Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>HK Alpha portfolio gained 3.45% in August, outperforming its benchmark by 2.67%.  Since inception, the portfolio has outperformed HK indexes by 60% to 84%. HK ALPHA is up 14.35% YTD.</li>
<li>The Sharpe ratio stands at 1.21, compared with a benchmark of 0.68 since inception.  This higher Sharpe ratio is driven by excess alpha, which represents more than 50% of returns.</li>
<li>The portfolio gained in the healthcare, industrial, and technology sectors in August, while utilities and telecom exposure dragged on performance.</li>
</ul>


HK Alpha portfolio gained 3.45% in August, outperforming its benchmark by 2.67%.  Since inception, the portfolio has outperformed HK indexes by 60% to 84%. HK ALPHA is up 14.35% YTD.
The Sharpe ratio stands at 1.21, compared with a benchmark of 0.68 since inception.  This higher Sharpe ratio is driven by excess alpha, which represents more than 50% of returns.
The portfolio gained in the healthcare, industrial, and technology sectors in August, while utilities and telecom exposure dragged on performance.


Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>Henlius Biotech is collaborating with Sandoz for commercialization of up to 10 biosimilars in ~$322M deal. Wuxi XDC achieved GMP release of its antibody bioconjugates production line at Singapore site.</li>
<li>Chugai Pharmaceutical signed an exclusive license agreement with GSK for the anti-dengue virus antibody AID351. Daiichi Sankyo’s Enhertu demonstrated PFS improvement as first-line treatment of NSCLC in Phase 3 trial.</li>
<li>Celltrion has launched IV formulation of Steqeyma in Japan. Eubiologics submitted an IND to the MFDS for domestic Phase 1 trial for its Alzheimer’s disease vaccine candidate, Padivax.</li>
</ul>


Henlius Biotech is collaborating with Sandoz for commercialization of up to 10 biosimilars in ~$322M deal. Wuxi XDC achieved GMP release of its antibody bioconjugates production line at Singapore site.
Chugai Pharmaceutical signed an exclusive license agreement with GSK for the anti-dengue virus antibody AID351. Daiichi Sankyo’s Enhertu demonstrated PFS improvement as first-line treatment of NSCLC in Phase 3 trial.
Celltrion has launched IV formulation of Steqeyma in Japan. Eubiologics submitted an IND to the MFDS for domestic Phase 1 trial for its Alzheimer’s disease vaccine candidate, Padivax.


APAC Healthcare Weekly (August 23) – Henlius Bio, Wuxi XDC, Chugai Pharma, Daiichi Sankyo, Celltrion

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>WuXi XDC issued a positive profit alert on its 2025 financial performance, expecting revenue to increase by at least 45% YoY and net profit to grow by more than 38% YoY.</li><li>Notably, the Company expected adjusted net profit before interest income and expenses to rise by more than 45% YoY and by over 65% YoY in 2025 if excluding the impact of foreign exchange fluctuations.</li><li>In 2025, WuXi XDC signed a record-high 70 new integrated projects, up by 32% YoY. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

WuXi XDC issued a positive profit alert on its 2025 financial performance, expecting revenue to increase by at least 45% YoY and net profit to grow by more than 38% YoY.Notably, the Company expected adjusted net profit before interest income and expenses to rise by more than 45% YoY and by over 65% YoY in 2025 if excluding the impact of foreign exchange fluctuations.In 2025, WuXi XDC signed a record-high 70 new integrated projects, up by 32% YoY. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

WuXi XDC (2268 HK) - Strong Earnings Growth with Strategic Acquisition to Enhance Capacity

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>WuXi XDC announced a voluntary conditional cash offer to acquire all issued shares of BioDlink at HK$4.00/share. We think this is a done deal and the Offer is attractive.</li>
<li>The acquisition is expected to be completed in early 2026. Therefore, XDC's 2025 financial results will not affected, and the 2026-2027 periods will benefit from capacity release and synergy effects.</li>
<li>WuXi XDC has a growth rate higher than the industry (net profit CAGR 48% in 2025-2027 based on forecast). Therefore, it can enjoy a valuation premium, with decent upside ahead.</li>
</ul>


WuXi XDC announced a voluntary conditional cash offer to acquire all issued shares of BioDlink at HK$4.00/share. We think this is a done deal and the Offer is attractive.
The acquisition is expected to be completed in early 2026. Therefore, XDC's 2025 financial results will not affected, and the 2026-2027 periods will benefit from capacity release and synergy effects.
WuXi XDC has a growth rate higher than the industry (net profit CAGR 48% in 2025-2027 based on forecast). Therefore, it can enjoy a valuation premium, with decent upside ahead.


WuXi XDC (2268 HK) To Acquire BioDlink (1875 HK) - A Done Deal; A New ADC Overlord Will Emerge

<ul>
<li>The Hong Kong Alpha portfolio gained 5.79% in July, outperforming its benchmark by 0.30%.  The portfolio has outperformed Hong Kong indexes by 52% to 74% since inception.</li>
<li>The portfolio's largest exposures are in the industrial, financial, and technology platform sectors. The portfolio has no exposure to the materials or energy sectors.</li>
<li>The portfolio has generated a Sharpe ratio of 1.20 since inception, compared with 0.69 for the benchmark.  The portfolio's annualized mean excess return is 19.4%.</li>
</ul>


The Hong Kong Alpha portfolio gained 5.79% in July, outperforming its benchmark by 0.30%.  The portfolio has outperformed Hong Kong indexes by 52% to 74% since inception.
The portfolio's largest exposures are in the industrial, financial, and technology platform sectors. The portfolio has no exposure to the materials or energy sectors.
The portfolio has generated a Sharpe ratio of 1.20 since inception, compared with 0.69 for the benchmark.  The portfolio's annualized mean excess return is 19.4%.


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.

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WuXi XDC (2268 HK)

HONG KONG ALPHA PORTFOLIO: (August 2026)

HK Alpha portfolio gained 3.45% in August, outperforming its benchmark by 2.67%. Since inception, the portfolio has outperformed HK indexes by 60%...

David Mudd

APAC Healthcare Weekly (August 23) – Henlius Bio, Wuxi XDC, Chugai Pharma, Daiichi Sankyo, Celltrion

Henlius strikes biosimilar commercialization deal with Sandoz. Chugai signs exclusive license deal with GSK for anti-dengue virus antibody....

Tina Banerjee

WuXi XDC (2268 HK) - Strong Earnings Growth with Strategic Acquisition to Enhance Capacity

WuXi XDC issued a positive profit alert on its 2025 financial performance, expecting revenue to increase by at least 45% YoY and net profit to grow...

CMB International

WuXi XDC (2268 HK) To Acquire BioDlink (1875 HK) - A Done Deal; A New ADC Overlord Will Emerge

WuXi XDC's acquisition of BioDlink at HK$4.00/share is seen as a done deal, with potential for growth and synergy effects in 2025-2027. WuXi XDC...

Xinyao (Criss) Wang

HONG KONG ALPHA PORTFOLIO: (July 2026)

We made several adjustments to the portfolio yesterday. We sold the Baidu (9888) position since it hit our stop-loss level. We also sold the...

David Mudd

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

HONG KONG ALPHA PORTFOLIO: (August 2026)

HK Alpha portfolio gained 3.45% in August, outperforming its benchmark by 2.67%. Since inception, the portfolio has outperformed HK indexes by 60%...

David Mudd

APAC Healthcare Weekly (August 23) – Henlius Bio, Wuxi XDC, Chugai Pharma, Daiichi Sankyo, Celltrion

Henlius strikes biosimilar commercialization deal with Sandoz. Chugai signs exclusive license deal with GSK for anti-dengue virus antibody....

Tina Banerjee

WuXi XDC (2268 HK) - Strong Earnings Growth with Strategic Acquisition to Enhance Capacity

WuXi XDC issued a positive profit alert on its 2025 financial performance, expecting revenue to increase by at least 45% YoY and net profit to grow...

CMB International

WuXi XDC (2268 HK) To Acquire BioDlink (1875 HK) - A Done Deal; A New ADC Overlord Will Emerge

​WuXi XDC's acquisition of BioDlink at HK$4.00/share is seen as a done deal, with potential for growth and synergy effects in 2025-2027. WuXi XDC...

Xinyao (Criss) Wang

HONG KONG ALPHA PORTFOLIO: (July 2026)

We made several adjustments to the portfolio yesterday. We sold the Baidu (9888) position since it hit our stop-loss level. We also sold the...

David Mudd

WuXi XDC's acquisition of BioDlink at HK$4.00/share is seen as a done deal, with potential for growth and synergy effects in 2025-2027. WuXi XDC...