HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Medbanks Network Technology / Equity Capital Markets

<ul>
<li>For Medbanks, who entered the market from the SMO business and then PBM business, building core competitiveness around this closed loop may be quite challenging.</li>
<li>The PRS business has growth ceilings; The low margins of PBM and PPS business and the increasing competition make Medbanks difficult to generate solid financial position for future business expansion.</li>
<li>Therefore, based on the analysis above, we are conservative about this Company’s outlook.</li>
</ul>


For Medbanks, who entered the market from the SMO business and then PBM business, building core competitiveness around this closed loop may be quite challenging.
The PRS business has growth ceilings; The low margins of PBM and PPS business and the increasing competition make Medbanks difficult to generate solid financial position for future business expansion.
Therefore, based on the analysis above, we are conservative about this Company’s outlook.


Pre-IPO Medbanks Network Technology - Conservative About the Outlook

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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.

Beijing Yuanxin Technology Group Co Ltd / Equity Capital Markets

<ul>
<li>Beijing Yuanxin Tech (BYT) is looking to raise US$500m in its upcoming Hong Kong IPO.</li>
<li>As per F&amp;S, the firm is the No. 1 integrated healthcare fulfilment platform in China focusing on prescription drugs</li>
<li>In this note, we look at the company’s fundamentals and operations and share our thoughts about the IPO.</li>
</ul>


Beijing Yuanxin Tech (BYT) is looking to raise US$500m in its upcoming Hong Kong IPO.
As per F&amp;S, the firm is the No. 1 integrated healthcare fulfilment platform in China focusing on prescription drugs
In this note, we look at the company’s fundamentals and operations and share our thoughts about the IPO.


Beijing Yuanxin (北京圆心) Pre-IPO - Growing at the Expense of Margins

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

<ul>
<li>We analyse the changes of A/H premium on 135 stocks over the last week.</li>
<li>The average A/H premium changed by -0.9ppt week on week to 118.3%. </li>
<li>Biggest decline in A/H premium appeared in the Communication Services and Consumer Staples sector while the biggest increase was from the Real Estate sector</li>
</ul>


We analyse the changes of A/H premium on 135 stocks over the last week.
The average A/H premium changed by -0.9ppt week on week to 118.3%. 
Biggest decline in A/H premium appeared in the Communication Services and Consumer Staples sector while the biggest increase was from the Real Estate sector


A/H Premium Weekly: Decline in Com Service and Consumer Staple Offset by Real Estate

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Dec 31. </li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We note that short interests for Wuxi Biologics and Wuxi Apptec are going in opposite directions.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Dec 31. 
Top short increases and decreases were tabulated for one week and four week period. 
We note that short interests for Wuxi Biologics and Wuxi Apptec are going in opposite directions.


HK Short Interest: Wuxi Biologics and Wuxi Apptec

Equity Bottom-Up

<ul>
<li>China attaches great importance to gene therapy and related products, which would be a leader of the third industrial revolution in biomedicine and have broad prospects for future development.</li>
<li>With obvious strength in this field,<a href="https://www.smartkarma.com/entities/genscript-biotech-corp" target="_blank" data-smartkarma-citation="entities:21041:1" rel="noopener">Genscript Biotech (1548 HK)</a>’s businesses are in line with the future trend and the outlook is also quite promising, indicating exponential growth potential in valuation.</li>
<li>However, the potential risks on deterioration of international relations and the concerns on CAR-T commercialization should not be neglected by investors.</li>
</ul>


China attaches great importance to gene therapy and related products, which would be a leader of the third industrial revolution in biomedicine and have broad prospects for future development.
With obvious strength in this field,Genscript Biotech (1548 HK)’s businesses are in line with the future trend and the outlook is also quite promising, indicating exponential growth potential in valuation.
However, the potential risks on deterioration of international relations and the concerns on CAR-T commercialization should not be neglected by investors.


Genscript Biotech (1548.HK) - The Strength and the Concerns

China

Hangzhou Tigermed Consulting Company Limited provides professional clinical research services for domestic and foreign pharmaceutical and health-related research and development. The Company's main services include clinical trial technology services, data management, and statistical analysis.

Hangzhou Tigermed Consulting (A) (300347 CH)

Pharmaron Beijing Co., Ltd. engages in discovery, development, and manufacturing spectrum for small molecule drugs, cell therapies, and gene therapies as well as providing testing services for medical devices and clinic research. The Company offers laboratory, clinical development, chemistry manufactory and control, and other services. Pharmaron Beijing conducts businesses based in China.

Joinn Laboratories (China) Co., Ltd. operates as a medicines development company. The Company offers drug development, pharmaceutical analysis, pharmacologic testing, and other related services. Joinn Laboratories (China) also provides pesticide and medical device safety evaluation services.

Maccura Biotechnology Co., Ltd. specializes in the research, development, manufacturing, sales, and service of in-vitro diagnostic products. The Company provides biochemistry, immunity, rapid detection, blood, molecular diagnosis, pathology, raw materials, and more. Maccura Biotechnology conducts business in China.

Guangzhou Boji Medical & Biotechnological Co., Ltd. is an outsourcing drug research and development company. The Company provides pharmaceutical companies the ability to conduct its researches and developments at lower cost levels and offers support to bring drugs and devices to the Chinese market quicker.

CSPC Pharmaceutical Group Limited, through its subsidiaries, manufactures and sells pharmaceutical products.  The Company's products include vitamin C, antibiotics and common generic drugs. The Company is also engages in the development of innovative drugs and antibiotics.

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. manufactures and markets Chinese traditional medicines, including Pientzehuang, Pientzehuang capsules, Pientzehuang lozenge, cough syrup, and other related products.

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436 CH)

Zhangzhou Pientzehuang Pharmaceutical Co., Ltd.

Guangzhou Improve Medical Instruments Co., Ltd. researches, develops, and manufactures medical instruments. The Company's products include evacuated blood collection system, microbe specimen collection and transport, clinical testing reagent, equipment for clinical specimen testing & processing, etc.

Yunnan Baiyao Group Co., Ltd. manufactures and markets traditional Chinese medicines.  The Company also operates in pharmaceutical wholesale and retail trading, empty capsules manufacturing, and hotel operation.

Divi's Laboratories Ltd. manufactures pharmaceutical products which include generic drugs and their intermediates. The Company also undertakes contract research activities for other pharmaceutical companies.

Charles River Laboratories International, Inc. provides research tools and support services that enable drug discovery and development.  The Company provides the animal research models required in research and development for new drugs, devices, and therapies.  Charles River's customers include pharmaceutical and biotechnology companies, hospitals, and academic institutions.

Illumina, Inc. develops, manufactures and markets integrated systems for the large scale analysis of genetic variation and biological function. The Company provides a comprehensive line of products and services that currently serve the sequencing, genotyping and gene expression markets for genomic research centers, pharmaceutical companies, academic institutions and biotechnology companies.

Bio-Techne Corp develops, manufactures and sells biotechnology products and clinical diagnostic controls. The Company specializes in proteins, cytokines, growth factors, immunoassays and small molecules.

Bruker Corporation designs, manufactures, and markets proprietary  life science systems based on spectrometry technology platforms.  The Company  also sells a range of field analytical systems for substance detection and  pathogen identification.  Bruker develops life science and advanced materials  research tools based on X-ray technology.

QIAGEN N.V. is a global provider of Sample to Insight solutions to transform biological materials into valuable molecular insights. The Company provides its workflows to customers in Molecular Diagnostics (human healthcare), Applied Testing (forensics, veterinary testing and food safety), Pharma (pharmaceutical and biotechnology companies) and Academia (life sciences research).

Medpace Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides cardiovascular, hematology, oncology, neurology, pediatrics, nephrology, and diagnostic services. Medpace Holdings serves patients worldwide.

Avantor, Inc. manufactures and distributes chemicals, reagents, and laboratory supplies. The Company offers amino acids, silicones, bioreagents, denaturants, gas, solvents, stains, dyes, and minerals. Avantor serves biopharma, healthcare, education and government, advanced technologies, life sciences, and applied materials industries worldwide.

Bio-Rad Laboratories, Inc. is a multinational manufacturer and distributor of life science research products, clinical diagnostics, and analytical instrumentation.  The Company's products and systems separate complex chemical and biological materials, as well as identify, analyze, and purify their components.

Bachem Holding AG specializes in the development and manufacture of peptides and oligonucleotides. The Company provides products for research, clinical development and commercial application to pharmaceutical and biotechnology companies. Bachem Holding serves customers worldwide.

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.

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WuXi AppTec (603259 CH)

Pre-IPO Medbanks Network Technology - Conservative About the Outlook

We analyzed the business logic, concerns and outlook of Medbanks's three business lines PRS, PBM and PPS. The low margin, fierce competition and...

Xinyao (Criss) Wang

Beijing Yuanxin (北京圆心) Pre-IPO - Growing at the Expense of Margins

Beijing Yuanxin Tech (BYT) is looking to raise US$500m in its upcoming Hong Kong IPO. In this note, we look at the company's past performance.

Sumeet Singh

A/H Premium Weekly: Decline in Com Service and Consumer Staple Offset by Real Estate

Biggest decline in A/H premium appeared in the Communication Services and Consumer Staples sector while the biggest increase was from the Real...

Ke Yan, CFA, FRM

HK Short Interest: Wuxi Biologics and Wuxi Apptec

We highlight that week-on-week short interests for Wuxi Biologics (2269 HK) and Wuxi Apptec (2359 HK) are going in opposite directions despite both...

Ke Yan, CFA, FRM

Genscript Biotech (1548.HK) - The Strength and the Concerns

This insight analyzed Genscript's three largest segments (life-science services and products, CDMO, cell therapy), strength in CGT, and concerns on...

Xinyao (Criss) Wang

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