Chinese biotech with multibagger potential trading at 7x PE
With several upcoming potential blockbuster drugs
This will be my first pay-walled stock write-up, from now on the vast majority of new actionable ideas will be behind a pay-wall.
Disclaimer: Readers of this blog should do their own due diligence before buying or selling any of the mentioned stocks, since I have been wrong before and cannot guarantee all information in this write-up is 100% factual. I may buy or sell the above mentioned stocks at any time. I am not your financial advisor. Past success is no guarantee for future success.
I have found a debt free and growing Chinese pharma company trading at ~7x earnings with a growing portfolio of drugs and dermatology ingredients and two blockbuster drugs, one of which is launching this year and a GLP-1 drug in their pipeline. The company also has an impressive list of insiders for its size, and has bought back several % of their shares outstanding in the last 6 months.
Despite being a microcap, liquidity is pretty decent at about $70k/day. With further revenue growth there could be serious operating leverage here. This is a fairly high conviction idea for me and currently one of my largest positions. However it does have some hair on it from something that happened over a decade ago (which I don’t think is all that relevant today as all the people who were involved with that are no longer involved with the company today).