Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>There has been a big divergence in the share prices of Hanmi Science and Hanmi Pharm in the past two months. </li>
<li>This divergence in share price appears to be a bit too excessive and we believe this gap is likely to narrow in the coming weeks.  </li>
<li>We like a pair trade between going long Hanmi Science and going short on Hanmi Pharm. </li>
</ul>


There has been a big divergence in the share prices of Hanmi Science and Hanmi Pharm in the past two months. 
This divergence in share price appears to be a bit too excessive and we believe this gap is likely to narrow in the coming weeks.  
We like a pair trade between going long Hanmi Science and going short on Hanmi Pharm. 


A Pair Trade Between Hanmi Science and Hanmi Pharm

<ul>
<li>In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023.</li>
<li>Of the 38 pair trades, 21 of them involved holdcos outperforming opcos YTD and 17 of them involved opcos outperforming holdcos in the same period.</li>
<li>We highlight 38 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023.
Of the 38 pair trades, 21 of them involved holdcos outperforming opcos YTD and 17 of them involved opcos outperforming holdcos in the same period.
We highlight 38 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2023

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hanmi-pharm-co-ltd" target="_blank" data-smartkarma-citation="entities:12476:1" rel="noopener">Hanmi Pharm (128940 KS)</a> posted revenue of KRW1.33T in 2022, the largest ever in the company’s history. Strong product competitiveness driven by high R&amp;D investment strengthened Hanmi’s dominant industry positioning.</li>
<li>In October 2022, Hanmi’s US partner Spectrum Pharmaceuticals launched Rolvedon in the U.S. market. During 4Q22, Rolvedon generated revenue of $10.1M. Rolvedon is expected to report $100M revenue this year.</li>
<li>By leveraging on its biopharmaceutical development and manufacturing capabilities, Hanmi plans to launch a large-scale CMO and CDMO, which can be the new growth engines of the company.</li>
</ul>



Hanmi Pharm (128940 KS) posted revenue of KRW1.33T in 2022, the largest ever in the company’s history. Strong product competitiveness driven by high R&amp;D investment strengthened Hanmi’s dominant industry positioning.
In October 2022, Hanmi’s US partner Spectrum Pharmaceuticals launched Rolvedon in the U.S. market. During 4Q22, Rolvedon generated revenue of $10.1M. Rolvedon is expected to report $100M revenue this year.
By leveraging on its biopharmaceutical development and manufacturing capabilities, Hanmi plans to launch a large-scale CMO and CDMO, which can be the new growth engines of the company.


Hanmi Pharm (128940 KS): Strong Base Business; Innovative Biologic Drug Commercialized in US

<ul>
<li>In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023.</li>
<li>Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.</li>
<li>We highlight 33 pair trades that involve Korean holdcos and opcos.</li>
</ul>


In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 1Q 2023.
Of the 33 pair trades, 2/3 of them involved holdcos outperforming opcos in the past year and 1/3 of them involved opcos outperforming holdcos in the same period.
We highlight 33 pair trades that involve Korean holdcos and opcos.


Korean Holdcos Vs Opcos Gap Spreads Opportunities in 1Q 2023

<ul>
<li>
<a href="https://www.smartkarma.com/entities/green-cross-corp" target="_blank" data-smartkarma-citation="entities:2969:1" rel="noopener">Green Cross (006280 KS)</a> is seeing gradual recovery in its base business, with the company’s plasma and vaccine businesses are back to double-digit growth path.</li>
<li>The company is preparing to resubmit marketing application to the FDA for its biologics license application for GC5107, a blood derivative product indicated for the treatment of primary immunodeficiency diseases.</li>
<li>Green Cross shares are trading at a forward P/E of 20.9x, cheaper than peers. Entry into the lucrative U.S. immunoglobulin market will call for multiple expansion of the shares.</li>
</ul>



Green Cross (006280 KS) is seeing gradual recovery in its base business, with the company’s plasma and vaccine businesses are back to double-digit growth path.
The company is preparing to resubmit marketing application to the FDA for its biologics license application for GC5107, a blood derivative product indicated for the treatment of primary immunodeficiency diseases.
Green Cross shares are trading at a forward P/E of 20.9x, cheaper than peers. Entry into the lucrative U.S. immunoglobulin market will call for multiple expansion of the shares.


Green Cross (006280 KS): Strengthening Base Business; US Entry Remains Key Catalyst

South Korea

Hanmi Pharm. Company Ltd. produces pharmaceutical products, including antibiotics, vitamins, and intestinal tonics.  The Company also provides beverages and processes soft capsules for other pharmaceutical firms.

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Hanmi Pharm (128940 KS)

A Pair Trade Between Hanmi Science and Hanmi Pharm

There has been a big divergence in the share prices of Hanmi Science and Hanmi Pharm in the past two months. We like a pair trade between going...

Douglas Kim

Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2023

In this insight, we highlight the pricing gap divergences of the major Korean holdcos and opcos in 2Q 2023. We highlight 38 pair trades that...

Douglas Kim