Daily Brief Health Care: Porton Pharma Solutions, Zoetis Inc, Shandong Weigao Group Medical Polymer Co and more

In today’s briefing:

Quiddity Leaderboard ChiNext & ChiNext 50 Jun 24: Double Impacts for Some Names
Under The Lens of Disruption: Zoetis – VetKiosk
Shandong Weigao Group Medical Polymer Co (1066.HK) – 2023 Full-Year Results Could Be Ugly

Quiddity Leaderboard ChiNext & ChiNext 50 Jun 24: Double Impacts for Some Names

The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
In this insight, we take a look at the names leading the race to become ADDs and DELs in the June 2024 index rebal event.

Honestly, I’m stunned I’m writing this. I did my research on Zoetis during June, July and August, and my conclusion seemed, funnily, conclusive.
My suspicion was that Zoetis was as close to being a truly durable company as possible.
Even though the object of this article does not claim otherwise, it does indeed reveal something I completely overlooked. My conclusion was ultimately drawn from the following:

Due to centralized procurement and anti-corruption campaign in 23H2, negative YoY revenue growth in 2023 seems to be inevitable. We are not optimistic about Weigao’s performance turnaround in 2024.
After new policy strictly prohibiting borrowing to purchase medical equipment in public hospitals was released, the investment logic of medical device sector changes, which would negatively affect Weigao’s outlook.
Weigao feels like “living off its past gains”.Current valuation is reasonable not undervalued. There’s no need to rush to long this stock when downward trend in share price hasn’t reversed.

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