Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Crude oil prices display bullish short-term reversals, resulting in bullish price and RS reversals for global Energy stocks -- add exposure. From a macro perspective, despite some mild price deterioration recently on major indexes around the globe, our outlook remains unchanged and we remain neutral yet constructive overall. Market dynamics remain largely constructive and we continue to see attractive opportunities in many countries/regions such as Japan, China (Shanghai Composite), Europe, India, and Canada, to name a few.

Crude oil prices display bullish short-term reversals, resulting in bullish price and RS reversals for global Energy stocks -- add exposure. From a macro perspective, despite some mild price deterioration recently on major indexes around the globe, our outlook remains unchanged and we remain neutral yet constructive overall. Market dynamics remain largely constructive and we continue to see attractive opportunities in many countries/regions such as Japan, China (Shanghai Composite), Europe, India, and Canada, to name a few.

Global Energy Sector Improving -- Buying Reliance Industries Ltd, Several Others

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Asymchem Laboratories Tianjin / Equity Capital Markets

On June 28, 2021, <a href="https://www.smartkarma.com/entities/asymchem-laboratories-tianjin-co-ltd" target="_blank" data-smartkarma-citation="entities:28265:1" rel="noopener">Asymchem Laboratories (002821 CH)</a>, the fifth largest drug substance CDMO globally and the largest China-based commercial stage chemical drug CDMO, submitted its listing application to the HKEX, which means that, after <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a>, <a href="https://www.smartkarma.com/entities/hangzhou-tigermed-consulting-co-ltd-1008d609-73bd-4d76-8315-b29502a448ff" target="_blank" data-smartkarma-citation="entities:29212:1" rel="noopener">Hangzhou Tigermed Consulting (H) (3347 HK) </a>and <a href="https://www.smartkarma.com/entities/pharmaron-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:28428:1" rel="noopener">Pharmaron Beijing Co Ltd-H (3759 HK)</a>, there would be another A+H listed CXO company in China. This insight mainly analyzed the industry characteristics, the strength and the concerns of Asymchem.

On June 28, 2021, Asymchem Laboratories (002821 CH), the fifth largest drug substance CDMO globally and the largest China-based commercial stage chemical drug CDMO, submitted its listing application to the HKEX, which means that, after WuXi AppTec Co. Ltd. (2359 HK), Hangzhou Tigermed Consulting (H) (3347 HK) and Pharmaron Beijing Co Ltd-H (3759 HK), there would be another A+H listed CXO company in China. This insight mainly analyzed the industry characteristics, the strength and the concerns of Asymchem.

Pre-IPO Asymchem Laboratories - The Strength and the Concerns

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>Recently, the CDE issued a new document about the guidelines for clinical R&amp;D of anti-tumor drugs based on clinical value, which is expected to bring changes to the industry.</li>
<li>The NDRC issued the implementation plan for the construction of a high-quality and efficient medical and healthcare service system during the 14th Five-Year Plan period.</li>
<li>There is a high possibility that the PD-1 price reduction in 2021 negotiation could be larger than that in the negotiations of the previous two years.</li>
</ul>Company news: News about the updated progress on drugs of <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>, <a href="https://www.smartkarma.com/entities/cstone-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:27882:1" rel="noopener">CStone Pharmaceuticals (2616 HK)</a>, <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>, 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 decreased 4.05%, 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:
Recently, the CDE issued a new document about the guidelines for clinical R&amp;D of anti-tumor drugs based on clinical value, which is expected to bring changes to the industry.
The NDRC issued the implementation plan for the construction of a high-quality and efficient medical and healthcare service system during the 14th Five-Year Plan period.
There is a high possibility that the PD-1 price reduction in 2021 negotiation could be larger than that in the negotiations of the previous two years.
Company news: News about the updated progress on drugs of Akeso Biopharma Inc (9926 HK), CStone Pharmaceuticals (2616 HK), Innovent Biologics Inc (1801 HK), and BeiGene Ltd (6160 HK).Market review:Last week, stock price for healthcare sector in A share decreased 4.05%, 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.

Novotech Holdings / Equity Capital Markets

With favorable policy for innovative drugs and the gradual promotion of consistency evaluation and volume-based purchase (VBP) nationwide, the generic drugs are facing challenges, so pharmaceutical companies have increased their investment in R&amp;D of novel drugs or cooperate with CRO enterprises to develop drugs with clinical value. On May 16th, 2021, <a href="https://www.smartkarma.com/entities/novotech-health-holdings-ltd" target="_blank" data-smartkarma-citation="entities:33411:1" rel="noopener">Novotech Holdings (NVT HK)</a>, the leading Asia-Pacific biotech-focused full-service CRO, filed its prospectus for listing on the HKEX. This insight mainly analyzed the industry characteristics, the comparison with peers and concerns of the Company.

With favorable policy for innovative drugs and the gradual promotion of consistency evaluation and volume-based purchase (VBP) nationwide, the generic drugs are facing challenges, so pharmaceutical companies have increased their investment in R&amp;D of novel drugs or cooperate with CRO enterprises to develop drugs with clinical value. On May 16th, 2021, Novotech Holdings (NVT HK), the leading Asia-Pacific biotech-focused full-service CRO, filed its prospectus for listing on the HKEX. This insight mainly analyzed the industry characteristics, the comparison with peers and concerns of the Company.

Pre-IPO Novotech Holdings - The Future Would Not Be Easy

Equity Bottom-Up

On June 25, 2021, “something strange” happened to <a href="https://www.smartkarma.com/entities/3sbio-inc" target="_blank" data-smartkarma-citation="entities:459:1" rel="noopener">3SBio Inc (1530 HK)</a>. Its share price fell 16.61% in one day, closing at HK$10.14/share, and the market value decreased about HK$5 billion. On Monday, June 28, 2021, its share price continued to decline to HK$9.79/share. No matter which institutions reduced holdings, in fact, 3SBio's future performance still depends on the Company's fundamentals and business outlook. So, this insight mainly analyzed the important products, the pipeline and the concerns of 3SBio.

On June 25, 2021, “something strange” happened to 3SBio Inc (1530 HK). Its share price fell 16.61% in one day, closing at HK$10.14/share, and the market value decreased about HK$5 billion. On Monday, June 28, 2021, its share price continued to decline to HK$9.79/share. No matter which institutions reduced holdings, in fact, 3SBio's future performance still depends on the Company's fundamentals and business outlook. So, this insight mainly analyzed the important products, the pipeline and the concerns of 3SBio.

3SBio Inc (1530.HK) - The Concerns and the Outlook

China

Bio-Thera Solutions, Ltd. researches and develops innovative and biosimilar therapeutics. The Company produces innovative monoclonal antibodies, adalimumab biosimilars, innovative drugs, and other related products. Bio-Thera Solutions markets its products throughout China.

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Bio-Thera Solutions Ltd (688177 CH)

Global Energy Sector Improving -- Buying Reliance Industries Ltd, Several Others

Crude oil prices display bullish short-term reversals, resulting in bullish price and RS reversals for global Energy stocks -- add exposure.

Vermilion Research

Pre-IPO Asymchem Laboratories - The Strength and the Concerns

The article mainly analyzed Asymchem Laboratories in terms of the industry characteristics, the strength of its business, the comparison with...

Xinyao (Criss) Wang

China Healthcare Weekly (July.9)

The article analyzed the new policy about R&D of anti-tumor drugs based on clinical value, construction of high-quality medical service system, and...

Xinyao (Criss) Wang

Pre-IPO Novotech Holdings - The Future Would Not Be Easy

This article analyzed Novotech in terms of the industry characteristics, comparison with peers (revenue growth rate, margins, etc.), the concerns...

Xinyao (Criss) Wang

3SBio Inc (1530.HK) - The Concerns and the Outlook

This insight mainly analyzed the potential reasons behind the decline in 3SBio Group's share price, the important products, the pipeline, the...

Xinyao (Criss) Wang

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52-week Range

Market Cap (USDm)

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Dividend (Yield)