In today’s briefing:
- BeiGene (6160.HK/BGNE.US/688235.CH) – Pain Points Behind the High Growth
- IHH Healthcare (IHH MK): Patient Volume Driven Revenue Growth in 4Q; Profitability Remains Subdued
BeiGene (6160.HK/BGNE.US/688235.CH) – Pain Points Behind the High Growth
- Although people acknowledged BeiGene’s performance, it still makes us uneasy about a long-standing question: When will BeiGene be profitable?With current cost structure, there’s at least two years left until breakeven.
- BeiGene’s internationalization only proves decent increase in revenue, but it doesn’t yet verify its profitability.SG&A expense ratio completely deviates from the normal state of Biotech with over US$2 billion sales.
- If BeiGene indeed has a plan to turn loss into profits, besides maintaining a high growth rate in sales, reasonable optimization in cost and expenses is the most basic “sincerity”.
IHH Healthcare (IHH MK): Patient Volume Driven Revenue Growth in 4Q; Profitability Remains Subdued
- IHH Healthcare (IHH MK) reports 11% YoY increase in 4Q23 revenue, due to higher patient volumes and revenue intensity across all markets, with all business segments and markets registering growth.
- 4Q23 EBITDA remained flat at RM1.1B and PATMI (excluding extraordinary income) fell 22% YoY.
- The company remains on track to add close to 4,000 beds across all its major markets, including Malaysia, India, Europe, and Hong Kong to its existing 12,000 beds by 2028.
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