HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

WinHealth International Holding / Equity Capital Markets

<ul>
<li>By establishing a multi-engine BD model of "M&amp;A+licensing cooperation+CSO", WinHealth’s ability to identify and acquire innovative drugs and other high-quality assets with significant commercial potential is effectively enhanced.</li>
<li>Based on our forecast, high growth in 2025 is driven by the Kyowa Kyrin China Acquisition.In 2026-2027, Kapruvia is expected to drive the growth of WinHealth.However, revenue growth gradually declined. </li>
<li>Valuation should be lower than pure innovative drug companies (e.g. Innovent, Akeso, Kelun Bio, etc.), and CMS who has similar business model but more mature system and higher profit margin.</li>
</ul>


By establishing a multi-engine BD model of "M&amp;A+licensing cooperation+CSO", WinHealth’s ability to identify and acquire innovative drugs and other high-quality assets with significant commercial potential is effectively enhanced.
Based on our forecast, high growth in 2025 is driven by the Kyowa Kyrin China Acquisition.In 2026-2027, Kapruvia is expected to drive the growth of WinHealth.However, revenue growth gradually declined. 
Valuation should be lower than pure innovative drug companies (e.g. Innovent, Akeso, Kelun Bio, etc.), and CMS who has similar business model but more mature system and higher profit margin.


Pre-IPO WinHealth International Holding- A BD-Driven Model May Not Guarantee Sustainable High Growth

APAC IPOs & Placements, Aequitas Research

Akshat Shah

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.

United Laboratories / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/the-united-laboratories-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:16074:1" rel="noopener">The United Laboratories International Holdings Limited (3933 HK)</a> is looking to raise up to US$262m from a primary placement. </li>
<li>The company intends to use about 60% of the proceeds to build production capacity and expand its international business, with the rest to be used for R&amp;D purposes.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



The United Laboratories International Holdings Limited (3933 HK) is looking to raise up to US$262m from a primary placement. 
The company intends to use about 60% of the proceeds to build production capacity and expand its international business, with the rest to be used for R&amp;D purposes.
In this note, we will talk about the placement and run the deal through our ECM framework.


United Lab Placement - Industry Momentum Strong, Although Stock Has Run-Up Quite a Bit

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>The benefits of <a href="https://www.smartkarma.com/entities/china-medical-system-holdings" target="_blank" data-smartkarma-citation="entities:18736:1" rel="noopener">China Medical System (867 HK)</a> China Medical System (867 HK)'s secondary listing on the SGX are more apparent than real. </li>
<li>Should <a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> continue its Brazil market launch, <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus NV (PRX NA)</a> will have little reason to continue to hold on to its Meituan stake.</li>
<li>Look for value to be realised for Japanese banks with low PBRs and PERs, AND high cross-holdings as a percentage of market cap or book value through better capital allocation.</li>
</ul>


The benefits of China Medical System (867 HK) China Medical System (867 HK)'s secondary listing on the SGX are more apparent than real. 
Should Meituan (3690 HK) continue its Brazil market launch, Prosus NV (PRX NA) will have little reason to continue to hold on to its Meituan stake.
Look for value to be realised for Japanese banks with low PBRs and PERs, AND high cross-holdings as a percentage of market cap or book value through better capital allocation.


Last Week In Event SPACE: Meituan/Prosus, China Medical System, Japanese Banks, New World Dev.

<ul>
<li>On the 24th June 2025, specialty pharmaceutical play <a href="https://www.smartkarma.com/entities/china-medical-system-holdings" target="_blank" data-smartkarma-citation="entities:18736:1" rel="noopener">China Medical System (867 HK)</a> (CMS) announced a proposed secondary SGX listing, by way of introduction.  No equity fundraising will occur.</li>
<li>The SGX has given the green light, with shares expected to commence trading on the 15th July. </li>
<li>This secondary listing is not, it would seem, a pre-cursor to an HKEx withdrawal; but to "enhance the [CMS’s] global visibility, thereby facilitating its international business expansion". </li>
</ul>


On the 24th June 2025, specialty pharmaceutical play China Medical System (867 HK) (CMS) announced a proposed secondary SGX listing, by way of introduction.  No equity fundraising will occur.
The SGX has given the green light, with shares expected to commence trading on the 15th July. 
This secondary listing is not, it would seem, a pre-cursor to an HKEx withdrawal; but to "enhance the [CMS’s] global visibility, thereby facilitating its international business expansion". 


China Medical System (867 HK): SGX Secondary Listing Benefits Questionable

China Medical System / Equity Capital Markets

<ul>
<li>CMS announced proposed secondary listing on the SGX-ST. The Company is undergoing pipeline adjustments and strategic transformation. Its growth logic is shifting from "dependence on generic drugs" to "innovation-driven drugs".</li>
<li>However, the valuation logic has changed. The capital market will give high valuations to companies that achieve overseas licensing-out deals, rather than the attractive DCF model based on traditional business.</li>
<li>After 2023/2024 performance downturn, revenue growth is expected to return to positive in 2025. But in essence, CMS’s current business model is license-in, which will affect the future valuation performance. </li>
</ul>


CMS announced proposed secondary listing on the SGX-ST. The Company is undergoing pipeline adjustments and strategic transformation. Its growth logic is shifting from "dependence on generic drugs" to "innovation-driven drugs".
However, the valuation logic has changed. The capital market will give high valuations to companies that achieve overseas licensing-out deals, rather than the attractive DCF model based on traditional business.
After 2023/2024 performance downturn, revenue growth is expected to return to positive in 2025. But in essence, CMS’s current business model is license-in, which will affect the future valuation performance. 


Pre-IPO China Medical System (867 HK) - About the IPO in Singapore and Concerns on Valuation Outlook

China

China Medical System is a specialty pharmaceutical company focused on the research and development, manufacturing, marketing, and sales of pharmaceutical products in China. The company offers a diverse portfolio across therapeutic areas such as cardio-cerebrovascular, gastroenterology, ophthalmology, dermatology, and medical aesthetics. It was founded in 1995 and is headquartered in North Point, Hong Kong.

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China Medical System (867 HK)

Pre-IPO WinHealth International Holding- A BD-Driven Model May Not Guarantee Sustainable High Growth

WinHealth's multi-engine BD model boosts ability to acquire innovative drugs, with short -term growth driven by acquisitions of Kyowa Kyrin, but...

Xinyao (Criss) Wang

United Lab Placement - Industry Momentum Strong, Although Stock Has Run-Up Quite a Bit

United Laboratories International Holdings is looking to raise up to US$262m from a primary placement. In this note, we will talk about the...

Akshat Shah

Last Week In Event SPACE: Meituan/Prosus, China Medical System, Japanese Banks, New World Dev.

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett