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 analyze the weekly Hong Kong Connect flows with our data engine for holding position as of April 3rd.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Pop Mart International, China Mobile, Meituan, Alibaba, CMB, Xiaomi.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of April 3rd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Pop Mart International, China Mobile, Meituan, Alibaba, CMB, Xiaomi.


HK Connect Flows Weekly (Apr 3rd): Pop Mart Intl, China Mobile, Meituan, Alibaba, CMB

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Innovent Biologics Inc / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a> has announced 2024 result, with total revenue increasing a whopping 52% YoY to RMB9,422M and net loss narrowing 91% YoY to RMB933M.</li>
<li>On adjusted basis, the company reported maiden net profit of RMB332M compared with loss of RMB515M in 2023. Innovent is expected to become profitable on reported basis this year.</li>
<li>Innovent aims to achieve RMB 20B product revenue in 2027, implying a CAGR of 34% and advance five pipeline assets to the global/multi-regional Phase 3 clinical trial stage by 2030. </li>
</ul>



Innovent Biologics Inc (1801 HK) has announced 2024 result, with total revenue increasing a whopping 52% YoY to RMB9,422M and net loss narrowing 91% YoY to RMB933M.
On adjusted basis, the company reported maiden net profit of RMB332M compared with loss of RMB515M in 2023. Innovent is expected to become profitable on reported basis this year.
Innovent aims to achieve RMB 20B product revenue in 2027, implying a CAGR of 34% and advance five pipeline assets to the global/multi-regional Phase 3 clinical trial stage by 2030. 


Innovent Biologics Inc (1801 HK): 2024 Product Sales Jump 44% and Loss Narrows; Momentum to Continue

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The Hang Seng Index is the benchmark index for Hong Kong stocks. It follows a highly-subjective selection process which makes it difficult to predict index changes.</li>
<li>In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes during the next review in March 2025.</li>
<li>The index changes for the March 2025 index rebal event will be announced after market close on 21st February 2025.</li>
</ul>


The Hang Seng Index is the benchmark index for Hong Kong stocks. It follows a highly-subjective selection process which makes it difficult to predict index changes.
In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes during the next review in March 2025.
The index changes for the March 2025 index rebal event will be announced after market close on 21st February 2025.


Quiddity Leaderboard Hang Seng Index: Healthcare Is Still the Most Under-Represented Industry Group

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Sunshine Lake Pharma / Equity Capital Markets

<ul>
<li>Most revenue was contributed by Kewei, but kewei has been included in VBP.Together with increasing competition, the outlook is gloomy if Sunshine Lake Pharma continues to mainly rely on Kewei.</li>
<li>There’s a significant gap in Sunshine Lake Pharma's R&amp;D progress/clinical data compared to the products of peers.The pipeline has been “disconnected” from the level of domestic biotech in recent years</li>
<li>Sunshine Lake Pharma is inferior to other pharmaceutical companies in China.Even if CJ Pharma will be merged into Sunshine Lake Pharma, its market value should be lower than leading Biotech.</li>
</ul>


Most revenue was contributed by Kewei, but kewei has been included in VBP.Together with increasing competition, the outlook is gloomy if Sunshine Lake Pharma continues to mainly rely on Kewei.
There’s a significant gap in Sunshine Lake Pharma's R&amp;D progress/clinical data compared to the products of peers.The pipeline has been “disconnected” from the level of domestic biotech in recent years
Sunshine Lake Pharma is inferior to other pharmaceutical companies in China.Even if CJ Pharma will be merged into Sunshine Lake Pharma, its market value should be lower than leading Biotech.


Pre-IPO Sunshine Lake Pharma - “Outdated” Pipeline Is Difficult to Obtain Decent Valuation

<ul>
<li>Relevant departments are discussing the promotion of drugs included in VBP scope to enter retail pharmacies. However, the new business model will be detrimental to valuation performance for retail pharmacies.</li>
<li>The gap in the distribution of funds among biotech companies is rapidly widening. We suggest investors focus on leading biotech rather than take risks in areas with higher uncertainties.</li>
<li>Vesync is a good company. Due to the low liquidity, the Proposal presents a good opportunity for shareholders to exit. Considering its future growth potential, Share Alternative can be considered.</li>
</ul>


Relevant departments are discussing the promotion of drugs included in VBP scope to enter retail pharmacies. However, the new business model will be detrimental to valuation performance for retail pharmacies.
The gap in the distribution of funds among biotech companies is rapidly widening. We suggest investors focus on leading biotech rather than take risks in areas with higher uncertainties.
Vesync is a good company. Due to the low liquidity, the Proposal presents a good opportunity for shareholders to exit. Considering its future growth potential, Share Alternative can be considered.


China Healthcare Weekly (Feb.9) - Vesync Is a High-Quality Company, VBP to Cover Retail Pharmacies

China

Akeso Inc. operates operatesa s a biotech company. The compnay develops treatments and therapies for various types of diseases. Akeso serves cutomers worldwide

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Akeso Biopharma Inc (9926 HK)

HK Connect Flows Weekly (Apr 3rd): Pop Mart Intl, China Mobile, Meituan, Alibaba, CMB

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Pop Mart International, China Mobile, Meituan, Alibaba,...

Ke Yan, CFA, FRM

Innovent Biologics Inc (1801 HK): 2024 Product Sales Jump 44% and Loss Narrows; Momentum to Continue

Innovent Biologics reports impressive 2024 results with revenue up 52% and net loss narrowing by 91%. The company has set an ambitious growth...

Tina Banerjee

Quiddity Leaderboard Hang Seng Index: Healthcare Is Still the Most Under-Represented Industry Group

The Hang Seng Index February 2025 index review results will be confirmed on Friday this week (21st). This would be a good time to revisit this...

Janaghan Jeyakumar, CFA

Pre-IPO Sunshine Lake Pharma - “Outdated” Pipeline Is Difficult to Obtain Decent Valuation

Sunshine Lake Pharma is heavily relying on Kewei, leading to a gloomy outlook due to competition/VBP. Pipeline has been “disconnected” from the...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.9) - Vesync Is a High-Quality Company, VBP to Cover Retail Pharmacies

Promoting VBP in retail pharmacy may harm valuation.Biotech funding gap widens, investors advised to focus on leading companies. Vesync is a good...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HK Connect Flows Weekly (Apr 3rd): Pop Mart Intl, China Mobile, Meituan, Alibaba, CMB

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Pop Mart International, China Mobile, Meituan, Alibaba,...

Ke Yan, CFA, FRM

Innovent Biologics Inc (1801 HK): 2024 Product Sales Jump 44% and Loss Narrows; Momentum to Continue

​Innovent Biologics reports impressive 2024 results with revenue up 52% and net loss narrowing by 91%. The company has set an ambitious growth...

Tina Banerjee

Quiddity Leaderboard Hang Seng Index: Healthcare Is Still the Most Under-Represented Industry Group

The Hang Seng Index February 2025 index review results will be confirmed on Friday this week (21st). This would be a good time to revisit this...

Janaghan Jeyakumar, CFA

Pre-IPO Sunshine Lake Pharma - “Outdated” Pipeline Is Difficult to Obtain Decent Valuation

​Sunshine Lake Pharma is heavily relying on Kewei, leading to a gloomy outlook due to competition/VBP. Pipeline has been “disconnected” from the...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.9) - Vesync Is a High-Quality Company, VBP to Cover Retail Pharmacies

Promoting VBP in retail pharmacy may harm valuation.Biotech funding gap widens, investors advised to focus on leading companies. Vesync is a good...

Xinyao (Criss) Wang

Innovent Biologics reports impressive 2024 results with revenue up 52% and net loss narrowing by 91%. The company has set an ambitious growth...

Sunshine Lake Pharma is heavily relying on Kewei, leading to a gloomy outlook due to competition/VBP. Pipeline has been “disconnected” from the...