Daily BriefsHealthcare

Health Care: Huadong Medicine Co Ltd A, Insulet Corp, HealthCare Global Enterprises and more

In today’s briefing:

  • Huadong Medicine Co Ltd (000963.CH) – The Medical Cosmetology Business Is the Key Breakthrough Point
  • Breaking Growth Short Candidates: Quanterix, Insulet, Inari Med, MercadoLibre
  • HealthCare Global: High-End Work Improves Realisations

Huadong Medicine Co Ltd (000963.CH) – The Medical Cosmetology Business Is the Key Breakthrough Point

By Xinyao (Criss) Wang

  • Huadong Medicine (000963 CH)’s traditional core businesses are facing great pressure due to VBP and medical insurance negotiation, which is difficult for Huadong to establish its long-term core competitiveness.
  • Despite the fierce competition in medical cosmetology industry, the entry of medical cosmetology equipment field is a wise step, helping Huadong form the most complete layout among competitors.
  • In terms of whether Huangdong could achieve business transformation successfully, the future performance of medical cosmetology business is the key breakthrough point.

Breaking Growth Short Candidates: Quanterix, Insulet, Inari Med, MercadoLibre

By Eric Fernandez, CFA

  • 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 Quanterix, Insulet, Inari Med,  and MercadoLibre

HealthCare Global: High-End Work Improves Realisations

By Axis Direct

  • Healthcare Global Enterprises (HCG) reported revenue Rs 358 Cr grew by 30.7% YoY which is in line with expectations.
  • This growth is primarily led by healthy ARPOB (Rs 38,320) that has shown growth of 15.8% YoY and the number of occupied bed days grew by 17% YoY
  • We recommend “BUY” with a target price of Rs 330.
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