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.
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