HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>Last week, Biden’s administration surprised the whole pharmaceutical industry about the proposal to waive patent protections for coronavirus shots. However, our view is that the impact is likely to be limited.</li>
<li>The market size of COVID-19 vaccines in China is expected to reach RMB150 billion to RMB180 billion.</li>
<li>Recently, the National Health Care Security Administration, National Health Commission, NMPA and other related departments released documents about medium - and long-term development plan for the isotopes for medical purposes.</li>
</ul>Company news:News about the updated progress on new drugs of <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>, <a href="https://www.smartkarma.com/entities/jacobio-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:29696:1" rel="noopener">Jacobio Pharmaceuticals (1167 HK)</a>, <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a> and <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK).</a> Market review:Last week, stock price for healthcare sector in A share decreased 6.14%, while CSI 300 decreased 2.49% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
Last week, Biden’s administration surprised the whole pharmaceutical industry about the proposal to waive patent protections for coronavirus shots. However, our view is that the impact is likely to be limited.
The market size of COVID-19 vaccines in China is expected to reach RMB150 billion to RMB180 billion.
Recently, the National Health Care Security Administration, National Health Commission, NMPA and other related departments released documents about medium - and long-term development plan for the isotopes for medical purposes.
Company news:News about the updated progress on new drugs of BeiGene Ltd (6160 HK), Jacobio Pharmaceuticals (1167 HK), Everest Medicines (1952 HK) and Antengene (6996 HK). Market review:Last week, stock price for healthcare sector in A share decreased 6.14%, while CSI 300 decreased 2.49% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.  

Industry viewpoints:<ul>
<li>At present, the market is too enthusiastic about innovative drugs, which could result in a serious decline in the rate of return on investment and output.</li>
<li>The demand of CDMO of cell and gene therapy would be higher than that of biological drug CDMO in the future.</li>
<li>China's meal replacement market is currently the fastest growing in the world.</li>
</ul>Company news:News about the updated progress on new drugs of <a href="https://www.smartkarma.com/entities/shanghai-junshi-bioscience-h" target="_blank" data-smartkarma-citation="entities:27760:1" rel="noopener">Shanghai Junshi Bioscience Co. Ltd. (1877 HK), </a><a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, <a href="https://www.smartkarma.com/entities/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a> and <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>.Market review:Last week, stock price for healthcare sector in A share increased (+4.72%), while CSI 300 decreased (-0.23%) over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
At present, the market is too enthusiastic about innovative drugs, which could result in a serious decline in the rate of return on investment and output.
The demand of CDMO of cell and gene therapy would be higher than that of biological drug CDMO in the future.
China's meal replacement market is currently the fastest growing in the world.
Company news:News about the updated progress on new drugs of Shanghai Junshi Bioscience Co. Ltd. (1877 HK), Jiangsu Hengrui Medicine (600276 CH), Akeso Biopharma Inc (9926 HK) and BeiGene Ltd (6160 HK).Market review:Last week, stock price for healthcare sector in A share increased (+4.72%), while CSI 300 decreased (-0.23%) over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Equity Bottom-Up

Jiangsu Hengrui Medicine / Equity Bottom-Up

Recently, <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>'s share price has seen a significant pullback. Since April 9th, 2021, the Company's stock price had fallen for six consecutive trading days, with a cumulative decline of more than 10%, and its market value dropped by about RMB63 billion. So what happened to Hengrui? And what is the future business prospects of this Company? The following mainly included some important insights that deserve to pay attention to.

Recently, Jiangsu Hengrui Medicine (600276 CH)'s share price has seen a significant pullback. Since April 9th, 2021, the Company's stock price had fallen for six consecutive trading days, with a cumulative decline of more than 10%, and its market value dropped by about RMB63 billion. So what happened to Hengrui? And what is the future business prospects of this Company? The following mainly included some important insights that deserve to pay attention to.

Jiangsu Hengrui Medicine (600276.CH) - Insights on Recent Pullback and Future Business Prospects

Industry viewpoints:<ul>
<li>The intensive procurement of high-value orthopedic consumables officially kicked off.</li>
<li>Recently, the National Health Commission issued related document about the long-term prescription management.</li>
<li>In the past three years, the domestic patch-type medical skin repair dressing market has grown rapidly, with a CAGR exceeding 40%.</li>
</ul>Company news:News about the updated progress of new drugs and sites inspections from <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a>, <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> and <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK).</a>Market review:Last week, stock price for healthcare sector in A share decreased 0.89%, while CSI 300 decreased 2.45% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The intensive procurement of high-value orthopedic consumables officially kicked off.
Recently, the National Health Commission issued related document about the long-term prescription management.
In the past three years, the domestic patch-type medical skin repair dressing market has grown rapidly, with a CAGR exceeding 40%.
Company news:News about the updated progress of new drugs and sites inspections from Antengene (6996 HK), Wuxi Biologics (2269 HK), BeiGene Ltd (6160 HK) and Everest Medicines (1952 HK).Market review:Last week, stock price for healthcare sector in A share decreased 0.89%, while CSI 300 decreased 2.45% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

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.

Equity Capital Markets

<div><a href="https://www.smartkarma.com/entities/trip-com-group-ltd" target="_blank" data-smartkarma-citation="entities:180:1" rel="noopener">Trip.com (TCOM US)</a> has launched a $1.4 billion secondary listing in Hong Kong by offering 31.6 million ordinary shares. Bookbuilding is scheduled to run until the pricing on 13 April. The net proceeds will be used to fund the expansion of its travel offerings, improve user experience and invest in technology. </div><div>In <a href="https://www.smartkarma.com/insights/trip-com-secondary-listing-no-heads-in-the-clouds" target="_blank" data-smartkarma-citation="insights:49965" rel="noopener">Trip.com Secondary Listing: No Heads in the Clouds</a>, we outlined our views on Trip.com’s fundamentals and valuation. Trip.com is a play on the expected reopening and recovery of travel in 2021 due to the global rollout of vaccines. In combination with the potential valuation upside to the last close price (based on SoTP), we concluded that the equity story is attractive. </div><div><div>
In this note, we will look at Trip.com’s potential HK-ADS premium/(discount). As per the norm, Trip.com will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. However, market conditions remain volatile and Chinese tech names are losing their shine due to the US delisting threat and the trend of investors rotating out of tech stocks. The NASDAQ Golden Dragon China Index is down -18% since March 2021. Trip.com shares are up 15% YTD but down -2% since March 2021.  
<div class="content-highlight">Due to the weakening market sentiment on Chinese tech names, Trip.com will likely price its H-shares at a wider discount than the median of past secondary listings. Trip.com pricing its H-shares at a discount of 3-4% to its ADSs will be reasonable, in our view.</div>
</div></div>

Trip.com (TCOM US) has launched a $1.4 billion secondary listing in Hong Kong by offering 31.6 million ordinary shares. Bookbuilding is scheduled to run until the pricing on 13 April. The net proceeds will be used to fund the expansion of its travel offerings, improve user experience and invest in technology. In Trip.com Secondary Listing: No Heads in the Clouds, we outlined our views on Trip.com’s fundamentals and valuation. Trip.com is a play on the expected reopening and recovery of travel in 2021 due to the global rollout of vaccines. In combination with the potential valuation upside to the last close price (based on SoTP), we concluded that the equity story is attractive. 
In this note, we will look at Trip.com’s potential HK-ADS premium/(discount). As per the norm, Trip.com will price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. However, market conditions remain volatile and Chinese tech names are losing their shine due to the US delisting threat and the trend of investors rotating out of tech stocks. The NASDAQ Golden Dragon China Index is down -18% since March 2021. Trip.com shares are up 15% YTD but down -2% since March 2021.  
Due to the weakening market sentiment on Chinese tech names, Trip.com will likely price its H-shares at a wider discount than the median of past secondary listings. Trip.com pricing its H-shares at a discount of 3-4% to its ADSs will be reasonable, in our view.


Trip.com Secondary Listing: HK-ADS Premium/​​(Discount) Views

China

BeiGene, Ltd. operates as a commercial stage biopharmaceutical company. The Company focuses on discovery, development, and commercialization of molecularly targeted and immuno-oncology drugs for the treatment of cancer. BeiGene serves patients worldwide.

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BeOne (ONC US)

China Healthcare Weekly (May.7)

The article analyzed the potential impact on Biden’s proposal to waive IP protection on COVID-19 shots,market size of COVID-19 vaccine,new...

Xinyao (Criss) Wang

China Healthcare Weekly (Apr.30)

The insight analyzed industry viewpoints including the concerns on ROE of innovative drugs, the demand of CDMO of cell and gene therapy, China's...

Xinyao (Criss) Wang

Jiangsu Hengrui Medicine (600276.CH) - Insights on Recent Pullback and Future Business Prospects

For the recent big pullback in share price of Hengrui, this article mainly analyzed the potential reasons, performance of PD-1, competitors,...

Xinyao (Criss) Wang

China Healthcare Weekly (Apr.9)

The article analyzed intensive procurement of high-value orthopedic consumables,new policy about long-term prescription management,the patch-type...

Xinyao (Criss) Wang

Trip.com Secondary Listing: HK-ADS Premium/(Discount) Views

Trip.com has launched a $1.4 bn secondary listing in Hong Kong. In the context of the weakening market sentiment, Trip.com pricing its H-shares at...

Arun George

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China Healthcare Weekly (May.7)

The article analyzed the potential impact on Biden’s proposal to waive IP protection on COVID-19 shots,market size of COVID-19 vaccine,new...

Xinyao (Criss) Wang

China Healthcare Weekly (Apr.30)

The insight analyzed industry viewpoints including the concerns on ROE of innovative drugs, the demand of CDMO of cell and gene therapy, China's...

Xinyao (Criss) Wang

Jiangsu Hengrui Medicine (600276.CH) - Insights on Recent Pullback and Future Business Prospects

For the recent big pullback in share price of Hengrui, this article mainly analyzed the potential reasons, performance of PD-1, competitors,...

Xinyao (Criss) Wang

China Healthcare Weekly (Apr.9)

The article analyzed intensive procurement of high-value orthopedic consumables,new policy about long-term prescription management,the patch-type...

Xinyao (Criss) Wang

Trip.com Secondary Listing: HK-ADS Premium/​​(Discount) Views

Trip.com has launched a $1.4 bn secondary listing in Hong Kong. In the context of the weakening market sentiment, Trip.com pricing its H-shares at...

Arun George

Trip.com Secondary Listing: HK-ADS Premium/(Discount) Views