Equity Capital Markets: Remegen Ltd, Aston Martin , Jinke Smart Services and more

In today’s briefing:

  • RemeGen (荣昌生物) Pre-IPO: Top-Notch R&D Capability and a Strong Team
  • Aston Martin: Angling to Be Ferrari – 40% Upside?
  • Jinke Smart Services (金科智慧服务) Pre-IPO – GFA Growth at the Expense of Fees

RemeGen (荣昌生物) Pre-IPO: Top-Notch R&D Capability and a Strong Team

By Ke Yan, CFA, FRM

RemeGen is a China-based commercial-ready biopharmaceutical company with a focus on first-in-class and best-in-class biologics in the area of autoimmune, oncology and ophthalmic diseases. 

We think the company’s R&D is the top notch among Hong Kong listed biotech companies. It has two near commercialization products, RC18 and RC48.

RC18 (BLyS/APRIL target) has an innovative design and has demonstrated a superior efficacy for SLE which has big unmet demand. RC48 (HER2 ADC) is the first domestically developed ADC that has entered the clinical trial stage. It also has a differentiated indication targeting HER2 low-expressing patients, compared to competing drug candidates. Thanks to its ADC platform and bispecific platform, the company has interesting and differentiated pipeline products entering clinical trials.

The company has a strong management team and backing from reputable investors. We foresee strong demand for the deal.


Aston Martin: Angling to Be Ferrari – 40% Upside?

By Rickin Thakrar

Aston Martin (AML LN) shares rallied 14% on Wednesday after the company noted it is unlikely to seek a near-term placement after multiple rights issues in 2020. On top of this, the company noted it does not have any bonds due until 2022. We give our updated thoughts on the company amidst its heavy restructuring below the fold. 

We have been quite negative on Aston Martin although turned positive after the company placed shares at 50p. Our research is below: 

Aston Martin: Another Placement of Shares –  Is It Enough to Ensure Survival? 

Aston Martin: Is Another Placement Coming or Is It Time To (Gulp) Buy? 

Aston Martin Lagonda Rights Issue: Palliative Care Administered 


Jinke Smart Services (金科智慧服务) Pre-IPO – GFA Growth at the Expense of Fees

By Zhen Zhou, Toh

Jinke Smart Services (JKS HK)  is looking to raise about US$500m in its upcoming Hong Kong IPO.

JKS is the property management arm of Jinke Property Group. As of December 2019, JKS has 754 property management projects with a total contracted GFA of 248.6m sqm. Out of that, 417 projects are currently under management which is about 120.5m sqm. 

The company focuses on the three major regions in China such as Southwestern China, Eastern and Southern China, and Central China. It covered 115 cities in 21 provinces, municipalities, and autonomous regions. 


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