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 analyze the monthly Hong Kong Connect flows with our data engine.</li>
<li>We tabulate the top stocks by inflows, outlfows, and holding by mainland investors.</li>
<li>We highlight inflows into Tencent, Wuxi Biologics, HKEx, Country Garden, and outflows from Meituan, ICBC, China Pacific, COSCO Shipping, Xiaomi.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outlfows, and holding by mainland investors.
We highlight inflows into Tencent, Wuxi Biologics, HKEx, Country Garden, and outflows from Meituan, ICBC, China Pacific, COSCO Shipping, Xiaomi.


Hong Kong Connect Flows Monthly: $7bn Inflows in November

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The "Spring Coil Alliance Centralized Procurement" in 21 provinces led by Jilin is about to start. Such large-scale centralized procurement has certain reference significance for future nationwide centralized procurement expansion.</li>
<li>The rules and varieties of 8th national VBP could change, and biological drugs may be included in VBP together with chemical drugs.</li>
<li>The US FDA has recently tightened the policy of accelerated approval, which is correct, because at present, pharmaceutical enterprises are trying to “exploit loopholes”.</li>
</ul>


The "Spring Coil Alliance Centralized Procurement" in 21 provinces led by Jilin is about to start. Such large-scale centralized procurement has certain reference significance for future nationwide centralized procurement expansion.
The rules and varieties of 8th national VBP could change, and biological drugs may be included in VBP together with chemical drugs.
The US FDA has recently tightened the policy of accelerated approval, which is correct, because at present, pharmaceutical enterprises are trying to “exploit loopholes”.


China Healthcare Weekly (Nov.11)-Largest Spring Coil VBP; Biological Drug VBP; FDA Changes Game Rule

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Shanghai Pharmaceuticals Holding / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-pharmaceuticals-holding" target="_blank" data-smartkarma-citation="entities:228:1" rel="noopener">Shanghai Pharmaceuticals Holding (2607 HK)</a> reported strong result for the first nine months of 2022, with revenue increasing 8.5% to RMB174.6B. Notably, total revenue growth accelerated to 13% in 3Q22.</li>
<li>With a leading market positioning and nation-wide distribution network, the company is well-positioned to benefit from the sector tailwinds. Easing of restrictions will provide a major impetus to the company.</li>
<li>The company has been improving its innovative drug pipeline. It has 42 innovative products in its pipeline, six of which are in pivotal studies.</li>
</ul>



Shanghai Pharmaceuticals Holding (2607 HK) reported strong result for the first nine months of 2022, with revenue increasing 8.5% to RMB174.6B. Notably, total revenue growth accelerated to 13% in 3Q22.
With a leading market positioning and nation-wide distribution network, the company is well-positioned to benefit from the sector tailwinds. Easing of restrictions will provide a major impetus to the company.
The company has been improving its innovative drug pipeline. It has 42 innovative products in its pipeline, six of which are in pivotal studies.


Shanghai Pharmaceuticals (2607 HK): Stable Core Business; New Drug Approvals to Accelerate Growth

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Oct 28th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period. </li>
<li>We highlight short changes in CCB, Alibaba, trip.com, and AIA.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Oct 28th.
Top short increases and decreases were tabulated for one week and four week period. 
We highlight short changes in CCB, Alibaba, trip.com, and AIA.


HK Short Interest Weekly: CCB, Alibaba, Trip.com, AIA

<ul>
<li>If excluding the contribution from COVID-19 related products, Pfizer’s performance growth could have been quite pessimistic. In terms of BD, Pfizer is “a big buyer” but the return is questionable. </li>
<li>We haven't seen any blockbuster new products in Pfizer’s pipeline that can make up for the losses caused by VBP/NRDL negotiation in China. Price reduction seems the only way out.</li>
<li>We cannot rule out that Pfizer may lose the China market in the event of further deterioration of Sino-US relations. This is a problem investors need to consider in advance.</li>
</ul>


If excluding the contribution from COVID-19 related products, Pfizer’s performance growth could have been quite pessimistic. In terms of BD, Pfizer is “a big buyer” but the return is questionable. 
We haven't seen any blockbuster new products in Pfizer’s pipeline that can make up for the losses caused by VBP/NRDL negotiation in China. Price reduction seems the only way out.
We cannot rule out that Pfizer may lose the China market in the event of further deterioration of Sino-US relations. This is a problem investors need to consider in advance.


Pfizer Inc (PFE.US) - What if Pfizer Loses the China Market in the Future?

China

CanSino Biologics Inc. develops and manufactures biological vaccine products. The Company discovers quadrivalence meningococcal conjugate, pneumococcal polysaccharide, and adenovirus vector-based tuberculosis vaccines for human use. CanSino Biologics serves customers worldwide.

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CanSino Biologics (6185 HK)

Hong Kong Connect Flows Monthly: $7bn Inflows in November

We analyzed the Hong Kong Connect Scheme for November and highlight flows for Tencent, Wuxi Biologics, HKEx, Country Garden, Meituan, ICBC, China...

Ke Yan, CFA, FRM

China Healthcare Weekly (Nov.11)-Largest Spring Coil VBP; Biological Drug VBP; FDA Changes Game Rule

The largest spring coil VBP led by Jilin has certain reference significance. Biological drugs may be included in 8th national VBP.After FDA changes...

Xinyao (Criss) Wang

Shanghai Pharmaceuticals (2607 HK): Stable Core Business; New Drug Approvals to Accelerate Growth

SPH reported accelerated double-digit revenue growth in Q3. Sector tailwinds, easing of COVID restrictions, and rich pipeline of innovative drugs...

Tina Banerjee

HK Short Interest Weekly: CCB, Alibaba, Trip.com, AIA

We analyzed the latest HK SFC report for aggregate short position as of Oct 28th and highlight short interest changes in CCB, Alibaba, trip.com,...

Ke Yan, CFA, FRM

Pfizer Inc (PFE.US) - What if Pfizer Loses the China Market in the Future?

Pfizer’s China business faces challenges due to VBP/NRDL negotiation and potential further deterioration of Sino-US relations. Together with...

Xinyao (Criss) Wang

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