HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

1.Industry viewpoints
<ul>
<li>China's biopharmaceutical market is still in its early days, but it has a strong growth potential.</li>
<li>Q3 earning season kicks off.</li>
<li>Favorable policies may still not ensure the golden time for the industry of Chinese traditional medicine.</li>
</ul>
2.Company news
News of Shanghai Henlius Biotech, Innovent Biologics and BeiGene on the progress of new drugs and amended agreement.
3.Market review
Last week, stock price for healthcare sector rose 2.86%, while CSI 300 rose 2.04% over the same period of time.
4.Risk Disclosure 
Policy risk, R&amp;D risk, company risk and COVID-19 risk

1.Industry viewpoints

China's biopharmaceutical market is still in its early days, but it has a strong growth potential.
Q3 earning season kicks off.
Favorable policies may still not ensure the golden time for the industry of Chinese traditional medicine.

2.Company news
News of Shanghai Henlius Biotech, Innovent Biologics and BeiGene on the progress of new drugs and amended agreement.
3.Market review
Last week, stock price for healthcare sector rose 2.86%, while CSI 300 rose 2.04% over the same period of time.
4.Risk Disclosure 
Policy risk, R&amp;D risk, company risk and COVID-19 risk

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

In this report, we analyse Asia Ex-Japan fund positioning across the key Asian industry groups.  The analysis measures current sentiment across all Asian industry groups by calculating today's positioning levels in relation to historical levels.  We then overlay short term fund activity data in order to detect reversals or confirmations of longer-term trends.For this analysis, we analyse the holdings of 102 actively managed mutual funds benchmarked to the MSCI Asia Ex-Japan Index. The current fund sample covers a combined AUM of $70bn.

In this report, we analyse Asia Ex-Japan fund positioning across the key Asian industry groups.  The analysis measures current sentiment across all Asian industry groups by calculating today's positioning levels in relation to historical levels.  We then overlay short term fund activity data in order to detect reversals or confirmations of longer-term trends.For this analysis, we analyse the holdings of 102 actively managed mutual funds benchmarked to the MSCI Asia Ex-Japan Index. The current fund sample covers a combined AUM of $70bn.

Focus Industries for Asia Ex-Japan Fund Managers

Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Star Sports Medicine / Equity Capital Markets

<ul>
<li>Star Sports Medicine, a medical device company specializing in clinical sports medicine solutions, has launched HK IPO consisting of 8.4M H shares at an offer price of HK$98.50 per share.</li>
<li>The company seeks to raise ~$105M to expand production capacity, fund R&amp;D efforts, and enhance commercialization capabilities. Subscriptions will close on April 29, with expected listing on May 5.</li>
<li>Despite negative impact from VBP and fierce competition from global players, the company is seeing marginal ASP improvement for its medical implants, which is leading margin recovery.</li>
</ul>


Star Sports Medicine, a medical device company specializing in clinical sports medicine solutions, has launched HK IPO consisting of 8.4M H shares at an offer price of HK$98.50 per share.
The company seeks to raise ~$105M to expand production capacity, fund R&amp;D efforts, and enhance commercialization capabilities. Subscriptions will close on April 29, with expected listing on May 5.
Despite negative impact from VBP and fierce competition from global players, the company is seeing marginal ASP improvement for its medical implants, which is leading margin recovery.


Star Sports Medicine IPO: Medical Implant Led Margin Recovery in 2025 Raises Hope

Medcaptain Medical Technology / Equity Capital Markets

<ul>
<li>Medcaptain has a certain level of innovation ability, which has solidified the Company’s market position, as evidenced by its leading rankings in China’s infusion workstation and enteral feeding pump market.</li>
<li>However, multiple niche markets where Medcaptain operates are all in a state of high competition/high concentration. Certain of Medcaptain’s products are facing the risk of VBP, leading to performance uncertainties. </li>
<li>Post-Money valuation in 2023 was RMB8.245 billion. Based on the current performance, we think valuation of Medcaptain should be lower than Mindray and Zylox, but would be higher than Microport.</li>
</ul>


Medcaptain has a certain level of innovation ability, which has solidified the Company’s market position, as evidenced by its leading rankings in China’s infusion workstation and enteral feeding pump market.
However, multiple niche markets where Medcaptain operates are all in a state of high competition/high concentration. Certain of Medcaptain’s products are facing the risk of VBP, leading to performance uncertainties. 
Post-Money valuation in 2023 was RMB8.245 billion. Based on the current performance, we think valuation of Medcaptain should be lower than Mindray and Zylox, but would be higher than Microport.


Pre-IPO Medcaptain Medical Technology - The Strength and the Concerns

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 19th.</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 Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China Mobile, Hua Hong Semiconductor, Petrochina, SMIC, HKEx.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of December 19th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China Mobile, Hua Hong Semiconductor, Petrochina, SMIC, HKEx.


HK Connect Flows Weekly (Dec 19th): Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China Mobile

China

MicroPort Scientific is a leading global medical device company that innovates, manufactures, and markets high-end medical devices. The company provides solutions across twelve therapeutic areas, including cardiovascular, orthopedics, cardiac rhythm management, electrophysiology, endovascular, neurovascular, and surgical robotics. It was founded in 1998 and is headquartered in Shanghai, China.

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MicroPort Scientific (853 HK)

China Healthcare Weekly (Oct.9)

This insight summarized the important industry viewpoints, news of listed healthcare companies and capital market review for the last week of China...

Xinyao (Criss) Wang

Focus Industries for Asia Ex-Japan Fund Managers

In this report, we analyse Asia Ex-Japan fund positioning across the key Asian industry groups. The analysis measures current sentiment across all...

Steven Holden

Star Sports Medicine IPO: Medical Implant Led Margin Recovery in 2025 Raises Hope

Star Sports has launched HK IPO consisting of 8.4M shares at HK$98.50/share. The company seeks to raise ~$105M to expand production capacity, fund...

Tina Banerjee

Pre-IPO Medcaptain Medical Technology - The Strength and the Concerns

Medcaptain's innovative products have solidified its leading market position in China, but high competition and performance uncertainties may...

Xinyao (Criss) Wang

HK Connect Flows Weekly (Dec 19th): Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China Mobile

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China Healthcare Weekly (Oct.9)

This insight summarized the important industry viewpoints, news of listed healthcare companies and capital market review for the last week of China...

Xinyao (Criss) Wang

Focus Industries for Asia Ex-Japan Fund Managers

In this report, we analyse Asia Ex-Japan fund positioning across the key Asian industry groups. The analysis measures current sentiment across all...

Steven Holden

Star Sports Medicine IPO: Medical Implant Led Margin Recovery in 2025 Raises Hope

Star Sports has launched HK IPO consisting of 8.4M shares at HK$98.50/share. The company seeks to raise ~$105M to expand production capacity, fund...

Tina Banerjee

Pre-IPO Medcaptain Medical Technology - The Strength and the Concerns

​Medcaptain's innovative products have solidified its leading market position in China, but high competition and performance uncertainties may...

Xinyao (Criss) Wang

HK Connect Flows Weekly (Dec 19th): Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China Mobile

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Xiaomi, Meituan, Alibaba, Ping An Insurance, Ke, China...

Ke Yan, CFA, FRM

Medcaptain's innovative products have solidified its leading market position in China, but high competition and performance uncertainties may...