HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Jiangxi Institute of Biological Products / Equity Capital Markets

<ul>
<li>In the field of Human TAT, Jiangxi Institute of Biological Products (JIBP)  is in a dominant position. Net profit CAGR was much higher than the revenue CAGR, indicating strong profitability.</li>
<li>This market is not big with obvious growth ceiling. Future CAGR of JIBP would gradually slow down if it continues to mainly rely on Human TAT to contribute performance. </li>
<li>Since the technical barriers in Human TAT industry are relatively high, and JIBP is a global leader in this field, JIBP’s valuation can at least reach the industry average level.</li>
</ul>


In the field of Human TAT, Jiangxi Institute of Biological Products (JIBP)  is in a dominant position. Net profit CAGR was much higher than the revenue CAGR, indicating strong profitability.
This market is not big with obvious growth ceiling. Future CAGR of JIBP would gradually slow down if it continues to mainly rely on Human TAT to contribute performance. 
Since the technical barriers in Human TAT industry are relatively high, and JIBP is a global leader in this field, JIBP’s valuation can at least reach the industry average level.


Pre-IPO Jiangxi Institute of Biological Products-Concerns Behind the Strong Growth and Profitability

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 analysed the earning revision of component stocks of CSI 500 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on Henan Shenhuo Coal &amp; Power, Guangxi Liugong Machinery, Inner Mongolia Dian Tou Energy, Suzhou Dongshan Precision Manufacturing, Shenergy, Maanshan Iron &amp; Steel, Yonghui Superstores.</li>
</ul>


We analysed the earning revision of component stocks of CSI 500 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on Henan Shenhuo Coal &amp; Power, Guangxi Liugong Machinery, Inner Mongolia Dian Tou Energy, Suzhou Dongshan Precision Manufacturing, Shenergy, Maanshan Iron &amp; Steel, Yonghui Superstores.


CSI 500 Index Earning Revision (Jun): Henan Shenhuo Coal & Power, Guangxi Liugong Machinery

<ul>
<li>We analysed the earning revision of component stocks of CSI 300 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on Shanghai Rural Commercial Bank, Industrial Bank, Chongqing Rural Commercial Bank, Bankcomm, Boc, Ja Solar Technology, Xinjiang Daqo, Beijing Wantai Biological Pharmacy Enterprise.</li>
</ul>


We analysed the earning revision of component stocks of CSI 300 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on Shanghai Rural Commercial Bank, Industrial Bank, Chongqing Rural Commercial Bank, Bankcomm, Boc, Ja Solar Technology, Xinjiang Daqo, Beijing Wantai Biological Pharmacy Enterprise.


CSI 300 Index Earning Revision (Jun): Shanghai Rural Commercial Bank, Industrial Bank

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

Shanghai Rural Commercial Bank / Index Rebalance

<ul>
<li>There are 7 changes for the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a>, 50 changes for the CSI 500 Index and 100 changes for the CSI1000 Index that will be implemented on 13 June.</li>
<li>There are 240 unique names that are adds or deletes and the round-trip trade across all 3 indices is close to US$12bn.</li>
<li>The adds have outperformed the deletes for the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">CSI 300 Index</a> and the CSI 1000 Index but underperformed for the <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shang" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI 500 Index</a>.</li>
</ul>


There are 7 changes for the CSI 300 Index, 50 changes for the CSI 500 Index and 100 changes for the CSI1000 Index that will be implemented on 13 June.
There are 240 unique names that are adds or deletes and the round-trip trade across all 3 indices is close to US$12bn.
The adds have outperformed the deletes for the CSI 300 Index and the CSI 1000 Index but underperformed for the CSI 500 Index.


CSI300/CSI500/CSI1000 Index Rebalance: Changes Lead to US$12bn Trade

<ul>
<li>The investment logic of vaccine companies is different from that of biotech. Generally speaking, vaccine companies cannot develop to large scale without successfully betting on blockbuster vaccine varieties.</li>
<li>Commercialization of Ab&amp;B’s vaccines could face uncertainties due to fierce competition/price war/slower R&amp;D progress. Some Class II vaccines could be converted to Class I vaccines. Breakthrough point lies in internationalization. </li>
<li>After Series B financing, post-money valuation reached RMB4.2 billion. Since CanSino’s pipelines are either global innovative, or potential best-in-class or first-in-class in China, Ab&amp;B’s valuation should be lower than CanSino.</li>
</ul>


The investment logic of vaccine companies is different from that of biotech. Generally speaking, vaccine companies cannot develop to large scale without successfully betting on blockbuster vaccine varieties.
Commercialization of Ab&amp;B’s vaccines could face uncertainties due to fierce competition/price war/slower R&amp;D progress. Some Class II vaccines could be converted to Class I vaccines. Breakthrough point lies in internationalization. 
After Series B financing, post-money valuation reached RMB4.2 billion. Since CanSino’s pipelines are either global innovative, or potential best-in-class or first-in-class in China, Ab&amp;B’s valuation should be lower than CanSino.


Pre-IPO Ab&B Bio-Tech: Commercialization May Be Lower than Expected, Thereby Dragging Down Valuation

China

Hualan Biological Engineering Inc. produces and markets human serum albumin (HSA), gamma globulin, frozen prothrombin (PCC), and other related biological products.

Hualan Biological Engineering (002007 CH)

Price Gauge
52-week Range	0.00 - 0.00
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Hualan Biological Engineering (002007 CH)

Pre-IPO Jiangxi Institute of Biological Products-Concerns Behind the Strong Growth and Profitability

Jiangxi Institute of Biological Products leads in Human TAT with strong profitability, but future growth may slow. Technical barriers/global...

Xinyao (Criss) Wang

CSI 500 Index Earning Revision (Jun): Henan Shenhuo Coal & Power, Guangxi Liugong Machinery

We analyzed CSI 500's consensus for Jun 2025 and highlighted changes of EPS in Henan Shenhuo Coal & Power (000933 CH), Guangxi Liugong Machinery...

Ke Yan, CFA, FRM

CSI 300 Index Earning Revision (Jun): Shanghai Rural Commercial Bank, Industrial Bank

We analyzed CSI 300's consensus for Jun 2025 and highlighted changes of EPS in Shanghai Rural Commercial Bank (601825 CH), Industrial Bank (601166...

Ke Yan, CFA, FRM

CSI300/CSI500/CSI1000 Index Rebalance: Changes Lead to US$12bn Trade

The 314 changes to the CSI300/500/1000 indices lead to 240 unique names. The round-trip trade across all three indices is around US$12bn. Some...

Brian Freitas

Pre-IPO Ab&B Bio-Tech: Commercialization May Be Lower than Expected, Thereby Dragging Down Valuation

Vaccine companies need to bet on blockbuster varieties to scale up. Ab&B face commercialization uncertainty. Internationalization is the...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Jiangxi Institute of Biological Products-Concerns Behind the Strong Growth and Profitability

​Jiangxi Institute of Biological Products leads in Human TAT with strong profitability, but future growth may slow. Technical barriers/global...

Xinyao (Criss) Wang

CSI 500 Index Earning Revision (Jun): Henan Shenhuo Coal & Power, Guangxi Liugong Machinery

We analyzed CSI 500's consensus for Jun 2025 and highlighted changes of EPS in Henan Shenhuo Coal & Power (000933 CH), Guangxi Liugong Machinery...

Ke Yan, CFA, FRM

CSI 300 Index Earning Revision (Jun): Shanghai Rural Commercial Bank, Industrial Bank

We analyzed CSI 300's consensus for Jun 2025 and highlighted changes of EPS in Shanghai Rural Commercial Bank (601825 CH), Industrial Bank (601166...

Ke Yan, CFA, FRM

CSI300/CSI500/CSI1000 Index Rebalance: Changes Lead to US$12bn Trade

The 314 changes to the CSI300/500/1000 indices lead to 240 unique names. The round-trip trade across all three indices is around US$12bn. Some...

Brian Freitas

Pre-IPO Ab&B Bio-Tech: Commercialization May Be Lower than Expected, Thereby Dragging Down Valuation

​Vaccine companies need to bet on blockbuster varieties to scale up. Ab&B face commercialization uncertainty. Internationalization is the...

Xinyao (Criss) Wang

Jiangxi Institute of Biological Products leads in Human TAT with strong profitability, but future growth may slow. Technical barriers/global...

Vaccine companies need to bet on blockbuster varieties to scale up. Ab&B face commercialization uncertainty. Internationalization is the...