In today’s briefing:
- China Shineway Pharmaceutical (2877.HK) – Uncertainties Cloud the Outlook
- KOSDAQ 150 Special Change: Momentum Trading on Caregen Right Before Inclusion
- Natco Pharma Limited: One-Off Drives Revenues; All Eyes on Future Launches
- IPCA Laboratories: Domestic Outperformance Offset by Drag in Exports
China Shineway Pharmaceutical (2877.HK) – Uncertainties Cloud the Outlook
- Driven by favorable policies on TCM and COVID-19 under control, the performance recovery would be a good signal, making the FY2021 performance worthy of expectation.
- The expansion scope of VBP on TCM and the concerns on TCM injection products cast doubts on China Shineway Pharmaceutical (2877 HK)’s outlook.
- Due to the uncertainties, we choose to be conservative about the Company’s outlook at the current stage.
KOSDAQ 150 Special Change: Momentum Trading on Caregen Right Before Inclusion
- KOSDAQ 150 will replace Osstem with Caregen at the close on March 16.
- Even if we conservatively assume KOSPI 150’s direct rebalancing trading funds at ₩1.5T, Caregen will likely face a passive inflow of 4.76x ADTV.
- So, it seems appropriate to approach this event as a short-term momentum trading with a small volume on Caregen right before the inclusion effective date.
Natco Pharma Limited: One-Off Drives Revenues; All Eyes on Future Launches
- Natco has, over the years, developed a knack for manufacturing complex generic products with few competitors, especially for the US market
- India formulations mainly comprise oncology products (+33 launches).
- FY21 revenue break-up – Domestic Business: 19%, International Business: 50% (mainly from the US), APIs: 24%
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IPCA Laboratories: Domestic Outperformance Offset by Drag in Exports
- Ipca is a fully integrated pharma company manufacturing over 350 formulations and 80 APIs with exports contributing 50% of revenues in FY21
- Major therapeutic segments include pain management, cardiovascular and anti-diabetics, anti-infectives, anti-malarials, which together account for 75% of revenues
- Target Price and Valuation: Valued at Rs 1175 i.e. 24x P/E on FY24E EPS of Rs 48.9
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
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