HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Giant Biogene Holding Co., Ltd researches, develops, manufactures, and distributes, and markets skin treatment products. The Company produces recombinant collagen and rare ginsenosides skin treatment products, functional foods, and other products. Giant Biogene Holding conducts businesses in China.

<ul>
<li>Due to higher technological barriers and stricter review/approval processes, Class III medical device registration certificates in China are scarce.This is the key to addressing the decline in Giant Biogene’s performance/profitability.</li>
<li>The approval for Giant Biogene’s Class III medical device has been delayed. If Trautec and Jinbo take the lead, it will affect the market expectations of Giant Biogene's new products.</li>
<li>Without successful approval of Class III medical devices, reasonable valuation for Giant Biogene is P/E of 20-30x at most. The short-term catalyst is the upcoming online Double Eleven Shopping Festival.</li>
</ul>


Due to higher technological barriers and stricter review/approval processes, Class III medical device registration certificates in China are scarce.This is the key to addressing the decline in Giant Biogene’s performance/profitability.
The approval for Giant Biogene’s Class III medical device has been delayed. If Trautec and Jinbo take the lead, it will affect the market expectations of Giant Biogene's new products.
Without successful approval of Class III medical devices, reasonable valuation for Giant Biogene is P/E of 20-30x at most. The short-term catalyst is the upcoming online Double Eleven Shopping Festival.


Giant Biogene (2367.HK) - The Key to Valuation Expansion and Short-Term Catalyst

Equity Capital Markets

<ul>
<li>TCMTech’s business model is directly targeted at industry pain points.The innovation point lies in using AI technology and offline clinics to break the time/space limitations of traditional TCM business model. </li>
<li>The current revenue scale is small. We have already seen a sharp decline of YoY revenue growth in 24Q1-Q3, thus raising questions about the sustainability of future growth momentum.</li>
<li>Considering Gushengtang's scale, business model, and the control of core renowned physician resources have been validated by the market, we think that TCMTech’s reasonable valuation should be lower than Gushengtang.</li>
</ul>


TCMTech’s business model is directly targeted at industry pain points.The innovation point lies in using AI technology and offline clinics to break the time/space limitations of traditional TCM business model. 
The current revenue scale is small. We have already seen a sharp decline of YoY revenue growth in 24Q1-Q3, thus raising questions about the sustainability of future growth momentum.
Considering Gushengtang's scale, business model, and the control of core renowned physician resources have been validated by the market, we think that TCMTech’s reasonable valuation should be lower than Gushengtang.


Pre-IPO TCMTech - The Business Model and the Outlook

BenQ BM Holding Cayman Corp. / Equity Capital Markets

BenQ BM Holding Cayman Corp., a subsidiary of Qisda Group, listing in Hong Kong.

<ul>
<li>The expansion space of BenQ is severely limited as the market has been saturated in Jiangsu Province. Due to DRG, future revenue/net profit growth would continue to be under pressure. </li>
<li>Low profit margin of general hospitals is a common problem in this industry due to pain points of business model.It’s difficult to achieve improvement.Investors need to be aware of this.</li>
<li>BenQ’s valuation should be lower than Hygeia due to weaker profitability, smaller revenue scale, lower growth outlook.Post-money valuation before IPO of US$375 million (or about RMB2.7 billion) is already expensive</li>
</ul>


The expansion space of BenQ is severely limited as the market has been saturated in Jiangsu Province. Due to DRG, future revenue/net profit growth would continue to be under pressure. 
Low profit margin of general hospitals is a common problem in this industry due to pain points of business model.It’s difficult to achieve improvement.Investors need to be aware of this.
BenQ’s valuation should be lower than Hygeia due to weaker profitability, smaller revenue scale, lower growth outlook.Post-money valuation before IPO of US$375 million (or about RMB2.7 billion) is already expensive


Pre-IPO BenQ BM Holding (PHIP Updates) - Some Points Worth the Attention

Shanghai Henlius Biotech  / Equity Bottom-Up

Shanghai Henlius Biotech, Inc develops and produces drugs. The Company develops and produces monoclonal antibody biosimilar drugs, bio betters, novel monoclonal antibodys, and other drugs. Shanghai Henlius Biotech throughout China.

<ul>
<li>Henlius has made a profit for the second year in a row.However, some investors are not satisfied with the quality of net profit growth in 2024 due to concerns behind.</li>
<li>The implementation of H Share Full Circulation has a positive impact on financing ability, shareholder returns, market valuation of Henlius.The next goal is to be included in HK Stock Connect</li>
<li>Lin Lijun’s continuous increase in Henlius holdings is an important reason for shares surge after privatization failure.Lin may keep pushing up share price so as to exit at higher price.</li>
</ul>


Henlius has made a profit for the second year in a row.However, some investors are not satisfied with the quality of net profit growth in 2024 due to concerns behind.
The implementation of H Share Full Circulation has a positive impact on financing ability, shareholder returns, market valuation of Henlius.The next goal is to be included in HK Stock Connect
Lin Lijun’s continuous increase in Henlius holdings is an important reason for shares surge after privatization failure.Lin may keep pushing up share price so as to exit at higher price.


Shanghai Henlius Biotech (2696 HK) - Thoughts on 2024 Results And the H Share Full Circulation

Shanghai Fosun Pharmaceutical (Group) / Equity Bottom-Up

Shanghai Fosun Pharmaceutical (Group) Co., Ltd. is a pharmaceutical company. Through its subsidiaries, the Company manufactures genetic medicines, Chinese traditional medicines, diagnostic products, and medical instruments, provides technology, marketing, and advertising services, as well as invests in import and export trading.

Shanghai Fosun Pharmaceutical (Group) (2196 HK)

<ul>
<li>2024 results appear to be improving, but there’s no large-scale/sustainable new increment with high certainty in revenue end.Fosun Pharma would rely on reducing costs/selling loss-making projects to recover profit/cash flow.</li>
<li>Financial performance in 2025 could be under pressure due to VBP. Fosun Pharm is also mired in a huge guarantee quagmire. International business expansion is facing fierce market competition.</li>
<li>There could be a “valuation discount” for Fosun Pharma due to the concerns on its business model and undervaluation could be a norm. Our recommendation is to invest Henlius directly.</li>
</ul>


2024 results appear to be improving, but there’s no large-scale/sustainable new increment with high certainty in revenue end.Fosun Pharma would rely on reducing costs/selling loss-making projects to recover profit/cash flow.
Financial performance in 2025 could be under pressure due to VBP. Fosun Pharm is also mired in a huge guarantee quagmire. International business expansion is facing fierce market competition.
There could be a “valuation discount” for Fosun Pharma due to the concerns on its business model and undervaluation could be a norm. Our recommendation is to invest Henlius directly.


Shanghai Fosun Pharmaceutical (2196 HK/600196 CH) - The Concerns Behind 2024 Results and the Outlook

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

Xinyao (Criss) Wang
HK/China Healthcare Analyst (ex-Fosun Pharma)

Giant Biogene (2367.HK) - The Key to Valuation Expansion and Short-Term Catalyst

Giant Biogene announced a HK$2.294bn Placement with the price of HK$66.65/Share. Investment logic will change after Class III medical devices are...

Xinyao (Criss) Wang

Pre-IPO TCMTech - The Business Model and the Outlook

TCMTech’s business model and TCM Brain have advantages. However, we doubt whether TCMTech can still maintain such high revenue in the long run....

Xinyao (Criss) Wang

Pre-IPO BenQ BM Holding (PHIP Updates) - Some Points Worth the Attention

BenQ faces limited growth in Jiangsu Province due to market saturation. Low profit margin/ pain points of business model pose challenges.Valuation...

Xinyao (Criss) Wang

Shanghai Fosun Pharmaceutical (2196 HK/600196 CH) - The Concerns Behind 2024 Results and the Outlook

Fosun Pharma's financial performance in 2025/2026 could be under pressure due to VBP. There could be “valuation discount” due to the concerns on...

Xinyao (Criss) Wang

Giant Biogene (2367.HK) - The Key to Valuation Expansion and Short-Term Catalyst

Giant Biogene announced a HK$2.294bn Placement with the price of HK$66.65/Share. Investment logic will change after Class III medical devices are...

Xinyao (Criss) Wang

Pre-IPO TCMTech - The Business Model and the Outlook

TCMTech’s business model and TCM Brain have advantages. However, we doubt whether TCMTech can still maintain such high revenue in the long run....

Xinyao (Criss) Wang

Pre-IPO BenQ BM Holding (PHIP Updates) - Some Points Worth the Attention

​BenQ faces limited growth in Jiangsu Province due to market saturation. Low profit margin/ pain points of business model pose challenges.Valuation...

Xinyao (Criss) Wang

Shanghai Henlius Biotech (2696 HK) - Thoughts on 2024 Results And the H Share Full Circulation

Shanghai Fosun Pharmaceutical Industrial Development and related parties increased holdings of 4.7124 million shares in Henlius at an average price...

Xinyao (Criss) Wang

Shanghai Fosun Pharmaceutical (2196 HK/600196 CH) - The Concerns Behind 2024 Results and the Outlook

​Fosun Pharma's financial performance in 2025/2026 could be under pressure due to VBP. There could be “valuation discount” due to the concerns on...

Xinyao (Criss) Wang

BenQ faces limited growth in Jiangsu Province due to market saturation. Low profit margin/ pain points of business model pose challenges.Valuation...

Fosun Pharma's financial performance in 2025/2026 could be under pressure due to VBP. There could be “valuation discount” due to the concerns on...