|Over a week ago|
Global Cord Blood announces NHC policy update » 07:3201/0501/05/21
Global Cord Blood…
Global Cord Blood reported that China's National Health Commission has issued a new policy stating that no applications for cord blood banking licenses in China will be accepted in 2021. On December 30, 2020, the NHC's General Office announced the Notice Regarding the Matters Related to Issuance of Cord Blood Banking License. According to the Policy, in order to improve public health and medical safety and for the authorities to refine cord blood banking related policies, monitoring processes, and enforcement measures, it is decided that no cord blood banking license applications will be accepted in 2021. The company currently has 3 existing cord blood banking licenses in China which cover Beijing municipality, Guangdong province and Zhejiang province. The company cautions its shareholders and others considering trading its ordinary shares that the Policy did not provide further details regarding the regulatory landscape of the cord blood banking industry in China. The company will issue further announcements in case of any new material developments.
On The Fly: ETF fund flow highlights » 12:5112/2412/24/20
IVV, CO, VB, VBK, VXF, VOT, VBR, QQQ, IWM, SPY
For the holiday shortened…
For the holiday shortened week ETF dollar volume in the top twenty funds was very nearly evenly split between creations and redemptions and very large in size. Much of this activity likely reflects year-end fund adjustments and position management. On the creations side the overwhelming majority of flows were concentrated in the SPDR S&P 500 ETF Trust (SPY) at over 63%. The two next largest inflows though less than a sixth of the size of the SPY went to the iShares Russell 2000 ETF (IWM) and Invesco QQQ Trust (QQQ). There was a sharp drop thereafter in size of flows. On the redemptions side the majority of funds that traded were once again Vanguard funds. The single largest outflow was from the iShares Core S&P 500 ETF (IVV), which was a nearly 75% offset against the SPY inflow and totalled over 40% of outflow. The Vanguard funds which saw outflows fell into two basic categories; Small-Cap and Mid-Cap. In sum the small cap funds accounted for over 21% of redemptions. Mid-caps accounted for over 17% of outflows.
|Over a quarter ago|
China Cord Blood options imply 103.5% move in share price post-earnings » 15:0408/2408/24/20
Pre-earnings options volume in China Cord Blood is 1.6x normal with calls leading puts 9:5. Implied volatility suggests the market is anticipating a move near 103.5%, or $3.73, after results are released. Median move over the past eight quarters is 3.1%.
Global Cord Blood sees FY21 new subscriber number down 19%-29% » 07:0304/2704/27/20
Global Cord Blood…
Global Cord Blood provided an update on the impact of the 2019 novel coronavirus on the company's expected fiscal 2021 operations. Based on information available to date, management estimates that the company's new subscriber number in fiscal 2021 will decrease to 60,000-65,000, a 19%-29% decrease from the company's fiscal 2020 new subscriber target, which is 80,000-85,000. Under the anti-pandemic policies and measures taken by the Chinese government, the risk levels associated with major cities has decreased, and social and economic activities are gradually resuming. However, hospitals, which are the company's key promotion and marketing channel, remain at the forefront in fighting this pandemic and remain under strict supervision and control. In the company's key markets of Beijing municipality, Guangdong province, and Zhejiang province, the company's usual marketing and promotion activities are significantly impacted by the control measures implemented by authorities and hospitals, prompting it to constantly readjust its marketing and promotion activities. During this difficult time, the company has prioritized employee safety and protection by providing personal protective equipment to everyone, especially the frontline sales team, and by implementing additional disinfection measures and work streams in its day-to-day operating procedures. The management team has also recalibrated its marketing and promotion efforts in order to better serve and engage with target and existing clients. As a result, operating costs have increased. The negative economic impact brought forth by the COVID-19 pandemic has affected numerous industries and further erodes already weak consumer sentiment. GCBC management expects that these conditions, compounded by other factors, will adversely affect and potentially delay potential clients' pregnancy plans. Therefore, management believes it is possible that the number of newborns in the company's respective regions will remain low in the near term. While the world is facing various challenges in response to COVID-19, China may continue to tighten its anti-pandemic policies and measures, which would add further headwinds to the recovery pace of China's economy and consumer confidence. GCBC management does not expect these conditions to be significantly improved in the near term. Under the impact of the COVID-19 pandemic, the company management is not optimistic regarding the general operating environment. Current operating data points to the low end of the expected fiscal 2021 new subscriber range. The management would like to remind investors that the above estimation is a forecast that reflects the company's current and preliminary views, which is subject to change and substantial uncertainties, particularly in view of the potential impact of the COVID-19 outbreak, the effects of which are difficult to analyze and predict. The management will continue to monitor the evolvement of the pandemic and does not exclude the possibility of further adjusting the Group strategy and target as future situation and events unfold. Meanwhile, the management will continue to proactively explore and identify opportunities within the healthcare industry value chain to ensure the Group future growth over the long run.
Global Cord Blood expects negative impact from coronavirus in Q4 » 06:3702/1402/14/20
Global Cord Blood…
Global Cord Blood provided an update on the impact of the novel coronavirus, or n-CoV, on its operations. On December 31, 2019, the Wuhan Municipal Health Commission first reported the appearance of 2019-nCoV in the city. Since then, nCoV has spread to other regions of China, including in GCBC's primary markets of Beijing, Guangdong and Zhejiang. As the epidemic continued, different cities in China took different measures, including implementing complete or partial lockdowns. Meanwhile, the Chinese Lunar New Year holidays were extended in order to curb the spread of the virus, resulting in insufficient work force and delayed production for many industries. These preventative measures have also impacted the company's daily operations. The efforts enacted to control nCoV have placed heavy pressure on GCBC's marketing, promotional and sales activities. Part of the company's salesforce is unable to return to work due to lockdowns implemented in various cities, and some hospitals are restricting entrance to hospital staffs and patients. These measures have had a meaningful impact on the company's marketing efforts and access to potential clients, rendering client conversion extremely challenging at this time. The company is focused on protecting the safety and well-being of its work force while also ensuring that no disruption occurs to the day-to-day services that it provides to existing clients. Therefore, the company has increased its efforts to purchase necessary medical supplies and equipment, which is expected to lead to an increase in operating costs.The GCBC management team is paying close attention to the development of the virus and continues to assess the related risks and impacts on the business and its performance. Although the company has begun to explore new marketing models and initiatives, the management team believes that the benefits will be more meaningful in the long term. It remains difficult to estimate the duration and magnitude of nCoV, but the company anticipates a negative impact to its Q4 performance ending March 31. Because of the fluidity of the situation, management will not rule out the possibility of adjusting its sales target for the current fiscal year or its strategy for the coming fiscal year. In light of the rapidly changing situation across different regions, the company will continue to derive new countermeasures to mitigate nCoV impact in any way possible.