External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Shanghai Henlius Biotech / Equity Bottom-Up

<ul><li>HLX43, a global leading PD-L1 ADC targeting broad indications.</li><li>As one of the most advanced PD-L1 ADCs globally, HLX43 has demonstrated encouraging and competitive early efficacy in clinical trials for IO-resistant NSCLC patients.</li><li>Among heavily pre-treated patients (median of three prior lines), HLX43 2mg/kg monotherapy achieved an ORR of 38.1% and an mPFS of 5.4 months. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HLX43, a global leading PD-L1 ADC targeting broad indications.As one of the most advanced PD-L1 ADCs globally, HLX43 has demonstrated encouraging and competitive early efficacy in clinical trials for IO-resistant NSCLC patients.Among heavily pre-treated patients (median of three prior lines), HLX43 2mg/kg monotherapy achieved an ORR of 38.1% and an mPFS of 5.4 months. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Henlius Biotech (2696 HK) - Large Potential in Innovative Pipelines

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In an unusual move, the Offeror, PAG, and 59.42% shareholder of <a href="https://www.smartkarma.com/entities/shandong-fengxiang-co-ltd-h" target="_blank" data-smartkarma-citation="entities:29164:1" rel="noopener">Shandong Fengxiang (9977 HK)</a>, has opted not to provide a scrip alternative, despite satisfying conditions to do so. </li>
<li>The scrip option condition - not less than 0.5% of shares out expressing interest - was satisfied on the 12th May. Therefore at least 7.9mn shares got snubbed.</li>
<li>Evidently PAG reckons the support for the scrip is not worth the trouble. Nor critical in mass to disrupt the Offer. </li>
</ul>


In an unusual move, the Offeror, PAG, and 59.42% shareholder of Shandong Fengxiang (9977 HK), has opted not to provide a scrip alternative, despite satisfying conditions to do so. 
The scrip option condition - not less than 0.5% of shares out expressing interest - was satisfied on the 12th May. Therefore at least 7.9mn shares got snubbed.
Evidently PAG reckons the support for the scrip is not worth the trouble. Nor critical in mass to disrupt the Offer. 


Fengxiang (9977 HK): PAG Invites Dissent After Scrapping Scrip Alternative

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>Tam Jai's performance in recent years has been consistently below expectations. Its fundamentals have undergone negative changes after IPO. Consumers’ preference change may disrupt Tam Jai's business model.</li>
<li>Based on our forecast and the Cancellation Price of HK$1.58/share, P/E will be higher than the industry average. Considering the low trading liquidity and concerns on outlook, HK$1.58/share is acceptable.</li>
<li>The fundamentals/prospects of Tam Jai are different from the situation of Henlius' privatization.We recommend investors not reject the privatization easily because internationalization won’t bring significant positive changes in short term.</li>
</ul>


Tam Jai's performance in recent years has been consistently below expectations. Its fundamentals have undergone negative changes after IPO. Consumers’ preference change may disrupt Tam Jai's business model.
Based on our forecast and the Cancellation Price of HK$1.58/share, P/E will be higher than the industry average. Considering the low trading liquidity and concerns on outlook, HK$1.58/share is acceptable.
The fundamentals/prospects of Tam Jai are different from the situation of Henlius' privatization.We recommend investors not reject the privatization easily because internationalization won’t bring significant positive changes in short term.


Tam Jai International (2217 HK) Privatization - The Offer Price Is Good

<ul>
<li>After <a href="https://www.smartkarma.com/entities/goldlion-holdings-ltd" target="_blank" data-smartkarma-citation="entities:12359:1" rel="noopener">Goldlion (533 HK)</a>'s spectacular Scheme fail, <a href="https://www.smartkarma.com/entities/soundwill-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19318:1" rel="noopener">Soundwill  (878 HK)</a> appeared destined to be the next failure as shares dipped hard ahead of the Scheme vote. And fail it did.</li>
<li>Just like for Goldlion, Soundwill's Offer was clearly light. The counter-argument was that terms were, arguably, as good as it gets. And no competing Offer would emerge. Minorities voiced otherwise.</li>
<li>Hong Kong has been the proverbial graveyard for arb deals of late. However, in a positive sense, minorities in Goldlion and Soundwill simply rejected opportunistic Offers. </li>
</ul>


After Goldlion (533 HK)'s spectacular Scheme fail, Soundwill  (878 HK) appeared destined to be the next failure as shares dipped hard ahead of the Scheme vote. And fail it did.
Just like for Goldlion, Soundwill's Offer was clearly light. The counter-argument was that terms were, arguably, as good as it gets. And no competing Offer would emerge. Minorities voiced otherwise.
Hong Kong has been the proverbial graveyard for arb deals of late. However, in a positive sense, minorities in Goldlion and Soundwill simply rejected opportunistic Offers. 


Soundwill (878 HK): Thoughts On The Latest Scheme Fail

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/soundwill-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19318:1" rel="noopener">Soundwill Holdings (878 HK)</a> shareholders have voted against the Foo family’s HK$8.50 per share offer. The minority participation rate was high, and the NO vote comfortably failed the value test.</li>
<li>Unlike the <a href="https://www.smartkarma.com/entities/goldlion-holdings-ltd" target="_blank" data-smartkarma-citation="entities:12359:1" rel="noopener">Goldlion Holdings (533 HK)</a> deal break, the price action over the last three days pointed to a deal break. Like previous deal breaks, this one offers hard lessons.</li>
<li>Soundwill has the fourth-highest premium of the pre-deal break price to the undisturbed price compared to previous deal breaks. My estimated deal-break price is HK$5.63, 13.2% below the last close.</li>
</ul>



Soundwill Holdings (878 HK) shareholders have voted against the Foo family’s HK$8.50 per share offer. The minority participation rate was high, and the NO vote comfortably failed the value test.
Unlike the Goldlion Holdings (533 HK) deal break, the price action over the last three days pointed to a deal break. Like previous deal breaks, this one offers hard lessons.
Soundwill has the fourth-highest premium of the pre-deal break price to the undisturbed price compared to previous deal breaks. My estimated deal-break price is HK$5.63, 13.2% below the last close.


Soundwill Holdings (878 HK): Hard Lessons from Another HK Arbageddon

China

Shanghai Henlius Biotech is a global, innovation-driven biopharmaceutical company focused on delivering high-quality, affordable biologic therapies for oncology, autoimmune diseases, and ophthalmic diseases. The company is engaged in biopharmaceutical research and development, manufacturing, and commercialization, offering products such as the biosimilars HANLIKANG (rituximab), HANQUYOU (trastuzumab), HANDAYUAN (adalimumab), and HANBEITAI (bevacizumab), as well as the innovative biologic HANSIZHUANG (serplulimab). Headquartered in Shanghai, China, the company was founded in 2010.

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Shanghai Henlius Biotech (2696 HK)

Henlius Biotech (2696 HK) - Large Potential in Innovative Pipelines

As one of the most advanced PD-L1 ADCs globally, HLX43 has demonstrated encouraging and competitive early efficacy in clinical trials for IO...

CMB International

Fengxiang (9977 HK): PAG Invites Dissent After Scrapping Scrip Alternative

Evidently PAG reckons the support for the scrip is not worth the trouble. Nor critical in mass to disrupt the Offer. If illiquid arbs are your...

David Blennerhassett

Tam Jai International (2217 HK) Privatization - The Offer Price Is Good

The Scheme Doc is out. Since the Cancellation Price of HK$1.58 represents a premium of 75.56% over the undisturbed price of HK$0.90 and a premium...

Xinyao (Criss) Wang

Soundwill (878 HK): Thoughts On The Latest Scheme Fail

The outcome for Soundwill was not a big surprise. However, expect current and future illiquid small-cap arbs to trade wide(r) if there is a whiff...

David Blennerhassett

Soundwill Holdings (878 HK): Hard Lessons from Another HK Arbageddon

Like previous deal breaks, this one offers hard lessons and suggests that HK merger arb is increasingly fraught with risk. My estimated deal-break...

Arun George

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