Catching the Wuhan bugCurrent Wuhan pneumonia statistics – 581 infected across 8 countries
Current outbreak appears less virulent compared to SARS; how China contains the virus during CNY period is key
Potential sector beneficiaries – Groceries, hospitals, pharmaceuticals, gloves, telco, e-commerce
Potential sector losers – Hospitality/Hotel, airlines/airport services, F&B, Wuhan production facilities
With Chinese nationals estimated to make a total of 3bn trips during the CNY period, the fear is that the outbreak will degenerate into a global pandemic as infection rate surges further, and the virus spreads to more countries as Chinese citizens return to work after the holiday period.
Initial data suggests that WHP is less virulent with a lower fatality rate of about 3% (9.6% for SARS) and lower disease spread among healthcare workers at 2.9% (21.1% for SARS). The virus also appears to be less lethal to the young as all the current fatalities are aged above 48.
Potential sector beneficiaries
(1) Grocery stores - Sheng Siong
(2) Private hospitals - Raffles Medical, Siloam Hospitals, Hermina
(3) Pharmaceutical companies supplying pneumonia test kits and treatment such as CTCM
(570HK) and Bayushan (874 HK)
(4) Glove manufacturers – Top Glove, Hartalega, Kossan Rubber, Riverstone
(5) Telecom - Advanced Info Service, DTAC, Singapore Telecom, XL Axiata
(6) E-commerce - Koolearn Technology, Alibaba
Potential sector losers
(1) Hospitality REITS/Hotel – CDL HT, Far East Hospitality Trust, Ascott Residence, Erawan
(2) Airlines/airport services – China Eastern, SIA, Asia Aviation, Air Asia, Garuda, SATS, AOT, Malaysia Airports
(3) F&B – Haidilao, Jumbo, Breadtalk, Koufu
(4) Production facilities in Wuhan - Yangtze Optical FC
Source: DBS
https://researchwise.dbsvresearch.com/R ... =fbbfdkhea
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