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.

China Healthcare Weekly (Apr.21) - M&As in Biotech, Capital Is Bullish on Non-Tumor Sectors, Tofflon

China Healthcare Weekly (Apr.28)-TCM Formula Granule Outlook, Reduce CAR-T's Price, Gan & Lee Pharma

China Healthcare Weekly (May.5) - Overvaluation in Primary Market, RDC to Be Hot Spot, Yiling Pharma

Pre IPO Neusoft Xikang Healthcare Technology - Some Points Worth the Attention

Pre-IPO Lu DaoPei Medical Group - Profitability Is Disappointing Despite Big Potential Theoretically

Shanghai Tofflon Science Placement (300171.CH)-Industry Periodicity May Put Valuation Under Pressure

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

Equity Bottom-Up

Shanghai Tofflon Science A / Equity Bottom-Up

<ul>
<li>Tofflon needs to go through a considerable period of adjustment after experiencing the high point of performance. Its “periodicity” is obvious, which means the performance high growth is not sustainable.</li>
<li>The decline in growth rate of contract liabilities suggests that the future prospects is highly uncertain. Overall margins could continue to drop due to reduction in high margin overseas orders.</li>
<li>Unless there's a major catalyst, it’s difficult to see significant valuation boost in short term. Given the current downward trend in performance, valuation may continue to decline in the future.</li>
</ul>


Tofflon needs to go through a considerable period of adjustment after experiencing the high point of performance. Its “periodicity” is obvious, which means the performance high growth is not sustainable.
The decline in growth rate of contract liabilities suggests that the future prospects is highly uncertain. Overall margins could continue to drop due to reduction in high margin overseas orders.
Unless there's a major catalyst, it’s difficult to see significant valuation boost in short term. Given the current downward trend in performance, valuation may continue to decline in the future.


Shanghai Tofflon Science (300171.CH) 2022/23Q1 - It's Better Not to Go Against the Trend