Daily Brief Health Care: Sihuan Pharmaceutical Hldgs, WuXi XDC Cayman , Modern Dental Group, Aimed Bio, Ottobock Human Mobility, Eurofins Scientific SE, Xuanzhu Biopharmaceutical and more

• On the 12th November 2024, Sihuan Pharmaceutical (460 HK) proposed spinning-off the shares of Xuanzhu Biopharm on the main board of Hong Kong.
• Xuanzhu Biopharmaceutical‘s prospectus is now out. Shares are priced at HK$11.60/share, backing out a market cap of ~HK$6bn vs. Sihuan Pharma’s HK$17.4bn market cap. Trading commences on the 15th October.
• Sihuan Pharma will hold 49.1% post IPO. Its share price is up 189% YTD. Looks frothy. Then again, so does Hong Kong’s IPO market.

• WuXi AppTec (2359 HK) is looking to raise US$308m via selling some of its stake in WuXi XDC Cayman (2268 HK).
• The deal is a small one, representing 4.5 days of the stock’s three month ADV, and 2.3% of total shares outstanding.
• In this note, we will talk about the placement and run the deal through our ECM framework.

Key points (machine generated)

• Modern Dental (3600) manufactures and distributes dental prosthetics with a potential for over 15% CAGR from a share price of HKD 4.35.
• The company generates approximately 75% of its revenue from developed markets despite its primary manufacturing facility being in Shenzhen, China.
• Modern Dental is well-positioned to benefit from the growing global reputation of Chinese manufacturers for quality and competitive pricing.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Our base case valuation of Aimedbio is implied market cap of 882 billion won or target price of 13,256 won per share over a one year view in 2026. 
• This represents 21% upside over a one year period. Our cumulative sales and operating profit estimates from 2025 to 2029 are 11.4% and 48.3% lower than the company’s estimates, respectively.
• Aimedbio is not an easy company to value. Core investment thesis of the company is that it has an excellent technologies for antibody-based therapeutics, primarily antibody-drug conjugates (ADCs).

• Expected to price at near 12% discount to Embla despite superior fundamentals, higher margins, and strong recurring revenue quality.  
• Balanced B2B/B2C mix drives sustainable mid-single-digit growth and ongoing margin expansion.
• IPO proceeds to reduce leverage to 2.5x EBITDA, though low float and KGaA structure may cap valuation upside.

• Eurofins Scientific presented its half-year 2025 financial performance, providing insights into the company’s current standing and strategic advances.
• The report indicates both progress and challenges in Eurofins’ operations and outlook.
• Positively, the company achieved its targets for revenue growth, margin improvement, and robust earnings per share growth for the half-year.

• Xuanzhu Biopharmaceutical has filed for IPO to raise up to HK$781M. The company plans to sell 67.3M shares at HK$11.6 per share.
• Xuanzhu Biopharmaceutical is an innovation-driven biopharmaceutical company focused on developing treatment options in the fields of digestive diseases, oncology and non-alcoholic steatohepatitis (NASH).
• 2026 will be an inflection point for the company with all three core products fully commercialized, but will not be enough for the company to establish a sustainable market play.