HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>The HKD hit its upper limit of 7.75/USD. Capital inflows are expected post–Labor Day, likely boosting Hong Kong stock prices.</li>
<li>Mindray faces headwinds. A turnaround may come in 25Q3–Q4, but the market seeks a new growth story. A 20–25x TTM P/E reflects fair value, not undervaluation.</li>
<li>Akeso’s high valuation leans on HARMONi-3 and HARMONi 7 over HARMONi-2. Final OS data raises concerns, as MRCT is challenging and the safety margin is lower than expected.</li>
</ul>


The HKD hit its upper limit of 7.75/USD. Capital inflows are expected post–Labor Day, likely boosting Hong Kong stock prices.
Mindray faces headwinds. A turnaround may come in 25Q3–Q4, but the market seeks a new growth story. A 20–25x TTM P/E reflects fair value, not undervaluation.
Akeso’s high valuation leans on HARMONi-3 and HARMONi 7 over HARMONi-2. Final OS data raises concerns, as MRCT is challenging and the safety margin is lower than expected.


China Healthcare Weekly (May.4)-HK Stock Is About to Soar, Mindray's Trouble,Views on Akeso's Plunge

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>Ivonescimab (AK112) has demonstrated an OS benefit trend over pembrolizumab in monotherapy. In the head-to-head Ph3 HARMONi-2 study comparing Ivonescimab to pembrolizumab (Keytruda), Ivonescimab showed a notable efficacy advantage and was recently approved in China for first-line treatment of PD-L1 positive (TPS ≥1%) NSCLC.</li><li>In the interim OS analysis conducted at 39% maturity, Ivonescimab achieved a hazard ratio (HR) of 0.777 versus pembrolizumab, reducing the risk of death by 22.3%.</li><li>Although the interim analysis may not have reached statistical significance partly due to the very small alpha spending (0.0001), it suggests a favorable OS trend.</li></ul>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.

Ivonescimab (AK112) has demonstrated an OS benefit trend over pembrolizumab in monotherapy. In the head-to-head Ph3 HARMONi-2 study comparing Ivonescimab to pembrolizumab (Keytruda), Ivonescimab showed a notable efficacy advantage and was recently approved in China for first-line treatment of PD-L1 positive (TPS ≥1%) NSCLC.In the interim OS analysis conducted at 39% maturity, Ivonescimab achieved a hazard ratio (HR) of 0.777 versus pembrolizumab, reducing the risk of death by 22.3%.Although the interim analysis may not have reached statistical significance partly due to the very small alpha spending (0.0001), it suggests a favorable OS trend.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.

Akeso (9926 HK) - Continued Optimism on the Global Potential of Ivonescimab

<ul><li>NRDL inclusion to fuel FY25 growth. Akeso’s FY24 results reflected strong cost controls despite a revenue shortfall. </li><li>The Company reported total revenue of RMB2.1bn, including RMB2.0bn from product sales, representing a 25% YoY increase.</li><li>Operating efficiency continued to improve, with SG&amp;A-toproduct sales ratio reduced to 61% from 69% in FY23 and R&amp;D expenses down 5% YoY to RMB1.2bn. </li></ul>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.

NRDL inclusion to fuel FY25 growth. Akeso’s FY24 results reflected strong cost controls despite a revenue shortfall. The Company reported total revenue of RMB2.1bn, including RMB2.0bn from product sales, representing a 25% YoY increase.Operating efficiency continued to improve, with SG&amp;A-toproduct sales ratio reduced to 61% from 69% in FY23 and R&amp;D expenses down 5% YoY to RMB1.2bn. 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.

Akeso (9926 HK) - AK112 to Validate Its Potential as Next-Generation IO Therapy

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 December 12th.</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 Xiaomi, Tencent, CMB, Alibaba, Zhejiang Leapmotor Technology, BYD.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 12th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Xiaomi, Tencent, CMB, Alibaba, Zhejiang Leapmotor Technology, BYD.


HK Connect Flows Weekly (Dec 12th): Xiaomi Inflows & Tencent/Alibaba Outflows

Equity Capital Markets

The United Laboratories International Holdings Limited / Equity Capital Markets

The United Laboratories International Holdings Limited

<ul>
<li>WuXi AppTec’s 25H1 Profit Alert indicates the whole year performance may beat expectations. However, “valuation discount” reflects geopolitical risks. The intensive share repurchases is insignificant compared with previous share reductions.</li>
<li>Sino Biopharm will pay US$500.9 million to acquire LaNova. Based on pipeline/licensing cooperation, this is a deal with very high cost performance. However, valuation contribution may remain to be seen.</li>
<li>United Lab plans to raise HK$2.17 billion in net proceeds from Placement. Valuation logic will shift from a traditional bulk medicine company to innovative drug company. 15x P/E is expected.</li>
</ul>


WuXi AppTec’s 25H1 Profit Alert indicates the whole year performance may beat expectations. However, “valuation discount” reflects geopolitical risks. The intensive share repurchases is insignificant compared with previous share reductions.
Sino Biopharm will pay US$500.9 million to acquire LaNova. Based on pipeline/licensing cooperation, this is a deal with very high cost performance. However, valuation contribution may remain to be seen.
United Lab plans to raise HK$2.17 billion in net proceeds from Placement. Valuation logic will shift from a traditional bulk medicine company to innovative drug company. 15x P/E is expected.


China Healthcare Weekly(July20)-WuXi AppTec 25H1, Sino Biopharm Acquire LaNova, United Lab Placement

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)

China Healthcare Weekly (May.4)-HK Stock Is About to Soar, Mindray's Trouble,Views on Akeso's Plunge

HKD exchange rate at upper limit, capital influx expected post Labor Day. Mindray facing challenges, with turning point in 2026. Akeso's high...

Xinyao (Criss) Wang

Akeso (9926 HK) - Continued Optimism on the Global Potential of Ivonescimab

In the interim OS analysis conducted at 39% maturity, Ivonescimab achieved a hazard ratio (HR) of 0.777 versus pembrolizumab, reducing the risk of...

CMB International

Akeso (9926 HK) - AK112 to Validate Its Potential as Next-Generation IO Therapy

NRDL inclusion to fuel FY25 growth. Akeso’s FY24 results reflected strong cost controls despite a revenue shortfall. The Company reported total...

CMB International

HK Connect Flows Weekly (Dec 12th): Xiaomi Inflows & Tencent/Alibaba Outflows

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Xiaomi, Tencent, CMB, Alibaba, Zhejiang Leapmotor...

Ke Yan, CFA, FRM

China Healthcare Weekly(July20)-WuXi AppTec 25H1, Sino Biopharm Acquire LaNova, United Lab Placement

WuXi AppTec’s 25H1 Profit Alert indicates 2025 result may beat expectation. Sino Biopharm's acquisition of LaNova show high cost...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China Healthcare Weekly (May.4)-HK Stock Is About to Soar, Mindray's Trouble,Views on Akeso's Plunge

​HKD exchange rate at upper limit, capital influx expected post Labor Day. Mindray facing challenges, with turning point in 2026. Akeso's high...

Xinyao (Criss) Wang

Akeso (9926 HK) - Continued Optimism on the Global Potential of Ivonescimab

In the interim OS analysis conducted at 39% maturity, Ivonescimab achieved a hazard ratio (HR) of 0.777 versus pembrolizumab, reducing the risk of...

CMB International

Akeso (9926 HK) - AK112 to Validate Its Potential as Next-Generation IO Therapy

NRDL inclusion to fuel FY25 growth. Akeso’s FY24 results reflected strong cost controls despite a revenue shortfall. The Company reported total...

CMB International

HK Connect Flows Weekly (Dec 12th): Xiaomi Inflows & Tencent/Alibaba Outflows

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Xiaomi, Tencent, CMB, Alibaba, Zhejiang Leapmotor...

Ke Yan, CFA, FRM

China Healthcare Weekly(July20)-WuXi AppTec 25H1, Sino Biopharm Acquire LaNova, United Lab Placement

WuXi AppTec’s 25H1 Profit Alert indicates 2025 result may beat expectation. Sino Biopharm's acquisition of LaNova show high cost...

Xinyao (Criss) Wang

HKD exchange rate at upper limit, capital influx expected post Labor Day. Mindray facing challenges, with turning point in 2026. Akeso's high...