HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a> released the preliminary financial data for 2021. It is not surprising that the Company could maintain its outstanding performance.</li>
<li>We listed some interesting points to ponder, such as projected declining performance of WuXi DDSU and related chain reaction, the change in fair value of financial assets, overseas anticipation, etc..</li>
<li>It’s understandable if investors choose to start making layout at this point due to attractive valuation and longer “reflection arc”,but need to be patient for WuXi AppTec to achieve reversal.</li>
</ul>



WuXi AppTec Co. Ltd. (2359 HK) released the preliminary financial data for 2021. It is not surprising that the Company could maintain its outstanding performance.
We listed some interesting points to ponder, such as projected declining performance of WuXi DDSU and related chain reaction, the change in fair value of financial assets, overseas anticipation, etc..
It’s understandable if investors choose to start making layout at this point due to attractive valuation and longer “reflection arc”,but need to be patient for WuXi AppTec to achieve reversal.


WuXi AppTec (2359.HK/603259.CH)- Interesting Points to Ponder Behind 2021 Preliminary Financial Data

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.

Equity Capital Markets

JL Mag Rare-Earth   / Equity Capital Markets

<ul>
<li>JL Mag Rare-earth Co. Ltd (JLM) raised around US$544m via its H-shares listing. </li>
<li>JLM is a producer of high-performance REPMs. It ranked first in the world by high-performance REPM production volume in 2020 with a market share of approximately 14.5%.</li>
<li>In this note, we look at the allocation results and trading dynamics.</li>
</ul>


JL Mag Rare-earth Co. Ltd (JLM) raised around US$544m via its H-shares listing. 
JLM is a producer of high-performance REPMs. It ranked first in the world by high-performance REPM production volume in 2020 with a market share of approximately 14.5%.
In this note, we look at the allocation results and trading dynamics.


JL Mag Rare Earth A/H Trading - Set for a Tepid Debut

Porton Pharma Solutions / Equity Bottom-Up

<ul>
<li>Porton made a successful turnaround and the CGT business layout is also in the right direction. The US$217 million new order would improve the certainties of its 2022 performance.</li>
<li>The concerns on potential deterioration of international relations and the broken logic in CXO sector also apply to <a href="https://www.smartkarma.com/entities/porton-pharma-solutions-ltd" target="_blank" data-smartkarma-citation="entities:14201:1" rel="noopener">Porton Pharma Solutions (300363 CH)</a>, which should be aware of by investors.</li>
<li>So, there is a long way to go for Porton to truly get into the first tier. It may not be a good buying point currently considering the high valuation.</li>
</ul>


Porton made a successful turnaround and the CGT business layout is also in the right direction. The US$217 million new order would improve the certainties of its 2022 performance.
The concerns on potential deterioration of international relations and the broken logic in CXO sector also apply to Porton Pharma Solutions (300363 CH), which should be aware of by investors.
So, there is a long way to go for Porton to truly get into the first tier. It may not be a good buying point currently considering the high valuation.


Porton Pharma Solutions (300363.CH) - Not Easy to Get into the First Tier

Thematic (Sector/Industry)

<ul>
<li>For Pfizer,orders on COVID-19 vaccine and Paxlovid would generate over US$50 billion revenue in 2022. So whether Pfizer would pursue for new M&amp;A opportunities become the focus of the market.</li>
<li>The oral COVID-19 antivirals are a great opportunity for the development of Chinese API companies, improving the overall valuation. However, CXOs are actually the first to benefit from this market.</li>
<li>If the COVID mutates in a more transmissible direction, the valuation and forecast of related companies in this industrial chain needs readjustment.However, if it doesn’t, the logic would change again.</li>
</ul>


For Pfizer,orders on COVID-19 vaccine and Paxlovid would generate over US$50 billion revenue in 2022. So whether Pfizer would pursue for new M&amp;A opportunities become the focus of the market.
The oral COVID-19 antivirals are a great opportunity for the development of Chinese API companies, improving the overall valuation. However, CXOs are actually the first to benefit from this market.
If the COVID mutates in a more transmissible direction, the valuation and forecast of related companies in this industrial chain needs readjustment.However, if it doesn’t, the logic would change again.


Oral COVID-19 Antivirals and the Impact on China

LG Energy Solution / Equity Capital Markets

<ul>
<li><strong>Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.</strong></li>
<li>In Korea, <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (LGENERGY KS)</a> has finally filed its prospectus for US$10.8bn IPO after some delays earlier this year.</li>
<li>Hong Kong IPO sentiment has been abysmal. It was reported that <a href="https://www.smartkarma.com/entities/sensetime-group" target="_blank" data-smartkarma-citation="entities:34319:1" rel="noopener">SenseTime Group (1475539D HK)</a> delayed its IPO after the U.S. ban report.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
In Korea, LG Energy Solution (LGENERGY KS) has finally filed its prospectus for US$10.8bn IPO after some delays earlier this year.
Hong Kong IPO sentiment has been abysmal. It was reported that SenseTime Group (1475539D HK) delayed its IPO after the U.S. ban report.


ECM Weekly (12th December 2021) - LG Energy, SenseTime (Delayed), Didi, Kanzhun & Full Truck Lock-Up

China

Asymchem Laboratories (Tianjin) Co., Ltd. operates as a pharmaceutical company. The Company researches, produces, and sells organic and inorganic chemicals, medicines, and other related products. Asymchem Laboratories serves customers worldwide.

Asymchem Laboratories Tianjin (002821 CH)

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Asymchem Laboratories Tianjin (002821 CH)

WuXi AppTec (2359.HK/603259.CH)- Interesting Points to Ponder Behind 2021 Preliminary Financial Data

We analyzed some important points behind 2021 preliminary financial data (declining DDSU, fair value change of financial assets, overseas...

Xinyao (Criss) Wang

JL Mag Rare Earth A/H Trading - Set for a Tepid Debut

JL Mag Rare-earth Co. Ltd (JLM) raised around US$544m via its H-shares listing. In this note, we talk about the trading dynamics.

Sumeet Singh

Porton Pharma Solutions (300363.CH) - Not Easy to Get into the First Tier

This insight analyzed Porton about its past development, how it successfully made turnarounds, the future outlook, and concerns on deterioration of...

Xinyao (Criss) Wang

Oral COVID-19 Antivirals and the Impact on China

This insight analyzed Pfizer's Paxlovid and Merck’s Molnupiravir after FDA EUA, the global market potential, the impact on China market and related...

Xinyao (Criss) Wang

ECM Weekly (12th December 2021) - LG Energy, SenseTime (Delayed), Didi, Kanzhun & Full Truck Lock-Up

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)