In today’s briefing:
- End of Mandatory Lock-Up Periods for 54 Companies in Korea in November 2022
- Global Health IPO – Small Player but Attractive
- Takeda: Thrilling Journey Ahead with a Dengue Vaccine Launch and New Approvals
- Mitra Keluarga Karyasehat Tbk (MIKA IJ) – Higher Volumes Lower Intensity
- Asahi Intecc (7747 JP): Stellar Performance in FY22 Likely to Accelerate in FY23
- Ping An Healthcare and Technology (1833.HK) – The New Acquisition Is Hard to Turn Things Around
- Thermo Fisher Scientific: New Technology For Cell Culture Harvesting & Other Drivers
- Ami Organics Ltd: Forensic Analysis
End of Mandatory Lock-Up Periods for 54 Companies in Korea in November 2022
- We discuss end of the mandatory lock-up periods for 54 stocks in Korea in November 2022, among which 2 are in KOSPI and 52 are in KOSDAQ.
- These 54 stocks on average could be subject to further selling pressures in November and could underperform relative to the market.
- Among these 54 stocks, the top 5 market cap stocks include Enchem, Sebit Chem, DearU, Sillajen, and Sampyo Cement. They could be exposed to greater selling pressures in November.
Global Health IPO – Small Player but Attractive
- Global Health (Medanta) (GH IN) is looking to raise approximately US$268m in its upcoming India IPO.
- Global Health (GH) is a hospital network that operates under the Medanta brand. The firm currently has five hospitals in operation and one more planned for development.
- We have looked at the background of the deal in our earlier notes. In this note, we will talk about the peer comparison and valuations.
Takeda: Thrilling Journey Ahead with a Dengue Vaccine Launch and New Approvals
- Takeda Pharmaceutical (4502 JP) reported 2QFY03/2023 results last week. Reported revenue increased 18.6% YoY to JPY1.0trn (vs consensus JPY962bn) while OP increased 7.2% YoY to JPY104.4bn (vs consensus JPY119bn).
- Growth in sales was driven by Takeda’s blockbuster drug Entyvio (+36.6% YoY), Takhzyro (+75.8%) and immunoglobulin products (HYQVIA in particular).
- The company also has raised its peak sales estimate for Entyvio to US$7.5-9.0bn (from US$5.5-6.5bn) driven by further market growth and market share expansion.
Mitra Keluarga Karyasehat Tbk (MIKA IJ) – Higher Volumes Lower Intensity
- Mitra Keluarga‘s 3Q2022 results reflected the changing environment with patient volumes higher and back above COVID levels but treatment intensity came down YoY in 3Q2022 given last year’s Delta base.
- MIKA continues to expand its hospital numbers through greenfield and brownfield expansions with three new hospitals due to open in the next 12 months plus it is open to M&A.
- Mitra Keluarga’s treatment intensity should start to improve over the next few quarters given management’s focus on this plus easier YoY comparisons. Valuations remain attractive versus historical levels.
Asahi Intecc (7747 JP): Stellar Performance in FY22 Likely to Accelerate in FY23
- Asahi Intecc (7747 JP) reported better-than-expected FY22 results, driven by overseas sales primarily in Europe and China mainly due to market recovery and a weaker yen versus other major currencies.
- Asahi has raised FY23 revenue guidance to ¥89.3 billion (+15% y/y) from ¥83.5 billion earlier. However, with weakening yen, another beat is on card.
- Although Asahi shares have strong upside potential, continued hospital staff shortages in the U.S. and COVID-related restrictions in China are the main downside risks.
Ping An Healthcare and Technology (1833.HK) – The New Acquisition Is Hard to Turn Things Around
- In 2022H1, Ping An Health’s losses narrowed and gross profit margin increased, with various financial indicators showing an improving trend. The Company also announced a new acquisition recently.
- In the process of turning from 2C business to 2B business, Ping An Health hopes to expand B-end users who can contribute higher margin, but this transformation would encounter difficulties.
- If the payment method in China is not changed (still dominated by national medical insurance payment, with small portion of commercial insurance), it’s difficult to improve the profitability qualitatively.
Thermo Fisher Scientific: New Technology For Cell Culture Harvesting & Other Drivers
- Thermo Fisher Scientific had a positive quarterly result as it surpassed Wall Street expectations on all counts and continued to drive market share gains.
- Thermo Fisher strengthened its market position during this quarter as it advanced its industry-leading Thermo Scientific Orbitrap portfolio and launched the Orbitrap Ascend Tribrid mass spectrometer during the International Mass Spectrometry Conference.
- We provide the stock of Thermo Fisher with a ‘Hold’ rating with a revision in the target price.
Ami Organics Ltd: Forensic Analysis
- AMI Organics Ltd (AMIORG IN) is engaged in business of drugs intermediate chemicals and related activities.
- Key forensic takeaways include bizarre accounting especially pertaining to JV, no provisioning on debtors and working capital woes, and mystery towards transfer from CWIP.
- There are governance related concerns surrounding related parties, churn in top management, etc that should also not be overlooked.
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