Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

Equity Capital Markets

Pharmaron Beijing   / Equity Capital Markets

<p>Joint Global coordinators aim to raise around US$125m via selling shares in Pharmaron in order to aid certain convertible bond investors to hedge their exposure.</p><p><span>Our previous coverage on Pharmaron</span></p><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/pharmaron-a-h-listing-a-leading-drug-discovery-company" target="_blank" rel="noopener">Pharmaron (康龙化成) A+H Listing: A Leading Drug Discovery Company</a></li>
<li><a href="https://www.smartkarma.com/insights/pharmaron-a-h-listing-3q2019-numbers-and-thoughts-on-valuation" target="_blank" rel="noopener">Pharmaron (康龙化成) A+H Listing: 3Q2019 Numbers and Thoughts on Valuation</a></li>
</ul></div><div>
<ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/pharmaron-a-h-decent-h-a-discount-and-cornerstone-line-up" target="_blank" rel="noopener">Pharmaron (康龙化成) A+H: Decent H/​A Discount and Cornerstone Line-Up</a></li>
<li><a href="https://www.smartkarma.com/insights/pharmaron-a-h-allocation-and-thoughts-on-trading" target="_blank" rel="noopener">Pharmaron (康龙化成) A+H: Allocation and Thoughts on Trading</a></li>
</ul>
<p>In this note, we will run the deal through our ECM framework and talk about the deal dynamics.</p>
</div>

Joint Global coordinators aim to raise around US$125m via selling shares in Pharmaron in order to aid certain convertible bond investors to hedge their exposure.Our previous coverage on Pharmaron
Pharmaron (康龙化成) A+H Listing: A Leading Drug Discovery Company
Pharmaron (康龙化成) A+H Listing: 3Q2019 Numbers and Thoughts on Valuation


Pharmaron (康龙化成) A+H: Decent H/​A Discount and Cornerstone Line-Up
Pharmaron (康龙化成) A+H: Allocation and Thoughts on Trading

In this note, we will run the deal through our ECM framework and talk about the deal dynamics.


Pharmaron Placement - Strong Track Record

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<p><strong>Industry viewpoints:</strong></p><ul>
<li>At present, the market is too enthusiastic about innovative drugs, which could result in a serious decline in the rate of return on investment and output.</li>
<li>The demand of CDMO of cell and gene therapy would be higher than that of biological drug CDMO in the future.</li>
<li>China's meal replacement market is currently the fastest growing in the world.</li>
</ul><p><strong>Company news:</strong></p><p style="text-align: start;">News about the updated progress on new drugs of <a href="https://www.smartkarma.com/entities/shanghai-junshi-bioscience-h" target="_blank" data-smartkarma-citation="entities:27760:1" rel="noopener">Shanghai Junshi Bioscience Co. Ltd. (1877 HK), </a><a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, <a href="https://www.smartkarma.com/entities/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a> and <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>.</p><p><strong>Market review:</strong></p><p style="text-align: start;">Last week, stock price for healthcare sector in A share increased (+4.72%), while CSI 300 decreased (-0.23%) over the same period of time.</p><p><strong>Risk disclosure:</strong></p><p style="text-align: start;">Policy risk, R&amp;D risk, Company risk and COVID-19 risk.</p>

Industry viewpoints:
At present, the market is too enthusiastic about innovative drugs, which could result in a serious decline in the rate of return on investment and output.
The demand of CDMO of cell and gene therapy would be higher than that of biological drug CDMO in the future.
China's meal replacement market is currently the fastest growing in the world.
Company news:News about the updated progress on new drugs of Shanghai Junshi Bioscience Co. Ltd. (1877 HK), Jiangsu Hengrui Medicine (600276 CH), Akeso Biopharma Inc (9926 HK) and BeiGene Ltd (6160 HK).Market review:Last week, stock price for healthcare sector in A share increased (+4.72%), while CSI 300 decreased (-0.23%) over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

<p><strong>Industry Viewpoints:</strong></p><ul>
<li>With the gradual promotion of the intensive procurement of high-value consumables, some medical device companies are facing pressure. However, we still believe that the golden investment trend of the medical device industry in China is unchanged.</li>
<li>If it is the age of macromolecular drugs currently, then the future could be the cell and gene therapy.</li>
<li>Cosmetic contact lenses have entered an outbreak cycle with a CAGR of over 40% and sales of over RMB20 billion by 2020.</li>
</ul><p><strong>Company News:</strong></p><p style="text-align: start;">News of updated progress of new drugs from <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a>, <a href="https://www.smartkarma.com/entities/shanghai-junshi-bioscience-h" target="_blank" data-smartkarma-citation="entities:27760:1" rel="noopener">Shanghai Junshi Bioscience Co. Ltd. (1877 HK)</a> and <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a>.</p><p><strong>Market Review:</strong></p><p style="text-align: start;">Last week, stock price for healthcare sector in A share decreased 1.71%, while CSI 300 decreased 1.37% over the same period of time.</p><p><strong>Risk Disclosure:</strong></p><p style="text-align: start;">Policy risk, R&amp;D risk, Company risk and COVID-19 risk.</p>

Industry Viewpoints:
With the gradual promotion of the intensive procurement of high-value consumables, some medical device companies are facing pressure. However, we still believe that the golden investment trend of the medical device industry in China is unchanged.
If it is the age of macromolecular drugs currently, then the future could be the cell and gene therapy.
Cosmetic contact lenses have entered an outbreak cycle with a CAGR of over 40% and sales of over RMB20 billion by 2020.
Company News:News of updated progress of new drugs from Antengene (6996 HK), Shanghai Junshi Bioscience Co. Ltd. (1877 HK) and CSPC Pharmaceutical Group (1093 HK).Market Review:Last week, stock price for healthcare sector in A share decreased 1.71%, while CSI 300 decreased 1.37% over the same period of time.Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

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.

Joinn Laboratories China  Lt / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/joinn-laboratories-h" target="_blank" data-smartkarma-citation="entities:31498:1" rel="noopener">Joinn Laboratories (H) (6127 HK)</a> is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. JOINN's H-shares will commence trading on Friday, 26 February. JOINN priced its H-share listing at HK$151. The <a href="https://inews.hket.com/article/2886409/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E6%98%AD%E8%A1%8D%E6%96%B0%E8%97%A56127%E6%9A%97%E7%9B%A4%E6%BD%9B%E6%B0%B4%E3%80%80%E8%BC%83%E6%8B%9B%E8%82%A1%E5%83%B9%E4%BD%8E%E7%B4%843-?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">last traded grey market price</a> across three brokerages vary from a high of HK$146.70 to a low of HK$142.00 per H-share, according to press reports.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-initiation-on-demand-science" target="_blank" data-smartkarma-citation="insights:47482" rel="noopener">JOINN Laboratories IPO Initiation: On-Demand Science</a>, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-phip-points-to-progress" target="_blank" data-smartkarma-citation="insights:47985" rel="noopener">JOINN Laboratories IPO: PHIP Points to Progress</a>, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:48236" rel="noopener">JOINN Laboratories IPO: Valuation Insights</a>, we noted that the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive.</p></div><div>
<div class="content-highlight"><p>Since the bookbuilding was launched, JOINN's CRO peers have materially derated. Over this period, JOINN A-shares have declined 12% from RMB161.35 (prior to launch) to close at RMB141.19 per A-share. Largely due to this derating, we think that JOINN is fairly priced at the H-share listing price of HK$151. On the other hand, the low grey market price of HK$142 per H-share is attractive from both an AH discount and a CY2021 P/E basis.</p></div>
<p></p>
</div>

Joinn Laboratories (H) (6127 HK) is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. JOINN's H-shares will commence trading on Friday, 26 February. JOINN priced its H-share listing at HK$151. The last traded grey market price across three brokerages vary from a high of HK$146.70 to a low of HK$142.00 per H-share, according to press reports.In JOINN Laboratories IPO Initiation: On-Demand Science, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In JOINN Laboratories IPO: PHIP Points to Progress, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In JOINN Laboratories IPO: Valuation Insights, we noted that the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive.
Since the bookbuilding was launched, JOINN's CRO peers have materially derated. Over this period, JOINN A-shares have declined 12% from RMB161.35 (prior to launch) to close at RMB141.19 per A-share. Largely due to this derating, we think that JOINN is fairly priced at the H-share listing price of HK$151. On the other hand, the low grey market price of HK$142 per H-share is attractive from both an AH discount and a CY2021 P/E basis.



<div><p><a href="https://www.smartkarma.com/entities/joinn-laboratories-h" target="_blank" data-smartkarma-citation="entities:31498:1" rel="noopener">Joinn Laboratories (H) (6127 HK)</a> is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. </p></div><div>
<p>In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-initiation-on-demand-science" target="_blank" data-smartkarma-citation="insights:47482" rel="noopener">JOINN Laboratories IPO Initiation: On-Demand Science</a>, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-phip-points-to-progress" target="_blank" data-smartkarma-citation="insights:47985" rel="noopener">JOINN Laboratories IPO: PHIP Points to Progress</a>, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-valuation-first-look" target="_blank" data-smartkarma-citation="insights:48172" rel="noopener">JOINN Laboratories IPO: Valuation First Look</a>, we took a first look at the potential AH discount range for JOINN's H-share listing. </p>
<p>JOINN has launched its Hong Kong IPO at an indicative price range of HK$133-151 per H-share to raise net proceeds of HK$5,909.8 million ($762 million), at the mid-point of the price range. Ten cornerstone investors will subscribe for $268 million of the offer shares (33.8% of the offer shares at the mid-point of the IPO price). The cornerstone investors include OrbiMed Funds, Lake Bleu Capital, China Structural Reform Fund, China Pinnacle Equity Management, Sequoia Capital, Janchor Partners, CRF Investment,  Carmignac Funds, Octagon Capital and Valliance Fund.</p>
<div class="content-highlight"><p>Overall, the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive, in our view.</p></div>
</div>

Joinn Laboratories (H) (6127 HK) is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. 
In JOINN Laboratories IPO Initiation: On-Demand Science, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In JOINN Laboratories IPO: PHIP Points to Progress, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In JOINN Laboratories IPO: Valuation First Look, we took a first look at the potential AH discount range for JOINN's H-share listing. 
JOINN has launched its Hong Kong IPO at an indicative price range of HK$133-151 per H-share to raise net proceeds of HK$5,909.8 million ($762 million), at the mid-point of the price range. Ten cornerstone investors will subscribe for $268 million of the offer shares (33.8% of the offer shares at the mid-point of the IPO price). The cornerstone investors include OrbiMed Funds, Lake Bleu Capital, China Structural Reform Fund, China Pinnacle Equity Management, Sequoia Capital, Janchor Partners, CRF Investment,  Carmignac Funds, Octagon Capital and Valliance Fund.
Overall, the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive, in our view.


JOINN Laboratories IPO: Valuation Insights

China

Pharmaron Beijing Co., Ltd. engages in discovery, development, and manufacturing spectrum for small molecule drugs, cell therapies, and gene therapies as well as providing testing services for medical devices and clinic research. The Company offers laboratory, clinical development, chemistry manufactory and control, and other services. Pharmaron Beijing conducts businesses based in China.

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Pharmaron Beijing (300759 CH)

Pharmaron Placement - Strong Track Record

Joint Global coordinators aim to raise around US$125m via selling shares in Pharmaron in order to aid certain convertible bond investors to hedge...

Sumeet Singh

China Healthcare Weekly (Apr.30)

The insight analyzed industry viewpoints including the concerns on ROE of innovative drugs, the demand of CDMO of cell and gene therapy, China's...

Xinyao (Criss) Wang

China Healthcare Weekly (Apr.16)

The article analyzed the investment opportunities in China medical device industry under VBP, future trend of cell and gene therapy, market...

Xinyao (Criss) Wang

JOINN Laboratories IPO: Trading Debut

The grey market price varies from HK$146.70-HK$142.00 per H-share vs listing price of HK$151. JOINN is fairly priced at the H-share listing price...

Arun George

JOINN Laboratories IPO: Valuation Insights

JOINN has launched its HK IPO at an indicative price range of HK$133-151 per H-share. The combination of a reasonable AH discount and relative...

Arun George

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52-week Range

Market Cap (USDm)

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