IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

JOINN Laboratories / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/joinn-laboratories-h" target="_blank" data-smartkarma-citation="entities:31498:1" rel="noopener">Joinn Laboratories (H) (6127 HK)</a> is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. JOINN's H-shares will commence trading on Friday, 26 February. JOINN priced its H-share listing at HK$151. The <a href="https://inews.hket.com/article/2886409/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E6%98%AD%E8%A1%8D%E6%96%B0%E8%97%A56127%E6%9A%97%E7%9B%A4%E6%BD%9B%E6%B0%B4%E3%80%80%E8%BC%83%E6%8B%9B%E8%82%A1%E5%83%B9%E4%BD%8E%E7%B4%843-?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">last traded grey market price</a> across three brokerages vary from a high of HK$146.70 to a low of HK$142.00 per H-share, according to press reports.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-initiation-on-demand-science" target="_blank" data-smartkarma-citation="insights:47482" rel="noopener">JOINN Laboratories IPO Initiation: On-Demand Science</a>, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-phip-points-to-progress" target="_blank" data-smartkarma-citation="insights:47985" rel="noopener">JOINN Laboratories IPO: PHIP Points to Progress</a>, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:48236" rel="noopener">JOINN Laboratories IPO: Valuation Insights</a>, we noted that the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive.</p></div><div>
<div class="content-highlight"><p>Since the bookbuilding was launched, JOINN's CRO peers have materially derated. Over this period, JOINN A-shares have declined 12% from RMB161.35 (prior to launch) to close at RMB141.19 per A-share. Largely due to this derating, we think that JOINN is fairly priced at the H-share listing price of HK$151. On the other hand, the low grey market price of HK$142 per H-share is attractive from both an AH discount and a CY2021 P/E basis.</p></div>
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Joinn Laboratories (H) (6127 HK) is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. JOINN's H-shares will commence trading on Friday, 26 February. JOINN priced its H-share listing at HK$151. The last traded grey market price across three brokerages vary from a high of HK$146.70 to a low of HK$142.00 per H-share, according to press reports.In JOINN Laboratories IPO Initiation: On-Demand Science, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In JOINN Laboratories IPO: PHIP Points to Progress, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In JOINN Laboratories IPO: Valuation Insights, we noted that the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive.
Since the bookbuilding was launched, JOINN's CRO peers have materially derated. Over this period, JOINN A-shares have declined 12% from RMB161.35 (prior to launch) to close at RMB141.19 per A-share. Largely due to this derating, we think that JOINN is fairly priced at the H-share listing price of HK$151. On the other hand, the low grey market price of HK$142 per H-share is attractive from both an AH discount and a CY2021 P/E basis.



<div><p><a href="https://www.smartkarma.com/entities/joinn-laboratories-h" target="_blank" data-smartkarma-citation="entities:31498:1" rel="noopener">Joinn Laboratories (H) (6127 HK)</a> is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. </p></div><div>
<p>In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-initiation-on-demand-science" target="_blank" data-smartkarma-citation="insights:47482" rel="noopener">JOINN Laboratories IPO Initiation: On-Demand Science</a>, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-phip-points-to-progress" target="_blank" data-smartkarma-citation="insights:47985" rel="noopener">JOINN Laboratories IPO: PHIP Points to Progress</a>, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-valuation-first-look" target="_blank" data-smartkarma-citation="insights:48172" rel="noopener">JOINN Laboratories IPO: Valuation First Look</a>, we took a first look at the potential AH discount range for JOINN's H-share listing. </p>
<p>JOINN has launched its Hong Kong IPO at an indicative price range of HK$133-151 per H-share to raise net proceeds of HK$5,909.8 million ($762 million), at the mid-point of the price range. Ten cornerstone investors will subscribe for $268 million of the offer shares (33.8% of the offer shares at the mid-point of the IPO price). The cornerstone investors include OrbiMed Funds, Lake Bleu Capital, China Structural Reform Fund, China Pinnacle Equity Management, Sequoia Capital, Janchor Partners, CRF Investment,  Carmignac Funds, Octagon Capital and Valliance Fund.</p>
<div class="content-highlight"><p>Overall, the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive, in our view.</p></div>
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Joinn Laboratories (H) (6127 HK) is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. 
In JOINN Laboratories IPO Initiation: On-Demand Science, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In JOINN Laboratories IPO: PHIP Points to Progress, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In JOINN Laboratories IPO: Valuation First Look, we took a first look at the potential AH discount range for JOINN's H-share listing. 
JOINN has launched its Hong Kong IPO at an indicative price range of HK$133-151 per H-share to raise net proceeds of HK$5,909.8 million ($762 million), at the mid-point of the price range. Ten cornerstone investors will subscribe for $268 million of the offer shares (33.8% of the offer shares at the mid-point of the IPO price). The cornerstone investors include OrbiMed Funds, Lake Bleu Capital, China Structural Reform Fund, China Pinnacle Equity Management, Sequoia Capital, Janchor Partners, CRF Investment,  Carmignac Funds, Octagon Capital and Valliance Fund.
Overall, the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive, in our view.


JOINN Laboratories IPO: Valuation Insights

Joinn Laboratories China  Lt / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/joinn-laboratories-china-co-a" target="_blank" data-smartkarma-citation="entities:28273:1" rel="noopener">Joinn Laboratories China Co-A (603127 CH)</a> is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. JOINN is seeking to raise as much as $600 million through a Hong Kong IPO, according to press reports.</p><div>
<p>In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-initiation-on-demand-science" target="_blank" data-smartkarma-citation="insights:47482" rel="noopener">JOINN Laboratories IPO Initiation: On-Demand Science</a>, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-phip-points-to-progress" target="_blank" data-smartkarma-citation="insights:47985" rel="noopener">JOINN Laboratories IPO: PHIP Points to Progress</a>, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look and has attractive fundamentals. </p>
<div class="content-highlight"><p>As is typical of Chinese-listed issuers floating in Hong Kong, JOINN’s H-shares will be offered on a discount to its A-shares (AH discount). In this note, we take a first look at the potential AH discount range for JOINN's H-share listing. </p></div>
</div>

Joinn Laboratories China Co-A (603127 CH) is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. JOINN is seeking to raise as much as $600 million through a Hong Kong IPO, according to press reports.
In JOINN Laboratories IPO Initiation: On-Demand Science, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In JOINN Laboratories IPO: PHIP Points to Progress, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look and has attractive fundamentals. 
As is typical of Chinese-listed issuers floating in Hong Kong, JOINN’s H-shares will be offered on a discount to its A-shares (AH discount). In this note, we take a first look at the potential AH discount range for JOINN's H-share listing. 


JOINN Laboratories IPO: Valuation First Look

<div><p><a href="https://www.smartkarma.com/entities/joinn-laboratories-china-co-a" target="_blank" data-smartkarma-citation="entities:28273:1" rel="noopener">Joinn Laboratories China Co-A (603127 CH)</a> is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019 and ranked the third among the world’s non-clinical drug safety assessment CRO’s as measured by revenues in 2019, according to Frost &amp; Sullivan. JOINN is seeking to raise as much as $600 million through a Hong Kong IPO, according to press reports.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-initiation-on-demand-science" target="_blank" data-smartkarma-citation="insights:47482" rel="noopener">JOINN Laboratories IPO Initiation: On-Demand Science</a>, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. </p></div><div><div><div class="content-highlight"><p>In this note, we look at the PHIP which disclose the 9M20 results and recent developments. Overall, we continue to believe that JOINN is worth a closer look and has attractive fundamentals. </p></div></div></div>

Joinn Laboratories China Co-A (603127 CH) is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019 and ranked the third among the world’s non-clinical drug safety assessment CRO’s as measured by revenues in 2019, according to Frost &amp; Sullivan. JOINN is seeking to raise as much as $600 million through a Hong Kong IPO, according to press reports.In JOINN Laboratories IPO Initiation: On-Demand Science, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In this note, we look at the PHIP which disclose the 9M20 results and recent developments. Overall, we continue to believe that JOINN is worth a closer look and has attractive fundamentals. 

JOINN Laboratories IPO: PHIP Points to Progress

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

<p>Joinn Lab is a leading China-based CRO company seeking a USD 400-500 m H-share listing in Hong Kong. </p><p>In this note, we will discuss Joinn Lab's business segment. We note that it has a strong presence in the drug safety segment, particularly the IND application for biologic candidates thanks to its long history in the market and high standard of lab facilities and operation. We think the company has strong growth ahead, driven by the Wuzhou breeding facility, Suzhou lab and California lab in the next two years, followed by expansion in Chongqing and Guangzhou in the longer term. </p><p>We are of the view that investors would like to pay a premium for the company's strong leadership in the niche market and high growth ahead, but the premium will be offset by its smaller size of operation compared to other CRO players.</p>

Joinn Lab is a leading China-based CRO company seeking a USD 400-500 m H-share listing in Hong Kong. In this note, we will discuss Joinn Lab's business segment. We note that it has a strong presence in the drug safety segment, particularly the IND application for biologic candidates thanks to its long history in the market and high standard of lab facilities and operation. We think the company has strong growth ahead, driven by the Wuzhou breeding facility, Suzhou lab and California lab in the next two years, followed by expansion in Chongqing and Guangzhou in the longer term. We are of the view that investors would like to pay a premium for the company's strong leadership in the niche market and high growth ahead, but the premium will be offset by its smaller size of operation compared to other CRO players.

Joinn Lab (昭衍新药) A+H: Leader in the Niche Drug Safety CRO Segment

China

Viva Biotech Holdings provides one-stop services ranging from early-stage structure-based drug R&D to commercial manufacturing for global biopharmaceutical innovators. The company offers drug discovery services (CRO) and contract development and manufacturing services (CDMO) for small molecules and biologics. It was established in 2008 and is headquartered in Shanghai, China.

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Viva Biotech (1873 HK)

JOINN Laboratories IPO: Trading Debut

The grey market price varies from HK$146.70-HK$142.00 per H-share vs listing price of HK$151. JOINN is fairly priced at the H-share listing price...

Arun George

JOINN Laboratories IPO: Valuation Insights

JOINN has launched its HK IPO at an indicative price range of HK$133-151 per H-share. The combination of a reasonable AH discount and relative...

Arun George

JOINN Laboratories IPO: Valuation First Look

JOINN is seeking to raise as much as $600 million through a HK IPO, according to press reports. In this note, we take a first look at the potential...

Arun George

JOINN Laboratories IPO: PHIP Points to Progress

JOINN is seeking to raise as much as $600 million through an HK IPO. The PHIP which disclose the 9M20 results reinforce our view that JOINN has...

Arun George

Joinn Lab (昭衍新药) A+H: Leader in the Niche Drug Safety CRO Segment

Investors would like to pay a premium for the company's strong leadership in the niche market and high growth ahead, but the premium will be offset...

Ke Yan, CFA, FRM

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