In today’s briefing:
- China Healthcare Weekly (Oct.6) – WuXi to Sell Assets, Be Rational on China CXO, Sihuan Underperform
- IHH Healthcare (IHH MK): Sturdy Performance; Core Markets Remain Strong: Expansion Plans on Track
- Avantor Inc.: How Is The Pricing Strategy Resulting In Gross Margin Improvement? – Major Drivers
- Penumbra Inc.: How Is It Expanding into International Markets
China Healthcare Weekly (Oct.6) – WuXi to Sell Assets, Be Rational on China CXO, Sihuan Underperform
- Investors always have expectations for Chinese CXOs, believing that BIOSECURE Act will not pass and Chinese CXOs will bottom out. We can understand this, but we have to be rational.
- Selling the operations that have been negatively affected is a reasonable choice, which helps stabilize WuXi’s business/market expectations. But this does not necessarily mean the geopolitical conflict will end here.
- Without persuasive long-term logic, share price of Sihuan would still underperform. Despite strong performance of Chinese stocks, we advise investors to do short-term trading on Sihuan Pharmaceutical Hldgs (460 HK).
IHH Healthcare (IHH MK): Sturdy Performance; Core Markets Remain Strong: Expansion Plans on Track
- IHH Healthcare (IHH MK) remains consistent in delivering double-digit growth across key metrics. 2Q24 revenue increased 17%, while EBITDA grew at a faster pace of 22%.
- Singapore, Turkiye & Europe, India, Malaysia show strength with favorable patient mix, higher occupancy, and higher revenue per in-patient.
- IHH is on track to add ~4,000 beds (+33% capacity) by 2028. The company is acquiring Island Hospital, a 600-bed hospital in Penang.
Avantor Inc.: How Is The Pricing Strategy Resulting In Gross Margin Improvement? – Major Drivers
- Avantor recently reported its second-quarter results for the fiscal year 2024.
- This call provided detailed insights into the company’s earnings and strategic developments.
- Financial performance showed a reported revenue of $1.7 billion with an organic decline of 2%, indicating a sequential improvement in key metrics, reflecting stable conditions in the lab segment and increased demand in the production sphere.
Penumbra Inc.: How Is It Expanding into International Markets
- The second quarter 2024 financial results for Penumbra, Inc. reveal a combination of strengths and challenges that frame the investment outlook for the company.
- In Q2 2024, Penumbra reported revenues of $299.4 million, reflecting a 14.5% increase year-over-year, driven particularly by robust performance in the U.S. thrombectomy market, which saw a growth of 25% compared to the same period in the previous year.
- This growth was predominantly fueled by strong demand for the company’s CAVT products in both venous thromboembolism (VTE) and arterial sectors.
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