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 analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 24th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We estimate that the total inflows were USD3.3bn last week and highlight flows for Meituan, Tencent, Bilibili.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 24th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We estimate that the total inflows were USD3.3bn last week and highlight flows for Meituan, Tencent, Bilibili.


Hong Kong Connect Flows (Mar 24th): Meituan, Tencent, Bilibili

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 1st.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Tencent, Great Wall Motor, China Construction Bank, Hong Kong Exchanges And Clearing.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 1st.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Tencent, Great Wall Motor, China Construction Bank, Hong Kong Exchanges And Clearing.


Hong Kong Connect Flows (Mar 1st): Tencent, Great Wall Motor, CCB, HKEx

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>It’s “a wise decision” to out-license CMG901 and receive cashflow in advance so as to focus on more important late-stage products.Keymed’s management is as pragmatic as ever in strategic choices.</li>
<li>Biotech would find it difficult to promote products by themselves and has to cooperate with Big Pharma to open domestic/foreign markets. But many investors are still “living in the illusion”.</li>
<li>There would be more BD deals in the future. Our view on Keymed's valuation remains unchanged - Market cap about RMB8 billion to RMB1.6 billion is the reasonable range. </li>
</ul>


It’s “a wise decision” to out-license CMG901 and receive cashflow in advance so as to focus on more important late-stage products.Keymed’s management is as pragmatic as ever in strategic choices.
Biotech would find it difficult to promote products by themselves and has to cooperate with Big Pharma to open domestic/foreign markets. But many investors are still “living in the illusion”.
There would be more BD deals in the future. Our view on Keymed's valuation remains unchanged - Market cap about RMB8 billion to RMB1.6 billion is the reasonable range. 


Keymed Biosciences (2162.HK) - The $1.2B Deal with AstraZeneca for ADC and the Logic Behind

Thematic (Sector/Industry)

<ul>
<li>China unveiled the "No. 1 central document", providing a good opportunity for domestic healthcare enterprises to develop rural medical market - Its market size cannot be ignored.</li>
<li>The 8th national VBP has been officially launched last week. Pfizer is the most affected of all foreign big pharma, which would have certain impact on its China business. </li>
<li>We have noticed that the unified medical insurance code of traditional Chinese medicine (TCM) formula granules is accelerating, which seems to be paving the way for the future VBP.</li>
</ul>


China unveiled the "No. 1 central document", providing a good opportunity for domestic healthcare enterprises to develop rural medical market - Its market size cannot be ignored.
The 8th national VBP has been officially launched last week. Pfizer is the most affected of all foreign big pharma, which would have certain impact on its China business. 
We have noticed that the unified medical insurance code of traditional Chinese medicine (TCM) formula granules is accelerating, which seems to be paving the way for the future VBP.


China Healthcare Weekly (Feb.24) - No. 1 Central Document, 8th National VBP, TCM Formula Granules

<ul>
<li>Keymed is one of the few enterprises we believe have the strength to develop FIC in the future. Keymed's "pragmatic" in terms of commercialization,which set it apart from other biotech.</li>
<li>The current valuation is expensive based on our forecast. The expansion potential of future valuation depends on the progress of overseas R&amp;D/commercialization. This is where Keymed really takes off.</li>
<li>One big reason we've been positive about Keymed is because of its founder, Chen Bo. The down-to-earth style of management makes us full of expectations for <a href="https://www.smartkarma.com/entities/keymed-biosciences-inc" target="_blank" data-smartkarma-citation="entities:33011:1" rel="noopener">Keymed Biosciences (2162 HK)</a>.</li>
</ul>


Keymed is one of the few enterprises we believe have the strength to develop FIC in the future. Keymed's "pragmatic" in terms of commercialization,which set it apart from other biotech.
The current valuation is expensive based on our forecast. The expansion potential of future valuation depends on the progress of overseas R&amp;D/commercialization. This is where Keymed really takes off.
One big reason we've been positive about Keymed is because of its founder, Chen Bo. The down-to-earth style of management makes us full of expectations for Keymed Biosciences (2162 HK).


Keymed Biosciences (2162.HK) - We Have High Hopes for Keymed, but Valuation Is Expensive

Hong Kong

Keymed Biosciences Inc. operates a biotechnology company. The Company focus on the in-house discovery and development of innovative biological therapies. Keymed Biosciences provides services in China.

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Keymed Biosciences (2162 HK)

Hong Kong Connect Flows (Mar 24th): Meituan, Tencent, Bilibili

We analyzed the Hong Kong Connect Scheme for last week and highlight flows for Meituan (3690 HK), Tencent (700 HK), and Bilibili (9626 HK).

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Mar 1st): Tencent, Great Wall Motor, CCB, HKEx

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for Tencent, Great Wall Motor, CCB, Hong Kong Exchanges And...

Ke Yan, CFA, FRM