In today’s briefing:
- Olympus Corp (7733 JP): Slow Start of FY24; Unfavorable Macro Backdrop Continues to Hurt Business
- Jiangsu Hengrui Medicine (600276.CH) 23H1 – Has the Turning Point of Performance Really Arrived?
- Coeptistx (COEP) Deverra Deal Flash Note 21082023
- McKesson Corporation: Decoding the Success Behind Their Broad-Based Momentum! – Major Drivers
- Waters Corporation: New Line of SEC Columns & Other Major Developments
Olympus Corp (7733 JP): Slow Start of FY24; Unfavorable Macro Backdrop Continues to Hurt Business
- Olympus Corp (7733 JP) announced muted Q1FY24 result. Revenue increased 8% YoY to ¥208B, while operating profit declined 50% YoY to ¥22B. A one-time gain has inflated the net profit.
- Revenue missed about 3% compared to the plan. Product shipment hold and parts supply shortages represented about 1.5% points out of the total miss of 3%.
- Olympus has reiterated FY24 guidance and expects FY24 revenue of ¥914B (+4% YoY) and operating profit of ¥163B (-13% YoY). In FY23, the company missed operating profit guidance.
Jiangsu Hengrui Medicine (600276.CH) 23H1 – Has the Turning Point of Performance Really Arrived?
- Hengrui’s performance recovery in 23H1 (especially 23Q2) was due to the low base last year caused by pandemic/lockdown. Increasing innovative drugs revenue proportion also reduced the negative impact of VBP.
- People think the turning point of Hengrui’s performance has arrived, but we hold different opinions.Some big varieties haven’t entered VBP. It would take some time to achieve breakthrough in internationalization.
- The negative impact of 23H2 anti-corruption hasn’t been reflected in interim report.Even if Hengrui’s performance growth could be back to 20-25% YoY in 2025/2026, over 60 PE/TTM is already expensive.
Coeptistx (COEP) Deverra Deal Flash Note 21082023
- Deverra deal adds two patented assets to COEP product pipeline;
- Reduces COEP risk profile and so contributes to our valuation range;
- DVX201 – Unmodified NKC therapy from pooled donor CD34+ cells.
McKesson Corporation: Decoding the Success Behind Their Broad-Based Momentum! – Major Drivers
- McKesson Corporation managed to exceed analyst expectations in terms of revenue as well as earnings.
- McKesson’s core distribution businesses, particularly pharmaceutical distribution, exhibited broad-based momentum with solid growth across customer channels.
- We give McKesson Corporation a ‘Hold’ rating with a revised target price.
Waters Corporation: New Line of SEC Columns & Other Major Developments
- Waters Corporation delivered an all-around beat in its most recent quarterly result, with organic constant currency growth of 3%.
- Their organic performance in constant currency was driven by excellent growth in the Industrial segment and the academic and governmental sectors.
- We give Waters Corporation a ‘Hold’ rating with a revised target price.
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