HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>The business model of Metis can be summarized as a dual wheel drive model of "platform cooperation + product licensing", with the core competitiveness being AI driven nanomaterial platform NanoForge.</li>
<li>The significant increase in revenue validates the feasibility of its business model. However, the customer concentration, a cumulative loss of RMB1.84 billion, and the uncertainty of R&amp;D pose major risks.</li>
<li>Metis has a prominent scarcity of technology but the commercialization verification is still at an early stage. We think the valuation of Metis would be between <a href="https://www.smartkarma.com/entities/xtalpi-holdings-ltd" target="_blank" data-smartkarma-citation="entities:40369:1" rel="noopener">XtalPi </a>and <a href="https://www.smartkarma.com/entities/insilico-medicine-cayman-topco" target="_blank" data-smartkarma-citation="entities:39890:1" rel="noopener">InSilico Medicine</a>.</li>
</ul>


The business model of Metis can be summarized as a dual wheel drive model of "platform cooperation + product licensing", with the core competitiveness being AI driven nanomaterial platform NanoForge.
The significant increase in revenue validates the feasibility of its business model. However, the customer concentration, a cumulative loss of RMB1.84 billion, and the uncertainty of R&amp;D pose major risks.
Metis has a prominent scarcity of technology but the commercialization verification is still at an early stage. We think the valuation of Metis would be between XtalPi and InSilico Medicine.


Pre-IPO Metis TechBio (PHIP Updates) - The Business Model, the Concerns, and Thoughts on Valuation

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>Metis TechBio has launched HK IPO consists of 201M shares at HK$10.50 per share. Subscriptions will close on May 8, with the listing slated on May 13.    </li>
<li>The company intends to raise ~$242M to fund R&amp;D of AI infrastructure and AI-driven nanomaterial platforms, and ongoing and planned clinical trials of AI-developed pipeline products.</li>
<li>Metis follows dual-pathway business model that has established a solid commercial foundation. Moreover, possibility of additional product outlicensing deal cannot be ruled out.</li>
</ul>


Metis TechBio has launched HK IPO consists of 201M shares at HK$10.50 per share. Subscriptions will close on May 8, with the listing slated on May 13.    
The company intends to raise ~$242M to fund R&amp;D of AI infrastructure and AI-driven nanomaterial platforms, and ongoing and planned clinical trials of AI-developed pipeline products.
Metis follows dual-pathway business model that has established a solid commercial foundation. Moreover, possibility of additional product outlicensing deal cannot be ruled out.


Metis TechBio IPO: Niche AI Drug Discovery Platform Lays Strong Foundation for Profitable Growth

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

<ul>
<li>Following the completion of the review period, there could be one set of changes for the Hang Seng Biotech Index (HSHKBIO Index) in June.</li>
<li>
<a href="https://www.smartkarma.com/entities/insilico-medicine-cayman-topco" target="_blank" data-smartkarma-citation="entities:39890:1" rel="noopener">InSilico Medicine Cayman TopCo (ISM HK)</a> could replace <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a> and there will be capping changes for the largest index constituents.</li>
<li>Estimated one-way turnover at the rebalance is 2.2% resulting in a round-trip trade of HK$422m.</li>
</ul>


Following the completion of the review period, there could be one set of changes for the Hang Seng Biotech Index (HSHKBIO Index) in June.

InSilico Medicine Cayman TopCo (ISM HK) could replace Everest Medicines (1952 HK) and there will be capping changes for the largest index constituents.
Estimated one-way turnover at the rebalance is 2.2% resulting in a round-trip trade of HK$422m.


Hang Seng Biotech Index Rebalance Preview: One Set of Changes in June

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/metis-techbio-co-ltd" target="_blank" data-smartkarma-citation="entities:48022:1" rel="noopener">Metis TechBio (MTB HK)</a>, an AI-driven nanomaterial platform technology company, is pre-marketing an HKEx IPO to raise US$300 million.</li>
<li>Metis has over 10 pipeline products, comprising 4 pre-clinical candidates, 3 clinical-stage products (MTS-201, MTS-105, MTS-109), 1 pre-NDA product (MTS-004) and 2 animal health products (PTS-201, PTS-101).</li>
<li>The investment case is bullish, driven by MTS-004's first-mover position, promising clinical-stage products, and strong licensing agreements.</li>
</ul>



Metis TechBio (MTB HK), an AI-driven nanomaterial platform technology company, is pre-marketing an HKEx IPO to raise US$300 million.
Metis has over 10 pipeline products, comprising 4 pre-clinical candidates, 3 clinical-stage products (MTS-201, MTS-105, MTS-109), 1 pre-NDA product (MTS-004) and 2 animal health products (PTS-201, PTS-101).
The investment case is bullish, driven by MTS-004's first-mover position, promising clinical-stage products, and strong licensing agreements.


<ul>
<li>There are 53 adds and 28 deletes for the Hang Seng Composite Index (HSCI) at the March rebalance to take the number of index constituents up to 532.</li>
<li>We expect 44 of the 53 HSCI inclusions to be Stock Connect adds from the open on 9 March. 25 of the 28 deletions could be removed from Stock Connect.</li>
<li>On average, stocks that are expected to be added to Southbound Stock Connect have massively outperformed stocks that are expected to be removed from Southbound Stock Connect.</li>
</ul>


There are 53 adds and 28 deletes for the Hang Seng Composite Index (HSCI) at the March rebalance to take the number of index constituents up to 532.
We expect 44 of the 53 HSCI inclusions to be Stock Connect adds from the open on 9 March. 25 of the 28 deletions could be removed from Stock Connect.
On average, stocks that are expected to be added to Southbound Stock Connect have massively outperformed stocks that are expected to be removed from Southbound Stock Connect.


HSCI Index Rebalance: 53 Adds, 28 Deletes, Changes to Southbound Stock Connect & BIG Outperformance

Hong Kong

Insilico Medicine is an artificial intelligence (AI)-based biotechnology company that applies AI solutions to drug discovery and development, leveraging its proprietary Pharma.AI platform to identify and design early-stage drug candidates. The company develops novel drugs for various diseases, including cancer, fibrosis, immunity, and central nervous system disorders, and predicts clinical trial outcomes. Insilico Medicine was founded in 2014 and is headquartered in New Territories, Hong Kong.

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Insilico Medicine (3696 HK)

Pre-IPO Metis TechBio (PHIP Updates) - The Business Model, the Concerns, and Thoughts on Valuation

The IPO pricing is HK$10.5.If based on 2026 revenue forecast of RMB150-250mn,P/S is 42-70x, falling between the P/S of XtalPi (44x) and Insilico...

Xinyao (Criss) Wang

Metis TechBio IPO: Niche AI Drug Discovery Platform Lays Strong Foundation for Profitable Growth

Metis TechBio has launched HK IPO consists of 201M shares at HK$10.50 per share. Subscriptions will close on May 8, with the listing slated on May...

Tina Banerjee

Hang Seng Biotech Index Rebalance Preview: One Set of Changes in June

InSilico Medicine Cayman could replace Everest Medicines in the index in June. Estimated one-way turnover at the rebalance is 2.2% resulting in a...

Brian Freitas

Metis TechBio IPO: The Investment Case

Metis TechBio, an AI-driven nanomaterial platform technology company, is pre-marketing an HKEx IPO to raise US$300 million. In this note, I discuss...

Arun George

HSCI Index Rebalance: 53 Adds, 28 Deletes, Changes to Southbound Stock Connect & BIG Outperformance

There are 53 adds and 28 deletes for the HSCI in March. For Stock Connect, we expect 44 adds and 25 deletes. The forecast Connect adds have...

Brian Freitas

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