In today’s briefing:
- Dongbang Medical IPO Book Building Results Analysis
- China Healthcare Weekly (Jan.26) – Key Takeaways from the Failure of Henlius Privatization, TCM M&As
Dongbang Medical IPO Book Building Results Analysis
- Dongbang Medical reported excellent IPO book building results. The IPO price has been finalized at 10,500 won. The demand ratio from the institutional investors was 910 to 1.
- Our base case valuation of Dongbang Medical is target price of 13,609 won per share which is 30% higher than the IPO price of 10,500 won.
- Dongbang Medical specializes in the manufacturing and distribution of acupuncture needles, various cosmetic devices, and other medical devices.
China Healthcare Weekly (Jan.26) – Key Takeaways from the Failure of Henlius Privatization, TCM M&As
- There have been quite a few M&As in the field of TCM, with a clear trend of SOEs taking over TCM enterprises due to strategically significant and advantageous integration.
- Whether a drug can be approved does not depend on whether it has entered Phase II/III trials. The areas with clearly unmet medical needs often indicate good investment opportunities.
- The privatization of Henlius failed. Lin Lijun’s dissenting vote was based on a deliberate decision. We are optimistic about the outlook of Henlius due to its strong fundamentals and internationalization.
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