External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Strong fruquintinib overseas sales drove top-line beat. HCM delivered a strong FY24 financial performance, marked by a top-line beat fueled by robust fruquintinib sales internationally.</li><li>Oncology/immunology product revenue grew by 65% YoY to US$272mn, exceeding the previous guidance of 30-50% growth.</li><li>FRUZAQLA (fruquintinib) generated total overseas sales of US$291mn in its first full year on the market, with US$111mn recognized as HCM’s revenue. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Strong fruquintinib overseas sales drove top-line beat. HCM delivered a strong FY24 financial performance, marked by a top-line beat fueled by robust fruquintinib sales internationally.Oncology/immunology product revenue grew by 65% YoY to US$272mn, exceeding the previous guidance of 30-50% growth.FRUZAQLA (fruquintinib) generated total overseas sales of US$291mn in its first full year on the market, with US$111mn recognized as HCM’s revenue. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hutchmed (13 HK) - Expecting Sustainable Profitability

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Sunshine Lake Pharma / Equity Capital Markets

<ul>
<li>Most revenue was contributed by Kewei, but kewei has been included in VBP.Together with increasing competition, the outlook is gloomy if Sunshine Lake Pharma continues to mainly rely on Kewei.</li>
<li>There’s a significant gap in Sunshine Lake Pharma's R&amp;D progress/clinical data compared to the products of peers.The pipeline has been “disconnected” from the level of domestic biotech in recent years</li>
<li>Sunshine Lake Pharma is inferior to other pharmaceutical companies in China.Even if CJ Pharma will be merged into Sunshine Lake Pharma, its market value should be lower than leading Biotech.</li>
</ul>


Most revenue was contributed by Kewei, but kewei has been included in VBP.Together with increasing competition, the outlook is gloomy if Sunshine Lake Pharma continues to mainly rely on Kewei.
There’s a significant gap in Sunshine Lake Pharma's R&amp;D progress/clinical data compared to the products of peers.The pipeline has been “disconnected” from the level of domestic biotech in recent years
Sunshine Lake Pharma is inferior to other pharmaceutical companies in China.Even if CJ Pharma will be merged into Sunshine Lake Pharma, its market value should be lower than leading Biotech.


Pre-IPO Sunshine Lake Pharma - “Outdated” Pipeline Is Difficult to Obtain Decent Valuation

<ul>
<li>Relevant departments are discussing the promotion of drugs included in VBP scope to enter retail pharmacies. However, the new business model will be detrimental to valuation performance for retail pharmacies.</li>
<li>The gap in the distribution of funds among biotech companies is rapidly widening. We suggest investors focus on leading biotech rather than take risks in areas with higher uncertainties.</li>
<li>Vesync is a good company. Due to the low liquidity, the Proposal presents a good opportunity for shareholders to exit. Considering its future growth potential, Share Alternative can be considered.</li>
</ul>


Relevant departments are discussing the promotion of drugs included in VBP scope to enter retail pharmacies. However, the new business model will be detrimental to valuation performance for retail pharmacies.
The gap in the distribution of funds among biotech companies is rapidly widening. We suggest investors focus on leading biotech rather than take risks in areas with higher uncertainties.
Vesync is a good company. Due to the low liquidity, the Proposal presents a good opportunity for shareholders to exit. Considering its future growth potential, Share Alternative can be considered.


China Healthcare Weekly (Feb.9) - Vesync Is a High-Quality Company, VBP to Cover Retail Pharmacies

China Resources Sanjiu Medical & Pharma / Equity Bottom-Up

China Resources Sanjiu Medical & Pharma (000999 CH)

<ul>
<li>If product sales cannot continue to climb rapidly and dilute the costs, the final profit will gradually fade away. Therefore, Chinese biotech companies need new blockbuster products to drive growth.</li>
<li>The decline in the number of biotech companies in the future is actually “a supply side reform” that fundamentally reduces market competition, which obviously benefit those first-tier companies.</li>
<li>The acquisition of Tasly by <a href="https://www.smartkarma.com/entities/china-resources-sanju-mdcl-phrm-co-ltd" target="_blank" data-smartkarma-citation="entities:6218:1" rel="noopener">China Resources Sanjiu Medical &amp; Pharma </a>is still in progress. The deal may not be completed until 25H1 if the approval time is not enough.</li>
</ul>


If product sales cannot continue to climb rapidly and dilute the costs, the final profit will gradually fade away. Therefore, Chinese biotech companies need new blockbuster products to drive growth.
The decline in the number of biotech companies in the future is actually “a supply side reform” that fundamentally reduces market competition, which obviously benefit those first-tier companies.
The acquisition of Tasly by China Resources Sanjiu Medical &amp; Pharma is still in progress. The deal may not be completed until 25H1 if the approval time is not enough.


China Healthcare Weekly (Feb.2)- Update on CR Sanjiu's Acquisition of Tasly, China Biotech's Outlook

Shanghai Henlius Biotech / Equity Bottom-Up

<ul>
<li>For Fosun, every major capital operation is the result of careful consideration after a long time. If it is a deal that Mr. Guo fully supports, there’s basically no problem.</li>
<li>For the privatization, the board of directors of Henlius has no special opposition. We think that this privatization would have no impact on the operation of Henlius in the future,</li>
<li>As the phenomenon of undervaluation of Henlius is difficult to fundamentally change, the Cancellation Price is attractive for most investors. There’re risks if choosing Share Alternative. Cash Alternative is preferred. </li>
</ul>


For Fosun, every major capital operation is the result of careful consideration after a long time. If it is a deal that Mr. Guo fully supports, there’s basically no problem.
For the privatization, the board of directors of Henlius has no special opposition. We think that this privatization would have no impact on the operation of Henlius in the future,
As the phenomenon of undervaluation of Henlius is difficult to fundamentally change, the Cancellation Price is attractive for most investors. There’re risks if choosing Share Alternative. Cash Alternative is preferred. 


Shanghai Henlius Biotech (2696 HK) - Some Thoughts About the Privatization

Hong Kong

Hutchison Whampoa is an investment holding company with diverse global operations in ports and related services, property and hotels, retail, infrastructure, energy, and telecommunications. It operates port and container terminals, develops real estate, and provides mobile telecommunications services. The company is headquartered in Hong Kong and traces its roots back to 1862.

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Hutchison Whampoa (13 HK)

Hutchmed (13 HK) - Expecting Sustainable Profitability

Strong fruquintinib overseas sales drove top-line beat. HCM delivered a strong FY24 financial performance, marked by a top-line beat fueled by...

CMB International

Pre-IPO Sunshine Lake Pharma - “Outdated” Pipeline Is Difficult to Obtain Decent Valuation

Sunshine Lake Pharma is heavily relying on Kewei, leading to a gloomy outlook due to competition/VBP. Pipeline has been “disconnected” from the...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.9) - Vesync Is a High-Quality Company, VBP to Cover Retail Pharmacies

Promoting VBP in retail pharmacy may harm valuation.Biotech funding gap widens, investors advised to focus on leading companies. Vesync is a good...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.2)- Update on CR Sanjiu's Acquisition of Tasly, China Biotech's Outlook

Chinese biotech companies need to develop new blockbuster products to sustain growth. A "supply side reform” benefits first-tier Biotech. The...

Xinyao (Criss) Wang

Shanghai Henlius Biotech (2696 HK) - Some Thoughts About the Privatization

Lin Lijun/Mr.Guo both graduated from Fudan and may have known each other for a long time. The info circulating outside is Lin adds positions cus he...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hutchmed (13 HK) - Expecting Sustainable Profitability

Strong fruquintinib overseas sales drove top-line beat. HCM delivered a strong FY24 financial performance, marked by a top-line beat fueled by...

CMB International

Pre-IPO Sunshine Lake Pharma - “Outdated” Pipeline Is Difficult to Obtain Decent Valuation

​Sunshine Lake Pharma is heavily relying on Kewei, leading to a gloomy outlook due to competition/VBP. Pipeline has been “disconnected” from the...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.9) - Vesync Is a High-Quality Company, VBP to Cover Retail Pharmacies

Promoting VBP in retail pharmacy may harm valuation.Biotech funding gap widens, investors advised to focus on leading companies. Vesync is a good...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.2)- Update on CR Sanjiu's Acquisition of Tasly, China Biotech's Outlook

​Chinese biotech companies need to develop new blockbuster products to sustain growth. A "supply side reform” benefits first-tier Biotech. The...

Xinyao (Criss) Wang

Shanghai Henlius Biotech (2696 HK) - Some Thoughts About the Privatization

Lin Lijun/Mr.Guo both graduated from Fudan and may have known each other for a long time. The info circulating outside is Lin adds positions cus he...

Xinyao (Criss) Wang

Sunshine Lake Pharma is heavily relying on Kewei, leading to a gloomy outlook due to competition/VBP. Pipeline has been “disconnected” from the...

Chinese biotech companies need to develop new blockbuster products to sustain growth. A "supply side reform” benefits first-tier Biotech. The...