Daily Brief Health Care: Shanghai United Imaging Health, Hogy Medical, China Resources Sanju Mdcl & Phrm, IO Biotech Inc and more

• Benefiting from changes in pandemic prevention policies and favorable reimbursement policy support, TCM injections market would end its years of continuous decline and enter a period of rapid growth again.
• After Novo Nordisk acquires Catalent, China CXOs would be less likely to obtain the global GLP-1 orders. As MNCs rethink supply chain issues, China CXOs would face more challenges.
• Against the backdrop of anti-corruption/import substitution, investment logic of United Imaging is solid. However, the biggest issue is high valuation. Fundamentals’re difficult to support more than RMB100 billion market value.

• NAVF and Dalton invest heavily in Hogy Medical, eyeing its market dominance and growth potential in disposable surgical equipment
• Despite past underperformance, NAVF’s proactive engagement signals a push for a more aggressive overseas expansion
• We see a number of continued catalysts for future shareholder value enhancement and improved corporate governance position

• Sanjiu’s 2023 performance was below expectations, mainly due to the VBP of TCM formula granules and the anti-corruption since 23Q3. But dividend payout ratio reached 51.96%, the highest since 2001.
• The prescription drug business would be the core of Sanjiu’s performance changes in next two years, especially TCM injection business, which would be benefit from favorable medical insurance reimbursement policy.
• Sanjiu’s management expects to achieve double-digit revenue growth in 2024, with net profit matching the level of revenue growth.We think 2024 performance growth would be lower than that in 2023.

• Despite struggles in the biotech sector, there are opportunities for value investors in undervalued companies like IO Biotech (IOBT)
• IOBT is trading at a deep discount to net cash and is fully funded through 2025, making it an attractive investment option
• Previous recommendation from a well-regarded investor highlights the potential for success in IOBT’s ongoing Phase 3 trials, with a potential upcoming catalyst for significant upside

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.