In today’s briefing:
- Jiangsu Hengrui Pharma A/H Listing – Low-End Is Probably Close to Fair Value
- Mayne Pharma (MYX AU): The Scheme Booklet Should Calm Nerves
- Jiangsu Hengrui Pharma H Share Listing (1276 HK): Valuation Insights
- Mayne Pharma (MYX AU): Scheme Booklet Dispatch Lends More Than A Veneer Of Support
- Paramount Bed Holdings (7817 JP): Demand to Remain Sluggish; Margins to Hold, For Now
- Paramount Bed Holdings Co Lt (7817 JP): Full-year FY03/25 flash update
- Mirxes IPO: Valuation Without Sensible Fundamentals
- Nanocarrier (4571 JP): Full-year FY03/25 flash update
- Poppins Holdings Inc (7358 JP): Q1 FY12/25 flash update
- TELO: New Discovery Offers Great Promise
Jiangsu Hengrui Pharma A/H Listing – Low-End Is Probably Close to Fair Value
- Jiangsu Hengrui Medicine (600276 CH), a China-based pharmaceutical company, aims to raise around US$1.3bn in its H-share listing.
- JHP Has been ranked as one of the global Top 50 pharmaceutical companies by Pharm Exec for six consecutive years since 2019.
- We have looked at the company’s past performance and other deal dynamics in our previous note. In this note, we talk about the IPO pricing.
Mayne Pharma (MYX AU): The Scheme Booklet Should Calm Nerves
- Mayne Pharma (MYX AU) has released its scheme booklet regarding Cosette’s A$7.40 offer. The IE opines that the offer is fair and reasonable within its A$6.61-A$7.99 valuation range.
- The high spread reflects concerns that recent events would trigger the MAC clause. Thankfully, the scheme booklet does not indicate that Cosette is contesting it.
- Recent events should help quell retail opposition to the offer. At the last close and for a 2 July payment, the gross/annualised spread is 19.4%/262%.
Jiangsu Hengrui Pharma H Share Listing (1276 HK): Valuation Insights
- Jiangsu Hengrui Pharmaceuticals (1276 HK) has launched its H Share listing at HK$41.45 to HK$44.05 per H Share. Pricing will be on 21 May.
- I discussed the H Share listing in Jiangsu Hengrui Pharma H Share Listing: The Investment Case.
- The proposed AH discount can be argued as either light or attractive. I lean toward the latter and would participate in the H Share listing.
Mayne Pharma (MYX AU): Scheme Booklet Dispatch Lends More Than A Veneer Of Support
- After a rough week – somewhat of an understatement – the Scheme Doc is now out.
- The Court Meeting is the18th June; the last day of trading the 23rd June, and implementation 2nd July. The IE says fair with a valuation range of A$6.61-A$7.99/share.
- This IE’s valuation range doesn’t factor in the pharma EO, given its ambiguity. Nor the FDA level. However, Mayne, ASIC AND Cosette have effectively signed off on the Doc’s veracity.
Paramount Bed Holdings (7817 JP): Demand to Remain Sluggish; Margins to Hold, For Now
- In FY25, Paramount Bed Holdings Co Lt (7817 JP) reported 2% YoY revenue growth to ¥109B, mainly driven by the nursing care business.
- Due to higher SG&A expenses, operating profit decreased 6% YoY to ¥13B and net profit was down 15% YoY to ¥9B.
- Paramount guided FY26 revenue to grow 4% YoY to ¥113B and also trimmed FY27 targets in mid-term plan.
Paramount Bed Holdings Co Lt (7817 JP): Full-year FY03/25 flash update
- FY03/25 saw revenue increase by 2.4% YoY to JPY108.6bn, while operating profit decreased by 6.1% YoY to JPY13.0bn.
- The company forecasts FY03/26 revenue at JPY113.0bn (+4.1% YoY) and operating profit at JPY13.8bn (+6.3% YoY).
- The FY03/27 target includes JPY120.0bn revenue and JPY15.0bn operating profit, with a revised dividend policy of DOE 5.0%.
Mirxes IPO: Valuation Without Sensible Fundamentals
- Mirxes, a Singapore-based clinical-stage biotechnology company, launched its IPO to raise up to US$139m via a Hong Kong listing.
- We look at the deal dynamics and latest developments in the early cancer screening sector in China.
- We are of the view that there’s little fundamentals supporting that valuation. Precision oncology companies have not done well in China.
Nanocarrier (4571 JP): Full-year FY03/25 flash update
- The company reported a net loss of JPY835mn in FY03/25, an increase from JPY780mn in FY03/24.
- Sales for FY03/26 are forecasted at JPY75mn, a 30.2% decrease YoY, with R&D expenses at JPY649mn.
- The company shifted its business model in January 2023 to focus on mRNA drug development and licensing.
Poppins Holdings Inc (7358 JP): Q1 FY12/25 flash update
- Revenue increased by 9.5% YoY to JPY8.6bn, with operating profit rising 123.5% YoY to JPY988mn.
- Family Care Services revenue grew due to babysitter service demand and elderly care service earnings increase.
- Edu-care business revenue rose 6.1% YoY, driven by subsidy income growth and new facility openings.
TELO: New Discovery Offers Great Promise
- Telomir Pharmaceuticals is a preclinical stage company focused on the science of lengthening telomere caps, which the company believes will extend human lifespans and improve quality of life as people age.
- The company announced the identification of Telomir-Ag2 as a novel drug candidate for the treatment of bacterial infections.
- This discovery has the potential to be a new weapon in fighting drug-resistant pathogens.
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