In today’s briefing:
- Shenzhen Mindray Bio-Medical Electronics (300760.CH) – Shareholders’ Stock Selling and the Outlook
- Lutronic Corp (085370 KS): Record-High Performance in 2022; Litigation May Limit Upside Potential
- AmerisourceBergen Corporation: Initiation of Coverage – Acquisition of PharmaLex & Key Drivers
- Centene Corporation: Initiation of Coverage – Recent Restructuring & Other Drivers
- DaVita Inc.: Initiation of Coverage – Strong Value Proposition & Key Drivers
Shenzhen Mindray Bio-Medical Electronics (300760.CH) – Shareholders’ Stock Selling and the Outlook
- Several original shareholders reduced their holdings of Mindray, which indicates that the senior executives and major shareholders aren’t optimistic about Mindray’s outlook, putting the Company’s long-term growth under scrutiny.
- Mindray’s performance in overseas markets could be under pressure, which is an uncertain factor to drag down this year’s performance growth. Supply chain issue would hinder Mindray’s breakthrough in high-end fields.
- Performance slowdown could continue if without breakthroughs in new growth points or internationalization. Our forecast on 2023 growth is about 15%-18%. Mindray’s valuation may fall back to 30-35 PE TTM.
Lutronic Corp (085370 KS): Record-High Performance in 2022; Litigation May Limit Upside Potential
- Lutronic Corp (085370 KS) recorded its highest ever revenue and operating profit in 2022, driven by strong performance of overseas business, which contributed 88% of revenue and grew 62% YoY.
- Overall, business has recovered with the reopening of the dermatology clinics and resumption of elective procedures globally. In addition to product sales, sales of consumables and services are steadily increasing.
- Despite stellar performance in 2022, ongoing lawsuit against U.S.-based competitor remains an overhang on Lutronic’s overseas growth aspirations, especially in the U.S.
AmerisourceBergen Corporation: Initiation of Coverage – Acquisition of PharmaLex & Key Drivers
- This is our first report on major pharmaceutical sourcing and distribution services provider, AmerisourceBergen.
- Among major updates, AmerisourceBergen added PharmaLex to its portfolio of specialty solutions to expand its capabilities.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Centene Corporation: Initiation of Coverage – Recent Restructuring & Other Drivers
- This is our first report on Centene Corporation, one of the largest health insurance players in the U.S.
- Centene had a successful year in 2022 and ended it on a positive note with an all-around beat.
- Total revenue grew by $3 billion, driven by strong organic growth in Medicaid, strong growth in Medicare membership, and the acquisition of Magellan.
DaVita Inc.: Initiation of Coverage – Strong Value Proposition & Key Drivers
- This is our first report on major healthcare provider, DaVita.
- DaVita produced an adjusted operating income of $317 million and adjusted profits per share from continuing operations of $1.11 for the fourth quarter, bringing the entire year squarely at the top of the revised target range it provided last quarter.
- During the previous quarter, the international adjusted operating income fell by $15 million.
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