Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Shandong BoAn Biotechnology  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shandong-boan-biotechnology-co" target="_blank" data-smartkarma-citation="entities:35966:1" rel="noopener">Shandong BoAn Biotechnology (6955 HK)</a> is placing 48M shares, representing 7.7% of the total number of issued shares post placement. Placement price is HK$16.42, 9% discount to last undisturbed price.  </li>
<li>The expected net proceeds of ~HK$780M will be used for funding R&amp;D of innovative product candidates and commercialization of marketed and upcoming products.</li>
<li>This is the second placement of the company this year. In June, Boan Biotech raised ~HK$396M through placing 26.7M shares. The company is not expected to raise fund anytime soon.</li>
</ul>



Shandong BoAn Biotechnology (6955 HK) is placing 48M shares, representing 7.7% of the total number of issued shares post placement. Placement price is HK$16.42, 9% discount to last undisturbed price.  
The expected net proceeds of ~HK$780M will be used for funding R&amp;D of innovative product candidates and commercialization of marketed and upcoming products.
This is the second placement of the company this year. In June, Boan Biotech raised ~HK$396M through placing 26.7M shares. The company is not expected to raise fund anytime soon.


BoAn Biotechnology (6955 HK): Profitable Operation & Pipeline Progress Make the Placement Attractive

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 July 11th.</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 Meituan, CCB, SMIC, Li Auto, Zhongan Online, Alibaba, CMB, Pop Mart Intl, Tencent, China Mobile.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of July 11th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Meituan, CCB, SMIC, Li Auto, Zhongan Online, Alibaba, CMB, Pop Mart Intl, Tencent, China Mobile.


HK Connect Flows Weekly (Jul 11th): Meituan, CCB, SMIC, Li Auto, Zhongan Online, Alibaba, CMB

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.

Event-Driven

Yichang HEC Changjiang Pharma / Event-Driven

<ul>
<li>The precondition for Sunshine Lake Pharma's privatisation of HEC Pharma was satisfied on 27 June. The offer is 0.263614 new offeror H Share per HEC share and HK$1.50 special dividend.</li>
<li>The vote on 21 July is low-risk as no independent H Shareholder comes close to the blocking stake, which is 4.61% of the outstanding shares (6.20% of H Shares).</li>
<li>The appraised value is HK$19.36, but this is a finger-in-the-sky valuation as it marginally increased from HK$19.30 despite the offeror’s weak 2024 results and limited progress on commercialising its pipeline.</li>
</ul>


The precondition for Sunshine Lake Pharma's privatisation of HEC Pharma was satisfied on 27 June. The offer is 0.263614 new offeror H Share per HEC share and HK$1.50 special dividend.
The vote on 21 July is low-risk as no independent H Shareholder comes close to the blocking stake, which is 4.61% of the outstanding shares (6.20% of H Shares).
The appraised value is HK$19.36, but this is a finger-in-the-sky valuation as it marginally increased from HK$19.30 despite the offeror’s weak 2024 results and limited progress on commercialising its pipeline.


HEC ChangJiang Pharma (1558 HK): Finally a Vote, but the Offer Value Is Wrapped in Uncertainty

Jiangsu Hengrui Pharmaceuticals / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jiangsu-hengrui-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:44224:1" rel="noopener">Jiangsu Hengrui Pharmaceuticals (1276 HK)</a> priced its H Share at HK$44.05 to raise HK$9,890.1 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.</li>
<li>The timing of the H Share listing is fortuitous, as the peers have materially re-rated since the prospectus was released on 15 May.</li>
<li>Hengrui had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.</li>
</ul>



Jiangsu Hengrui Pharmaceuticals (1276 HK) priced its H Share at HK$44.05 to raise HK$9,890.1 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.
The timing of the H Share listing is fortuitous, as the peers have materially re-rated since the prospectus was released on 15 May.
Hengrui had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.


Jiangsu Hengrui Pharma H Share Listing (1276 HK): Trading Debut

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jiangsu-hengrui-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:44224:1" rel="noopener">Jiangsu Hengrui Pharmaceuticals (1276 HK)</a> has launched its H Share listing at HK$41.45 to HK$44.05 per H Share. Pricing will be on 21 May.</li>
<li>I discussed the H Share listing in <em><strong><a href="https://www.smartkarma.com/insights/jiangsu-hengrui-pharma-h-share-listing-the-investment-case" target="_blank" data-smartkarma-citation="insights:185190" rel="noopener">Jiangsu Hengrui Pharma H Share Listing: The Investment Case</a></strong></em>. </li>
<li>The proposed AH discount can be argued as either light or attractive. I lean toward the latter and would participate in the H Share listing.</li>
</ul>



Jiangsu Hengrui Pharmaceuticals (1276 HK) has launched its H Share listing at HK$41.45 to HK$44.05 per H Share. Pricing will be on 21 May.
I discussed the H Share listing in Jiangsu Hengrui Pharma H Share Listing: The Investment Case. 
The proposed AH discount can be argued as either light or attractive. I lean toward the latter and would participate in the H Share listing.


Jiangsu Hengrui Pharma H Share Listing (1276 HK): Valuation Insights

China

Luye Pharma Group Ltd focuses on the research and development, production, and sales of pharmaceutical drugs for orthopedics, neurology, gastroenterology, and hepatology. The Company also sells active ingredients, R&D results, and patents of new drugs, as well as providing research services on a contractual basis.

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Luye Pharma (2186 HK)

BoAn Biotechnology (6955 HK): Profitable Operation & Pipeline Progress Make the Placement Attractive

Shandong BoAn Biotechnology is placing 48M shares at HK$16.42, at 9% discount. Proceeds of HK$780M will fund R&D and product commercialization....

Tina Banerjee

HK Connect Flows Weekly (Jul 11th): Meituan, CCB, SMIC, Li Auto, Zhongan Online, Alibaba, CMB

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Meituan, CCB, SMIC, Li Auto, Zhongan Online, Alibaba,...

Ke Yan, CFA, FRM

HEC ChangJiang Pharma (1558 HK): Finally a Vote, but the Offer Value Is Wrapped in Uncertainty

The vote is low-risk. However, the appraised value is a finger-in-the-sky valuation, and perplexingly, marginally increased despite the offeror's...

Arun George

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52-week Range

Market Cap (USDm)

P/E

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BoAn Biotechnology (6955 HK): Profitable Operation & Pipeline Progress Make the Placement Attractive

​Shandong BoAn Biotechnology is placing 48M shares at HK$16.42, at 9% discount. Proceeds of HK$780M will fund R&D and product commercialization....

Tina Banerjee

HK Connect Flows Weekly (Jul 11th): Meituan, CCB, SMIC, Li Auto, Zhongan Online, Alibaba, CMB

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Meituan, CCB, SMIC, Li Auto, Zhongan Online, Alibaba,...

Ke Yan, CFA, FRM

HEC ChangJiang Pharma (1558 HK): Finally a Vote, but the Offer Value Is Wrapped in Uncertainty

The vote is low-risk. However, the appraised value is a finger-in-the-sky valuation, and perplexingly, marginally increased despite the offeror's...

Arun George

Jiangsu Hengrui Pharma H Share Listing (1276 HK): Trading Debut

Hengrui had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.

Arun George

Jiangsu Hengrui Pharma H Share Listing (1276 HK): Valuation Insights

The proposed AH discount can be argued as either light or attractive. I lean toward the latter and would participate in the H Share listing.

Arun George

Shandong BoAn Biotechnology is placing 48M shares at HK$16.42, at 9% discount. Proceeds of HK$780M will fund R&D and product commercialization....