In today’s briefing:
- Burning Rock Biotech (BNR US): Attractive Growth Story Outshined by Surging COVID Cases in China
- Pre-IPO Guanze Intelligent Medical Information Industry – Advantages in Shandong Cannot Hide Worries
- Mitra Keluarga (MIKA IJ) – Back On a Digitally Enhanced Expansion Tack
- Japan’s Governance: Ono Pharmaceutical (4528) ESG Briefing
Burning Rock Biotech (BNR US): Attractive Growth Story Outshined by Surging COVID Cases in China
- Burning Rock Biotech (BNR US) shares plunged 35% since I published bearish insight on the company in November. Weak Q3 results, slower recovery, and the U.S.-China conflict remained major overhangs.
- However, the shares are now trading at two-week high, as the company received approval for its second NGS kit in China and reported slightly better-than-expected Q4 results.
- Investors should continue to avoid Burning Rock shares for near-term and wait for COVID cases to subside in China and resolution of the U.S.-China conflict.
Pre-IPO Guanze Intelligent Medical Information Industry – Advantages in Shandong Cannot Hide Worries
- Guanze relies heavily on sale of medical imaging film products in Shandong Province, and occupies a leading market position in Shandong based on its accumulation in local networks and resources.
- However, the market size in Shandong is limited, with growth ceiling.With the trend of new technology and unproven ability to expand nationwide,there’s a risk of being eliminated in long term.
- In this context, Guanze could face a lot of challenges and uncertainties. Therefore, we are conservative about the Company’s outlook at the current stage.
Mitra Keluarga (MIKA IJ) – Back On a Digitally Enhanced Expansion Tack
- Mitra Keluarga Karyasehat Tbk (MIKA IJ) booked a strong set of FY2021 results driven by both COVID treatments and the start of a recovery in its core base case business.
- The company is back on an expansion tack in 2022, with increased capex and new hospital openings plus an increasing focus on digital initiatives.
- Mitra Keluarga Karyasehat Tbk (MIKA IJ) remains a core proxy for the growing penetration of healthcare in Indonesia and valuations are attractive versus history.
Japan’s Governance: Ono Pharmaceutical (4528) ESG Briefing
- The corporate governance efforts are making gradual progress, and I appreciate the company’s disclosure of issues, but I would like to see it become more proactive.
- Policy shareholding is one of its biggest challenges. Establishing a path for reducing the shareholdings and disclosing and showing progress in doing so shows that it is addressing the issue.
- Good progress has been made on the protection of environment. Regarding the expansion of human capital, the initiative has only just begun and is expected further efforts in the future.
Before it’s here, it’s on Smartkarma