To The Moon

Despite COVID-19 drug orders, Asymchem's performance could decline afterwards. In essence, it mainly relies on cost advantage of large-scale capacity. Without high moat, its LT outlook is uncertain.

• The three large orders for COVID-19 small molecule drugs are mostly one-off revenues, and after 2022, Asymchem Laboratories (6821 HK)'s performance could decline from a high base.
• In essence, Asymchem mainly relies on cost advantage of large-scale capacity to obtain orders.Without core leading technology in frontier of medicine, Asymchem is difficult to enjoy sustainable industry development dividend.
• Overall, Asymchem’s moat is not strong enough, and the certainty of the Company's long-term performance growth is also not high. It could be a short-term trade rather than long-term hold.

By Xinyao (Criss) Wang - https://www.smartkarma.com/profiles/xinyao-criss-wang?utm_source=tiger_community

On Asymchem Laboratories (6821 HK) - https://www.smartkarma.com/entities/asymchem-laboratories?utm_source=tiger_community