HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Asymchem Laboratories Tianjin / Equity Bottom-Up

<ul>
<li>The three large orders for COVID-19 small molecule drugs are mostly one-off revenues, and after 2022, <a href="https://www.smartkarma.com/entities/asymchem-laboratories" target="_blank" data-smartkarma-citation="entities:35691:1" rel="noopener">Asymchem Laboratories (6821 HK)</a>'s performance could decline from a high base.</li>
<li>In essence, Asymchem mainly relies on cost advantage of large-scale capacity to obtain orders.Without core leading technology in frontier of medicine, Asymchem is difficult to enjoy sustainable industry development dividend.</li>
<li>Overall, Asymchem’s moat is not strong enough, and the certainty of the Company's long-term performance growth is also not high. It could be a short-term trade rather than long-term hold.</li>
</ul>


The three large orders for COVID-19 small molecule drugs are mostly one-off revenues, and after 2022, Asymchem Laboratories (6821 HK)'s performance could decline from a high base.
In essence, Asymchem mainly relies on cost advantage of large-scale capacity to obtain orders.Without core leading technology in frontier of medicine, Asymchem is difficult to enjoy sustainable industry development dividend.
Overall, Asymchem’s moat is not strong enough, and the certainty of the Company's long-term performance growth is also not high. It could be a short-term trade rather than long-term hold.


Asymchem Laboratories (6821.HK/002821.CH) - Concerns on Future Growth Momentum

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Mar 25th. </li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short interest changes in Wuxi Biologics, HK China Gas, Geely, Netease.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Mar 25th. 
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short interest changes in Wuxi Biologics, HK China Gas, Geely, Netease.


HK Short Interest: Wuxi Biologics, HK China Gas, Geely, Netease

<ul>
<li>The continuous increase of backlog and CMO projects would provide high visibility and certainty for the growth of <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a> in 2022.</li>
<li>Given the complex international relations, it is possible that the US may add WuXi Biologics to any sanctions list again in the future, which means large stock price volatility.</li>
<li>There could be some short-term rally, but due to the lack of clear positive “signals” in the industry, we do not think it means a complete “reversal” for WuXi Biologics. </li>
</ul>


The continuous increase of backlog and CMO projects would provide high visibility and certainty for the growth of Wuxi Biologics (2269 HK) in 2022.
Given the complex international relations, it is possible that the US may add WuXi Biologics to any sanctions list again in the future, which means large stock price volatility.
There could be some short-term rally, but due to the lack of clear positive “signals” in the industry, we do not think it means a complete “reversal” for WuXi Biologics. 


Wuxi Biologics (2269.HK) 2021 Results - The Highlights and the Concerns

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight weekly inflows into CNOOC, Wuxi Biologics and outflows from JD.com. </li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight weekly inflows into CNOOC, Wuxi Biologics and outflows from JD.com. 


Hong Kong Connect Flows: CNOOC, Wuxi Biologics, JD.com

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight sound bound purchases of Li Ning, Wuxi Biologics, HKEx, and China Mobile. </li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight sound bound purchases of Li Ning, Wuxi Biologics, HKEx, and China Mobile. 


Hong Kong Connect Flows: What Chinese Bought for Rebound?

China

WuXi Biologics (Cayman) Inc. is a leading open-access R&D capability and technology platform company serving the pharmaceutical, biotechnology, and medical device industries, with operations in China, U.S., and Iceland.  We provide a broad and integrated portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process.  Our services are designed to help our global partners in shortening the cycle and lowering the cost of drug and medical device R&D through cost-effective and efficient solutions. 

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Wuxi Biologics (2269 HK)

Asymchem Laboratories (6821.HK/002821.CH) - Concerns on Future Growth Momentum

Despite COVID-19 drug orders, Asymchem's performance could decline afterwards. In essence, it mainly relies on cost advantage of large-scale...

Xinyao (Criss) Wang

HK Short Interest: Wuxi Biologics, HK China Gas, Geely, Netease

We highlight week on week short interest changes in Wuxi Biologics, HK China Gas, Geely, Netease based on latest HK SFC short aggregate report.

Ke Yan, CFA, FRM