In today’s briefing:
- China Mobile (600941 CH): Potential Index Fast Entry
- 1H22 Obex Research Long Portfolio
- Shanghai Junshi Bioscience (1877.HK/688180.CH) – Behind the “break Up” with AstraZeneca
- Morning Views Asia: China Jinmao Holdings, China SCE, Guangzhou R&F Properties
China Mobile (600941 CH): Potential Index Fast Entry
- China Mobile (600941 CH) listed on 5 January after raising CNY 56bn in its A-share IPO. The stock could get Fast Entry to the CSI300, SSE50 and SSE180 indices.
- Stocks will be deleted from these indices to maintain the number of index constituents. Jonjee High-Tech could be deleted from the CSI300 and Shandong Gold Mining from the SSE50.
- China Mobile (600941 CH) trades at a 41.7% premium to China Mobile (941 HK), substantially lower than the 89% premium for China Telecom (601728 CH)/China Telecom (H) (728 HK).
1H22 Obex Research Long Portfolio
- With half of Nasdaq stocks down 50% from the top, is further meltdown ahead? Valuation compression is already larger than recent big growth selloffs.
- We like a balance of highest quality high growth (CRWD, SNOW, RBLX) and attractive relative valuations (PANW, NOW, BABA)
- Amazon is poised for a big 2022 as 1 day Prime shipping reaccelerates growth, and price increases hike profits.
Shanghai Junshi Bioscience (1877.HK/688180.CH) – Behind the “break Up” with AstraZeneca
- Shanghai Junshi Bioscience Co. Ltd. (1877 HK) announced that it has terminated its PD-1 commercialization partnership with AstraZeneca. Lower-than-expected sales performance is seen as the key reason.
- Junshi’s commercialization team is the weakest among the domestic Top Four.As the FDA’s attitude may have changed, the logic of exporting innovative domestic drugs to foreign markets could be shaken.
- Given the poor financing environment,it’s challenging for Junshi to afford large investment in R&D and licensing deals by just relying on cash in hand and cashflow generating from commercialized products.
Morning Views Asia: China Jinmao Holdings, China SCE, Guangzhou R&F Properties
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
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