In today’s briefing:
- EC Healthcare (2138 HK): An Attractive Idea with Insider Buying and Continued Business Recovery
- Ping An Health (Part II): Health Mall Growth to Slow Down with Growing Competition
- Biocon: Strong Momentum in Generic And Biosimilar Verticals
EC Healthcare (2138 HK): An Attractive Idea with Insider Buying and Continued Business Recovery
- EC Healthcare (2138 HK)’s Chairman and CEO acquired 543,000 shares at an average price of HKD9.1943 per share, thereby increasing his stake to 61.17% of the issued share capital.
- H1FY22 and preliminary results for Q3FY22 shows continued business recovery. Medical services, which contributes 52.5% of total revenue continue to be the key growth driver.
- In January, EC Healthcare acquired 55% equity interest in Bayley & Jackson Dental Surgeons Limited for HKD129 million. Bayley & Jackson operates seven dental clinics in Hong Kong.
Ping An Health (Part II): Health Mall Growth to Slow Down with Growing Competition
- This is the Second of a series of reports on Ping An Healthcare where we will be discussing the other three segments of the company.
- Health Mall is the largest revenue generator for Ping An Health but the segment is facing tough competition from other online healthcare providers which is negatively impacting its gross margins.
- Similarly, though revenue from Consumer Healthcare biz has seen strong growth, we expect the margins to remain under pressure due to increased focus on corporate customers who generate lower margins.
Biocon: Strong Momentum in Generic And Biosimilar Verticals
- Biocon Limited reported revenue growth of 17.5% (est. 8.9%) which is majorly driven by biosimilars (+27.6%, YoY) and generic (+8.3%, YoY) segment
- In generic, the launch of Everolimus and uptake in API has improved sales despite continuous pricing pressure in the US
- Therefore, we recommend a BUY rating with a Target Price of Rs 425, implying an upside of 14% from the CMP.
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