In today’s briefing:
- NIFTY50/NEXT50 Index Rebalance: Bunch Of (Mostly) Expected Changes; Positioning Increases
- Weekly Deals Digest (24 Aug) – Mayne Pharma, PointsBet, Lynch, Dongfeng Motor, ENN Energy, Shibaura
- [Quiddity Index] Sep25 HS Healthcare Index Review Announced; 10 ADDs, 4 DELs, 1 More Member Net
- [Quiddity Index] Sep25 HSHKBIO Review Announced; 21 DELs, 1 ADD on Methodology Shift
- ECM Weekly (25 August 2025)- Hansoh, Daiichi, IFAST, Guzman, Vikram, Shuandeng, Jiaxin, Forest, Aux
- Upgrading China to Overweight; Europe Breaking Out
- Shanghai Henlius Biotech (2696 HK) – Thoughts on the Valuation Outlook
- Rimag Group (2522 HK): Placement Seem Conducive Given The Prospects
- Vivos Therapeutics, Inc: From Strategic Pivot to Business Model Pivot
- Exact Sciences Reinforces Its Market Edge With Strategic Alliances & Profit Growth!
NIFTY50/NEXT50 Index Rebalance: Bunch Of (Mostly) Expected Changes; Positioning Increases
- InterGlobe Aviation Ltd (INDIGO IN) and Max Healthcare Institute (MAXHEALT IN) replace Hero Motocorp (HMCL IN) and Indusind Bank (IIB IN) in the NIFTY Index (NIFTY INDEX) in September.
- There are 5 constituent changes to the Nifty 100 Index (NSE100 INDEX) leading to 4 changes for the NSE Nifty Next 50 Index (NIFTYJR INDEX).
- There will be global passive buying in Swiggy (SWIGGY IN) on Tuesday. Then there will be net selling in the stock at the close on 29 September.
Weekly Deals Digest (24 Aug) – Mayne Pharma, PointsBet, Lynch, Dongfeng Motor, ENN Energy, Shibaura
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments: Aux Electric Co Ltd (0917839D HK) is seeking to raise US$600 million, Tata Capital Limited (TATACAP IN) is seeking to raise US$2.0 billion.
- Event-Driven developments: Mayne Pharma (MYX AU), PointsBet Holdings (PBH AU), Lynch Group Holdings (LGL AU), Dongfeng Motor (489 HK), ENN Energy (2688 HK), Shibaura Electronics (6957 JP).
[Quiddity Index] Sep25 HS Healthcare Index Review Announced; 10 ADDs, 4 DELs, 1 More Member Net
- On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Healthcare Index for the September 2025 rebalance. That takes us to 73 constituents.
- Team Quiddity had expected 6 ADDs+1 DEL. We got 10 ADDs and 4 DELs. Our 7 names were correct and the other three DELs were our next three choices.
- This is a smallish index, so we see US$300+mm to trade but there are a couple of big buys in terms of ADV.
[Quiddity Index] Sep25 HSHKBIO Review Announced; 21 DELs, 1 ADD on Methodology Shift
- On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng HK-Listed Biotech Index for the September 2025 rebalance.
- July saw an announcement of a methodology change, and we expected 20 DELs. In fact, there were 21 DELs and 1 ADD and we missed the last two.
- HSHKBIO has relatively low tracking AUM, so the total flows here (for HSHKBIO only) should be limited to about US$400mm.
ECM Weekly (25 August 2025)- Hansoh, Daiichi, IFAST, Guzman, Vikram, Shuandeng, Jiaxin, Forest, Aux
- 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 IPO front, there was a lack of fireworks from last week’s listing. This week might have some better luck.
- On the placements front, there was no dearth of deals with raisings across the region.
Upgrading China to Overweight; Europe Breaking Out
- We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment
- Short-Term supports to watch on ACWI-US continue to be $132 (testing now), $130, $128, $125-$126, and $123-$123.50. All signs point to the ACWI-US uptrend continuing for the foreseeable future.
- Upgrading China to Overweight; Europe Breaking Out; Japan Also Remains Attractive. Buys in Consumer Discretionary (primarily autos/parts), Industrials, Services, Health Care, Materials, Financials, and Real Estate
Shanghai Henlius Biotech (2696 HK) – Thoughts on the Valuation Outlook
- Since the privatization of Henlius failed at the beginning of 2025, we have witnessed its stock price constantly hitting new highs.The market has recognized Henlius’ strong fundamentals and promising outlook.
- Based on conservative forecast, the peak sales of important products + other promising candidates/indication expansion/drug combination/new licensing cooperation, etc., total revenue of Henlius is expected to reach RMB10 billion.
- RMB30 billion is the valuation bottom line for Henlius. The upper limit of valuation may reach RMB36-45 billion in the future. Exercise Price of the Options granted is HK$50.25/share.
Rimag Group (2522 HK): Placement Seem Conducive Given The Prospects
- Jiangxi Rimag Group (2522 HK) is placing 35M shares for subscription at HK$16.76 per share.
- The company intends to use the net proceeds to further strengthen their data service capabilities using AI, business expansion through independent investments or acquisitions, and general corporate purpose.
- In the medium to long term the company is well-positioned for sustainable growth with its relentless pursuit for new investments, collaborations, and acquisitions.
Vivos Therapeutics, Inc: From Strategic Pivot to Business Model Pivot
- Attention turns to business model pivot. Following the completion of the SCN acquisition on June 9, 2025, Vivos’ attention is now firmly on transitioning the company’s legacy B2B business model to a potentially far more growth-oriented and lucrative patient-centric, vertically integrated model for its disruptive OSA (obstructive sleep apnea) platform.
- Out with the old. Vivos’ legacy business has been centered around revenues from VIP (Vivos Integrated Practice) enrollment primarily targeting dental providers and mostly generated from one-time enrollment fees granting access to clinical training and product sales from those same trained VIPs.
- After enrolling dental providers, Vivos would essentially wholesale its proprietary oral appliances to enrolled providers who would typically pick up most of the profit by selling the appliances to patients at substantially marked up prices.
Exact Sciences Reinforces Its Market Edge With Strategic Alliances & Profit Growth!
- Exact Sciences Corporation reported its financial results for the second quarter of 2025.
- The company delivered strong performance metrics and revised its financial guidance upward, reflecting solid growth across its operations.
- Exact Sciences processed a record 1.3 million test results during the quarter, which contributed to a 16% yearover-year increase in core revenue.
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