In today’s briefing:
- Ping An Health 2021 Results: Is Strategy 2.0 Continuum as Successful as Claimed?
- A Long-Term M&A Battle Brewing Among the 3 Heirs of Hanmi Pharm Group?
- CanSino Biologics (6185.HK/688185.CH) – Still Have Investment Value
- SK Biopharmaceuticals (326030 KS): Highest Performance in 2021; Pipeline Progress Entails Visibility
- BCH: Good Value but Limited Room for Growth
Ping An Health 2021 Results: Is Strategy 2.0 Continuum as Successful as Claimed?
- Ping An Health (SEHK:1833) reported 2H2021 earnings on Tuesday after market close. The company’s revenue declined by 14.7% YoY with a 7.5% decline in gross margins.
- On a full-year basis, 2021 revenue grew by 6.8% despite a 3.9% decline in gross margins. We are concerned on the slowdown of revenue growth and margin decline.
- The company is trading at a significant discount to historical median and peers. Withou clarity regarding segments, we think it is too soon to take a completely negative stance.
A Long-Term M&A Battle Brewing Among the 3 Heirs of Hanmi Pharm Group?
- There is an interesting situation brewing at the Hanmi Pharm Group, which is one of the largest pharmaceutical companies in Korea.
- On 16 March, it was reported that Hanmi Pharm decided not to raise the agenda for re-appointment of CEO Lim Jong Yoon as an inside director at the Hanmi Science.
- In terms of trading, there appears to be more upside in Hanmi Science (008930 KS) as compared to Hanmi Pharm (128940 KS) in the next several months.
CanSino Biologics (6185.HK/688185.CH) – Still Have Investment Value
- The main performance contributor in 2021 was CanSino’s COVID-19 vaccine.However, the high vaccination rates, new alternatives (e.g. oral COVID-19 pills) and concerns on capacity make the future sales highly uncertain.
- The commercialization performance of MCV2 and MCV4 would largely determine when CanSino could truly shift to relying on conventional vaccine business rather than COVID-19 vaccine to contribute performance.
- Objectively speaking, CanSino’s pipeline, R&D capability and technology platforms do have advantages and investment value.
SK Biopharmaceuticals (326030 KS): Highest Performance in 2021; Pipeline Progress Entails Visibility
- SK Biopharmaceuticals Co Ltd (326030 KS) surpassed KRW400 billion sales last year, the highest since inception. The company targets more than doubling sales this year, through global expansion of cenobamate.
- The company is expected to launch its third commercial drug, carisbamate (currently in phase 3 trial) in global market in 2025.
- On the back of robust 2021 financial performance, SK Biopharmaceuticals shares have recovered and reached to two-month high, thereby offering an attractive and confirming buying opportunity.
BCH: Good Value but Limited Room for Growth
- Maintain HOLD rating with a TP of B21.00, based on 14.36xPE’22E, which is close to -2SD of 3-years trading average. Despite expected 43% drop in 22E earnings,rising Omicron cases coupled
- Its 4Q21 earnings was at Bt2.5bn (+791% YoY,-14%QoQ), suppressed QoQ upon weak revenue growth, caused by lower Covid-related revenue.
- BCH’s 2021 earnings was at Bt6.8bn, grew 454%YoY, attributed to solid revenue growth (+139%YoY) and margin expansion (+17ppts), upon higher Covid-contribution.
Before it’s here, it’s on Smartkarma
