HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Event-Driven

Tasly Pharmaceutical Group / Event-Driven

<ul>
<li>Based on the new announcement released by CR Sanjiu, due diligence, auditing, evaluation, valuation and verification of material assets reorganization are in progress. Approvals by the SASAC/SAMR haven’t been obtained.</li>
<li>Sanjiu is now facing performance headwinds due to VBP. So, Sanjiu needs new/stable performance increments to alleviate future performance pressure, and completing the acquisition of Tasly becomes even more urgent.</li>
<li>China Resources excels in M&amp;As and has strong internal business integration capabilities.We’re optimistic about the future synergies after the merger. Valuation for Tasly is expected to reach P/E of 30.</li>
</ul>


Based on the new announcement released by CR Sanjiu, due diligence, auditing, evaluation, valuation and verification of material assets reorganization are in progress. Approvals by the SASAC/SAMR haven’t been obtained.
Sanjiu is now facing performance headwinds due to VBP. So, Sanjiu needs new/stable performance increments to alleviate future performance pressure, and completing the acquisition of Tasly becomes even more urgent.
China Resources excels in M&amp;As and has strong internal business integration capabilities.We’re optimistic about the future synergies after the merger. Valuation for Tasly is expected to reach P/E of 30.


CR Sanjiu (000999CH) To Acquire Tasly (600535CH) Update- The Deal Is Proceeding in an Orderly Manner

<ul>
<li>Since Tasly's performance growth has long stagnated and Yan Kaijing has no better way to turn the situation around, selling Tasly to SOE and cashing out becomes a good choice.</li>
<li>Upon completion of all approvals (e.g. the SASAC, SAMR, shareholders' meeting of CR Sanjiu, etc.), the deal aims to be completed in 25Q1. We think the deal will get up.</li>
<li>Tasly’s share price should be at least higher than RMB14.85/share based on the cash transfer price. Its P/E would reach 30 in the future after the integration with CR Sanjiu.</li>
</ul>


Since Tasly's performance growth has long stagnated and Yan Kaijing has no better way to turn the situation around, selling Tasly to SOE and cashing out becomes a good choice.
Upon completion of all approvals (e.g. the SASAC, SAMR, shareholders' meeting of CR Sanjiu, etc.), the deal aims to be completed in 25Q1. We think the deal will get up.
Tasly’s share price should be at least higher than RMB14.85/share based on the cash transfer price. Its P/E would reach 30 in the future after the integration with CR Sanjiu.


CR Sanjiu (000999.CH) To Acquire Tasly (600535.CH) Update - This Is Already a Done Deal

Equity Bottom-Up

China Resources Sanjiu Medical & Pharma / Equity Bottom-Up

<ul>
<li>In our view, China's biotech companies have sold their core pipelines/products too early, resulting in the loss of opportunities to gain much greater benefits in the future.</li>
<li>We summarized the impact of tariff policy implemented by the US on China's healthcare industry. Short-term headwinds are inevitable, but in long term, it helps force the industry to upgrade.</li>
<li>After Spring Festival, the acquisition progress of Tasly by CR Sanjiu has significantly accelerated – SASAC/SAMR approvals have been received. It’s possible for the deal to be completed in 25Q1.</li>
</ul>


In our view, China's biotech companies have sold their core pipelines/products too early, resulting in the loss of opportunities to gain much greater benefits in the future.
We summarized the impact of tariff policy implemented by the US on China's healthcare industry. Short-term headwinds are inevitable, but in long term, it helps force the industry to upgrade.
After Spring Festival, the acquisition progress of Tasly by CR Sanjiu has significantly accelerated – SASAC/SAMR approvals have been received. It’s possible for the deal to be completed in 25Q1.


China Healthcare Weekly (Feb.16)-Update on CR Sanjiu's Acquisition of Tasly, the Impact of US Tariff

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.

Equity Capital Markets

<ul>
<li>PegBio is looking to raise at least USD 100m via its Hong Kong IPO.</li>
<li>In this note, we looked at the company’s fundamentals, particularly its core product PB-117.</li>
<li>We think the story might look simple as a straightforward GLP-1 challenger but there are quite a number of concerns as we dig into the company’s story.</li>
</ul>


PegBio is looking to raise at least USD 100m via its Hong Kong IPO.
In this note, we looked at the company’s fundamentals, particularly its core product PB-117.
We think the story might look simple as a straightforward GLP-1 challenger but there are quite a number of concerns as we dig into the company’s story.


PegBio 派格生物 IPO: A (Supposedly) Straightforward GLP-1 Challenger Story

<ul>
<li>If product sales cannot continue to climb rapidly and dilute the costs, the final profit will gradually fade away. Therefore, Chinese biotech companies need new blockbuster products to drive growth.</li>
<li>The decline in the number of biotech companies in the future is actually “a supply side reform” that fundamentally reduces market competition, which obviously benefit those first-tier companies.</li>
<li>The acquisition of Tasly by <a href="https://www.smartkarma.com/entities/china-resources-sanju-mdcl-phrm-co-ltd" target="_blank" data-smartkarma-citation="entities:6218:1" rel="noopener">China Resources Sanjiu Medical &amp; Pharma </a>is still in progress. The deal may not be completed until 25H1 if the approval time is not enough.</li>
</ul>


If product sales cannot continue to climb rapidly and dilute the costs, the final profit will gradually fade away. Therefore, Chinese biotech companies need new blockbuster products to drive growth.
The decline in the number of biotech companies in the future is actually “a supply side reform” that fundamentally reduces market competition, which obviously benefit those first-tier companies.
The acquisition of Tasly by China Resources Sanjiu Medical &amp; Pharma is still in progress. The deal may not be completed until 25H1 if the approval time is not enough.


China Healthcare Weekly (Feb.2)- Update on CR Sanjiu's Acquisition of Tasly, China Biotech's Outlook

China

Tasly Pharmaceutical Group Co.,Ltd. manufactures drug products. The Company develops and sells traditional Chinese medicine, biological medicine, chemical medicine, and other related products. Tasly Pharmaceutical Group markets its products throughout China.

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

Tasly Pharmaceutical Group (600535 CH)

CR Sanjiu (000999CH) To Acquire Tasly (600535CH) Update- The Deal Is Proceeding in an Orderly Manner

The deal is proceeding in an orderly manner. Facing performance headwinds, CR Sanjiu urgently need new performance increments.We’re optimistic...

Xinyao (Criss) Wang

CR Sanjiu (000999.CH) To Acquire Tasly (600535.CH) Update - This Is Already a Done Deal

Tasly's stagnant growth prompts Yan Kaijing to sell it to SOE.This is a done deal, which aims to be completed in 25Q1. Tasly's valuation is...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.16)-Update on CR Sanjiu's Acquisition of Tasly, the Impact of US Tariff

China's biotech sells core assets too early, missing out on future benefits. US tariff impacts short-term, but will lead to industry upgrade. The...

Xinyao (Criss) Wang

PegBio 派格生物 IPO: A (Supposedly) Straightforward GLP-1 Challenger Story

PegBio plans to raise $100m in Hong Kong IPO, with focus on core product PB-117 as a GLP-1 challenger, but concerns arise upon closer examination...

Ke Yan, CFA, FRM

China Healthcare Weekly (Feb.2)- Update on CR Sanjiu's Acquisition of Tasly, China Biotech's Outlook

Chinese biotech companies need to develop new blockbuster products to sustain growth. A "supply side reform” benefits first-tier Biotech. The...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

CR Sanjiu (000999CH) To Acquire Tasly (600535CH) Update- The Deal Is Proceeding in an Orderly Manner

The deal is proceeding in an orderly manner. Facing performance headwinds, CR Sanjiu urgently need new performance increments.We’re optimistic...

Xinyao (Criss) Wang

CR Sanjiu (000999.CH) To Acquire Tasly (600535.CH) Update - This Is Already a Done Deal

​Tasly's stagnant growth prompts Yan Kaijing to sell it to SOE.This is a done deal, which aims to be completed in 25Q1. Tasly's valuation is...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.16)-Update on CR Sanjiu's Acquisition of Tasly, the Impact of US Tariff

​China's biotech sells core assets too early, missing out on future benefits. US tariff impacts short-term, but will lead to industry upgrade. The...

Xinyao (Criss) Wang

PegBio 派格生物 IPO: A (Supposedly) Straightforward GLP-1 Challenger Story

​PegBio plans to raise $100m in Hong Kong IPO, with focus on core product PB-117 as a GLP-1 challenger, but concerns arise upon closer examination...

Ke Yan, CFA, FRM

China Healthcare Weekly (Feb.2)- Update on CR Sanjiu's Acquisition of Tasly, China Biotech's Outlook

​Chinese biotech companies need to develop new blockbuster products to sustain growth. A "supply side reform” benefits first-tier Biotech. The...

Xinyao (Criss) Wang

Tasly's stagnant growth prompts Yan Kaijing to sell it to SOE.This is a done deal, which aims to be completed in 25Q1. Tasly's valuation is...

China's biotech sells core assets too early, missing out on future benefits. US tariff impacts short-term, but will lead to industry upgrade. The...

PegBio plans to raise $100m in Hong Kong IPO, with focus on core product PB-117 as a GLP-1 challenger, but concerns arise upon closer examination...

Chinese biotech companies need to develop new blockbuster products to sustain growth. A "supply side reform” benefits first-tier Biotech. The...