HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

3SBio (1530 HK) Plans to Spin-Off and List Mandi in HK - Thoughts on The "Implied" IPO Price

Pre-IPO JD Industrials (PHIP Updates) - Business Model, Peer Comparison, Forecast and Valuation

Pre-IPO Mandi Inc. - The Business Model, the Concerns and the Valuation

Pre-IPO UltraGreen.ai - Thoughts on the Business, the Concerns and the Valuation

Equity Capital Markets

<ul>
<li>Mandi’s valuation logic is drifting away from the main line of 3SBio.Mandi is "good asset but not core asset" within 3SBio system, so it’s difficult to drive up overall valuation. </li>
<li>Innovative drug R&amp;D will be the main driver for future valuation growth in "post-Mandi era". The Placing can be regarded as the continuous development of 3SBio after Mandi spin-off .</li>
<li>3SBio is undervalued. Valuation would be higher than Sino Biopharm and may also surpass Akeso, Hengrui in the future if its SSGJ-707 can deliver good clinical data in future trials.</li>
</ul>


Mandi’s valuation logic is drifting away from the main line of 3SBio.Mandi is "good asset but not core asset" within 3SBio system, so it’s difficult to drive up overall valuation. 
Innovative drug R&amp;D will be the main driver for future valuation growth in "post-Mandi era". The Placing can be regarded as the continuous development of 3SBio after Mandi spin-off .
3SBio is undervalued. Valuation would be higher than Sino Biopharm and may also surpass Akeso, Hengrui in the future if its SSGJ-707 can deliver good clinical data in future trials.


Jiangsu Hengrui Pharmaceuticals (1276 HK)

3SBio Inc (1530 HK) Placement - The Placing Price Indicates Decent Upside Potential in Valuation