In today’s briefing:
- NIFTY50 Index Rebalance: Apollo Hospitals to Replace IOC
- Kalbe Farma (KLBF IJ) – Rebalancing Growth
- Yunkang Group Pre-IPO – Would Need to Prove Itself Post-COVID
- Shanghai Pulse Medical (博动医疗) Pre-IPO: Leading Image-Based FFR Player
NIFTY50 Index Rebalance: Apollo Hospitals to Replace IOC
- As expected, Apollo Hospitals Enterprise (APHS IN) will replace Indian Oil Corp (IOCL IN) in the NIFTY Index (NIFTY INDEX) after the close of trading on 30 March.
- The index methodology has been changed to make new listings eligible for index inclusion if they complete one month by the review cutoff date, down from three months earlier.
- Estimated one-way turnover is 0.63% and will result in a one-way trade of around INR 14bn. Passive trackers will have a lot to trade on the stocks.
Kalbe Farma (KLBF IJ) – Rebalancing Growth
- Kalbe Farma (KLBF IJ) released a reassuring set of results with sales growing +13.6% and net profit by +12.5% in 2021, with growth coming from prescription drugs and distribution
- 2022 should see growth picking up across all of its divisions with recovery for consumer health and nutritionals plus its digital strategies are starting to make a difference.
- Kalbe Farma trades in 22.8x FY22E PER and 21.0x FY23E PER versus its 5-year average forward PER of 26.3x forward PER, making it look attractive at current levels.
Yunkang Group Pre-IPO – Would Need to Prove Itself Post-COVID
- Yunkang Group (YK HK) is looking to raise about US$200m in its upcoming Hong Kong IPO.
- Yunkang Group is a medical operation service provider in China and as per F&S, had a market share of 3.7% in China’s medical operation service market as per 2020 revenue.
- While it has managed to grow its on-site diagnostics centers, the firm has to prove that it can still thrive post-COVID.
Shanghai Pulse Medical (博动医疗) Pre-IPO: Leading Image-Based FFR Player
- Shanghai Pulse is a leading player in the FFR assessment in China. The company is looking to raise up to USD 200 m via a Hong Kong listing.
- We look at the company’s key products QFR, OFR and UFR. We also provide our thoughts on the investment thesis.
- We think the company has a decent investor backing and meanwhile we also highlight concerns on its management.
Before it’s here, it’s on Smartkarma