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 (Sep29)- Henlius Privatization Update, NHSA Fee Control, Hansoh Is Exception

Pre-IPO Zhejiang Taimei Medical Technology (PHIP Updates) - Some Points Worth the Attention

A Rare Surge in China's Stock Market - But, This Is Not a Bull Market

Sichuan Kelun Pharmaceutical (002422.CH) - The Real Breakthrough Point in Valuation Is ADC Pipeline

Equity Bottom-Up

Tong Ren Tang Technologies Co, Ltd. / Equity Bottom-Up

Tong Ren Tang Technologies Co, Ltd. (1666 HK)

<ul>
<li>Considering 23H1 high base, it can be understood that 24H1 achieved a low single-digit growth. If excluding gain on disposal of subsidiaries, net profit in 24H1 would have negative growth.</li>
<li>Mainland China contributed about 90% of total revenue, but an imminent risk is VBP, which will pose a challenge to the pricing autonomy of Tong Ren Tang’s OTC TCM drugs. </li>
<li>After absorbing the high base impact of 2023 this year, performance growth would return to double digits in 2025. Tong Ren Tang is undervalued. Reasonable valuation is P/E of 15.</li>
</ul>


Considering 23H1 high base, it can be understood that 24H1 achieved a low single-digit growth. If excluding gain on disposal of subsidiaries, net profit in 24H1 would have negative growth.
Mainland China contributed about 90% of total revenue, but an imminent risk is VBP, which will pose a challenge to the pricing autonomy of Tong Ren Tang’s OTC TCM drugs. 
After absorbing the high base impact of 2023 this year, performance growth would return to double digits in 2025. Tong Ren Tang is undervalued. Reasonable valuation is P/E of 15.


Beijing Tong Ren Tang Chinese Medicine (3613 HK)

Tong Ren Tang Technologies (1666.HK) - Undervalued; Performance Will Rebound After a Brief Headwind