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.

MedSci Healthcare Holdings (2415.HK) - Lack of Control over Core Resources Is a Critical Pain Point

2023Q4 A-Share Market Outlook and the Potential Sino-US Deals – Time to Go Long?

Pre-IPO Medbanks Network Technology - PHIP Updates: The Business Model Has yet to Be Verified

Sipai Health Technology (314.HK) - Unjustified Valuation and Problematic Business Model

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

Equity Bottom-Up

Sipai Health Technology / Equity Bottom-Up

<ul>
<li>The reason why there are many doubts about Sipai is that its Specialty Pharmacy Business accounts for dominant proportion of total revenue but is almost difficult to make a profit.</li>
<li>Sipai's SMO business revenue will be difficult to grow at scale due to industry characteristics and the Health Insurance Services business is too small to bring substantial changes to performance.</li>
<li>Sipai’s revenue structure/business model is difficult to improve in the short term. So it's not surprising if Sipai suffers long-term losses. Its valuation should be lower than that of ClouDr.</li>
</ul>


The reason why there are many doubts about Sipai is that its Specialty Pharmacy Business accounts for dominant proportion of total revenue but is almost difficult to make a profit.
Sipai's SMO business revenue will be difficult to grow at scale due to industry characteristics and the Health Insurance Services business is too small to bring substantial changes to performance.
Sipai’s revenue structure/business model is difficult to improve in the short term. So it's not surprising if Sipai suffers long-term losses. Its valuation should be lower than that of ClouDr.


Sipai Health Technology (314.HK) - Valuation Has Collapsed, but a Reversal Is Not yet in Sight