China Medical System Holdings TICKER: CMSH     EXCHANGE: DELISTED

CMS is a Chinese pharmaceutical service company. They are primarily marketing, promoting and selling western and Chinese prescriptions drugs to hospitals through their proprietary sales force. They are also handling product registration for newly imported drugs on behalf of foreign companies, renewal of expired or expiring imported drug registrations, custom clearance, inspection of imported drugs and bids in collective tender processes. The company has a proprietary product in clinical development for the treatment of primary liver cancer. Therapeutic areas covered include CNS disorders (Deanxit), hepatology (GanFuLe), gastroenterology (Solofalk, Ursofalk), infectious diseases (Bioflor), urology (Cystistat), ophthalmology (Stulln Mono), cardiovascular disease (nesiritide - XinHouSu), paediatric and oncology (GanFuLe, Jinerlun). CMS was listed on AIM on 2007 and in September 2010 moved to the Hong Kong Stock Exchange (867 HK).


Adjusting focus
Published: Jan 25 2010

Positive trading update supports strong rerating

R&D activities spun off, leaving sales / marketing / distribution focus

Possible listing in Hong Kong has valuation implications

Further Outstanding Results
Published: Aug 06 2009

Despite challenging global market / trading conditions CMS has continued to grow impressively. Product sales increased by just over 38% to US$46.8m (H1 2008: US$33.8m) and net profits increased by over 33% to US$9.9m versus US$7.4m the same period the previous year. EPS increased to 21¢ from 16¢ in H1 2008. The Company is proposing an interim dividend of 10¢ payable in mid September 2009.
Outstanding 2008 Results
Published: May 19 2009

Successful business model addressing Chinese market yields net profits + 72%; EPS + 59%; dividend +50%

Strong cash reserves and R&D progress

Despite good performance shares for 2009 E only on 7x PER, 7.1% yield

Fair value / share raised to 255p (versus current 176p)

A rare pearl
Published: Oct 10 2008

Impressive H1 results show sales +41% year on year, and EPS +128.6%

Progress in period also saw: renewed agency agreements, two new products, reply from SFDA (regulators).

Forecasts remain broadly unchanged leaving both low PER and high yield on shares. We keep a 173 - 208p fair value target range (versus current 125p level)
Attractively rated play on Chinese pharma
Published: Apr 17 2008

Integrated Chinese pharma company, founded in 1995

Strong record of profitability, 2007 results show adj. net profit up 65%

Year end net cash of $18m

In-house R&D self funded

Exclusive sales and marketing of prescription drugs into Chinese market

Fair value / share seen over 173p (DCF and PER analysis) vs 103p currently