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 analyse the changes of A-H premium on 149 stocks over the last week. The average A-H premium was 87.8% as of Apr 25th.</li>
<li>The average A-H premium changed by -2.7ppt week-on-week, led by health care, financials, energy and offset by communication services.</li>
<li>We highlight weekly changes in A-H premium for Shanghai Petrochemical, Datang Intl Power Gen, Beigene, Maanshan Iron &amp; Steel.</li>
</ul>


We analyse the changes of A-H premium on 149 stocks over the last week. The average A-H premium was 87.8% as of Apr 25th.
The average A-H premium changed by -2.7ppt week-on-week, led by health care, financials, energy and offset by communication services.
We highlight weekly changes in A-H premium for Shanghai Petrochemical, Datang Intl Power Gen, Beigene, Maanshan Iron &amp; Steel.


A-H Premium Weekly (Apr 25th): Shanghai Petrochemical, Datang Intl Power Gen, Beigene

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>Anhui Province will lead the first National biological drugs VBP in 2025. However, we are optimistic because we think the whole industry will start to bottom out from here.</li>
<li>EVER001 has the potential to become “a game changer” for membranous nephropathy treatment. We are waiting for Everest Medicines to reach licensing cooperation based on EVER001 in the future.</li>
<li>The real motivation for the Disposals of WuXi XDC shares could be to boost WuXi AppTec's stock price first so that the management can again reduce positions at high level.</li>
</ul>


Anhui Province will lead the first National biological drugs VBP in 2025. However, we are optimistic because we think the whole industry will start to bottom out from here.
EVER001 has the potential to become “a game changer” for membranous nephropathy treatment. We are waiting for Everest Medicines to reach licensing cooperation based on EVER001 in the future.
The real motivation for the Disposals of WuXi XDC shares could be to boost WuXi AppTec's stock price first so that the management can again reduce positions at high level.


China Healthcare Weekly (Jan.19)- WuXi AppTec Sells Shares in WuXi XDC, National Biological Drug VBP

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-junshi-biosciences-co-838d3eb3-3e0d-45f0-a9c5-ab0764709221" target="_blank" data-smartkarma-citation="entities:27760:1" rel="noopener">Shanghai Junshi Biosciences (1877 HK)</a> reported 60% revenue growth for toripalimab during 9M24 in China. All 10 indications of the drug are now included in China’s NRDL.</li>
<li>Partner launched toripalimab in U.S. in January 2024 and reported ~$19M revenue for the full-year. The drug is estimated to have U.S. market opportunity of $200M for the approved indication.</li>
<li>Geopolitical tension remains a major overhang and may continue to be a concern for toripalimab’s further indication expansion approvals in the U.S.</li>
</ul>



Shanghai Junshi Biosciences (1877 HK) reported 60% revenue growth for toripalimab during 9M24 in China. All 10 indications of the drug are now included in China’s NRDL.
Partner launched toripalimab in U.S. in January 2024 and reported ~$19M revenue for the full-year. The drug is estimated to have U.S. market opportunity of $200M for the approved indication.
Geopolitical tension remains a major overhang and may continue to be a concern for toripalimab’s further indication expansion approvals in the U.S.


Shanghai Junshi Bioscience (1877 HK): Key Drug on High Trajectory; Geopolitical Tension Spoils Party

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Ahead of <strong><a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a></strong>'s EGM and Court Meeting on the 22 January, the focus has shifted to Loyal Valley Capital (LVC)'s continued buying in the market.</li>
<li>After the close of market last Friday, LVC held <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0110/2025011000368.pdf" target="_blank" rel="noopener">7.8295%</a>, above the 7.826% blocking stake. That % was as at 9th January. I assume LVC are still buying.</li>
<li>Yet if you analyse how LVC has traded in and out of Henlius, they are not in it to block. They're in for the back-end scrip option.  </li>
</ul>


Ahead of Shanghai Henlius Biotech (2696 HK)'s EGM and Court Meeting on the 22 January, the focus has shifted to Loyal Valley Capital (LVC)'s continued buying in the market.
After the close of market last Friday, LVC held 7.8295%, above the 7.826% blocking stake. That % was as at 9th January. I assume LVC are still buying.
Yet if you analyse how LVC has traded in and out of Henlius, they are not in it to block. They're in for the back-end scrip option.  


Henlius (2696 HK): LVC Won't Block. Buy Here & On Weakness

<ul>
<li>After <strong><a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a></strong> secured NDRC approval on the 22nd Nov; fulfilled pre-cons on the 16th December, the Circular was dispatched last night, the 22nd December. </li>
<li>The EGM/H-share class meeting will take place on the 22nd January, one day past my estimate. Settlement should be on ore around the 18th Feb, a week beyond my estimate. </li>
<li>Trading at a gross/annualised spread off 2.9%/20.3%. Still attractive here.</li>
</ul>


After Shanghai Henlius Biotech (2696 HK) secured NDRC approval on the 22nd Nov; fulfilled pre-cons on the 16th December, the Circular was dispatched last night, the 22nd December. 
The EGM/H-share class meeting will take place on the 22nd January, one day past my estimate. Settlement should be on ore around the 18th Feb, a week beyond my estimate. 
Trading at a gross/annualised spread off 2.9%/20.3%. Still attractive here.


Henlius (2696 HK): Circ Out. 22nd Jan H-Class Meeting

China

Junshi Biosciences is an innovation-driven biopharmaceutical company focused on the discovery, development, clinical research, and commercialization of innovative therapeutics. Its key products, including toripalimab injection, Etesevimab, and adalimumab injection, are used to treat malignant tumors, autoimmune diseases, chronic metabolic diseases, nervous system diseases, and infectious diseases. The company was founded in December 2012 and is headquartered in Shanghai, China.

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Junshi Biosciences (1877 HK)

A-H Premium Weekly (Apr 25th): Shanghai Petrochemical, Datang Intl Power Gen, Beigene

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Shanghai Petrochemical, Datang Intl Power Gen, Beigene,...

Ke Yan, CFA, FRM

China Healthcare Weekly (Jan.19)- WuXi AppTec Sells Shares in WuXi XDC, National Biological Drug VBP

Anhui to lead the national biological drug VBP, industry expected to rebound.EVER001 may be game changer for MN.Disposal of WuXi XDC shares may...

Xinyao (Criss) Wang

Shanghai Junshi Bioscience (1877 HK): Key Drug on High Trajectory; Geopolitical Tension Spoils Party

Shanghai Junshi Biosciences sees strong revenue growth for toripalimab in China. While US launch of the drug was in-line, geopolitical tensions...

Tina Banerjee

Henlius (2696 HK): LVC Won't Block. Buy Here & On Weakness

Trading wide at a 11.8% gross spread (using today's opening print) with expected payment around the third week of Feb. That's a buy here. I'd pay...

David Blennerhassett

Henlius (2696 HK): Circ Out. 22nd Jan H-Class Meeting

Currently at a 2.9% gross spread with expected payment around the third week of Feb. I'd pay up to HK$24.10/share for a 15% annualised spread.

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A-H Premium Weekly (Apr 25th): Shanghai Petrochemical, Datang Intl Power Gen, Beigene

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Shanghai Petrochemical, Datang Intl Power Gen, Beigene,...

Ke Yan, CFA, FRM

China Healthcare Weekly (Jan.19)- WuXi AppTec Sells Shares in WuXi XDC, National Biological Drug VBP

​Anhui to lead the national biological drug VBP, industry expected to rebound.EVER001 may be game changer for MN.Disposal of WuXi XDC shares may...

Xinyao (Criss) Wang

Shanghai Junshi Bioscience (1877 HK): Key Drug on High Trajectory; Geopolitical Tension Spoils Party

​Shanghai Junshi Biosciences sees strong revenue growth for toripalimab in China. While US launch of the drug was in-line, geopolitical tensions...

Tina Banerjee

Henlius (2696 HK): LVC Won't Block. Buy Here & On Weakness

Trading wide at a 11.8% gross spread (using today's opening print) with expected payment around the third week of Feb. That's a buy here. I'd pay...

David Blennerhassett

Henlius (2696 HK): Circ Out. 22nd Jan H-Class Meeting

Currently at a 2.9% gross spread with expected payment around the third week of Feb. I'd pay up to HK$24.10/share for a 15% annualised spread.

David Blennerhassett

Anhui to lead the national biological drug VBP, industry expected to rebound.EVER001 may be game changer for MN.Disposal of WuXi XDC shares may...

Shanghai Junshi Biosciences sees strong revenue growth for toripalimab in China. While US launch of the drug was in-line, geopolitical tensions...