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 analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 117.4% as of Apr 7th.</li>
<li>The average A-H premium changed by 3.5ppt week on week, led by communication services, health care, real estate and offset by utilities.</li>
<li>We highlight weekly changes in A-H premium for China Vanke, China Rail Group, Huatai Securities, Yankuang Energy, CRRC, CICC, GWM.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 117.4% as of Apr 7th.
The average A-H premium changed by 3.5ppt week on week, led by communication services, health care, real estate and offset by utilities.
We highlight weekly changes in A-H premium for China Vanke, China Rail Group, Huatai Securities, Yankuang Energy, CRRC, CICC, GWM.


A-H Premium Weekly (Apr 7th): China Vanke, China Rail Group, Huatai Securities, Yankuang Energy

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>Considering DS-8201’s outstanding data and strong competing drugs, RC48 would probably contribute revenue to RemeGen mainly from GC and UC indications in China.Overseas revenue would be mainly from UC indication.</li>
<li>After Pfizer acquired Seagen, there are concerns that RC48 (a “Me-Worse”) may be returned by Pfizer. If it is the case, only the revenue in China market should be considered.</li>
<li>Based on 2022 annual results, we think it is time to reassess the outlook and sales forecast of RC48 and RC18, because the story has changed for RemeGen.</li>
</ul>


Considering DS-8201’s outstanding data and strong competing drugs, RC48 would probably contribute revenue to RemeGen mainly from GC and UC indications in China.Overseas revenue would be mainly from UC indication.
After Pfizer acquired Seagen, there are concerns that RC48 (a “Me-Worse”) may be returned by Pfizer. If it is the case, only the revenue in China market should be considered.
Based on 2022 annual results, we think it is time to reassess the outlook and sales forecast of RC48 and RC18, because the story has changed for RemeGen.


Remegen Co Ltd (9995.HK/688331.CH) - The Story Has Changed

<ul>
<li>Kelun-Biotech, a China-based integrated innovative biopharmaceutical company, plans to raise up to US$ 300m via a Hong Kong listing.</li>
<li>In this note, we examine the company's two core products, namely SKB264, a TROP2-ADC, and A166, a HER2-ADC. We also look at the company's management and pre-IPO investors.</li>
<li>We think the company is worth investors attention with promising candidates. Its pre-IPO investor line-up is decent.</li>
</ul>


Kelun-Biotech, a China-based integrated innovative biopharmaceutical company, plans to raise up to US$ 300m via a Hong Kong listing.
In this note, we examine the company's two core products, namely SKB264, a TROP2-ADC, and A166, a HER2-ADC. We also look at the company's management and pre-IPO investors.
We think the company is worth investors attention with promising candidates. Its pre-IPO investor line-up is decent.


Kelun-Biotech (科伦博泰) Pre-IPO: Candidates Are Differentiated and Promising

<ul>
<li>We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 115.1% as of Mar 10th.</li>
<li>The average A-H premium changed by 3.2ppt week on week, led by health care, communication services, information technology.</li>
<li>We highlight weekly changes in A-H premium for China Shenhua, PetroChina, China Southern, ZTE, CRRC, CICC.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 115.1% as of Mar 10th.
The average A-H premium changed by 3.2ppt week on week, led by health care, communication services, information technology.
We highlight weekly changes in A-H premium for China Shenhua, PetroChina, China Southern, ZTE, CRRC, CICC.


A-H Premium Weekly (Mar 10th): China Shenhua, PetroChina, China Southern, ZTE, CRRC, CICC

<ul>
<li>RemeGen’s revenue declined in 22H2, leading to lower-than-expected performance last year.However, 2022’s low base is good for the growth this year,especially when non-COVID treatment returns to normal after China reopens. </li>
<li>We analyzed our revenue forecast on RC48 and RC18. We don't think there should be big difference between the market value of RemeGen and Akeso. So, RemeGen’s valuation is attractive.</li>
<li>The sentiment in HKEX has changed this year, so the trading strategy should be different. The pullback could be a buying opportunity, especially for good biotech companies such as RemeGen.</li>
</ul>


RemeGen’s revenue declined in 22H2, leading to lower-than-expected performance last year.However, 2022’s low base is good for the growth this year,especially when non-COVID treatment returns to normal after China reopens. 
We analyzed our revenue forecast on RC48 and RC18. We don't think there should be big difference between the market value of RemeGen and Akeso. So, RemeGen’s valuation is attractive.
The sentiment in HKEX has changed this year, so the trading strategy should be different. The pullback could be a buying opportunity, especially for good biotech companies such as RemeGen.


Remegen Co Ltd (9995.HK) - There's Expectation Difference in Valuation; Trading Opportunity Occurs

China

RemeGen Co., Ltd. operates biotechnology businesses. The Company develops therapeutic antibody drugs such as antibody drug conjugates (ADC), antibody fusion proteins, monoclonal antibodies and double antibodies. RemeGen provides solutions autoimmune diseases, tumor diseases, and ophthalmic diseases.

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Remegen (688331 CH)

A-H Premium Weekly (Apr 7th): China Vanke, China Rail Group, Huatai Securities, Yankuang Energy

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Vanke, China Rail Group, Huatai Securities, Yankuang...

Ke Yan, CFA, FRM

Remegen Co Ltd (9995.HK/688331.CH) - The Story Has Changed

Due to DS8201’s outstanding data and Pfizer may return RC48 to RemeGen,the story has changed.It's time to reassess the outlook.We scale down sales...

Xinyao (Criss) Wang

Kelun-Biotech (科伦博泰) Pre-IPO: Candidates Are Differentiated and Promising

We think the Kelun-Biotech's core products are promising, both with more favorable efficacy and safety profile compared to respective benchmark...

Ke Yan, CFA, FRM

A-H Premium Weekly (Mar 10th): China Shenhua, PetroChina, China Southern, ZTE, CRRC, CICC

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Shenhua, PetroChina, China Southern, ZTE, CRRC, CICC.

Ke Yan, CFA, FRM

Remegen Co Ltd (9995.HK) - There's Expectation Difference in Valuation; Trading Opportunity Occurs

RemeGen’s weak 2022 performance leads to low base,which is good for this year's growth. Its current valuation is attractive.Since sentiment in HKEX...

Xinyao (Criss) Wang

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52-week Range

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