In today’s briefing:
- Fangzhou Pre-IPO – The Positives – Regulatory Changes and COVID Spurred Growth
- EuBiologics (206650 KS): Accelerated Double-Digit Sales Growth In 2022; Strong Demand to Continue
- Topchoice Medical (600763.CH) – The “True Secret” of Success and the Lost Luck
- AbbVie Inc.: Major Drivers
- ASRT: Updated Q4 Results Puts 2023 in Focus
Fangzhou Pre-IPO – The Positives – Regulatory Changes and COVID Spurred Growth
- Fangzhou Group (FANGZHOU HK) is looking to raise about US$300m in its upcoming Hong Kong IPO.
- Fangzhou (FZ) is an online chronic disease management (CDM) service provider in China.
- In this note, we will talk about the positive aspects of the deal.
EuBiologics (206650 KS): Accelerated Double-Digit Sales Growth In 2022; Strong Demand to Continue
- In 2022, Eubiologics (206650 KS) reported revenue growth of 41% YoY to KRW55.47B, driven by increased supply of cholera vaccine to UNICEF following the outbreak of cholera worldwide.
- In 2022, more than 29 countries reported cholera cases or outbreaks, up from 20 countries five year ago. Globally cholera vaccine is in short supply.
- Eubiologic’s vaccine manufacturing capacity is expected to go up to 90 million doses after completion of the expansion project this year, which will drive sustainable sales growth.
Topchoice Medical (600763.CH) – The “True Secret” of Success and the Lost Luck
- It’s necessary for investors to understand the “true secret” of Topchoice’s success, which is impossible to copy. This is also the core reason why we’re not optimistic about the company.
- The profit margin decline of dental implant and orthodontics businesses is inevitable, not only due to centralized procurement, but also the fierce competition of private dental hospitals in price war.
- Topchoice is now paying for its ambition to deviate from its main business. The overall performance in 2022 may not be optimistic. We think Topchoice’s good times are over.
AbbVie Inc.: Major Drivers
- AbbVie delivered a mixed result in the last quarter with revenues falling below analyst expectations.
- The company also developed a sizable portfolio of solid tumor and heme assays for oncology.
- Furthermore, AbbVie anticipates strong performance in the ongoing neuroscience segment due to its on-market portfolio of treatments for mental and migraine disorders as well as a promising pipeline for neurodegenerative illnesses.
ASRT: Updated Q4 Results Puts 2023 in Focus
- ASRT issued preliminary fourth quarter 2022 results highlighting the continued growth in revenue. We assume the increase in revenue was due to uplift in Indocin usage in the quarter.
- Heading into 2023, ASRT is carrying a larger than expected cash balance to deploy in making acquisitions
- ASRT is forecasting fourth quarter sales of $49 to $50 million compared to our estimate of $47.1 million
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