HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

China Resources Sanjiu Medical & Pharma / Equity Bottom-Up

<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

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>Mainland China investors continued to increase their purchases of Hong Kong shares through the southbound connect platform after Trump's win. Mainland investors bought a record HK$800B of HK shares in 2024.</li>
<li>
<a href="https://www.smartkarma.com/entities/weimob-inc" target="_blank" data-smartkarma-citation="entities:27394:1" rel="noopener">Weimob Inc. (2013 HK)</a> announced it is connecting its Weimob mini-programs to Tencent's (700 HK) WeChat mini-shop. This move further integrates the SaaS company into Tencent's ecosystem.
</li>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a> announced a license agreement with US-based <a href="https://www.smartkarma.com/entities/aadi-bioscience-inc" target="_blank" data-smartkarma-citation="entities:37488:1" rel="noopener">Aadi Bioscience (AADI US)</a>.  Also, Wuxi was not included in the Senate version of the BioSecure legislation improving investor sentiment.
</li>
</ul>


Mainland China investors continued to increase their purchases of Hong Kong shares through the southbound connect platform after Trump's win. Mainland investors bought a record HK$800B of HK shares in 2024.

Weimob Inc. (2013 HK) announced it is connecting its Weimob mini-programs to Tencent's (700 HK) WeChat mini-shop. This move further integrates the SaaS company into Tencent's ecosystem.


Wuxi Biologics (2269 HK) announced a license agreement with US-based Aadi Bioscience (AADI US).  Also, Wuxi was not included in the Senate version of the BioSecure legislation improving investor sentiment.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)

Event-Driven

Ping An Healthcare and Technology / Event-Driven

<ul>
<li>Increasing revenue without increasing profits is “a big denial” of a company's business model. Unless Zai Lab significantly reduces costs and maintains revenue high growth, its investment value is low.</li>
<li>Junshi's 2024 revenue is likely to return to over RMB1.5 billion due to market share expansion in PD-1. Strict cost control will be the main theme for the future.</li>
<li>If PAGD’s share price is higher than HK$6.12, there would be arbitrage opportunity. If Ping An hopes other shareholders to choose cash dividend, future stock price may fall below HK$6.12.</li>
</ul>


Increasing revenue without increasing profits is “a big denial” of a company's business model. Unless Zai Lab significantly reduces costs and maintains revenue high growth, its investment value is low.
Junshi's 2024 revenue is likely to return to over RMB1.5 billion due to market share expansion in PD-1. Strict cost control will be the main theme for the future.
If PAGD’s share price is higher than HK$6.12, there would be arbitrage opportunity. If Ping An hopes other shareholders to choose cash dividend, future stock price may fall below HK$6.12.


China Healthcare Weekly (Dec.22) - Zai Lab, Junshi, How to Choose PA Good Doctor's Special Dividend?

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The HS HK-Listed Biotech Index ("Hang Seng Biotech Index") represents the 50 largest biotech companies listed in Hong Kong (HKEX).</li>
<li>The official index changes and indicative weights for the December 2024 index rebal event will be announced on Friday 22nd November 2024.</li>
<li>In this insight, we take a look at our updated flow expectations.</li>
</ul>


The HS HK-Listed Biotech Index ("Hang Seng Biotech Index") represents the 50 largest biotech companies listed in Hong Kong (HKEX).
The official index changes and indicative weights for the December 2024 index rebal event will be announced on Friday 22nd November 2024.
In this insight, we take a look at our updated flow expectations.


Quiddity Leaderboard Hang Seng Biotech Dec 24: Positive Flows for Beigene and Innovent Biologics

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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

Kansai Electric Power / Equity Capital Markets

<ul>
<li>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the IPOs front, the usual year end deal flow appears to be picking up with US elections now out of the way.</li>
<li>On the placements front, <a href="https://www.smartkarma.com/entities/kansai-electric-power-co-inc" target="_blank" data-smartkarma-citation="entities:18907:1" rel="noopener">Kansai Electric Power (9503 JP)</a> launched a large primary offering, while <a href="https://www.smartkarma.com/entities/varun-beverages-ltd" target="_blank" data-smartkarma-citation="entities:23653:1" rel="noopener">Varun Beverages (VBL IN)</a> did the same in India.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPOs front, the usual year end deal flow appears to be picking up with US elections now out of the way.
On the placements front, Kansai Electric Power (9503 JP) launched a large primary offering, while Varun Beverages (VBL IN) did the same in India.


ECM Weekly (18th Nov 2024) - SF Holdings, MNC, Swiggy, Sagility, Niva, GMM, Zinka, Kansai, Go Digit

China

Zai Lab Limited operates as a biopharmaceutical company. The Company researches and develops therapeutic technology for antibody-based oncology, autoimmune, and infectious diseases treatments. Zai Lab also manufactures drugs in the form of capsules, injections, and liquids. Zai Lab serves patients worldwide.

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Zai Lab (9688 HK)

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

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)

Mainland investors are increasing their buying of HK shares after Trump's election win. Mainlanders bought a record HK$800B of shares this year and...

David Mudd

China Healthcare Weekly (Dec.22) - Zai Lab, Junshi, How to Choose PA Good Doctor's Special Dividend?

Increasing revenue without increasing profits is a big denial of Zai Lab's business model. Junshi will rebound with strict cost control.There's...

Xinyao (Criss) Wang

Quiddity Leaderboard Hang Seng Biotech Dec 24: Positive Flows for Beigene and Innovent Biologics

QuantumPharm (2228 HK) and Fangzhou (6086 HK) are expected ADDs. 3D Medicines (1244 HK) and CARSgen Therapeutics (2171 HK) are expected DELs.

Janaghan Jeyakumar, CFA

ECM Weekly (18th Nov 2024) - SF Holdings, MNC, Swiggy, Sagility, Niva, GMM, Zinka, Kansai, Go Digit

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

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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

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (December 26)

Mainland investors are increasing their buying of HK shares after Trump's election win. Mainlanders bought a record HK$800B of shares this year and...

David Mudd

China Healthcare Weekly (Dec.22) - Zai Lab, Junshi, How to Choose PA Good Doctor's Special Dividend?

Increasing revenue without increasing profits is a big denial of Zai Lab's business model. Junshi will rebound with strict cost control.There's...

Xinyao (Criss) Wang

Quiddity Leaderboard Hang Seng Biotech Dec 24: Positive Flows for Beigene and Innovent Biologics

QuantumPharm (2228 HK) and Fangzhou (6086 HK) are expected ADDs. 3D Medicines (1244 HK) and CARSgen Therapeutics (2171 HK) are expected DELs.

Janaghan Jeyakumar, CFA

ECM Weekly (18th Nov 2024) - SF Holdings, MNC, Swiggy, Sagility, Niva, GMM, Zinka, Kansai, Go Digit

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

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