Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/3sbio-inc" target="_blank" data-smartkarma-citation="entities:459:1" rel="noopener">3SBio Inc (1530 HK)</a> signed an outlicensing deal worth more than $6B with Pfizer for its PD-1/VEGF bispecific antibody, SSGJ-707. Since signing the deal, 3SBio shares rallied more than 55%.</li>
<li>Considering deals signed with Chinese companies for bispecific antibody drug candidates in recent times, 3SBio seems to have secured best valuation for its asset.</li>
<li>Initiation of global trial of SSGJ-707 and data readout from its ongoing China trials for additional indications, continued strong financial performance, and new approvals are upcoming catalysts.</li>
</ul>



3SBio Inc (1530 HK) signed an outlicensing deal worth more than $6B with Pfizer for its PD-1/VEGF bispecific antibody, SSGJ-707. Since signing the deal, 3SBio shares rallied more than 55%.
Considering deals signed with Chinese companies for bispecific antibody drug candidates in recent times, 3SBio seems to have secured best valuation for its asset.
Initiation of global trial of SSGJ-707 and data readout from its ongoing China trials for additional indications, continued strong financial performance, and new approvals are upcoming catalysts.


3SBio Inc (1530 HK): Licensing Deal a Market Hit; Will It Continue?

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>3SBio delivered a strong performance in 2024. Revenue increased 16.5% YoY to RMB9.1bn, exceeding our estimates by 3.3%, driven by the continued robust growth of TPIAO, Mandi and other products.</li><li>Attributable net profit increased by 34.9% YoY to RMB2.1bn, 9.1% above our forecast. 3SBio’s attributable NPM improved by 2.0 ppts, driven by 1.0 ppt increase in GPM and 2.3 ppts decrease in SG&amp;A ratio.</li><li>Additionally, the Company declared a 2024 dividend of HK$0.25 per share, implying a 26% payout ratio.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

3SBio delivered a strong performance in 2024. Revenue increased 16.5% YoY to RMB9.1bn, exceeding our estimates by 3.3%, driven by the continued robust growth of TPIAO, Mandi and other products.Attributable net profit increased by 34.9% YoY to RMB2.1bn, 9.1% above our forecast. 3SBio’s attributable NPM improved by 2.0 ppts, driven by 1.0 ppt increase in GPM and 2.3 ppts decrease in SG&amp;A ratio.Additionally, the Company declared a 2024 dividend of HK$0.25 per share, implying a 26% payout ratio.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

3SBio (1530 HK) - Earnings Beat, Rich Pipeline Promises Future Growth

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.

Event-Driven

China Traditional Chinese Medicine / Event-Driven

<ul>
<li>Shockingly, the Sinopharm-led consortium’s offer for <a href="https://www.smartkarma.com/entities/china-traditional-chinese-medicine" target="_blank" data-smartkarma-citation="entities:351:1" rel="noopener">China Traditional Chinese Medicine (570 HK)</a> has lapsed as the precondition long stop date has not been extended.</li>
<li>This deal break caught many, including me, off guard. There are lessons to be learnt and questions to be asked. </li>
<li>Shareholders will have a bruising Monday. Our analysis suggests a deal break price of around HK$3.44, a 10% downside to the last close.</li>
</ul>


Shockingly, the Sinopharm-led consortium’s offer for China Traditional Chinese Medicine (570 HK) has lapsed as the precondition long stop date has not been extended.
This deal break caught many, including me, off guard. There are lessons to be learnt and questions to be asked. 
Shareholders will have a bruising Monday. Our analysis suggests a deal break price of around HK$3.44, a 10% downside to the last close.


China Traditional Chinese Medicine (570 HK): Disaster as Offer Lapses, Potential Deal Break Price

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Yichang HEC Changjiang Pharma / Equity Bottom-Up

<ul>
<li>For the upcoming 11th national VBP, we think some core and big varieties could be included, involving companies such as Sunshine Lake Pharma, <a href="https://www.smartkarma.com/entities/huadong-medicine-co-ltd-a" target="_blank" data-smartkarma-citation="entities:18522:1" rel="noopener">Huadong Medicine</a>, <a href="https://www.smartkarma.com/entities/hansoh-pharmaceutical-group-co" target="_blank" data-smartkarma-citation="entities:23675:1" rel="noopener">Hansoh Pharmaceutical (3692 HK)</a>, etc.</li>
<li>Anjoy’s IPO is fairly priced. Reasonable valuation range is 10-15x P/E.However, unfavorable factors have led us to take a conservative attitude towards the upside potential of stock price after IPO.</li>
<li>For Sunshine Lake Pharma's privatization of HEC Pharma, Composite Document was despatched. However, if investors truly understand "the essence" of HEC Pharma, they will be calm/rational about this absorption merger.</li>
</ul>


For the upcoming 11th national VBP, we think some core and big varieties could be included, involving companies such as Sunshine Lake Pharma, Huadong Medicine, Hansoh Pharmaceutical (3692 HK), etc.
Anjoy’s IPO is fairly priced. Reasonable valuation range is 10-15x P/E.However, unfavorable factors have led us to take a conservative attitude towards the upside potential of stock price after IPO.
For Sunshine Lake Pharma's privatization of HEC Pharma, Composite Document was despatched. However, if investors truly understand "the essence" of HEC Pharma, they will be calm/rational about this absorption merger.


China Healthcare Weekly (Jul.6)- Anjoy’s IPO Debut, HEC CJ Pharma's Merger with Sunshine Lake Pharma

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Jun 20th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Baba, Chow Tai Fook, Za Online, Cspc Pharma, BOC, Petrochina.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Jun 20th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Baba, Chow Tai Fook, Za Online, Cspc Pharma, BOC, Petrochina.


HK Short Interest Weekly: Baba, Chow Tai Fook, Za Online, Cspc Pharma, BOC, Petrochina

China

3SBio, Inc. is a biotechnology company located in China. The Company focuses on mammalian cell-based biopharmaceuticals in the biotechnology industry. 3SBio also develops, manufactures and markets biopharmaceutical products globally.

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3SBio Inc (1530 HK)

3SBio Inc (1530 HK): Licensing Deal a Market Hit; Will It Continue?

3SBio signed $6B outlicensing deal with Pfizer for SSGJ-707, resulting in spectacular rally in 3SBio shares. Global trial initiation of SSGJ-707...

Tina Banerjee

3SBio (1530 HK) - Earnings Beat, Rich Pipeline Promises Future Growth

3SBio delivered a strong performance in 2024. Revenue increased 16.5% YoY to RMB9.1bn, exceeding our estimates by 3.3%, driven by the continued...

CMB International

China Traditional Chinese Medicine (570 HK): Disaster as Offer Lapses, Potential Deal Break Price

This deal break caught many, including me, off guard. There are lessons to be learnt and questions to be asked. Shareholders will have a bruising...

Arun George

China Healthcare Weekly (Jul.6)- Anjoy’s IPO Debut, HEC CJ Pharma's Merger with Sunshine Lake Pharma

11th VBP may include big variety of Sunshine Lake Pharma/Huadong/Hansoh. Anjoy's IPO is fairly priced but shares upside is limited.HEC Pharma's...

Xinyao (Criss) Wang

HK Short Interest Weekly: Baba, Chow Tai Fook, Za Online, Cspc Pharma, BOC, Petrochina

We analyzed the latest HK SFC report for aggregate short position as of Jun 20th and highlight short interest changes in Baba, Chow Tai Fook, Za...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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3SBio Inc (1530 HK): Licensing Deal a Market Hit; Will It Continue?

​3SBio signed $6B outlicensing deal with Pfizer for SSGJ-707, resulting in spectacular rally in 3SBio shares. Global trial initiation of SSGJ-707...

Tina Banerjee

3SBio (1530 HK) - Earnings Beat, Rich Pipeline Promises Future Growth

3SBio delivered a strong performance in 2024. Revenue increased 16.5% YoY to RMB9.1bn, exceeding our estimates by 3.3%, driven by the continued...

CMB International

China Traditional Chinese Medicine (570 HK): Disaster as Offer Lapses, Potential Deal Break Price

This deal break caught many, including me, off guard. There are lessons to be learnt and questions to be asked. Shareholders will have a bruising...

Arun George

China Healthcare Weekly (Jul.6)- Anjoy’s IPO Debut, HEC CJ Pharma's Merger with Sunshine Lake Pharma

11th VBP may include big variety of Sunshine Lake Pharma/Huadong/Hansoh. Anjoy's IPO is fairly priced but shares upside is limited.HEC Pharma's...

Xinyao (Criss) Wang

HK Short Interest Weekly: Baba, Chow Tai Fook, Za Online, Cspc Pharma, BOC, Petrochina

We analyzed the latest HK SFC report for aggregate short position as of Jun 20th and highlight short interest changes in Baba, Chow Tai Fook, Za...

Ke Yan, CFA, FRM

3SBio signed $6B outlicensing deal with Pfizer for SSGJ-707, resulting in spectacular rally in 3SBio shares. Global trial initiation of SSGJ-707...