In-Depth Analysis: Shandong Weigao (1066 HK, BUY): Unlocking value through spin-off
• FY22F-23F earnings lowered by 14-18% and TP by 36%; 3 out of 5 segments are exposed to risk of price cuts
• With risk of potential price cuts, share price fallen by 58% from peak in 2021; PE & PB trading at 3-year low, at 1 SD below average historical levels, negatives largely priced in
• Potential value of HK$3.46 per share expected through spin-off of interventional, blood management, and
pharma packaging segments, implying 44% upside to share price; Maintain BUY