Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>The HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.</li>
<li>In this insight, we take a look at the potential index changes and the resultant capping flows for HSCEI index rebal event in June 2024.</li>
<li>Based on the current data, I see two low-conviction ADDs and two low-conviction DELs.</li>
</ul>


The HSCEI serves as a benchmark to reflect the overall performance of the top 50 "Mainland China" securities listed in Hong Kong.
In this insight, we take a look at the potential index changes and the resultant capping flows for HSCEI index rebal event in June 2024.
Based on the current data, I see two low-conviction ADDs and two low-conviction DELs.


Quiddity HSCEI Jun 24 Flow Expectations: Many Reasons to Follow the Developments Closely

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>The sBLA of Carvykti is under review by FDA with a target PDUFA date of April 5. If approved for 2L therapy, Carvykti would become “a game changer” in MM treatment.</li>
<li>The peak sales of US$5 billion is becoming possible. From this perspective, as Carvykti advances towards earlier line treatment, the subsequent valuation leap of legend Bio is becoming more certain.</li>
<li>However, considering lower gross margin and Legend Bio/J&amp;J's 50/50 split ratio, Legend Bio’s market value performance could be inferior to BeiGene. Investors should also closely monitor the changes in macro.</li>
</ul>


The sBLA of Carvykti is under review by FDA with a target PDUFA date of April 5. If approved for 2L therapy, Carvykti would become “a game changer” in MM treatment.
The peak sales of US$5 billion is becoming possible. From this perspective, as Carvykti advances towards earlier line treatment, the subsequent valuation leap of legend Bio is becoming more certain.
However, considering lower gross margin and Legend Bio/J&amp;J's 50/50 split ratio, Legend Bio’s market value performance could be inferior to BeiGene. Investors should also closely monitor the changes in macro.


Legend Biotech Corp (LEGN.US) - FDA's Upcoming Decision on Carvykti Will Change the Whole Landscape

APAC IPOs & Placements, Aequitas Research

Clarence Chu

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.

Equity Capital Markets

Akeso Biopharma Inc / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a> is looking to raise US$155m from its primary placement.</li>
<li>Proceeds from the deal would be geared towards R&amp;D expenditure for its preclinical programs, expediting clinical trials, and towards commercializing its existing approved products.</li>
<li>Accounting for 3% of shares outstanding, and representing 5.7 days of its three month ADV, the deal would be a relatively small one for the firm to digest.</li>
</ul>



Akeso Biopharma Inc (9926 HK) is looking to raise US$155m from its primary placement.
Proceeds from the deal would be geared towards R&amp;D expenditure for its preclinical programs, expediting clinical trials, and towards commercializing its existing approved products.
Accounting for 3% of shares outstanding, and representing 5.7 days of its three month ADV, the deal would be a relatively small one for the firm to digest.


Akeso Inc Placement - A Small One to Digest, Momentum Has Been Strong

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>300750 SZ: CATL’s result in 4Q23 showed clear impact of price war (/)</li>
<li>NIO: Huawei AITO M9 ranks first in weekly sales among SUVs above Rmb500K(/)</li>
<li>BGNE: BeiGene’s Tislelizumab approved by FDA for esophageal squamous cancer, but with little revenue potential (/)</li>
</ul>


300750 SZ: CATL’s result in 4Q23 showed clear impact of price war (/)
NIO: Huawei AITO M9 ranks first in weekly sales among SUVs above Rmb500K(/)
BGNE: BeiGene’s Tislelizumab approved by FDA for esophageal squamous cancer, but with little revenue potential (/)


[Blue Lotus Daily]：300750 SZ/NIO/BGNE/1810 HK

<ul>
<li>A document titled "<em>Soliciting Opinions on the Implementation Plan for Supporting the Development of Innovative Drugs throughout the Whole Chain</em>" attracted widespread attention, which is significantly different from past policies. </li>
<li>Restrictions on payment end and deteriorating investment and financing situations will be improved, marking a new starting point for China’s innovative drug business. We have reasons to start being optimistic.</li>
<li>If approved and implemented, it would be a significant reversal of the previous expectation and investment logic of innovative drugs. So, investors should not overlook the importance of this document.</li>
</ul>


A document titled "Soliciting Opinions on the Implementation Plan for Supporting the Development of Innovative Drugs throughout the Whole Chain" attracted widespread attention, which is significantly different from past policies. 
Restrictions on payment end and deteriorating investment and financing situations will be improved, marking a new starting point for China’s innovative drug business. We have reasons to start being optimistic.
If approved and implemented, it would be a significant reversal of the previous expectation and investment logic of innovative drugs. So, investors should not overlook the importance of this document.


Important New Policy for China’s Innovative Drugs – The Game Rule Is About to Change Radically

China

BeiGene, Ltd. operates as a commercial stage biopharmaceutical company. The Company focuses on discovery, development, and commercialization of molecularly targeted and immuno-oncology drugs for the treatment of cancer. BeiGene serves patients worldwide.

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BeiGene (6160 HK)

Quiddity HSCEI Jun 24 Flow Expectations: Many Reasons to Follow the Developments Closely

The reference period for HSCEI June 2024 review ended on 31st March 2024 and my expectations for index changes remain unchanged since I published...

Janaghan Jeyakumar, CFA

Legend Biotech Corp (LEGN.US) - FDA's Upcoming Decision on Carvykti Will Change the Whole Landscape

If Carvykti's approved for 2L therapy, it will be a game changer in MM treatment. But Legend Bio's market value performance may be inferior to...

Xinyao (Criss) Wang

Akeso Inc Placement - A Small One to Digest, Momentum Has Been Strong

Akeso Biopharma Inc (9926 HK) is looking to raise US$155m from its primary placement. Representing 5.7 days of its three month ADV, the deal would...

Clarence Chu

[Blue Lotus Daily]：300750 SZ/NIO/BGNE/1810 HK

CATL's 4Q23 results impacted by price war, NIO's Huawei AITO M9 SUV leads in sales over Rmb500K, BeiGene's Tislelizumab FDA approval for...

Blue Lotus Research Institute

Important New Policy for China’s Innovative Drugs – The Game Rule Is About to Change Radically

A new document about China's innovative drugs would change the game rule/outlook radically. We have reasons to start being optimistic that the...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Quiddity HSCEI Jun 24 Flow Expectations: Many Reasons to Follow the Developments Closely

The reference period for HSCEI June 2024 review ended on 31st March 2024 and my expectations for index changes remain unchanged since I published...

Janaghan Jeyakumar, CFA

Legend Biotech Corp (LEGN.US) - FDA's Upcoming Decision on Carvykti Will Change the Whole Landscape

If Carvykti's approved for 2L therapy, it will be a game changer in MM treatment. But Legend Bio's market value performance may be inferior to...

Xinyao (Criss) Wang

Akeso Inc Placement - A Small One to Digest, Momentum Has Been Strong

Akeso Biopharma Inc (9926 HK) is looking to raise US$155m from its primary placement. Representing 5.7 days of its three month ADV, the deal would...

Clarence Chu

[Blue Lotus Daily]：300750 SZ/NIO/BGNE/1810 HK

​CATL's 4Q23 results impacted by price war, NIO's Huawei AITO M9 SUV leads in sales over Rmb500K, BeiGene's Tislelizumab FDA approval for...

Blue Lotus Research Institute

Important New Policy for China’s Innovative Drugs – The Game Rule Is About to Change Radically

A new document about China's innovative drugs would change the game rule/outlook radically. We have reasons to start being optimistic that the...

Xinyao (Criss) Wang

CATL's 4Q23 results impacted by price war, NIO's Huawei AITO M9 SUV leads in sales over Rmb500K, BeiGene's Tislelizumab FDA approval for...