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 analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 30th.</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 Tencent (700 HK), Xiaomi Corporation (1810 HK).</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 30th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Tencent (700 HK), Xiaomi Corporation (1810 HK).


Hong Kong Connect Flows (Aug 30th): Tencent, Xiaomi Corporation

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>WuXi XDC’s YoY revenue growth rate fell to double-digit while it was kept triple-digit growth rate in previous periods. How much revenue generated from backlog isn’t within WuXi XDC’s control. </li>
<li>The significance of healthy growth of the global ADC market is that the good story of ADC CXO is able to continue. So, WuXi XDC’s short-term performance growth is guaranteed.</li>
<li>The establishment of an independent biopharmaceutical supply chain based on US national security concerns is inevitable. So, WuXi XDC’s stock price performance is more influenced by geopolitical conflicts than fundamentals. </li>
</ul>


WuXi XDC’s YoY revenue growth rate fell to double-digit while it was kept triple-digit growth rate in previous periods. How much revenue generated from backlog isn’t within WuXi XDC’s control. 
The significance of healthy growth of the global ADC market is that the good story of ADC CXO is able to continue. So, WuXi XDC’s short-term performance growth is guaranteed.
The establishment of an independent biopharmaceutical supply chain based on US national security concerns is inevitable. So, WuXi XDC’s stock price performance is more influenced by geopolitical conflicts than fundamentals. 


WuXi XDC Cayman (2268.HK) 24H1- High Growth of ADC Market Ensures Investment Logic, but Risks Remain

<ul>
<li>WuXi Bio's 24H1 performance is disappointing. Since XDC has become new growth driver for WuXi Bio, why continue to invest in WuXi Bio instead of directly investing in WuXi XDC?</li>
<li>Production capacity expansion is aggressive, with high personnel salaries/cost pressure. Without sustained growth in high-margin orders, WuXi Bio's profitability will continue to decline. Gross margin may not bounce back quickly.</li>
<li>The mid-to-late stage order increment in US would be dominated by Japanese/Korean CXO. Without a definitive long-term logic, valuation cannot return to previous highs. Any rebound is difficult to sustain.</li>
</ul>


WuXi Bio's 24H1 performance is disappointing. Since XDC has become new growth driver for WuXi Bio, why continue to invest in WuXi Bio instead of directly investing in WuXi XDC?
Production capacity expansion is aggressive, with high personnel salaries/cost pressure. Without sustained growth in high-margin orders, WuXi Bio's profitability will continue to decline. Gross margin may not bounce back quickly.
The mid-to-late stage order increment in US would be dominated by Japanese/Korean CXO. Without a definitive long-term logic, valuation cannot return to previous highs. Any rebound is difficult to sustain.


Wuxi Biologics (2269.HK) 24H1 - The Best Semi-Annual Report for the Next Three Years?

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 23rd.</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 Tencent (700 HK), China Mobile (941 HK).</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 23rd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Tencent (700 HK), China Mobile (941 HK).


Hong Kong Connect Flows (Aug 23rd): Tencent, China Mobile

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 16th.</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 Tencent (700 HK) , China Mobile (941 HK) .</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 16th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Tencent (700 HK) , China Mobile (941 HK) .


Hong Kong Connect Flows (Aug 16th): Tencent, China Mobile

China

WuXi XDC is a leading global Contract Research, Development, and Manufacturing Organization (CRDMO) specializing in antibody-drug conjugates (ADCs) and other bioconjugates. The company offers integrated, end-to-end services for the discovery, process development, and GMP manufacturing of bioconjugates, monoclonal antibody intermediates, and payload-linkers. WuXi XDC was founded in 2013 and is headquartered in Wuxi, China.

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

WuXi XDC (2268 HK)

Hong Kong Connect Flows (Aug 30th): Tencent, Xiaomi Corporation

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent (700 HK), Xiaomi Corporation (1810 HK).

Ke Yan, CFA, FRM

WuXi XDC Cayman (2268.HK) 24H1- High Growth of ADC Market Ensures Investment Logic, but Risks Remain

Global ADC market growth ensures short-term performance stability,but WuXi XDC faces challenges due to factors beyond its control.Geopolitical...

Xinyao (Criss) Wang

Wuxi Biologics (2269.HK) 24H1 - The Best Semi-Annual Report for the Next Three Years?

XDC is the only growth momentum for WuXi Bio. Aggressive expansion/high cost raise concerns about profitability.Facing Japanese/Korean CXO, WuXi...

Xinyao (Criss) Wang

Hong Kong Connect Flows (Aug 23rd): Tencent, China Mobile

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent (700 HK), China Mobile (941 HK).

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Aug 16th): Tencent, China Mobile

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent (700 HK) , China Mobile (941 HK) .

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hong Kong Connect Flows (Aug 30th): Tencent, Xiaomi Corporation

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent (700 HK), Xiaomi Corporation (1810 HK).

Ke Yan, CFA, FRM

WuXi XDC Cayman (2268.HK) 24H1- High Growth of ADC Market Ensures Investment Logic, but Risks Remain

​Global ADC market growth ensures short-term performance stability,but WuXi XDC faces challenges due to factors beyond its control.Geopolitical...

Xinyao (Criss) Wang

Wuxi Biologics (2269.HK) 24H1 - The Best Semi-Annual Report for the Next Three Years?

XDC is the only growth momentum for WuXi Bio. Aggressive expansion/high cost raise concerns about profitability.Facing Japanese/Korean CXO, WuXi...

Xinyao (Criss) Wang

Hong Kong Connect Flows (Aug 23rd): Tencent, China Mobile

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent (700 HK), China Mobile (941 HK).

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Aug 16th): Tencent, China Mobile

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent (700 HK) , China Mobile (941 HK) .

Ke Yan, CFA, FRM

Global ADC market growth ensures short-term performance stability,but WuXi XDC faces challenges due to factors beyond its control.Geopolitical...