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 Shanghai/Shenzhen northbound Connect flows with our data engine.</li>
<li>$4.7bn USD inflows led by material, industrials and consumer staple. </li>
<li>We highlight inflows into CATL, Moutai, Yunnan Energy New Material, and outflows from Aier Eye. </li>
</ul>


We analyze the weekly Shanghai/Shenzhen northbound Connect flows with our data engine.
$4.7bn USD inflows led by material, industrials and consumer staple. 
We highlight inflows into CATL, Moutai, Yunnan Energy New Material, and outflows from Aier Eye. 


Northbound Flows: CATL, Moutai, Yunnan Energy New Material, Aier Eye

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Biocytogen Pharmaceuticals (Beijing) / Equity Capital Markets

<ul>
<li>The candidates in Biocytogen’s pipeline do not have advantages in development progress and also have to face fierce competition, so continuous large R&amp;D investment in the future would be inevitable.</li>
<li>However, the development model of Biocytogen is very novel and special, which could make it a rare target in the market if it is successfully listed.  </li>
<li>Therefore, the certainty of Biocytogen’s future growth is expected to improve gradually, and the mid- and long-term investment value would continue to increase due to the high moat.</li>
</ul>


The candidates in Biocytogen’s pipeline do not have advantages in development progress and also have to face fierce competition, so continuous large R&amp;D investment in the future would be inevitable.
However, the development model of Biocytogen is very novel and special, which could make it a rare target in the market if it is successfully listed.  
Therefore, the certainty of Biocytogen’s future growth is expected to improve gradually, and the mid- and long-term investment value would continue to increase due to the high moat.


Pre-IPO Biocytogen Pharmaceuticals - The Novel Development Model Offset the Pipeline's Shortcomings

Thematic (Sector/Industry)

<ul>
<li>The state has issued clear policies to support gene therapy and related products. Therefore, investors are advised to pay close attention to related companies.</li>
<li>It may not be that easy to forget last Monday's plunge in the healthcare sector in HKEX, which means one thing.</li>
<li>With the introduction of intensive policies, TCM injections will be subject to more and more restrictions.</li>
</ul>


The state has issued clear policies to support gene therapy and related products. Therefore, investors are advised to pay close attention to related companies.
It may not be that easy to forget last Monday's plunge in the healthcare sector in HKEX, which means one thing.
With the introduction of intensive policies, TCM injections will be subject to more and more restrictions.


China Healthcare Weekly (Dec.10) - Last Monday's Plunge, New Policy of Gene Therapy, TCM Injections

Bio-Thera Solutions Ltd / Equity Capital Markets

In February 2020, <a href="https://www.smartkarma.com/entities/bio-thera-solutions-ltd" target="_blank" data-smartkarma-citation="entities:29127:1" rel="noopener">Bio-Thera Solutions Ltd (688177 CH)</a> completed its listing on the SSE STAR Market. Then in 2020/2H, Bio-Thera planned to list on the Hong Kong Stock Exchange, becoming another biopharmaceutical company with "A+H" listing. Currently the Company’s market value was about RMB13.5 billion. So how about this company? The following provides the insights on its pipeline and related competitive landscape.

In February 2020, Bio-Thera Solutions Ltd (688177 CH) completed its listing on the SSE STAR Market. Then in 2020/2H, Bio-Thera planned to list on the Hong Kong Stock Exchange, becoming another biopharmaceutical company with "A+H" listing. Currently the Company’s market value was about RMB13.5 billion. So how about this company? The following provides the insights on its pipeline and related competitive landscape. 

Pre-IPO Bio-Thera Solutions - Insights on Pipeline and the Competitive Landscape

Equity Bottom-Up

Livzon Pharmaceutical Group In / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/livzon-pharmaceutical-group-a" target="_blank" data-smartkarma-citation="entities:24770:1" rel="noopener">Livzon Pharmaceutical Group-A (000513 CH)</a> released its third quarter report in 2020. The Q1-Q3 accumulated revenue was RMB7.926 billion, with a YoY growth rate of 8.64%. Net income attributed to shareholders in the first three quarters was RMB1.422 billion, up 36.71% YoY. Net income after deducting non-recurring gains and losses were RMB1.179 billion, up 23.15% YoY. Q3 single quarter revenue was RMB2.83 billion, up 20.14% YoY. Net income attributed to shareholders reached RMB417 million, up 38.52% YoY. Q3’s single quarter net income after deducting non-recurring gains and losses was RMB344 million, up 15.28% YoY. Q3 performance was above expectations, with the highest YoY growth rate in the single quarter in nearly three years, and demonstrated strong recovery in various sectors.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/175/696/original/image_32979984121606785555504.png?1606785557" class="editor-image img-responsive" data-smartkarma-image-id="175696"></figure>Source: WIND

Livzon Pharmaceutical Group-A (000513 CH) released its third quarter report in 2020. The Q1-Q3 accumulated revenue was RMB7.926 billion, with a YoY growth rate of 8.64%. Net income attributed to shareholders in the first three quarters was RMB1.422 billion, up 36.71% YoY. Net income after deducting non-recurring gains and losses were RMB1.179 billion, up 23.15% YoY. Q3 single quarter revenue was RMB2.83 billion, up 20.14% YoY. Net income attributed to shareholders reached RMB417 million, up 38.52% YoY. Q3’s single quarter net income after deducting non-recurring gains and losses was RMB344 million, up 15.28% YoY. Q3 performance was above expectations, with the highest YoY growth rate in the single quarter in nearly three years, and demonstrated strong recovery in various sectors.Source: WIND

Livzon Pharmaceutical (000513.CH) - A Good Company that You Can't Afford Missing

China

Livzon Pharmaceutical Group Inc. develops and manufactures pharmaceutical products, including chemical medicines, bio-chemical medicines, biological engineering medicines, chemical compound crude medicines, antibiotics, micro-ecological preparations, patent Chinese medicines, and diagnosis reagents etc.

Livzon Pharmaceutical Group In (000513 CH)

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Livzon Pharmaceutical Group In (000513 CH)

Northbound Flows: CATL, Moutai, Yunnan Energy New Material, Aier Eye

We highlight weekly southbound inflows into the A-share market into CATL, Moutai, Yunnan Energy New Material, and outflows from Aier Eye.

Ke Yan, CFA, FRM

Pre-IPO Biocytogen Pharmaceuticals - The Novel Development Model Offset the Pipeline's Shortcomings

We analyzed the unique development strategy of Biocytogen, and also pointed out the concerns on its pipeline. However, its business model is hard...

Xinyao (Criss) Wang

China Healthcare Weekly (Dec.10) - Last Monday's Plunge, New Policy of Gene Therapy, TCM Injections

The article mainly analyzed last Monday's plunge in the healthcare sector in HKEX & its potential impact, new policies to support gene therapy and...

Xinyao (Criss) Wang

Pre-IPO Bio-Thera Solutions - Insights on Pipeline and the Competitive Landscape

This article summarized the insights on major products of Bio-Thera Solutions in the pipeline and related competitive landscape with other key...

Xinyao (Criss) Wang

Livzon Pharmaceutical (000513.CH) - A Good Company that You Can't Afford Missing

This article analyzed Livzon's R&D highlights, main products and pipelines, financial position, and made forecast and rating for the Company.

Xinyao (Criss) Wang

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