HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>As one of the few CXOs in the industry that has layout of the whole industry chain, Pharmaron carries many expectations. But it cannot compete with WuXi AppTec so far.</li>
<li>If Pharmaron could make breakthrough either in its CMC services (improving gross profit margin and scale) or the CGT services, the Company’s outlook and valuation logic would improve greatly.</li>
<li>The valuation of Pharmaron should be lower than WuXi AppTec and WuXi Biologics, but higher than Asymchem, Tigermed and Joinn. Considering the macro uncertainties, short-term trades are advised.</li>
</ul>


As one of the few CXOs in the industry that has layout of the whole industry chain, Pharmaron carries many expectations. But it cannot compete with WuXi AppTec so far.
If Pharmaron could make breakthrough either in its CMC services (improving gross profit margin and scale) or the CGT services, the Company’s outlook and valuation logic would improve greatly.
The valuation of Pharmaron should be lower than WuXi AppTec and WuXi Biologics, but higher than Asymchem, Tigermed and Joinn. Considering the macro uncertainties, short-term trades are advised.


Pharmaron Beijing Co Ltd (3759.HK/300759.CH) 2022/2021Q1 Results- Expectations Coexist with Concerns

Asymchem Laboratories Tianjin / Equity Bottom-Up

<ul>
<li>The three large orders for COVID-19 small molecule drugs are mostly one-off revenues, and after 2022, <a href="https://www.smartkarma.com/entities/asymchem-laboratories" target="_blank" data-smartkarma-citation="entities:35691:1" rel="noopener">Asymchem Laboratories (6821 HK)</a>'s performance could decline from a high base.</li>
<li>In essence, Asymchem mainly relies on cost advantage of large-scale capacity to obtain orders.Without core leading technology in frontier of medicine, Asymchem is difficult to enjoy sustainable industry development dividend.</li>
<li>Overall, Asymchem’s moat is not strong enough, and the certainty of the Company's long-term performance growth is also not high. It could be a short-term trade rather than long-term hold.</li>
</ul>


The three large orders for COVID-19 small molecule drugs are mostly one-off revenues, and after 2022, Asymchem Laboratories (6821 HK)'s performance could decline from a high base.
In essence, Asymchem mainly relies on cost advantage of large-scale capacity to obtain orders.Without core leading technology in frontier of medicine, Asymchem is difficult to enjoy sustainable industry development dividend.
Overall, Asymchem’s moat is not strong enough, and the certainty of the Company's long-term performance growth is also not high. It could be a short-term trade rather than long-term hold.


Asymchem Laboratories (6821.HK/002821.CH) - Concerns on Future Growth Momentum

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 analyse the changes of A/H premium on 136 stocks over the last week.</li>
<li>Average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. </li>
<li>37 stocks reached 52 week high last week but most have retreated since, representing arb opportunities in volatile market. </li>
</ul>


We analyse the changes of A/H premium on 136 stocks over the last week.
Average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. 
37 stocks reached 52 week high last week but most have retreated since, representing arb opportunities in volatile market. 


A/H Premium Weekly: Arb Opportunities Last Week

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.

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Asymchem Laboratories Tianjin (6821 HK)

Pharmaron Beijing Co Ltd (3759.HK/300759.CH) 2022/2021Q1 Results- Expectations Coexist with Concerns

We analyzed Pharmaron's performance in 2021 & 2022Q1.Expectations coexist with concerns. Its outlook/valuation logic would improve greatly if it...

Xinyao (Criss) Wang

Asymchem Laboratories (6821.HK/002821.CH) - Concerns on Future Growth Momentum

Despite COVID-19 drug orders, Asymchem's performance could decline afterwards. In essence, it mainly relies on cost advantage of large-scale...

Xinyao (Criss) Wang

A/H Premium Weekly: Arb Opportunities Last Week

We highlight average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. 37 stocks reached 52w high...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

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