In today’s briefing:
- New Horizon Health-B: Ups Full Year Guidance by 20% Despite Pandemic
- China Traditional Chinese Medicine (570.HK) – Short-Term Performance Pressure Is Hard to Avoid
New Horizon Health-B: Ups Full Year Guidance by 20% Despite Pandemic
- New Horizon Health released positive profit alert last Friday. We speak with management post the profit alert.
- The company is expected to achieve 410.9% total revenue growth compared to a year ago in 1H2022, based on the middle point of guidance.
- The company has also achieved margin expansion thanks to a favorable change of mix to the high margin channel.
China Traditional Chinese Medicine (570.HK) – Short-Term Performance Pressure Is Hard to Avoid
- China Traditional Chinese Medicine released unsatisfactory 2022H1 profit warning, which was mainly due to the poor performance on both revenue and cost side of its core business concentrated TCM granules.
- We analyzed the policy impact and business outlook. The Company’s performance would be under pressure in 2022. The VBP impact on concentrated TCM granules hasn’t shown up in financial reports.
- Overall, we are skeptical of the Company’s profitability in the long term, and its profit margin will struggle to support a significant expansion in valuation.
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