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 162 stocks over the last week. The average A-H premium was 69.1% as of Jan 2nd.</li>
<li>The average A-H premium changed by 1.3ppt week-on-week, led by consumer staples, materials, health care and offset by consumer discretionary.</li>
<li>We highlight weekly changes in A-H premium for Goldwind, Jiangxi Copper, Fudan Microelectronics, Guangzhou Automobile, Zijin Mining, Cmoc.</li>
</ul>


We analyse the changes of A-H premium on 162 stocks over the last week. The average A-H premium was 69.1% as of Jan 2nd.
The average A-H premium changed by 1.3ppt week-on-week, led by consumer staples, materials, health care and offset by consumer discretionary.
We highlight weekly changes in A-H premium for Goldwind, Jiangxi Copper, Fudan Microelectronics, Guangzhou Automobile, Zijin Mining, Cmoc.


A-H Premium Weekly (Jan 2nd): Goldwind, Jiangxi Copper, Fudan Microelectronics, Guangzhou Automobile

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Guangdong Rong Tai Pharmaceutical / Equity Capital Markets

Guangdong Rong Tai Pharmaceutical (RTP HK)

<ul>
<li>As a digital circulation platform, Rong Tai’s business essence is a “middleman”, with limited added value and a naturally lower profit margin than that of R&amp;D-oriented pharmaceutical companies.</li>
<li>Rong Tai’s profitability is disappointing. It’s difficult for the Company to bring decent returns to investors. This actually reflects from the side the flaws of Rong Tai's business model/channel resources.</li>
<li>Reasonable valuation is RMB1.6bn, lower than post-money valuation after Series B Financing(RMB2.7bn). If market sentiment is pessimistic at the time of IPO, there could be big downward space for valuation.</li>
</ul>


As a digital circulation platform, Rong Tai’s business essence is a “middleman”, with limited added value and a naturally lower profit margin than that of R&amp;D-oriented pharmaceutical companies.
Rong Tai’s profitability is disappointing. It’s difficult for the Company to bring decent returns to investors. This actually reflects from the side the flaws of Rong Tai's business model/channel resources.
Reasonable valuation is RMB1.6bn, lower than post-money valuation after Series B Financing(RMB2.7bn). If market sentiment is pessimistic at the time of IPO, there could be big downward space for valuation.


Pre-IPO Guangdong Rong Tai Pharmaceutical - Low Profitability Is a Pain Point

<ul>
<li>We analyse the changes of A-H premium on 160 stocks over the last week. The average A-H premium was 62.5% as of Dec 5th.</li>
<li>The average A-H premium changed by -0.6ppt week-on-week, led by communication services, energy, consumer discretionary and offset by consumer staples, information technology.</li>
<li>We highlight weekly changes in A-H premium for Jiangsu Expressway, China Vanke, Fibocom Wireless, Fuyao Glass.</li>
</ul>


We analyse the changes of A-H premium on 160 stocks over the last week. The average A-H premium was 62.5% as of Dec 5th.
The average A-H premium changed by -0.6ppt week-on-week, led by communication services, energy, consumer discretionary and offset by consumer staples, information technology.
We highlight weekly changes in A-H premium for Jiangsu Expressway, China Vanke, Fibocom Wireless, Fuyao Glass.


A-H Premium Weekly (Dec 5th): Jiangsu Expressway, China Vanke, Fibocom Wireless, Fuyao Glass

Immvira Bioscience / Equity Capital Markets

<ul>
<li>The virus carrier process is complex.Cost of MVR-T3011 large-scale production is higher than antibody drugs.The awareness of oncolytic virus among doctors is insufficient. Market competition in engineered exosome is fierce.</li>
<li>As a clinical stage company, commercialization of its products is likely to seek business partners through a license-out model. So, how much sales/profit belongs to Immvira remains to be seen.</li>
<li>We think a neutral scenario is that valuation could be about US$10-1.2 billion. However, if the clinical data falls short of expectations, the valuation may be halved to US$500 million.</li>
</ul>


The virus carrier process is complex.Cost of MVR-T3011 large-scale production is higher than antibody drugs.The awareness of oncolytic virus among doctors is insufficient. Market competition in engineered exosome is fierce.
As a clinical stage company, commercialization of its products is likely to seek business partners through a license-out model. So, how much sales/profit belongs to Immvira remains to be seen.
We think a neutral scenario is that valuation could be about US$10-1.2 billion. However, if the clinical data falls short of expectations, the valuation may be halved to US$500 million.


Pre-IPO Immvira Bioscience - The Pipeline, the Concerns and the Valuation

Equity Bottom-Up

Duality Biotherapeutics / Equity Bottom-Up

<ul>
<li>Trump said he will place import taxes on 100% of pharmaceutical drugs, which will begin on Oct.1. Below, we shared our views on this new policy.</li>
<li>Some companies continue to repurchase/increase their holdings despite the industry's significant rise this year, indicating that major shareholders truly have confidence in the outlook. We specifically listed these companies.</li>
<li>The fluctuations in Duality’s stock price are obviously driven by capital after being included in HK Stock Connect. we suggest that investors pay attention to risks as Duality faces correction.</li>
</ul>


Trump said he will place import taxes on 100% of pharmaceutical drugs, which will begin on Oct.1. Below, we shared our views on this new policy.
Some companies continue to repurchase/increase their holdings despite the industry's significant rise this year, indicating that major shareholders truly have confidence in the outlook. We specifically listed these companies.
The fluctuations in Duality’s stock price are obviously driven by capital after being included in HK Stock Connect. we suggest that investors pay attention to risks as Duality faces correction.


China Healthcare Weekly (Sep.28) - Trump’s Pharma Tariff, Companies Increase Their Holdings, Duality

China

Shanghai Pharmaceuticals Holding Co., Ltd manufactures pharmaceuticals. The Company develops and sells chemical and Chinese traditional medicines, healthcare products, and other products. Shanghai Pharmaceuticals Holding markets its products throughout China.

Shanghai Pharmaceuticals Holding (601607 CH)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Shanghai Pharmaceuticals Holding (601607 CH)

A-H Premium Weekly (Jan 2nd): Goldwind, Jiangxi Copper, Fudan Microelectronics, Guangzhou Automobile

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Goldwind, Jiangxi Copper, Fudan Microelectronics, Guangzhou...

Ke Yan, CFA, FRM

Pre-IPO Guangdong Rong Tai Pharmaceutical - Low Profitability Is a Pain Point

Rong Tai's digital circulation platform operates as a "middleman" with limited added value,leading to low profitability/potential downward...

Xinyao (Criss) Wang

A-H Premium Weekly (Dec 5th): Jiangsu Expressway, China Vanke, Fibocom Wireless, Fuyao Glass

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Jiangsu Expressway, China Vanke, Fibocom Wireless, Fuyao Glass.

Ke Yan, CFA, FRM

Pre-IPO Immvira Bioscience - The Pipeline, the Concerns and the Valuation

ImmVira faces challenges in commercializing pipelines due to high production costs and market competition, with valuation potentially ranging from...

Xinyao (Criss) Wang

China Healthcare Weekly (Sep.28) - Trump’s Pharma Tariff, Companies Increase Their Holdings, Duality

Trump’s 100% pharma tariff starting Oct. 1. Major shareholders of some companies increased their holdings at high prices. Fluctuations in Duality’s...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

A-H Premium Weekly (Jan 2nd): Goldwind, Jiangxi Copper, Fudan Microelectronics, Guangzhou Automobile

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Goldwind, Jiangxi Copper, Fudan Microelectronics, Guangzhou...

Ke Yan, CFA, FRM

Pre-IPO Guangdong Rong Tai Pharmaceutical - Low Profitability Is a Pain Point

​Rong Tai's digital circulation platform operates as a "middleman" with limited added value,leading to low profitability/potential downward...

Xinyao (Criss) Wang

A-H Premium Weekly (Dec 5th): Jiangsu Expressway, China Vanke, Fibocom Wireless, Fuyao Glass

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Jiangsu Expressway, China Vanke, Fibocom Wireless, Fuyao Glass.

Ke Yan, CFA, FRM

Pre-IPO Immvira Bioscience - The Pipeline, the Concerns and the Valuation

​ImmVira faces challenges in commercializing pipelines due to high production costs and market competition, with valuation potentially ranging from...

Xinyao (Criss) Wang

China Healthcare Weekly (Sep.28) - Trump’s Pharma Tariff, Companies Increase Their Holdings, Duality

Trump’s 100% pharma tariff starting Oct. 1. Major shareholders of some companies increased their holdings at high prices. Fluctuations in Duality’s...

Xinyao (Criss) Wang

Rong Tai's digital circulation platform operates as a "middleman" with limited added value,leading to low profitability/potential downward...

ImmVira faces challenges in commercializing pipelines due to high production costs and market competition, with valuation potentially ranging from...