HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/remegen-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Ltd (1788976D CH) </a>is an innovative bio-pharmaceutical company dedicated to the development and commercialization of first-in-class and best-in-class biological drugs. The two core products of <a href="https://www.smartkarma.com/entities/remegen-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Ltd (1788976D CH)</a>  are RC18 and RC48 (Related article: <a href="https://www.smartkarma.com/compose/insight/45020/Pre-IPO%20RemeGen%20-%20Insights%20on%20Two%20Core%20Products%20RC18%20&amp;%20RC48.%20Read%20more:%20https:/skr.ma/sxMEQ" target="_blank" rel="noopener">Pre-IPO RemeGen - Insights on Two Core Products RC18 &amp; RC48. Read more: https://skr.ma/sxMEQ</a>). It is said that the Company is going to be listed on HKEX at a price of HK$52.1/share in November. In terms of valuation, is RemeGen overvalued? </p>

Remegen Ltd (1788976D CH) is an innovative bio-pharmaceutical company dedicated to the development and commercialization of first-in-class and best-in-class biological drugs. The two core products of Remegen Ltd (1788976D CH)  are RC18 and RC48 (Related article: Pre-IPO RemeGen - Insights on Two Core Products RC18 &amp; RC48. Read more: https://skr.ma/sxMEQ). It is said that the Company is going to be listed on HKEX at a price of HK$52.1/share in November. In terms of valuation, is RemeGen overvalued? 

A Different Angle - RemeGen Vs Akeso (Insights on Valuation)

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

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<p>Antengene Corporation, which has filed for an HKEX listing, is a pre-revenue pharmaceutical company focused a combinatory (drug combinations) to treat cancer. The company's pipeline primarily features late-stage, in-licensed products (one approved in the US) supplemented by several internally-developed, pre-clinical compounds. The management team comes from <a href="https://www.smartkarma.com/entities/celgene-corp" target="_blank" data-smartkarma-citation="entities:7410:1" rel="noopener">Celgene Corp (CELG US)</a> and other MNCs and has experience developing oncology products. The venture investors are credible; and the patent estate has a long life.</p>
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<p>This Insight provides an overview of the business, including some initial thoughts on valuation (US$1-1.5 billion), and a list of questions for management. We will provide an update in a future Insight.</p>
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Antengene Corporation, which has filed for an HKEX listing, is a pre-revenue pharmaceutical company focused a combinatory (drug combinations) to treat cancer. The company's pipeline primarily features late-stage, in-licensed products (one approved in the US) supplemented by several internally-developed, pre-clinical compounds. The management team comes from Celgene Corp (CELG US) and other MNCs and has experience developing oncology products. The venture investors are credible; and the patent estate has a long life.


This Insight provides an overview of the business, including some initial thoughts on valuation (US$1-1.5 billion), and a list of questions for management. We will provide an update in a future Insight.


APAC IPOs & Placements

Zhen Zhou, Toh

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.

<div><p><a href="https://www.smartkarma.com/entities/ant-financial-services-group" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Financial (1051260D CH)</a> aims to raise around USD35bn via a dual listing on both Hong Kong Exchange and Shanghai STAR board. </p></div><div><p>We have covered various aspects of the deal in our earlier notes, link to which are below.</p></div><div><p>In this note, we will look at past STAR market IPOs, their trading performance, and the A/H premium, to understand how Ant Group may trade on its debut.</p></div><div><div><h3>Our previous coverage on Ant Group</h3></div></div><div><ul>
<li><a href="https://www.smartkarma.com/insights/ant-financial-ipo-early-thought-what-s-new-about-the-listing-news" target="_blank" rel="noopener">Ant Financial IPO Early Thought: Understand the Fintech Empire, Growth and Risk Factors</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-financial-ipo-early-thought-understand-the-fintech-empire-growth-and-risk-factors" target="_blank" rel="noopener">Ant Financial (蚂蚁金服) IPO Early Thought: What’s New About the Listing News</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-ipo-first-take-no-1-fintech-from-all-angles" target="_blank" rel="noopener">Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-ipo-numbers-suggest-it-s-more-tech-than-financials" target="_blank" rel="noopener">Ant Group (蚂蚁集团) IPO: Numbers Suggest It’s More Tech than Financials</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-things-to-clarify-questions-to-ask-falling-fees-margins-cash-flow" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/​Questions to Ask - Falling Fees, Margins, Cash Flow</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-dual-listing-makes-early-index-inclusion-tricky" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Dual Listing Makes Early Index Inclusion Tricky</a></li>
<li><a href="https://www.smartkarma.com/insights/alipay-s-advantage-over-wechat-pay-in-physical-stores" target="_blank" rel="noopener">AliPay’s Advantage over WeChat Pay in Physical Stores</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-running-neck-and-neck-with-tencent-in-direct-financial-services" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Running Neck and Neck with Tencent in Direct Financial Services</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-impact-assessment-of-the-new-rule-for-financial-holding-companies" target="_blank" rel="noopener">Ant Group (蚂蚁集团) Pre-IPO: Impact Assessment of the New Rule for Financial Holding Companies</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-peer-comparison-payments-baffling-scale-small-tweaks-for-large-profits" target="_blank" rel="noopener">Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-peer-comparison-credittech-larger-scale-similar-growth-lower-credit-risk" target="_blank" rel="noopener">Ant Group Pre-IPO: Peer Comparison - CreditTech - Larger Scale, Similar Growth, Lower Credit Risk</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-first-stab-at-valuation" target="_blank" rel="noopener">Ant Group Pre-IPO: First Stab at Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-quick-take-on-ftse-and-msci-s-clearer-guidelines" target="_blank" rel="noopener">Ant Group Pre-IPO: Quick Take on FTSE and MSCI’s Clearer Guidelines</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-deal-structure-phip-updates-short-term-trades" target="_blank" rel="noopener">Ant Group Pre-IPO: Deal Structure, PHIP Updates, Short-Term Trades</a></li>
<li><a href="https://www.smartkarma.com/insights/ant-group-pre-ipo-updated-valuation-it-s-going-higher" target="_blank" rel="noopener">Ant Group Pre-IPO: Updated Valuation. It’s Going Higher.</a></li>
</ul></div>

Ant Financial (1051260D CH) aims to raise around USD35bn via a dual listing on both Hong Kong Exchange and Shanghai STAR board. We have covered various aspects of the deal in our earlier notes, link to which are below.In this note, we will look at past STAR market IPOs, their trading performance, and the A/H premium, to understand how Ant Group may trade on its debut.Our previous coverage on Ant Group
Ant Financial IPO Early Thought: Understand the Fintech Empire, Growth and Risk Factors
Ant Financial (蚂蚁金服) IPO Early Thought: What’s New About the Listing News
Ant Group (蚂蚁集团) IPO First-Take: No. 1 Fintech from All Angles
Ant Group (蚂蚁集团) IPO: Numbers Suggest It’s More Tech than Financials
Ant Group (蚂蚁集团) Pre-IPO: Things to Clarify/​Questions to Ask - Falling Fees, Margins, Cash Flow
Ant Group (蚂蚁集团) Pre-IPO: Dual Listing Makes Early Index Inclusion Tricky
AliPay’s Advantage over WeChat Pay in Physical Stores
Ant Group (蚂蚁集团) Running Neck and Neck with Tencent in Direct Financial Services
Ant Group (蚂蚁集团) Pre-IPO: Impact Assessment of the New Rule for Financial Holding Companies
Ant Group Pre-IPO: Peer Comparison - Payments - Baffling Scale, Small Tweaks for Large Profits
Ant Group Pre-IPO: Peer Comparison - CreditTech - Larger Scale, Similar Growth, Lower Credit Risk
Ant Group Pre-IPO: First Stab at Valuation
Ant Group Pre-IPO: Quick Take on FTSE and MSCI’s Clearer Guidelines
Ant Group Pre-IPO: Deal Structure, PHIP Updates, Short-Term Trades
Ant Group Pre-IPO: Updated Valuation. It’s Going Higher.


Ant Group IPO:  STAR Market Trading Stats, A/H Spread

Everest Medicines / Equity Capital Markets

<p>The valuation of pre-revenue biotechnology companies is, at best, an imprecise exercise. The traditional valuation tools (DCF, peer company comparisons, M&amp;A valuations) still apply, but require some modifications to reflect the unique circumstances. One tool is to consider the company's valuation in the context of the "step-up" from its last funding round to the pre-money valuation for the IPO. This Insight analyzes this data for pre-revenue biotechnology companies that have listed under the HKEX's "Biotech Chapter" and how investors can use this data to frame their analysis of these deals.</p>

The valuation of pre-revenue biotechnology companies is, at best, an imprecise exercise. The traditional valuation tools (DCF, peer company comparisons, M&amp;A valuations) still apply, but require some modifications to reflect the unique circumstances. One tool is to consider the company's valuation in the context of the "step-up" from its last funding round to the pre-money valuation for the IPO. This Insight analyzes this data for pre-revenue biotechnology companies that have listed under the HKEX's "Biotech Chapter" and how investors can use this data to frame their analysis of these deals.

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>In <em><a href="https://skr.ma/Bx5Bh" target="_blank" rel="noopener">StubWorld: Evergrande Auto (708 HK) Tapping All &amp; Sundry; ASM Pacific Going Private?</a></em>, I discussed <a href="https://www.smartkarma.com/entities/evergrande-health-industry-group-ltd" target="_blank" data-smartkarma-citation="entities:713:1" rel="noopener">Evergrande Auto (708 HK)</a>'s (also officially known as China Evergrande New Energy Vehicle Group) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0918/2020091800129.pdf" target="_blank" rel="noopener">announcement</a> of an intention to list on Shanghai's Sci-Tech Board (also known as the "Star Market").</p>
<p>A notice for the EGM has now been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0925/2020092501950.pdf" target="_blank" rel="noopener">despatched</a>. The EGM will be held on the 20 October. Pricing has yet to be determined for the listing, but the announcement states:</p>
<blockquote>
<p>The offer price shall not be lower than the closing price of the Hong Kong Shares immediately prior to the date of the Board meeting approving the Proposed Issue of RMB Shares, i.e. HK$25.00 per Share.</p>
</blockquote>
<p>Shares are down ~20% since that Board meeting - after taking into account today's 20% gain.  </p>
<p>Applying the timeline for a handful of precedent RMB issuances,  Evergrande Auto's listing on the STAR board could potentially take place in late Jan/early Feb 2021. </p>
<p>As usual, more below the fold.</p>
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In StubWorld: Evergrande Auto (708 HK) Tapping All &amp; Sundry; ASM Pacific Going Private?, I discussed Evergrande Auto (708 HK)'s (also officially known as China Evergrande New Energy Vehicle Group) announcement of an intention to list on Shanghai's Sci-Tech Board (also known as the "Star Market").
A notice for the EGM has now been despatched. The EGM will be held on the 20 October. Pricing has yet to be determined for the listing, but the announcement states:

The offer price shall not be lower than the closing price of the Hong Kong Shares immediately prior to the date of the Board meeting approving the Proposed Issue of RMB Shares, i.e. HK$25.00 per Share.

Shares are down ~20% since that Board meeting - after taking into account today's 20% gain.  
Applying the timeline for a handful of precedent RMB issuances,  Evergrande Auto's listing on the STAR board could potentially take place in late Jan/early Feb 2021. 
As usual, more below the fold.


Evergrande Auto (708 HK): EGM Ahead Of Star Market Listing

China

Shanghai Junshi Biosciences Co., Ltd. operates as a biopharmaceutical company. The Company develops and sells small molecule drugs, antibody drug conjugates, and other products. Shanghai Junshi Biosciences markets its products worldwide.

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Shanghai Junshi Biosciences (1877 HK)

A Different Angle - RemeGen Vs Akeso (Insights on Valuation)

In this article, by comparing RemeGen and Akeso's pipelines from different aspects to provide referable and helpful insights about the valuation...

Xinyao (Criss) Wang

Antengene: Gunning To Move Up in Line

This Insight provides an in-depth review of pre-revenue biotechnology Antegene that plans to list on the HKEX. We discuss the pipeline, market...

Kemp Dolliver, CFA

Ant Group IPO: STAR Market Trading Stats, A/H Spread

Ant Group aims to raise around USD 35bn via a dual listing on HKEX and STAR board. In this note, we will look at past STAR market IPOs, their...

Zhen Zhou, Toh

What HKEX Biotech "Step-Ups" Can Tell Us

This Insight explains the concept of valuation "step-ups" for pre-revenue biotechnology companies listing on the HKEX and how to use this data to...

Kemp Dolliver, CFA

Evergrande Auto (708 HK): EGM Ahead Of Star Market Listing

This week in StubWorld ... Three days after raising HK$4bn via a top-up placement, Evergrande Auto (708 HK) ("EA") also officially known...

David Blennerhassett

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