In today’s briefing:
- IHH Healthcare (IHH MK): Core Business Recovery; Fortis Open Offer to Come Soon
- Shockwave Medical Inc (SWAV US): Initial Thought on Takeover Talk and Probable Pricing
- Hangzhou Tigermed Consulting (3347HK)-Turning Point Emerge, Followed by Sharp Decline in Performance
- Cooper Companies Inc: Reaping The Fruits Of Myopia Management – Key Drivers
- Henry Schein Inc.: Initiation Of Coverage – Dental Sales Decline: A Temporary Setback or a Long-Term Problem? – Key Drivers
- Mettler-Toledo International Inc.: Continued Lab Growth
IHH Healthcare (IHH MK): Core Business Recovery; Fortis Open Offer to Come Soon
- IHH Healthcare (IHH MK) reported 11% YoY revenue growth in its core hospital and healthcare business in 4Q22, mainly driven by higher inpatient admissions in most of the hospitals.
- In November 2022, India’s stock exchange regulator SEBI has advised IHH to proceed with the open offer for Fortis Healthcare (FORH IN) to acquire 26.1% stake after obtaining court permission.
- IHH is cautiously optimistic of robust growth from its core business with the return of local and foreign patients to its hospitals.
Shockwave Medical Inc (SWAV US): Initial Thought on Takeover Talk and Probable Pricing
- Shockwave Medical Inc (SWAV US) is reportedly drawing takeover interest from Boston Scientific. Shockwave can potentially be one of Boston Scientific’s largest ever acquisitions. Probable pricing still offers upside potential.
- Shockwave has an addressable market opportunity of $8.5 billion. The company has guided for 2023 revenue of $660–680 million, which represents 35–39% YoY growth.
- Addition of Shockwave will bolster Boston Scientific’s cardiovascular portfolio. No official announcement has been made by any of the companies. There is no certainty they will lead to a deal.
Hangzhou Tigermed Consulting (3347HK)-Turning Point Emerge, Followed by Sharp Decline in Performance
- Tigermed’s revenue growth in 2021/2022 would have been pessimistic if it were not for the large COVID-19 orders, which makes us worried about the Company’s future growth in post-COVID era.
- Profit margin could further decline due to increasing labor cost. Highly volatile financial profit would lead to more ugly profit performance. Higher domestic revenue proportion would limit future growth space.
- The year 2022 marked a turning point in Tigermed’s performance. Its subsequent growth shows a downward trend.We think its valuation should be lower than WuXi AppTec, with more downside ahead.
Cooper Companies Inc: Reaping The Fruits Of Myopia Management – Key Drivers
- Cooper Companies had impressive Q3 results for both its CooperVision and CooperSurgical divisions and managed an all-around beat.
- CooperVision experienced strong and diversified growth in all product categories, with its Daily Silicone hydrogel portfolio and myopia management products leading the way.
- The company’s growth in the myopia management market has been strong, with revenues up 42%, and it remains a market leader with its FDA-approved MiSight product.
Henry Schein Inc.: Initiation Of Coverage – Dental Sales Decline: A Temporary Setback or a Long-Term Problem? – Key Drivers
- Henry Schein had a successful quarter, generating $3.4 billion in net sales and managing to surpass the revenue expectations of Wall Street.
- The company achieved an operating margin of 7.27%, which is an 18 basis point increase from the prior year’s GAAP operating margin, despite experiencing a decline in sales of PPE and COVID-19-related products due to pricing volatility.
- Although global dental sales declined by 3.1%, with LCI sales down 0.3%, LCI sales growth, except for COVID-19-related products and PPE, was 3.5%.
Mettler-Toledo International Inc.: Continued Lab Growth
- Mettler-Toledo experienced robust growth in most product lines and regions during Q3, particularly in the Lab business, resulting in a successful quarter which happened to be an all-around beat.
- While Product Inspection witnessed a 13% increase in sales during the quarter, Food Retail sales decreased by 19%.
- To capture growth and market share in its Lab business, Mettler has accelerated their digital transformation in sales and marketing and sharpened their focus on the most attractive market segments.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
