Bespoke Research on China and neighbouring regions, Bixmoor

Bixmoor

Bespoke Research on China and neighbouring regions

Bixmoor specialises in providing bespoke research to business, governments and the financial community on China and neighbouring regions. We seek to build long-term relationships with our clients, based on our expertise, our reliability and our determination to find the right solution.

Thematic (Sector/Industry)

Breastfeeding rates in China are important, both in terms of stocks and for the health of the country. But how can we trust official statistics from a state agency that appear to contradict each other?

Breastfeeding rates in China are important, both in terms of stocks and for the health of the country. But how can we trust official statistics from a state agency that appear to contradict each other?

Chinese people are actively choosing not to have further children and this will lead inexorably to a population collapse during the balance of this century – a situation not helped by the fact that the state is still damaging its own overdue initiatives with retrogressive “family planning” strategies.

Chinese people are actively choosing not to have further children and this will lead inexorably to a population collapse during the balance of this century – a situation not helped by the fact that the state is still damaging its own overdue initiatives with retrogressive “family planning” strategies. 

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Zhejiang Jingxin Pharmaceutical Co., / Equity Capital Markets

Zhejiang Jingxin Pharmaceutical Co., (002020 CH)

<ul>
<li>Jingxin isn’t a purely innovative drug company. Instead, it adopts a "generic + innovative" approach.Its competitive advantage doesn’t lie in disruptive technologies, but deep market penetration in specific therapeutic areas.</li>
<li>Due to VBP, profit margin is not satisfactory, but as Dimdazenil has been included in the NRDL, this product is expected to become an important growth point in the future.</li>
<li>Peers include CSPC, <a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical (2096 HK)</a>, <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:44224:1" rel="noopener">Hengrui (1276 HK)</a>, <a href="https://www.smartkarma.com/entities/sino-biopharmaceutical" target="_blank" data-smartkarma-citation="entities:230:1" rel="noopener">Sino Biopharmaceutical (1177 HK)</a>. Based on our analysis, we think valuation of Jingxin would be lower than these four companies.</li>
</ul>


Jingxin isn’t a purely innovative drug company. Instead, it adopts a "generic + innovative" approach.Its competitive advantage doesn’t lie in disruptive technologies, but deep market penetration in specific therapeutic areas.
Due to VBP, profit margin is not satisfactory, but as Dimdazenil has been included in the NRDL, this product is expected to become an important growth point in the future.
Peers include CSPC, Simcere Pharmaceutical (2096 HK), Hengrui (1276 HK), Sino Biopharmaceutical (1177 HK). Based on our analysis, we think valuation of Jingxin would be lower than these four companies.


Pre-IPO Zhejiang Jingxin Pharmaceutical (A/H Listing) - Growth Path Returns as VBP Will Subside

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The correct long-term thing to do is, and the right short-term trade don't match. Best to sell <a href="https://www.smartkarma.com/entities/mcj-co-ltd" target="_blank" data-smartkarma-citation="entities:14132:1" rel="noopener">MCJ (6670 JP)</a> above the tender offer price or at the offer price.</li>
<li>At 6.1x forward EV/EBITDA - and ~80% discount to NAV - <a href="https://www.smartkarma.com/entities/avichina-industry-technology-h" target="_blank" data-smartkarma-citation="entities:16315:1" rel="noopener">AviChina Industry &amp; Technology H (2357 HK)</a> is not expensive.</li>
<li>An interesting fact pattern appears like it might be a setup for a significant change in capital structure for <a href="https://www.smartkarma.com/entities/tokyo-steel-mfg-co-ltd" target="_blank" data-smartkarma-citation="entities:16195:1" rel="noopener">Tokyo Steel Mfg (5423 JP) T</a> related to the former CEO</li>
</ul>


The correct long-term thing to do is, and the right short-term trade don't match. Best to sell MCJ (6670 JP) above the tender offer price or at the offer price.
At 6.1x forward EV/EBITDA - and ~80% discount to NAV - AviChina Industry &amp; Technology H (2357 HK) is not expensive.
An interesting fact pattern appears like it might be a setup for a significant change in capital structure for Tokyo Steel Mfg (5423 JP) T related to the former CEO


Last Week In Event SPACE: MCJ, AviChina, Tokyo Steel Mfg, 3SBio

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Bloomberg has published a story (that others have cited) that WuXi Pharmatech has picked bankers for an HK listing of its biologics manufacturing subsidiary later this year. The offering reportedly would value the business at US$1.5 billion, which approximates its implied value when the company listed a minority stake on the NEEQ last year <a href="https://www.smartkarma.com/insights/wuxi-pharmatech-how-to-argue-for-a-few-dollars-more" target="_blank" data-smartkarma-citation="insights:1061">WuXi PharmaTech: How to Argue for a Few Dollars More</a> .We have two conclusions for people interested in this name:<ol><li>Keep a copy of the above-referenced Insight…</li></ol>

Bloomberg has published a story (that others have cited) that WuXi Pharmatech has picked bankers for an HK listing of its biologics manufacturing subsidiary later this year. The offering reportedly would value the business at US$1.5 billion, which approximates its implied value when the company listed a minority stake on the NEEQ last year WuXi PharmaTech: How to Argue for a Few Dollars More .We have two conclusions for people interested in this name:Keep a copy of the above-referenced Insight…

Coming to the HKEX Soon....................

China

3SBio is a leading biotechnology company engaged in the research, development, manufacturing, and marketing of biopharmaceutical products. The company's diverse portfolio addresses therapeutic areas such as nephrology, oncology, supportive cancer care, inflammation, infectious diseases, autoimmune diseases, metabolism, and dermatology, with key products including EPIAO and TPIAO. 3SBio was founded in 1993 and is headquartered in Shenyang, China.

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3SBio (1530 HK)

Contradictory Stats on Breastfeeding

Breastfeeding rates in China are important, both in terms of stocks and for the health of the country. But how can we trust official statistics...

Bixmoor

Chinese Choose Not to Have More Children

Chinese people are actively choosing not to have further children and this will lead inexorably to a population collapse during the balance of this...

Bixmoor

Pre-IPO Zhejiang Jingxin Pharmaceutical (A/H Listing) - Growth Path Returns as VBP Will Subside

Jingxin's "generic + innovative" approach focus on market penetration rather than disruptive technology. Dimdazenil's inclusion in NRDL will drive...

Xinyao (Criss) Wang

Last Week In Event SPACE: MCJ, AviChina, Tokyo Steel Mfg, 3SBio

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Coming to the HKEX Soon....................

Bloomberg has published a story (that others have cited) that WuXi Pharmatech has picked bankers for an HK listing of its biologics manufacturing...

Kemp Dolliver, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Contradictory Stats on Breastfeeding

Breastfeeding rates in China are important, both in terms of stocks and for the health of the country. But how can we trust official statistics...

Bixmoor

Chinese Choose Not to Have More Children

Chinese people are actively choosing not to have further children and this will lead inexorably to a population collapse during the balance of this...

Bixmoor

Pre-IPO Zhejiang Jingxin Pharmaceutical (A/H Listing) - Growth Path Returns as VBP Will Subside

​Jingxin's "generic + innovative" approach focus on market penetration rather than disruptive technology. Dimdazenil's inclusion in NRDL will drive...

Xinyao (Criss) Wang

Last Week In Event SPACE: MCJ, AviChina, Tokyo Steel Mfg, 3SBio

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Coming to the HKEX Soon....................

Bloomberg has published a story (that others have cited) that WuXi Pharmatech has picked bankers for an HK listing of its biologics manufacturing...

Kemp Dolliver, CFA

Jingxin's "generic + innovative" approach focus on market penetration rather than disruptive technology. Dimdazenil's inclusion in NRDL will drive...