HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

Pre-IPO Dental Doctor Medical Holding Group - An Uncertain Outlook and Concerns About Profitability

China Healthcare Weekly (July.1)- TCM New Policy, Private Hospitals Survival Pressure, Sino Biopharm

China Healthcare Weekly (July.8)- CXO Outlook, 2022 NRDL Adjustment, Logic of Influenza Vaccine

Modern Dental Group (3600.HK) - More Suitable for Short Term Trading than Long Term Holding

Angelalign Technology (6699.HK) - There Is Still Plenty of Downside, but Limited Upside Potential

Pre-IPO Arrail Group - The Outlook May Not Be Optimistic

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

<ul>
<li>Arrial's positioning at high-end private dental chain indicates limited growth space. The large investment in dental professionals drags down overall margins but fails to generate good word-of-mouth and expected returns.</li>
<li>Public hospitals with NRDL reimbursement and private dental chains with high cost performance would put more pressure on Arrail. Increasing marketing/promotion expenses cannot turn things around but further reduce margins.</li>
<li>Overall, the high-end strategy cannot bring high-end returns. We are not optimistic about Arrail's prospects and profitability. The Company may even keep losing money and hard to turn profitable.</li>
</ul>


Arrial's positioning at high-end private dental chain indicates limited growth space. The large investment in dental professionals drags down overall margins but fails to generate good word-of-mouth and expected returns.
Public hospitals with NRDL reimbursement and private dental chains with high cost performance would put more pressure on Arrail. Increasing marketing/promotion expenses cannot turn things around but further reduce margins.
Overall, the high-end strategy cannot bring high-end returns. We are not optimistic about Arrail's prospects and profitability. The Company may even keep losing money and hard to turn profitable.


Dental Doctor Medical Holding Group (DDM HK)

Arrail Group (6639.HK) - The Development Strategy Cannot Generate High Returns