech (PHIP Updates) – Some Points Worth the Attention
- We don’t think A166 makes much sense on the commercialization level when faced with DS-8201. Unsatisfactory sales of Trodelvy also makes us start worrying about SKB264 after its market launch.
- MNCs are scrambling to in-license ADC products, which actually reflected their “general anxiety”, leading to a “sentiment-driven valuation premium”. Would the final outcome of ADC be the same as PD-1?
- We’re “confused” about the valuation of Kelun-Biotech if look deeper. The valuation in last round of financing before IPO wasn’t cheap, which makes us cautious considering the outlook and sentiment.
HCG: Emerging Centers Are Inching Closer to Maturity
- HCG ended FY23 with decent profitability and is on track to see significant scale up over the next 12-18 months as its emerging centers become mature.
- During the course of the next couple of years, HCG is also looking to enhance its presence through the inorganic route.
- We project that HCG may do a PAT of INR 200cr by FY25. At the current market cap of INR 4450cr, HCG is attractively valued at 22x per FY25E PAT.
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