China-TCM (570.HK): Improved Distribution Network with Medicine Dispensing Machines Installed in More Hospitals October 23, 2017 456

Investment Summary

The strong performance of concentrated TCM granules business confirmed our positive view before. As more medicine dispensing machine are equipped in hospitals, the company further consolidates the market position and prepares for future competition in hospital terminal. With the acquisition of upstream and downstream businesses, we see progressively integrated value chain. We expect the bright prospect of concentrated TCM granules and maintain BUY with our target price of HKD5.70. (Closing price as at 19 Oct 2017)

About the author

Profile photo of Eurus Zhou

Eurus Zhou
Phillip Securities (HK)

Graduated from Hong Kong Polytechnic University, Master of Finance (Investment Management). Possess bachelor degree majoring in Financial Management from Southwestern University of Finance and Economics. Focus on industry prospect and corporate fundamentals to explore investment value and cover pharmaceutical and consumer industry.

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