Aequitas Research

Hong Jie Seow

Independent Insight Provider

IPOs and Placements coverage across Asia Pacific

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Shanghai Forest Cabin Biological-Tech / Equity Capital Markets

Shanghai Forest Cabin Biological-Tech (SFCBT HK)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-forest-cabin-biological-tech-co-ltd" target="_blank" data-smartkarma-citation="entities:45249:1" rel="noopener">Shanghai Forest Cabin Biological-Tech (SFCBT HK)</a> is looking to raise US$140m in its upcoming Hong Kong IPO.</li>
<li>SFC is the leader among China’s premium domestic skincare brands with a focus on anti-wrinkle and firming skincare market.</li>
<li>We have looked at the company's past performance in our previous note. In this note, we will undertake a PHIP update.</li>
</ul>



Shanghai Forest Cabin Biological-Tech (SFCBT HK) is looking to raise US$140m in its upcoming Hong Kong IPO.
SFC is the leader among China’s premium domestic skincare brands with a focus on anti-wrinkle and firming skincare market.
We have looked at the company's past performance in our previous note. In this note, we will undertake a PHIP update.


Shanghai Forest Cabin PHIP Update: Strong Topline and Margins in 1H25

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Hanx Biopharmaceuticals / Equity Capital Markets

<ul>
<li>Hanx Biopharm, a China-based clinical-stage biotech company, is looking to raise at least USD 100 million via a Hong Kong listing. ICBCI and CITIC are the joint book runners.</li>
<li>In this note, we look at the company’s core product, HX009, and assess the selling point around the core product.</li>
<li>We also look at the company’s pre-IPO investors and management team.</li>
</ul>


Hanx Biopharm, a China-based clinical-stage biotech company, is looking to raise at least USD 100 million via a Hong Kong listing. ICBCI and CITIC are the joint book runners.
In this note, we look at the company’s core product, HX009, and assess the selling point around the core product.
We also look at the company’s pre-IPO investors and management team.


Hanx Biopharm (翰思爱泰) Pre-IPO Quick Comment: Innovative I/O Product with Early Signals

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>FOREST CABIN’s been subject to administrative penalties for false advertising. The natural ingredient that consumers truly pursue holds the highest premium in essence oil, but its content/efficacy is exaggerated.</li>
<li>Pre-IPO valuation reached over RMB3.8bn. Some investors may believe that, given that FOREST CABIN's profitability has initially been proven, its valuation is attractive. However, think FOREST CABIN have some issues.</li>
<li>Valuation of FOREST CABIN should be lower than Mao Geping. A comfortable range could be P/E of 20-30x. If future growth declined/profit margin deteriorates, valuation may fall to 10-20x P/E.</li>
</ul>


FOREST CABIN’s been subject to administrative penalties for false advertising. The natural ingredient that consumers truly pursue holds the highest premium in essence oil, but its content/efficacy is exaggerated.
Pre-IPO valuation reached over RMB3.8bn. Some investors may believe that, given that FOREST CABIN's profitability has initially been proven, its valuation is attractive. However, think FOREST CABIN have some issues.
Valuation of FOREST CABIN should be lower than Mao Geping. A comfortable range could be P/E of 20-30x. If future growth declined/profit margin deteriorates, valuation may fall to 10-20x P/E.


Pre-IPO Shanghai Forest Cabin Cosmetics Group (PHIP Updates) - Some Points Worth the Attention

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Simcere Pharmaceutical Group / Equity Bottom-Up

Simcere Pharmaceutical Group manufactures and supplies branded generic pharmaceuticals to the China market. The Company's products include antibiotics, anti-cancer medications and anti-stroke medications.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical Group (2096 HK)</a> entered into a license agreement with Vigonvita Life Science Co. Ltd in respect of new indications (RSV and HMPV) of VV116 (Deuterated Remdesivir Hydrobromide).</li>
<li>There is no innovative small molecule antiviral drug approved for RSV infection globally. The development of effective RSV treatment represents a huge unmet medical need worldwide.</li>
<li>The licensing deals signed over the last few months alongside strong innovative drug portfolio, approvals and strong future pipeline makes it a bullish case.</li>
</ul>



Simcere Pharmaceutical Group (2096 HK) entered into a license agreement with Vigonvita Life Science Co. Ltd in respect of new indications (RSV and HMPV) of VV116 (Deuterated Remdesivir Hydrobromide).
There is no innovative small molecule antiviral drug approved for RSV infection globally. The development of effective RSV treatment represents a huge unmet medical need worldwide.
The licensing deals signed over the last few months alongside strong innovative drug portfolio, approvals and strong future pipeline makes it a bullish case.


Simcere Pharma (2096 HK): Agreement With Vigonvita Positive, Pipeline and Approvals Key Strength

InSilico Medicine Cayman TopCo / Equity Capital Markets

<ul>
<li>Although Insilico’s development direction is AI-Biotech, its “genes” don’t support the continuous promotion of drug R&amp;D into later clinical stages. It’s more realistic to sell early-stage candidates and collect cash.</li>
<li>Relying solely on AI pharmaceuticals cannot quickly enter the commercialization stage of innovative drugs. In fact, capital has seen the truth and pharmaceutical companies also doubt its real value.</li>
<li>Insilico in on the right path in terms of business model.If InSilico has the opportunity to develop blockbuster drugs, its future valuation can easily lead QuantumPharm by a large margin.</li>
</ul>


Although Insilico’s development direction is AI-Biotech, its “genes” don’t support the continuous promotion of drug R&amp;D into later clinical stages. It’s more realistic to sell early-stage candidates and collect cash.
Relying solely on AI pharmaceuticals cannot quickly enter the commercialization stage of innovative drugs. In fact, capital has seen the truth and pharmaceutical companies also doubt its real value.
Insilico in on the right path in terms of business model.If InSilico has the opportunity to develop blockbuster drugs, its future valuation can easily lead QuantumPharm by a large margin.


Pre-IPO InSilico Medicine (PHIP Updates) - Some Points Worth the Attention

China Healthcare
Growing pains

Shanghai Forest Cabin PHIP Update: Strong Topline and Margins in 1H25

Shanghai Forest Cabin Biological-Tech (SFCBT HK) aims to raise US$140m in Hong Kong IPO, leading in China's premium skincare market with a focus...

Hong Jie Seow

Hanx Biopharm (翰思爱泰) Pre-IPO Quick Comment: Innovative I/O Product with Early Signals

China-based biotech company Hanx Biopharm seeks to raise $100 million through a Hong Kong listing. We assessed the selling point of its core...

Ke Yan, CFA, FRM

Pre-IPO Shanghai Forest Cabin Cosmetics Group (PHIP Updates) - Some Points Worth the Attention

Investors may find the valuation of Forest Cabin attractive, but there're some issues. Its valuation should be lower than Mao Geping. If growth...

Xinyao (Criss) Wang

Simcere Pharma (2096 HK): Agreement With Vigonvita Positive, Pipeline and Approvals Key Strength

The licensing deals signed over the last few months along side strong innovative drug portfolio, approvals and strong future pipeline augurs well...

Tina Banerjee

Pre-IPO InSilico Medicine (PHIP Updates) - Some Points Worth the Attention

Positioned as AI-biotech,Insilico has to sell pipeline for cash as AI pharmaceuticals face challenge in commercialization and skepticism from...

Xinyao (Criss) Wang

Shanghai Forest Cabin PHIP Update: Strong Topline and Margins in 1H25

​Shanghai Forest Cabin Biological-Tech (SFCBT HK) aims to raise US$140m in Hong Kong IPO, leading in China's premium skincare market with a focus...

Hong Jie Seow

Hanx Biopharm (翰思爱泰) Pre-IPO Quick Comment: Innovative I/O Product with Early Signals

​China-based biotech company Hanx Biopharm seeks to raise $100 million through a Hong Kong listing. We assessed the selling point of its core...

Ke Yan, CFA, FRM

Pre-IPO Shanghai Forest Cabin Cosmetics Group (PHIP Updates) - Some Points Worth the Attention

Investors may find the valuation of Forest Cabin attractive, but there're some issues. Its valuation should be lower than Mao Geping. If growth...

Xinyao (Criss) Wang

Simcere Pharma (2096 HK): Agreement With Vigonvita Positive, Pipeline and Approvals Key Strength

The licensing deals signed over the last few months along side strong innovative drug portfolio, approvals and strong future pipeline augurs well...

Tina Banerjee

Pre-IPO InSilico Medicine (PHIP Updates) - Some Points Worth the Attention

Positioned as AI-biotech,​Insilico has to sell pipeline for cash as AI pharmaceuticals face challenge in commercialization and skepticism from...

Xinyao (Criss) Wang

Shanghai Forest Cabin Biological-Tech (SFCBT HK) aims to raise US$140m in Hong Kong IPO, leading in China's premium skincare market with a focus...

China-based biotech company Hanx Biopharm seeks to raise $100 million through a Hong Kong listing. We assessed the selling point of its core...

Positioned as AI-biotech,Insilico has to sell pipeline for cash as AI pharmaceuticals face challenge in commercialization and skepticism from...