In today’s briefing:
- TCM (570 HK): Inching Towards Regulatory Sign-Off
- Korea Value-Up Index Drops on the 24th: Hunt for the Winners in the KOSDAQ Global Index
- Celltrion Inc (068270 KS)– Is the Sell-Side’s Bullishness Justified?
- BioAge Labs IPO Preview: Investor Focus Has Turned To Azelaprag, A Huge Market Potential
- Pre-IPO LinkChem Technology – The Business and the Concerns Behind
- SanBio Co Ltd (4592 JP): 1H FY01/25 flash update
TCM (570 HK): Inching Towards Regulatory Sign-Off
- In its latest monthly update, China Traditional Chinese Medicine (570 HK) fleshes out the latest on the various PRC regulatory applications.
- Comparing the two most recent monthly updates side-by-side, apart from modifying the documentation for the MOC and NDRC process; the SAMR filing has been formally accepted, as previously flagged.
- The upshot? These regulatory approvals will be secured. The key question is whether this can take place before the 18th October pre-condition long stop date. Or an extension is required.
Korea Value-Up Index Drops on the 24th: Hunt for the Winners in the KOSDAQ Global Index
- KOSDAQ stocks are expected to make up 10-15% of the Value-Up Index, with 10-15 names benefiting. Even with smaller passive funds, the impact on these stocks could be significant.
- KOSDAQ Global Index criteria overlap with the Value-Up Index, and KRX’s push suggests many KOSDAQ Global stocks will also appear in the Value-Up Index.
- In the past 30 days, the KOSDAQ Global Index dropped 5.14%, but 5 of the top 10 gainers either announced value-ups or received value-up picks from brokers.
Celltrion Inc (068270 KS)– Is the Sell-Side’s Bullishness Justified?
- The biosimilar market is forecast to grow three to four times faster than the generic drug market over the next five years.
- However, we believe that this high growth will not necessarily imply good profitability, given the early stage of the biosimilar market, complications and competition.
- We also believe that the company’s guidance is too optimistic resulting in an expensive multiple. We prefer some room for error.
BioAge Labs IPO Preview: Investor Focus Has Turned To Azelaprag, A Huge Market Potential
- BioAge Labs, a clinical-stage biopharma company backed by a leading syndicate of biotech investors, filed to go public in the United States.
- Anti aging and obesity biopharma startup is purely focused on chronic metabolic diseases and established partner agreements with Amgen and Eli Lilly.
- I have a positive view of upcoming BioAge Labs IPO and expect a strong first-day return above the IPO offer price.
Pre-IPO LinkChem Technology – The Business and the Concerns Behind
- The sudden high growth in 2023 was benefited from the cooperation with related party Shandong LinkChem. Is the performance growth driven by LinkChem’s reliance on related party transactions sustainable?
- LinkChem relies heavily on limited number of customers to contribute performance but the customer stability is not strong.Due to “low voice” in front of customers, cash flow is under pressure.
- The barrier of terbium chloride product is not high and LinkChem will face fierce competition in the future, leading to decreasing YoY growth revenue. Valuation should be lower than peers.
SanBio Co Ltd (4592 JP): 1H FY01/25 flash update
- In 1H FY01/25, the company reported no operating revenue, an operating loss of JPY1.6bn, and R&D expenses of JPY1.0bn.
- Non-operating income was JPY401mn, primarily from foreign-exchange gains, while non-operating expenses totaled JPY16mn, resulting in a recurring loss of JPY1.2bn.
- The company received conditional marketing approval for SB623 in July 2024, with expected sales to begin in Q1 FY01/26.
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