HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Shanghai Bio-Heart Biological Technology / Equity Bottom-Up

<ul>
<li>There are three main ways for Chinese pharmaceutical companies to enter global markets, but the results are completely different. Investors are advised to make cautious judgments based on different cases. </li>
<li>Speed is a crucial factor in the competition for drug development, but there’re precedents in history that late-comers are still able to turn things around, such as GLP-1/weight loss drugs.</li>
<li>We remain conservative about the future commercialization performance of Bio-Heart's BRS and Iberis 2nd. However, the product launch is a catalyst for share price, which provides a good short-term trade opportunity.</li>
</ul>


There are three main ways for Chinese pharmaceutical companies to enter global markets, but the results are completely different. Investors are advised to make cautious judgments based on different cases. 
Speed is a crucial factor in the competition for drug development, but there’re precedents in history that late-comers are still able to turn things around, such as GLP-1/weight loss drugs.
We remain conservative about the future commercialization performance of Bio-Heart's BRS and Iberis 2nd. However, the product launch is a catalyst for share price, which provides a good short-term trade opportunity.


China Healthcare Weekly (May.12) - Three Globalization Strategies, GLP-1/Weight Loss Drug, Bio-Heart

<ul>
<li>Many people have begun to pay attention to whether there would be a second wave of COVID-19 in China. We think it is necessary to share our views.</li>
<li>The overvaluation or undervaluation of China’s core assets cannot be explained solely by classic valuation models such as PE/PB/DCF, but rather by considering the deep meaning represented by the companies.</li>
<li>Lifetech’s future growth space depend more on the performance of pacemakers and IBS, but they are facing different challenges. Therefore, we recommend short-term trade rather than long term hold.</li>
</ul>


Many people have begun to pay attention to whether there would be a second wave of COVID-19 in China. We think it is necessary to share our views.
The overvaluation or undervaluation of China’s core assets cannot be explained solely by classic valuation models such as PE/PB/DCF, but rather by considering the deep meaning represented by the companies.
Lifetech’s future growth space depend more on the performance of pacemakers and IBS, but they are facing different challenges. Therefore, we recommend short-term trade rather than long term hold.


China Healthcare Weekly (May.5)- 2nd Wave of COVID, Valuation Logic of China's Core Assets, Lifetech

Thematic (Sector/Industry)

<ul>
<li>Investors should note that even when there’re technical bottlenecks and domestic enterprises' products are not yet mature, the government would still start centralized procurement, such as cardiac pacemaker.</li>
<li>The FDA has changed game rules and tighten the standards for accelerated approval. Together with the IRA, will the US really start limiting drug prices due to economic/financial pressure?</li>
<li>The relationship between fundamentals and stock prices is complicated. Beta would disappear without fundamentals, because fundamentals include not only objective facts, but also those generated by consensus brought by cognition.</li>
</ul>


Investors should note that even when there’re technical bottlenecks and domestic enterprises' products are not yet mature, the government would still start centralized procurement, such as cardiac pacemaker.
The FDA has changed game rules and tighten the standards for accelerated approval. Together with the IRA, will the US really start limiting drug prices due to economic/financial pressure?
The relationship between fundamentals and stock prices is complicated. Beta would disappear without fundamentals, because fundamentals include not only objective facts, but also those generated by consensus brought by cognition.


China Healthcare Weekly (Apr.7)- Pacemaker VBP, FDA Changes Game Rule, Industry Beta Vs Fundamentals

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 10th.</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 China Mobile, Tencent, China Vanke, ICBC, CCB.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 10th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for China Mobile, Tencent, China Vanke, ICBC, CCB.


Hong Kong Connect Flows (Mar 10th): China Mobile, Tencent, China Vanke, ICBC, CCB

Equity Capital Markets

Shenzhen Edge Medical / Equity Capital Markets

<ul>
<li>MP1000 has strong technical strength, setting it apart from Toumai. SP1000’s advantages are more obvious and the competitive landscape is also better than multi-port surgical robots, indicating corner overtaking opportunity.</li>
<li>With favorable policy support, <a href="https://www.smartkarma.com/entities/shenzhen-edge-medical-co-ltd" target="_blank" data-smartkarma-citation="entities:35912:1" rel="noopener">Shenzhen Edge Medical (SEM HK)</a> is embracing a golden opportunity. But the commercialization outlook of surgical robots in China is actually not optimistic.</li>
<li>As a later-comer in surgical robots industry, without the synergy from parent company, Edge’s future sales performance could be even weaker. So, its valuation should be lower than Medbot.</li>
</ul>


MP1000 has strong technical strength, setting it apart from Toumai. SP1000’s advantages are more obvious and the competitive landscape is also better than multi-port surgical robots, indicating corner overtaking opportunity.
With favorable policy support, Shenzhen Edge Medical (SEM HK) is embracing a golden opportunity. But the commercialization outlook of surgical robots in China is actually not optimistic.
As a later-comer in surgical robots industry, without the synergy from parent company, Edge’s future sales performance could be even weaker. So, its valuation should be lower than Medbot.


Pre-IPO Shenzhen Edge Medical - The Surgical Robot Business in China Is Proving Harder than Expected

China

Microport Scientific Corp. manufactures interventional and minimally invasive devices for keyhole surgery. The Company's products are used to treat vascular diseases and is developing devices to treat diabetes and orthopedic diseases.

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Microport Scientific (853 HK)

China Healthcare Weekly (May.12) - Three Globalization Strategies, GLP-1/Weight Loss Drug, Bio-Heart

There're three ways for companies to enter global markets, but the results are different.Late-comers can still turn things around, such as GLP-1...

Xinyao (Criss) Wang

China Healthcare Weekly (May.5)- 2nd Wave of COVID, Valuation Logic of China's Core Assets, Lifetech

It's time to talk about the 2nd wave of COVID in China.Investors need to understand deep meaning/valuation logic of China's core assets so as not...

Xinyao (Criss) Wang

China Healthcare Weekly (Apr.7)- Pacemaker VBP, FDA Changes Game Rule, Industry Beta Vs Fundamentals

China starts pacemaker VBP, which worth investors' vigilance. FDA changes game rules on accelerated approval standards. Beta disappears without...

Xinyao (Criss) Wang

Hong Kong Connect Flows (Mar 10th): China Mobile, Tencent, China Vanke, ICBC, CCB

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for China Mobile, Tencent, China Vanke, ICBC, CCB.

Ke Yan, CFA, FRM

Pre-IPO Shenzhen Edge Medical - The Surgical Robot Business in China Is Proving Harder than Expected

Surgical robots is always a hot field, but even with favorable policy, it’s difficult to make profits in China. Edge's commercialization outlook is...

Xinyao (Criss) Wang

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