HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Akeso Biopharma Inc / Equity Capital Markets

<ul>
<li>OS benefit has been observed in HARMONi-A study, which however is just a small part of the PD-1/VEGF commercial landscape. The main battlefield is still the head-to-head trial against Keytruda.</li>
<li>We think the current high valuation of Akeso has begun to price in the successful HARMONi-2 results to some extent, which however is not a done deal.</li>
<li>Investors may need to be cautious about this placement, especially when the founders of Akeso actually chose to reduce their positions. Market cooling down may not be far off.</li>
</ul>


OS benefit has been observed in HARMONi-A study, which however is just a small part of the PD-1/VEGF commercial landscape. The main battlefield is still the head-to-head trial against Keytruda.
We think the current high valuation of Akeso has begun to price in the successful HARMONi-2 results to some extent, which however is not a done deal.
Investors may need to be cautious about this placement, especially when the founders of Akeso actually chose to reduce their positions. Market cooling down may not be far off.


Akeso Biopharma (9926 HK) Placement - We Are Now at a Critical Point

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a> is looking to raise around US$460m from a mix of primary placement and selldown by its founders.</li>
<li>Past deals in the name have been mixed, but the shares have been doing well and the deal size remains small.</li>
<li>In this note, we talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Akeso Biopharma Inc (9926 HK) is looking to raise around US$460m from a mix of primary placement and selldown by its founders.
Past deals in the name have been mixed, but the shares have been doing well and the deal size remains small.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.


Akeso Inc Placement - Another Opportunistic Raise, Mixed past Deal but Is Relatively Small

Equity Bottom-Up

Shanghai Henlius Biotech  / Equity Bottom-Up

<ul>
<li>Since the privatization of Henlius failed at the beginning of 2025, we have witnessed its stock price constantly hitting new highs.The market has recognized Henlius’ strong fundamentals and promising outlook.</li>
<li>Based on conservative forecast, the peak sales of important products +  other promising candidates/indication expansion/drug combination/new licensing cooperation, etc., total revenue of Henlius is expected to reach RMB10 billion.</li>
<li>RMB30 billion is the valuation bottom line for Henlius. The upper limit of valuation may reach RMB36-45 billion in the future. Exercise Price of the Options granted is HK$50.25/share.</li>
</ul>


Since the privatization of Henlius failed at the beginning of 2025, we have witnessed its stock price constantly hitting new highs.The market has recognized Henlius’ strong fundamentals and promising outlook.
Based on conservative forecast, the peak sales of important products +  other promising candidates/indication expansion/drug combination/new licensing cooperation, etc., total revenue of Henlius is expected to reach RMB10 billion.
RMB30 billion is the valuation bottom line for Henlius. The upper limit of valuation may reach RMB36-45 billion in the future. Exercise Price of the Options granted is HK$50.25/share.


Shanghai Henlius Biotech (2696 HK) - Thoughts on the Valuation Outlook

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

<ul>
<li>On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng China Enterprises Index for the September 2025 rebalance.</li>
<li>Team Quiddity expected 1 ADD (<a href="https://www.smartkarma.com/entities/pop-mart-international-group-l" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">Pop Mart (9992 HK)</a>) and 1 DEL (<a href="https://www.smartkarma.com/entities/j-t-global-express-ltd" target="_blank" data-smartkarma-citation="entities:36819:1" rel="noopener">J&amp;T Global Express (1519 HK)</a>) and those names were announced as the sole ADD/DEL pair.</li>
<li>HSCEI sees some capping and re-capping flows but because it has relatively low tracking AUM, the total flows here are limited to about US$400mm.</li>
</ul>


On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng China Enterprises Index for the September 2025 rebalance.
Team Quiddity expected 1 ADD (Pop Mart (9992 HK)) and 1 DEL (J&amp;T Global Express (1519 HK)) and those names were announced as the sole ADD/DEL pair.
HSCEI sees some capping and re-capping flows but because it has relatively low tracking AUM, the total flows here are limited to about US$400mm.


[Quiddity Index] Sep25 HSCEI Review Announced; 1 ADD, 1 DEL, Minor Flows

Shanghai Conant Optical / Index Rebalance

<ul>
<li>On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Healthcare Index for the September 2025 rebalance. That takes us to 73 constituents.</li>
<li>Team Quiddity had expected 6 ADDs+1 DEL. We got 10 ADDs and 4 DELs. Our 7 names were correct and the other three DELs were our next three choices.</li>
<li>This is a smallish index, so we see US$300+mm to trade but there are a couple of big buys in terms of ADV.</li>
</ul>


On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Healthcare Index for the September 2025 rebalance. That takes us to 73 constituents.
Team Quiddity had expected 6 ADDs+1 DEL. We got 10 ADDs and 4 DELs. Our 7 names were correct and the other three DELs were our next three choices.
This is a smallish index, so we see US$300+mm to trade but there are a couple of big buys in terms of ADV.


[Quiddity Index] Sep25 HS Healthcare Index Review Announced; 10 ADDs, 4 DELs, 1 More Member Net

China

Innovent Biologics, Inc. operates as a biopharmaceutical company. The Company develops, manufactures, and distributes monoclonal antibody drug candidates for the treatment of oncology, ophthalmology, autoimmune, cardiovascular, and other diseases. Innovent Biologics serves customers in China.

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Innovent Biologics Inc (1801 HK)

Akeso Biopharma (9926 HK) Placement - We Are Now at a Critical Point

Akeso's potential success in HARMONi-2 study may be already factored into high valuation. Investors need to be cautious about this placement,...

Xinyao (Criss) Wang

Akeso Inc Placement - Another Opportunistic Raise, Mixed past Deal but Is Relatively Small

Akeso Biopharma Inc (9926 HK) is looking to raise around US$460m from a mix of primary placement and selldown by its founders. In this note, we...

Sumeet Singh

Shanghai Henlius Biotech (2696 HK) - Thoughts on the Valuation Outlook

Despite a failed privatization, Henlius' stock price continues to soar as the market recognizes strong fundamentals/outlook. RMB30B is the...

Xinyao (Criss) Wang

[Quiddity Index] Sep25 HSCEI Review Announced; 1 ADD, 1 DEL, Minor Flows

The Hang Seng China Enterprises Index sees 1 ADD (Pop Mart) and 1 DEL (J&T Global Express) as expected. Both might be OK shorts. Capping is final...

Travis Lundy

[Quiddity Index] Sep25 HS Healthcare Index Review Announced; 10 ADDs, 4 DELs, 1 More Member Net

The Hang Seng Healthcare Index Review was announced Friday post-close. We expected 6 ADDs 1 DEL but got 10 ADDs 4 DELs. Broad changes announced but...

Travis Lundy

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Akeso Biopharma (9926 HK) Placement - We Are Now at a Critical Point

​Akeso's potential success in HARMONi-2 study may be already factored into high valuation. Investors need to be cautious about this placement,...

Xinyao (Criss) Wang

Akeso Inc Placement - Another Opportunistic Raise, Mixed past Deal but Is Relatively Small

Akeso Biopharma Inc (9926 HK) is looking to raise around US$460m from a mix of primary placement and selldown by its founders. In this note, we...

Sumeet Singh

Shanghai Henlius Biotech (2696 HK) - Thoughts on the Valuation Outlook

​Despite a failed privatization, Henlius' stock price continues to soar as the market recognizes strong fundamentals/outlook. RMB30B is the...

Xinyao (Criss) Wang

[Quiddity Index] Sep25 HSCEI Review Announced; 1 ADD, 1 DEL, Minor Flows

The Hang Seng China Enterprises Index sees 1 ADD (Pop Mart) and 1 DEL (J&T Global Express) as expected. Both might be OK shorts. Capping is final...

Travis Lundy

[Quiddity Index] Sep25 HS Healthcare Index Review Announced; 10 ADDs, 4 DELs, 1 More Member Net

The Hang Seng Healthcare Index Review was announced Friday post-close. We expected 6 ADDs 1 DEL but got 10 ADDs 4 DELs. Broad changes announced but...

Travis Lundy

Akeso's potential success in HARMONi-2 study may be already factored into high valuation. Investors need to be cautious about this placement,...

Despite a failed privatization, Henlius' stock price continues to soar as the market recognizes strong fundamentals/outlook. RMB30B is the...