HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>Mandi’s valuation logic is drifting away from the main line of 3SBio.Mandi is "good asset but not core asset" within 3SBio system, so it’s difficult to drive up overall valuation. </li>
<li>Innovative drug R&amp;D will be the main driver for future valuation growth in "post-Mandi era". The Placing can be regarded as the continuous development of 3SBio after Mandi spin-off .</li>
<li>3SBio is undervalued. Valuation would be higher than Sino Biopharm and may also surpass Akeso, Hengrui in the future if its SSGJ-707 can deliver good clinical data in future trials.</li>
</ul>


Mandi’s valuation logic is drifting away from the main line of 3SBio.Mandi is "good asset but not core asset" within 3SBio system, so it’s difficult to drive up overall valuation. 
Innovative drug R&amp;D will be the main driver for future valuation growth in "post-Mandi era". The Placing can be regarded as the continuous development of 3SBio after Mandi spin-off .
3SBio is undervalued. Valuation would be higher than Sino Biopharm and may also surpass Akeso, Hengrui in the future if its SSGJ-707 can deliver good clinical data in future trials.


3SBio Inc (1530 HK) Placement - The Placing Price Indicates Decent Upside Potential in Valuation

Global Healthcare Analyst

Tina Banerjee

<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> announced the placement of 105.2M shares for subscription at HK$29.62 per share.</li>
<li>The company intends to use 80% of the net proceeds for R&amp;D-related expenditures on innovative drug candidates and the rest 20% for working capital and other general corporate purpose.</li>
<li>The placement provides an indirect way of subscribing to Mandi shares. We reiterate our bullish stance on 3SBio with a 25-30% upside scope in the near term.</li>
</ul>



3SBio Inc (1530 HK) announced the placement of 105.2M shares for subscription at HK$29.62 per share.
The company intends to use 80% of the net proceeds for R&amp;D-related expenditures on innovative drug candidates and the rest 20% for working capital and other general corporate purpose.
The placement provides an indirect way of subscribing to Mandi shares. We reiterate our bullish stance on 3SBio with a 25-30% upside scope in the near term.


3SBio (1530 HK) Placement: 3SBio’s Pipeline Strength, An Indirect Stake in Mandi Makes It Attractive

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC 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/3sbio-inc" target="_blank" data-smartkarma-citation="entities:459:1" rel="noopener">3SBio Inc (1530 HK)</a> is looking to raise around US$400m from a primary placement.</li>
<li>The deal is a small one, representing 2.9 days of the stock’s three month ADV, and 3.9% of total shares outstanding.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



3SBio Inc (1530 HK) is looking to raise around US$400m from a primary placement.
The deal is a small one, representing 2.9 days of the stock’s three month ADV, and 3.9% of total shares outstanding.
In this note, we will talk about the placement and run the deal through our ECM framework.


3SBio Placement: Partnership with Pfizer Going Well; Digestible Deal

<ul>
<li>3SBio plans to spin-off and list Mandi on Hong Kong Stock Exchange. The spin-off will allow Mandi to operate independently, with 3SBio ceasing to hold any interest in it post-listing. </li>
<li>Minoxidil is the main performance driver for Mandi. Our forecast is its revenue growth in 2025 would be 15%-20% YoY, with projected revenue range for 2025 of RMB1.538-1.604 billion.</li>
<li>Considering Mandi ®’s market leadership position and a growth rate higher than the industry average, we estimate its forward P/S at 20-25x. Then, valuation range for Mandi is RMB31-40 billion.</li>
</ul>


3SBio plans to spin-off and list Mandi on Hong Kong Stock Exchange. The spin-off will allow Mandi to operate independently, with 3SBio ceasing to hold any interest in it post-listing. 
Minoxidil is the main performance driver for Mandi. Our forecast is its revenue growth in 2025 would be 15%-20% YoY, with projected revenue range for 2025 of RMB1.538-1.604 billion.
Considering Mandi ®’s market leadership position and a growth rate higher than the industry average, we estimate its forward P/S at 20-25x. Then, valuation range for Mandi is RMB31-40 billion.


3SBio (1530 HK) Plans to Spin-Off and List Mandi in HK - Thoughts on The "Implied" IPO Price

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> proposed to spin-off and separately list the shares of Mandi, a subsidiary of the company.</li>
<li>In 2024 and 1H25, Mandi contributed 16% and 17% of total consolidated sales respectively, while its EBITDA contribution was 14.4% (in 2024) and 11.5% (in 1H25).</li>
<li>As far as 3SBio (ex-Mandi) is concerned, marketing approvals for key pipeline product like SSGJ-608, along with indication expansion, geographical expansion of few drugs will be key in near term.</li>
</ul>



3SBio Inc (1530 HK) proposed to spin-off and separately list the shares of Mandi, a subsidiary of the company.
In 2024 and 1H25, Mandi contributed 16% and 17% of total consolidated sales respectively, while its EBITDA contribution was 14.4% (in 2024) and 11.5% (in 1H25).
As far as 3SBio (ex-Mandi) is concerned, marketing approvals for key pipeline product like SSGJ-608, along with indication expansion, geographical expansion of few drugs will be key in near term.


3SBio Inc (1530 HK): Proposed Mandi Spin Off and Listing Sensible; 3SBio Ex Mandi Formidable Enough

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) Placement - The Placing Price Indicates Decent Upside Potential in Valuation

3SBio's valuation logic shifting away from Mandi, focusing on innovative drug R&D for future growth and potential to surpass peers with good...

Xinyao (Criss) Wang

3SBio (1530 HK) Placement: 3SBio’s Pipeline Strength, An Indirect Stake in Mandi Makes It Attractive

3SBio Inc announces placement of 105.2M shares at HK$29.62/share for R&D and working capital. Placement attractive given 3SBio's pipeline...

Tina Banerjee

3SBio Placement: Partnership with Pfizer Going Well; Digestible Deal

3SBio Inc is planning to raise $400m through a primary placement, a small deal representing 2.9 days of stock's ADV and 3.9% of total shares...

Nicholas Tan

3SBio (1530 HK) Plans to Spin-Off and List Mandi in HK - Thoughts on The "Implied" IPO Price

3SBio plans to spin-off and list Mandi on the Hong Kong Stock Exchange, which means investors have the opportunity to become a direct shareholder...

Xinyao (Criss) Wang

3SBio Inc (1530 HK): Proposed Mandi Spin Off and Listing Sensible; 3SBio Ex Mandi Formidable Enough

3SBio plan to spin-off and separately list shares of subsidiary Mandi, which contributed 17% of sales and 11.5% of EBITDA. Approvals and expansion...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

3SBio Inc (1530 HK) Placement - The Placing Price Indicates Decent Upside Potential in Valuation

​3SBio's valuation logic shifting away from Mandi, focusing on innovative drug R&D for future growth and potential to surpass peers with good...

Xinyao (Criss) Wang

3SBio (1530 HK) Placement: 3SBio’s Pipeline Strength, An Indirect Stake in Mandi Makes It Attractive

​3SBio Inc announces placement of 105.2M shares at HK$29.62/share for R&D and working capital. Placement attractive given 3SBio's pipeline...

Tina Banerjee

3SBio Placement: Partnership with Pfizer Going Well; Digestible Deal

​3SBio Inc is planning to raise $400m through a primary placement, a small deal representing 2.9 days of stock's ADV and 3.9% of total shares...

Nicholas Tan

3SBio (1530 HK) Plans to Spin-Off and List Mandi in HK - Thoughts on The "Implied" IPO Price

3SBio plans to spin-off and list Mandi on the Hong Kong Stock Exchange, which means investors have the opportunity to become a direct shareholder...

Xinyao (Criss) Wang

3SBio Inc (1530 HK): Proposed Mandi Spin Off and Listing Sensible; 3SBio Ex Mandi Formidable Enough

​3SBio plan to spin-off and separately list shares of subsidiary Mandi, which contributed 17% of sales and 11.5% of EBITDA. Approvals and expansion...

Tina Banerjee

3SBio's valuation logic shifting away from Mandi, focusing on innovative drug R&D for future growth and potential to surpass peers with good...

3SBio Inc announces placement of 105.2M shares at HK$29.62/share for R&D and working capital. Placement attractive given 3SBio's pipeline...

3SBio Inc is planning to raise $400m through a primary placement, a small deal representing 2.9 days of stock's ADV and 3.9% of total shares...

3SBio plan to spin-off and separately list shares of subsidiary Mandi, which contributed 17% of sales and 11.5% of EBITDA. Approvals and expansion...