In today’s briefing:
- Pre-IPO Beijing Yuanxin Technology Group – Conservative About the Outlook
- Kpj Healthcare (KPJH.KL) – Tailwinds Intact Despite Taking More Time; U/G To Buy
- Breaking Growth Short Candidates: Repligen, Snap, Dynatrace, Intuitive Surgical
Pre-IPO Beijing Yuanxin Technology Group – Conservative About the Outlook
- Based on the business analysis, Beijing Yuanxin Technology Group Co Ltd (1865453D CH) is more of a traditional offline chain drugstores than a healthcare technology company.
- Yuanxin has been suffering from loss for years. With a gross margin of lower than 10%, it’s going to be tough to turn a profit, leading to concerns on survival.
- Due to the fierce competition in each of its businesses, homogeneous business model, weak financial position, lack of high moat, policy risks, etc., we are conservative about the Company’s outlook.
Kpj Healthcare (KPJH.KL) – Tailwinds Intact Despite Taking More Time; U/G To Buy
- Upgrade to Buy following share price decline
- Smoother transition towards normalcy
- Initiatives to improve operational metrics
- Looking to dispose loss-making assets
Breaking Growth Short Candidates: Repligen, Snap, Dynatrace, Intuitive Surgical
- This model looks for slowing growth, margin declines, sales and/or earnings disappointments, troubling working capital trends, poor estimate trends or lowered guidance, among other characteristics.
- The key judgement is whether a slowdown is temporary or the beginning of a trend. These shorts tend to have high valuations and betas. Multiple compression accelerates the stock’s decline.
- Today we are flagging Repligen, Snap, Dynatrace Inc, Intuitive Surgical
Before it’s here, it’s on Smartkarma
