Summary and investment case 3
Defensive nature of healthcare 9
— Latest data shows the defensive nature of China’s healthcare industry ................9
— Healthcare industry growth drivers .......................................................................9
— Favourable external policy environment .............................................................10
Medical reform to gradually stimulate healthcare demand 13
— Existing system restricts demand .......................................................................13
— Latest round of reforms to change entire healthcare system...............................15
— Reforms to stimulate consumption .....................................................................18
— Reforms to change pharmaceutical market competitive dynamics......................20
Risks 24
2009 investment themes 25
Valuations and comparables 27
Company pages 35
— Mindray ..............................................................................................................36
— Tianjin Tasly Pharmaceuticals............................................................................41
— Jiangsu Hengrui Medicine..................................................................................44
— Yunnan Baiyao Group........................................................................................48
— Shandong Dong-E E-Jiao...................................................................................51
— Zhejiang Hisun Pharmaceutical..........................................................................56
— Zhejiang Huahai Pharmaceutical........................................................................63