HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The successful transformation of biotech into large pharmaceutical enterprises needs to meet three conditions, but many biotech enterprises could actually meet only the requirements of the first two.</li>
<li>If investors cannot understand the basic logic of marketing in China pharmaceutical industry, they would never understand or “anticipate” the future potential collapse of valuation of some companies. </li>
<li>The barriers formed by DS-8201 deserve investors' attention. For those ADC players that are in the range of head-to-head competition with DS-8201, they should at least “revise the story” .</li>
</ul>


The successful transformation of biotech into large pharmaceutical enterprises needs to meet three conditions, but many biotech enterprises could actually meet only the requirements of the first two.
If investors cannot understand the basic logic of marketing in China pharmaceutical industry, they would never understand or “anticipate” the future potential collapse of valuation of some companies. 
The barriers formed by DS-8201 deserve investors' attention. For those ADC players that are in the range of head-to-head competition with DS-8201, they should at least “revise the story” .


China Healthcare Weekly (Mar.10)- Three Conditions to Be Biopharma, Anticipate the Collapse, DS-8201

China/Asia TMT

Shawn Yang

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

<ul>
<li>9926HK：Akeso and China's 2nd largest pharmaceutical distributor signed collaborative R&amp;D agreement（+）</li>
<li>XPEV: Xpeng to officially unveils facelift of P7 on Friday (+)</li>
<li>981.HK/1347.HK/ACMR: Netherlands announces intention to ban only “state-of-the-art” ASML DUV tools (+/+/+)</li>
</ul>


9926HK：Akeso and China's 2nd largest pharmaceutical distributor signed collaborative R&amp;D agreement（+）
XPEV: Xpeng to officially unveils facelift of P7 on Friday (+)
981.HK/1347.HK/ACMR: Netherlands announces intention to ban only “state-of-the-art” ASML DUV tools (+/+/+)


China TMT Update(Mar.10): 9926hk/XPEV/981.HK/1347.HK/ACMR: Xpeng to Unveils Facelift of P7 (+)

<ul>
<li>9926HK：Summit Therapeutics completed US$500mn rights offering to pay for Akeso's AK112 (+)</li>
<li>3690HK：Meituan closure of self-operated taxi business may have 6% benefit to net profit in 2023 (+)</li>
<li>ZLAB：HBM announced Phase III success of FcRn drug treating MG, about to compete against ZLAB's Efgartigimod(-)</li>
</ul>


9926HK：Summit Therapeutics completed US$500mn rights offering to pay for Akeso's AK112 (+)
3690HK：Meituan closure of self-operated taxi business may have 6% benefit to net profit in 2023 (+)
ZLAB：HBM announced Phase III success of FcRn drug treating MG, about to compete against ZLAB's Efgartigimod(-)


China TMT Update(Mar.8): 9926HK,ZLAB,3690HK: Meituan Closure of Self-Operated Taxi Business (+)

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 weekly Hong Kong Connect flows with our data engine for holding position as of February 24th.</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 flows for China Mobile, Tencent, Byd, China Construction Bank.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of February 24th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for China Mobile, Tencent, Byd, China Construction Bank.


Hong Kong Connect Flows (Feb 24th): China Mobile, Tencent, Byd, CCB

Equity Bottom-Up

<ul>
<li>RemeGen’s revenue declined in 22H2, leading to lower-than-expected performance last year.However, 2022’s low base is good for the growth this year,especially when non-COVID treatment returns to normal after China reopens. </li>
<li>We analyzed our revenue forecast on RC48 and RC18. We don't think there should be big difference between the market value of RemeGen and Akeso. So, RemeGen’s valuation is attractive.</li>
<li>The sentiment in HKEX has changed this year, so the trading strategy should be different. The pullback could be a buying opportunity, especially for good biotech companies such as RemeGen.</li>
</ul>


RemeGen’s revenue declined in 22H2, leading to lower-than-expected performance last year.However, 2022’s low base is good for the growth this year,especially when non-COVID treatment returns to normal after China reopens. 
We analyzed our revenue forecast on RC48 and RC18. We don't think there should be big difference between the market value of RemeGen and Akeso. So, RemeGen’s valuation is attractive.
The sentiment in HKEX has changed this year, so the trading strategy should be different. The pullback could be a buying opportunity, especially for good biotech companies such as RemeGen.


Remegen Co Ltd (9995.HK) - There's Expectation Difference in Valuation; Trading Opportunity Occurs

China

Akeso Inc. operates operatesa s a biotech company. The compnay develops treatments and therapies for various types of diseases. Akeso serves cutomers worldwide

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Akeso Biopharma Inc (9926 HK)

China Healthcare Weekly (Mar.10)- Three Conditions to Be Biopharma, Anticipate the Collapse, DS-8201

Becoming big pharma needs to meet three conditions. If investors can understand the logic of marketing, they may anticipate potential collapse. ADC...

Xinyao (Criss) Wang

China TMT Update(Mar.10): 9926hk/XPEV/981.HK/1347.HK/ACMR: Xpeng to Unveils Facelift of P7 (+)

Akeso and China's 2nd largest pharmaceutical distributor signed collaborative R&D agreement ; Xpeng to officially unveils facelift of P7:...

Blue Lotus Research Institute

China TMT Update(Mar.8): 9926HK,ZLAB,3690HK: Meituan Closure of Self-Operated Taxi Business (+)

ZLAB：HBM announced Phase III success of FcRn drug treating MG(-) 3690HK：Meituan closure of self-operated taxi business may have 6% benefit to net...

Blue Lotus Research Institute

Hong Kong Connect Flows (Feb 24th): China Mobile, Tencent, Byd, CCB

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for China Mobile, Tencent, Byd, China Construction Bank.

Ke Yan, CFA, FRM

Remegen Co Ltd (9995.HK) - There's Expectation Difference in Valuation; Trading Opportunity Occurs

RemeGen’s weak 2022 performance leads to low base,which is good for this year's growth. Its current valuation is attractive.Since sentiment in HKEX...

Xinyao (Criss) Wang

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