In today’s briefing:
- China Healthcare Weekly (Apr.28)-TCM Formula Granule Outlook, Reduce CAR-T’s Price, Gan & Lee Pharma
- Hygeia Healthcare Group (6078.HK) – High Growth in 2024 Is Not Guaranteed
China Healthcare Weekly (Apr.28)-TCM Formula Granule Outlook, Reduce CAR-T’s Price, Gan & Lee Pharma
- The performance of most TCM formula granule enterprises showed slow growth or even decline due to VBP in 2023. Although VBP will continue, it also brings opportunities for related companies.
- Customized production, expensive upstream raw materials/production equipment, complex supply chain systems, etc. are all major reasons for the high prices of CAR-T therapy, but we see hope for changes.
- Gan & Lee Pharmaceuticals (603087 CH)’s core insulin business will continue to have decent growth based on positive VBP renewal results. It’s expected that in 2024, performance would further rebound.
Hygeia Healthcare Group (6078.HK) – High Growth in 2024 Is Not Guaranteed
- According to Hygeia’s management, the 25% growth in previous guidance for 2024 would be exceeded. 24H1 would maintain a growth rate of 40+%, and the growth in 24H2 would accelerate.
- However, progress of some projects is slower than expected, so a growth rate of 25%+ in performance forecast seems aggressive.After all, downward adjustment of performance guidance again is very uncomfortable.
- P/E of 30-40 is reasonable range in short term. So, Hygeia is undervalued.In long term, revenue growth could fall to 15-20% because the contribution of M&A to performance would decline.
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