Special interview
Author: Zhai Ziqian
2020-12-28 07:05
Last update date: 2020-12-28 07:05
"The King of Money" Lin Shaoyang has always taken value investment as its trading purpose. Its Yili Investment China Fund has increased by more than 30% this year. I believe many investors hope to refer to his holdings.
Unexpectedly, among the Lin Shaoyang Fund holdings this year, the company with the most profit turned out to be an unprofitable or even unearned stock.
Although the performance of technology stocks this year has been brilliant, many companies’ share prices have risen in multiples, among which Meituan (3690) has risen by more than 2.2 times this year; BYD (1211) has risen 4.5 times.
As for one of Lin Shaoyang's most profitable stocks this year, the unprofitable "B stock" Kang Sino (6185).
Kansino went public in 2019. At that time, the market price was about 22 yuan. At the beginning of this year, it rose to nearly 60 yuan. It once reached a high of more than 270 yuan during the year. It recently fought at 170 yuan.
Lin Shaoyang bluntly said that it might be out of "good luck," but the initial allocation in Cansino was not too much, and the company still had no income.
As of the first half of June this year, as CanSino has not yet commercialized any products, it has not recorded any revenue; operating losses for the year were RMB 123 million, an increase of 38.9% year-on-year.
Lin Shaoyang, managing director of Yili Investment, believes that the four co-founders of Cansino have strong backgrounds and the new crown pneumonia vaccine has great potential.
(Photo by Huang Baoying)
Can Sino may become a ``dark horse'' next year, the new crown vaccine becomes the key
For an unprofitable company, Lin Shaoyang is optimistic about the reasons that not only the new coronary pneumonia vaccine developed by this company recently has good potential, but also the four co-founders of his company have strong backgrounds.
In addition, Lin Shaoyang believes that Kangsino has done a good job in marketing.
The only weakness that must be paid attention to is cost control.
Lin Shaoyang explained that since the four Cansino co-founders are focused on research and development, production is precisely their weakness, but in the vaccine production industry, cost control is very important.
"In the laboratory, a vaccine system is invincible in the world, but the cost of mass production is too expensive, and ultimately it will not be able to operate on a large scale."
Although facing the problem of controlling production costs, Lin Shaoyang still believes that Kangsino has a chance to be this year's "dark horse".
Among them, it depends on when its new crown pneumonia vaccine is launched, and it is more popular in the market after its launch.
In addition, CanSino has many traditional vaccines including BCG. The manufacturing formula of this type of product is different from that of its competitors. In addition, the company's rich product range is expected to become a dark horse in the industry.
Lin Shaoyang believes that the leading stocks in the CRO market segment have emerged, including WuXi Biologics (2269), WuXi AppTec (2359), Kanglong Chemical (3759) and Tigermed (3347).
(Image source: WuXi Biologics official website)
CRO's four major leaders
If investors are not willing to "climb cold", Lin Shaoyang recommends the "medical R&D outsourcing company" (CRO) sector, including the blue-chip stock WuXi Biologics (2269), sister company WuXi AppTec (2359) is also good; and the second echelon Optional Kanglong Chemical (3759) and Tigermed (3347).
He believes that Kanglong Chemical's prospects are relatively bright. In addition to research and development of chemical drugs, it also makes biological drugs. "Buying one store is equivalent to buying WuXi Biologics and WuXi AppTec, and there is no split to make two. I I think a Growth drive might be even stronger."
He believes that the CRO market segment has already emerged as the leading stocks, nothing more than these four, and the remaining smaller companies have already expanded to a certain extent.
"It's the production process, the more experience you accumulate, the more difficult it becomes for a rising star to run forward."
Lin Shaoyang had been in contact with a biopharmaceutical company in 2001. At that time, he bought Zhongsheng Pharmaceutical (1177). The stock price was a few cents, and it has risen hundreds of times.
(Photo by Huang Baoying)
Zhongsheng Pharmaceutical "Hundred Times Myth"
In fact, the biomedical industry appeared in Hong Kong stocks as early as 20 years ago, and Lin Shaoyang had contact with biopharmaceutical companies in 2001.
He mentioned that Zhongsheng Pharmaceutical (1177) was still on the Growth Enterprise Market at that time, and its share price was a few cents, and it had been broken down many times in the later period, and it has returned hundreds of times.
He said with a smile that although Zhongsheng Pharmaceutical's return is not as good as Tencent, it has performed well.
Zhongsheng Pharmaceutical's stock price is relatively less volatile this year, with a high and low volatility of about 80%. It closed at 7.46 yuan last Thursday, with a total market value of 140.71 billion yuan.
Lin Shaoyang first admired this company because of its research and development capabilities. Although many of the company's products are generic drugs, many of them are "first imitations." There is a certain technical content in disassembling new drugs for synthesis.
In addition, Zhongsheng Pharmaceutical also developed individual new drugs that year, including an eye drop.
Lin Shaoyang mentioned that the then Secretary of Home Affairs, Ho Chi-Ping, was one of the top ophthalmology authorities in Hong Kong. He was only an independent non-executive director of a GEM company at that time. It was "a great endorsement". He was highly regarded in the political and business circles. .
In the end, this eye drops of Zhongsheng Pharmaceutical was sold to Bausch & Lomb, a famous American manufacturer of eye care products, for billions of dollars. The market value of Zhongsheng Pharmaceutical was only two to three billion yuan that year.
"Finally, it proved that I was right, or He Zhiping's vision was right!"
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