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.

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

Healthcare Equity Analyst - Emerging & Dev Markets, daaimon

Avien Pillay

Healthcare Equity Analyst - Emerging & Dev Markets

daaimon

daaimon is an independent research company focusing on healthcare and consumer sectors across developed and emerging markets. We produce insightful research which challenges conventional thinking. In particular, we look for new ideas by testing consensus forecasts and markets expectations.

Equity Bottom-Up

<ul>
<li>At a 4.6 FPE, you would expect to find some real concerns, however there are no gremlins anywhere?  </li>
<li>What you are buying is an antibiotic developer and distributor who is performing better than expected, given that the antibiotic market is thriving.</li>
<li>The extensive pipeline including GLP-1 drugs is still at an early stage/midway through development, however at this valuation, you are probably not paying for it!</li>
</ul>


At a 4.6 FPE, you would expect to find some real concerns, however there are no gremlins anywhere?  
What you are buying is an antibiotic developer and distributor who is performing better than expected, given that the antibiotic market is thriving.
The extensive pipeline including GLP-1 drugs is still at an early stage/midway through development, however at this valuation, you are probably not paying for it!


The United Laboratories Company Ltd (3933 HK) - A Sub Five PE Bargain!

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sciclone-pharmaceuticals-holdings-limited" target="_blank" data-smartkarma-citation="entities:17351:1" rel="noopener">Sciclone Pharmaceuticals (6600 HK)</a>'s scheme document is out, and the court meeting is scheduled for 19 June. The IFA considers the HK$18.80 per share offer fair and reasonable. </li>
<li>The key condition is approval by at least 75% of disinterested shareholders (&lt;10% of all disinterested shareholders rejection). No independent shareholder holds a blocking stake.</li>
<li>This is a done deal. At the last close and for the 12 July payment, the gross and annualised spread is 2.2% and 17.3%, respectively.</li>
</ul>



Sciclone Pharmaceuticals (6600 HK)'s scheme document is out, and the court meeting is scheduled for 19 June. The IFA considers the HK$18.80 per share offer fair and reasonable. 
The key condition is approval by at least 75% of disinterested shareholders (&lt;10% of all disinterested shareholders rejection). No independent shareholder holds a blocking stake.
This is a done deal. At the last close and for the 12 July payment, the gross and annualised spread is 2.2% and 17.3%, respectively.


SciClone Pharma (6600 HK): Scheme Vote on 19 June

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of October 27th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Meituan, Semiconductor Manufacturing International and CNOOC.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of October 27th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Meituan, Semiconductor Manufacturing International and CNOOC.


Hong Kong Connect Flows (Oct 27th): Meituan, Semiconductor Manufacturing International, CNOOC

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

United Laboratories / Equity Capital Markets

<ul>
<li>Last year, United Lab mainly relied on antibiotics to make money. However, after the pandemic is under control, antibiotic sales may decline. United Lab’s performance could be under pressure.</li>
<li>As a late comer, sales of United Lab’s weight management products could be lower than expected in the future under increasing competition. The veterinary drugs business requires time to cultivate.</li>
<li>RMB12 billion market value of United Lab has priced in all positive factors.There could be a pullback in valuation. RMB6 billion market value is a safe place to go long.</li>
</ul>


Last year, United Lab mainly relied on antibiotics to make money. However, after the pandemic is under control, antibiotic sales may decline. United Lab’s performance could be under pressure.
As a late comer, sales of United Lab’s weight management products could be lower than expected in the future under increasing competition. The veterinary drugs business requires time to cultivate.
RMB12 billion market value of United Lab has priced in all positive factors.There could be a pullback in valuation. RMB6 billion market value is a safe place to go long.


United Laboratories International Holdings Placement (3933.HK) - Valuation Pullback Seems Inevitable

Hong Kong

United Laboratories is a leading integrated pharmaceutical company engaged in the research, development, production, and sales of pharmaceutical products. Its diverse portfolio includes intermediate products, bulk medicines, finished products such as antibiotics and insulin, biopharmaceuticals, and animal healthcare products. The company was founded in 1990 and is headquartered in Hong Kong, with extensive manufacturing operations across China.

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United Laboratories (3933 HK)

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

The United Laboratories Company Ltd (3933 HK) - A Sub Five PE Bargain!

TUL is a sub five PE company that is growing strongly, cash generative, paying 35% of earnings as dividends, and has an extensive pipeline...

daaimon

SciClone Pharma (6600 HK): Scheme Vote on 19 June

SciClone has received a letter of support from Pentwater Capital Management to vote YES. Pentwater represents 4.64% of out. shares and 8.51% of...

Arun George

Hong Kong Connect Flows (Oct 27th): Meituan, Semiconductor Manufacturing International, CNOOC

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for Meituan, Semiconductor Manufacturing International, CNOOC.

Ke Yan, CFA, FRM

United Laboratories International Holdings Placement (3933.HK) - Valuation Pullback Seems Inevitable

United Lab is facing a performance decline when the dividend period of the pandemic has subsided. Weight management/veterinary drug businesses have...

Xinyao (Criss) Wang

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

The United Laboratories Company Ltd (3933 HK) - A Sub Five PE Bargain!

TUL is a sub five PE company that is growing strongly, cash generative, paying 35% of earnings as dividends, and has an extensive pipeline...

daaimon

SciClone Pharma (6600 HK): Scheme Vote on 19 June

SciClone has received a letter of support from Pentwater Capital Management to vote YES. Pentwater represents 4.64% of out. shares and 8.51% of...

Arun George

Hong Kong Connect Flows (Oct 27th): Meituan, Semiconductor Manufacturing International, CNOOC

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for Meituan, Semiconductor Manufacturing International, CNOOC.

Ke Yan, CFA, FRM

United Laboratories International Holdings Placement (3933.HK) - Valuation Pullback Seems Inevitable

United Lab is facing a performance decline when the dividend period of the pandemic has subsided. Weight management/veterinary drug businesses have...

Xinyao (Criss) Wang

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...