In today’s briefing:
- Ryman Healthcare (RYM NZ): Strong Base Business Is Outshined by Regulatory Overhangs
- WuXi AppTec Co Ltd (2359.HK/603259.CH) 2022Q1 – Some Points Worth the Attention
Ryman Healthcare (RYM NZ): Strong Base Business Is Outshined by Regulatory Overhangs
- Ryman Healthcare (RYM NZ) is expected to see pent-up demand, with the gradual re-opening of New Zealand. Long-term demand environment is expected to be positive, due to favorable macro tailwind.
- However, the company is facing regulatory risk. One of its sites in Australia has ongoing litigation risk. Possibility of renewed COVID-19-related restrictions can not be overruled.
- While Ryman has long-term growth engines, these overhangs may limit the near-term upside potential of Ryman shares.
WuXi AppTec Co Ltd (2359.HK/603259.CH) 2022Q1 – Some Points Worth the Attention
- The weak performance of WuXi AppTec’s investment business dragged down the overall net profit growth, which could get worse considering the macro uncertainties, leading to the change of valuation logic.
- The gross profit margin showed a declining trend, and cost control in the context of inflation becomes urgent. Reduced cash balance, weaker short-term solvency and liquidity should also be noticed.
- With majority revenue from overseas markets, external uncertainties (e.g. geopolitical conflict, complex Sino-US relationship, etc.) may be greater than expected. Investors may need to be ready for this.
Before it’s here, it’s on Smartkarma
