Daily BriefsHealthcare

Daily Brief Health Care: Raffles Medical, WuXi AppTec Co. Ltd. and more

In today’s briefing:

  • Raffles Medical (RFMD SP): Stellar H1 Performance Driven by Resumption of Medical Tourism
  • WuXi AppTec (603259.CH/2359.HK) 2022H1 – The Concerns Behind and the Outlook

Raffles Medical (RFMD SP): Stellar H1 Performance Driven by Resumption of Medical Tourism

By Tina Banerjee

  • Raffles Medical (RFMD SP) reported strong H1 2022 results, with double-digit growth in revenue and net profit. With the resumption of international travel, the company is seeing increasing patients.
  • While COVID-related revenue is declining, the company’s hospital business will benefit from the returning of foreign patients as well as resumption of elective surgeries for the domestic patients.
  • Raffles Medical has received the approval to set up an IVF clinic in Hainan province of China.

WuXi AppTec (603259.CH/2359.HK) 2022H1 – The Concerns Behind and the Outlook

By Xinyao (Criss) Wang

  • It seems that Mr Market was not satisfactory with WuXi AppTec’s 2022H1 performance. If excluding COVID-19 projects (which are regarded as a one-time increment), the performance growth was not high.
  • Considering that the CXO preliminary bid winning has declined largely in the US, domestic CXO would not begin to gradually reflect the slowdown of newly added orders until Q4.
  • We are concerned about WuXi AppTec’s performance in 2023. As an old generation CXO, it’s hard to achieve V-shaped rebound. So, 2022 is a good time to offload the Company.

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