Daily BriefsHealthcare

Daily Brief Health Care: Zai Lab Ltd, PHC Holdings and more

In today’s briefing:

  • [Zai LAB (ZLAB US) Target Price Change]: Demonstrating Directionally Business Model to Profit
  • PHC Holdings (6523 JP): In-Line FY23 Result; FY24 Guidance Shows Light at the End of the Tunnel

[Zai LAB (ZLAB US) Target Price Change]: Demonstrating Directionally Business Model to Profit

By Shawn Yang

  • Zai Lab (ZLAB) reported C1Q23 top line in-line with our estimate but operating/net loss much smaller than our estimate due to cut in R&D spending. 
  • ZLAB’s narrower losses in C4Q22 and C1Q23, achieved through R&D cut, do demonstrate the viability of the company achieving commercial breakeven by 2023 and full breakeven by 2025. 
  • We still think these viabilities have difficulties to achieve and even achieved, hurt the LT value of the company; We raised our TP from US$25 to US$29 but maintain SELL.

PHC Holdings (6523 JP): In-Line FY23 Result; FY24 Guidance Shows Light at the End of the Tunnel

By Tina Banerjee

  • PHC Holdings (6523 JP) announced FY23 result, which is in-line with previously announced downward revised guidance. For FY23, revenue increased 5% to ¥356B, driven by diagnostics and life sciences business.
  • Despite an impairment loss of ¥8.7B in Epredia, operating profit grew 145% to ¥20B. FY23 net loss narrowed to ¥3.2B from ¥8.5B in FY22.
  • PHC has initiated FY24 guidance and guided for FY24 revenue of ¥355.5B (down 0.3% YoY). The company is expected to turn profitable in FY24, with net profit of ¥15.6B.

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Data and News
  • ✓ Events & Webinars