HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Soft International Group / Equity Capital Markets

Developer, manufacturer and distributor of personal single-use hygiene products

<ul>
<li>The competition intensity of the industry in which Soft International's main business operates is expected to remain high in the future. The growth rate of major markets will maintain low.</li>
<li>Soft International’s performance has shown a downward trend as it enters 2024.This is not good news for capital markets that prioritize performance sustainability.P/E of 10x is a suitable valuation level</li>
<li>Our forecast is that Soft International’s revenue could reach RMB750-800 million in 2025 and RMB850-950 million in 2026, with CAGR of 10%-15%.Net profit margin may remain low at single digit.</li>
</ul>


The competition intensity of the industry in which Soft International's main business operates is expected to remain high in the future. The growth rate of major markets will maintain low.
Soft International’s performance has shown a downward trend as it enters 2024.This is not good news for capital markets that prioritize performance sustainability.P/E of 10x is a suitable valuation level
Our forecast is that Soft International’s revenue could reach RMB750-800 million in 2025 and RMB850-950 million in 2026, with CAGR of 10%-15%.Net profit margin may remain low at single digit.


Pre-IPO Soft International Group (PHIP Updates) - Some Points Worth the Attention

Equity Bottom-Up

Shanghai Henlius Biotech  / Equity Bottom-Up

Shanghai Henlius Biotech, Inc develops and produces drugs. The Company develops and produces monoclonal antibody biosimilar drugs, bio betters, novel monoclonal antibodys, and other drugs. Shanghai Henlius Biotech throughout China.

<ul>
<li>LVC continues to increase its holdings in Henlius, indicating that LVC remains optimistic about Henlius as its internationalization process significantly accelerated. We are interested to see Lin Lijun’s next move. </li>
<li>In the short to medium term, based on our conservative forecast on peak sales of HANQUYOU/HANSIZHUANG in overseas markets and domestic product sales, Henlius’ market value could reach RMB13-16 billion.</li>
<li>Considering other candidates(e.g. HLX15, HLX11, HLX14), indication expansion, drug combination, etc., revenue of Henlius could reach about RMB8-9 billion in the long term, with market value to reach RMB24-27 billion.</li>
</ul>


LVC continues to increase its holdings in Henlius, indicating that LVC remains optimistic about Henlius as its internationalization process significantly accelerated. We are interested to see Lin Lijun’s next move. 
In the short to medium term, based on our conservative forecast on peak sales of HANQUYOU/HANSIZHUANG in overseas markets and domestic product sales, Henlius’ market value could reach RMB13-16 billion.
Considering other candidates(e.g. HLX15, HLX11, HLX14), indication expansion, drug combination, etc., revenue of Henlius could reach about RMB8-9 billion in the long term, with market value to reach RMB24-27 billion.


Shanghai Henlius Biotech (2696 HK)- LVC Is Betting on Higher Valuation Upside Due to Business Update

APAC IPOs & Placements, Aequitas Research

Troy Wong

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>Huge Dental (HD) is looking to raise about US$100mn in its upcoming Hong Kong IPO. The deal will be run by CICC and DBS.</li>
<li>As a leading dental material company among domestic players in China, HD offers dental clinical products, dental laboratory products and dental digital products in various application scenarios.</li>
<li>HD primarily sells across 6 continents, with China, Europe, U.S., and SEA being the primary markets.</li>
</ul>


Huge Dental (HD) is looking to raise about US$100mn in its upcoming Hong Kong IPO. The deal will be run by CICC and DBS.
As a leading dental material company among domestic players in China, HD offers dental clinical products, dental laboratory products and dental digital products in various application scenarios.
HD primarily sells across 6 continents, with China, Europe, U.S., and SEA being the primary markets.


Global Healthcare Analyst

Tina Banerjee

WuXi AppTec Co., Ltd. manufactures medical products. The Company produces biological agents, antibodies, biological diagnostic reagents, and other products. WuXi AppTec also provides biological analysis, technical study, and other services.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec (2359 HK)</a> has reported 2024 result, with revenue reaching RMB39.2M, in-line with guidance of RMB38.3–40.5B. Excluding Covid-19 commercial project, 2024 revenue represents 5% YoY growth.</li>
<li>The company has announced a cash dividend of RMB9.8 and a special dividend of RMB3.5 for every 10 shares. Wuxi AppTech has also proposed RMB 1B buyback plan (for A-shares).</li>
<li>Based on the current backlog, Wuxi AppTech expects continuing operations revenue to resume double-digit growth of 10–15% YoY in 2025, targeting to deliver a total revenue of RMB41.5–43.0B.</li>
</ul>



WuXi AppTec (2359 HK) has reported 2024 result, with revenue reaching RMB39.2M, in-line with guidance of RMB38.3–40.5B. Excluding Covid-19 commercial project, 2024 revenue represents 5% YoY growth.
The company has announced a cash dividend of RMB9.8 and a special dividend of RMB3.5 for every 10 shares. Wuxi AppTech has also proposed RMB 1B buyback plan (for A-shares).
Based on the current backlog, Wuxi AppTech expects continuing operations revenue to resume double-digit growth of 10–15% YoY in 2025, targeting to deliver a total revenue of RMB41.5–43.0B.


WuXi AppTec (2359 HK): In-Line 2024 Performance; Announces Dividend and A Share Buyback Plan

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

VISEN Pharmaceuticals / Equity Capital Markets

VISEN Pharma (Shanghai) Co., Ltd focuses on treatment of endocrine-related diseases. The Company produces human growth hormone, parathyroid hormone, C-type natriuretic peptide, and more. VISEN Pharma (Shanghai) conducts businesses in China.

<ul>
<li>Visen Pharmaceuticals is looking at raising up to USD 100m to list in Hong Kong.</li>
<li>In an apparently downsized deal, the company is trying to sell at a blue sky valuation.</li>
<li>We disagree with its valuation and noted that tones have turned bearish in its offering documents.</li>
</ul>


Visen Pharmaceuticals is looking at raising up to USD 100m to list in Hong Kong.
In an apparently downsized deal, the company is trying to sell at a blue sky valuation.
We disagree with its valuation and noted that tones have turned bearish in its offering documents.


Pharmaceuticals (维升药业) IPO: Valuation and Book Building

China Healthcare
Growing pains

Pre-IPO Soft International Group (PHIP Updates) - Some Points Worth the Attention

Soft International faces high competition and slow market growth, with declining performance in 2024. Single-digit net profit margin is...

Xinyao (Criss) Wang

Shanghai Henlius Biotech (2696 HK)- LVC Is Betting on Higher Valuation Upside Due to Business Update

Henlius' shares is above HK$30/share, in line with our analysis. The Offer Price is "a joke". At valuation of about RMB16bn, conservative investors...

Xinyao (Criss) Wang

Huge Dental Pre-IPO Tearsheet

Huge Dental plans to raise US$100mn in Hong Kong IPO, offering a range of dental products globally through key markets in China, Europe, U.S., and...

Troy Wong

Pharmaceuticals (维升药业) IPO: Valuation and Book Building

Visen Pharmaceuticals seeks to raise $100m for Hong Kong listing. We think the valuation is extremely inflated with tones turning bearing in the...

Ke Yan, CFA, FRM

Pre-IPO Soft International Group (PHIP Updates) - Some Points Worth the Attention

​Soft International faces high competition and slow market growth, with declining performance in 2024. Single-digit net profit margin is...

Xinyao (Criss) Wang

Shanghai Henlius Biotech (2696 HK)- LVC Is Betting on Higher Valuation Upside Due to Business Update

Henlius' shares is above HK$30/share, in line with our analysis. The Offer Price is "a joke". At valuation of about RMB16bn, conservative investors...

Xinyao (Criss) Wang

Huge Dental Pre-IPO Tearsheet

​Huge Dental plans to raise US$100mn in Hong Kong IPO, offering a range of dental products globally through key markets in China, Europe, U.S., and...

Troy Wong

WuXi AppTec (2359 HK): In-Line 2024 Performance; Announces Dividend and A Share Buyback Plan

​WuXi AppTec reports 5% revenue growth in 2024, excluding Covid-19 projects, announces dividends, and proposes buyback plan. Expects 10–15% growth...

Tina Banerjee

Pharmaceuticals (维升药业) IPO: Valuation and Book Building

​Visen Pharmaceuticals seeks to raise $100m for Hong Kong listing. We think the valuation is extremely inflated with tones turning bearing in the...

Ke Yan, CFA, FRM

Soft International faces high competition and slow market growth, with declining performance in 2024. Single-digit net profit margin is...

Huge Dental plans to raise US$100mn in Hong Kong IPO, offering a range of dental products globally through key markets in China, Europe, U.S., and...

WuXi AppTec reports 5% revenue growth in 2024, excluding Covid-19 projects, announces dividends, and proposes buyback plan. Expects 10–15% growth...

Visen Pharmaceuticals seeks to raise $100m for Hong Kong listing. We think the valuation is extremely inflated with tones turning bearing in the...