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Low Valuation TCM Themed Healthcare Stocks
05-06-2020, 06:52 PM. (This post was last modified: 05-06-2020, 07:01 PM by Barefoot.)
Post: #1
Low Valuation TCM Themed Healthcare Stocks
In recent fight against the pandemic within China, TCM has played a significant complementary role. Following that, central government has just published policies that raise the awareness and status of TCM. Fund will be allocated to further standardization, research and raising professionals in the field.  I am currently watching the sector with a few TCM stocks trading in the low teens with double digit recent years growth rate. I am also looking for signs of big fund taking position in the sector. This is usually characterized by higher than usual volume after years of hibernation.

A few counters I am watching are:
600557
002020 - This one is not TCM themed but usual western drugs development company.
600285
600993
600750 - Good technical pattern. Looks like already breakout.
600479
600329

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06-06-2020, 11:17 PM.
Post: #2
RE: Low Valuation TCM Themed Healthcare Stocks
600329 is also listed in Singapore as well as shanghai.

Price in sgx is 0.79usd while price in sse is 15.99rmb.

It had many great tcm products such as [font=黑体]速效救心丸[/font] etc

What do you think of it?

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08-06-2020, 02:04 PM.
Post: #3
RE: Low Valuation TCM Themed Healthcare Stocks
600329 in SSE seems to have broken out from the bottom with good volume already.

I am surprise at the huge valuation discrepancy in the two markets.

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08-06-2020, 02:24 PM.
Post: #4
RE: Low Valuation TCM Themed Healthcare Stocks
I wanted to add 600329 into the watch list. This one also already on the move. This is not TCM themed but western medication company.

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08-06-2020, 04:39 PM.
Post: #5
RE: Low Valuation TCM Themed Healthcare Stocks
(08-06-2020, 02:24 PM)Barefoot Wrote: I wanted to add 600329 into the watch list. This one also already on the move. This is not TCM themed but western medication company.

Hi Barefoot, 

It is a TCM company but it owned western medicine too. It is trading at 16.70 rmb today, up 4.44% while in sgx it is only 0.80.......

Looking at market depth, there is always a huge sell queue in sgx. Think it is low volume currently and can easily be cornered by someone. 

The trend is up both in shanghai and sgx. 

It fundamentals are great and it is still undervalued at 16.70. It had many great tcm products but it is a State-owned enterprise where employees are not very motivated. 

Things might change after they are being offered share options in Dec 2019. Their share option is at 7.2 rmb which is higher than the price in sgx.....

The dividend is 0.3 rmb which will be subjected to a 10% tax......still a good dividend for a growth stock........

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08-06-2020, 04:47 PM. (This post was last modified: 08-06-2020, 04:53 PM by Barefoot.)
Post: #6
RE: Low Valuation TCM Themed Healthcare Stocks
Very sorry I have a typo error in the previous post. I meant I wanted to add 002262 to the watch list which is not in the list above. 600329 is already in the list.

002262 looks great with 10 years 30% CAGR. The ROE is also consistantly above 15%.

http://www.minishuju.com/stocks/002262/details/

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08-06-2020, 04:52 PM.
Post: #7
RE: Low Valuation TCM Themed Healthcare Stocks
(08-06-2020, 04:39 PM)nyk888 Wrote:
(08-06-2020, 02:24 PM)Barefoot Wrote: I wanted to add 600329 into the watch list. This one also already on the move. This is not TCM themed but western medication company.

Hi Barefoot, 

It is a TCM company but it owned western medicine too. It is trading at 16.70 rmb today, up 4.44% while in sgx it is only 0.80.......

Looking at market depth, there is always a huge sell queue in sgx. Think it is low volume currently and can easily be cornered by someone. 

The trend is up both in shanghai and sgx. 

It fundamentals are great and it is still undervalued at 16.70. It had many great tcm products but it is a State-owned enterprise where employees are not very motivated. 

Things might change after they are being offered share options in Dec 2019. Their share option is at 7.2 rmb which is higher than the price in sgx.....

The dividend is 0.3 rmb which will be subjected to a 10% tax......still a good dividend for a growth stock........

Yes. 600329 seems to have nicely breakout in the last week. Volume is healthily increasing in SSE. But how do you compare 600329 and 002262. 002262 is a western medicine firm. I have their historical numbers below

http://www.minishuju.com/stocks/002262/details/

http://www.minishuju.com/stocks/600329/details/

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08-06-2020, 06:15 PM.
Post: #8
RE: Low Valuation TCM Themed Healthcare Stocks
(08-06-2020, 04:52 PM)Barefoot Wrote:
(08-06-2020, 04:39 PM)nyk888 Wrote:
(08-06-2020, 02:24 PM)Barefoot Wrote: I wanted to add 600329 into the watch list. This one also already on the move. This is not TCM themed but western medication company.

Hi Barefoot, 

It is a TCM company but it owned western medicine too. It is trading at 16.70 rmb today, up 4.44% while in sgx it is only 0.80.......

Looking at market depth, there is always a huge sell queue in sgx. Think it is low volume currently and can easily be cornered by someone. 

The trend is up both in shanghai and sgx. 

It fundamentals are great and it is still undervalued at 16.70. It had many great tcm products but it is a State-owned enterprise where employees are not very motivated. 

Things might change after they are being offered share options in Dec 2019. Their share option is at 7.2 rmb which is higher than the price in sgx.....

The dividend is 0.3 rmb which will be subjected to a 10% tax......still a good dividend for a growth stock........

Yes. 600329 seems to have nicely breakout in the last week. Volume is healthily increasing in SSE. But how do you compare 600329 and 002262. 002262 is a western medicine firm. I have their historical numbers below

http://www.minishuju.com/stocks/002262/details/

http://www.minishuju.com/stocks/600329/details/
I believe it is difficult to compare. TCM is only beginning to gain popularity even in china. Xi Jun Ping is promoting it. 

Both western and TCM should be used together to cure for example covid 19......

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09-06-2020, 01:10 PM. (This post was last modified: 09-06-2020, 01:11 PM by Barefoot.)
Post: #9
RE: Low Valuation TCM Themed Healthcare Stocks
This huge discrepancy in valuation in two different markets of the same stock is a classic example of inefficient market. Do you expect the gap to close up? I manage to get in some position for this one.

Today, 002262 is up the maximum of 10%. I believe the next two weeks is the window period to get into these stocks.

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10-06-2020, 10:03 AM.
Post: #10
RE: Low Valuation TCM Themed Healthcare Stocks
(09-06-2020, 01:10 PM)Barefoot Wrote: This huge discrepancy in valuation in two different markets of the same stock is a classic example of inefficient market. Do you expect the gap to close up? I manage to get in some position for this one.

Today, 002262 is up the maximum of 10%. I believe the next two weeks is the window period to get into these stocks.

Expect price in shanghai to go up and price in singapore to follow.

Sooner or later, management will address the gap and will not allow price in singapore to depress the price in shanghai....

Revenue and profit and been improving over the years.......slight drop in Q1 2020 due to covid......

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