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 analyzed the changes in short interest of KRX stocks as of Jul 12th which has an aggregated short interest worth USD6.1bn.</li>
<li>We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Samsung Electronics (005930 KS) , Posco (005490 KS) .</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Jul 12th which has an aggregated short interest worth USD6.1bn.
We tabulate league table for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Samsung Electronics (005930 KS) , Posco (005490 KS) .


KRX Short Interest Weekly (Jul 12th): Samsung Electronics, Posco

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hugel-inc" target="_blank" data-smartkarma-citation="entities:22860:1" rel="noopener">Hugel Inc (145020 KS)</a> got favorable preliminary ruling in US for its litigation with Medytox. The ruling revealed that the competitor’s claim of strain theft by Hugel is baseless.  </li>
<li>In March, Hugel received FDA approval for BTX product, Letybo in US. The company plans to launch Letybo in 2H24, while final ruling for the litigation is scheduled in October.</li>
<li>As BTX and HA filler grew steadily in domestic and overseas markets, 1Q24 sales grew 15% YoY to KRW74.3B, achieving the highest ever performance in the first quarter.</li>
</ul>



Hugel Inc (145020 KS) got favorable preliminary ruling in US for its litigation with Medytox. The ruling revealed that the competitor’s claim of strain theft by Hugel is baseless.  
In March, Hugel received FDA approval for BTX product, Letybo in US. The company plans to launch Letybo in 2H24, while final ruling for the litigation is scheduled in October.
As BTX and HA filler grew steadily in domestic and overseas markets, 1Q24 sales grew 15% YoY to KRW74.3B, achieving the highest ever performance in the first quarter.


Hugel Inc (145020 KS): Favorable Court Ruling Paves US Entry; Record High 1Q Sales

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hk-inno-n-corp" target="_blank" data-smartkarma-citation="entities:33522:1" rel="noopener">HK inno.N (195940 KS)</a> is expected to see significant improvement in operating profit margin this year to 10.9% (vs. 8% in 2023).</li>
<li>Growing sales of flagship drug K-CAB, increasing capacity utilization in new IV fluids plant, and improving profitability of health and beauty products segment, will be three important margin drivers.</li>
<li>With accelerating global presence, HK inno is on track to achieve its target of entering 100 countries by 2028 and achieve global sales of KRW2 trillion ($1.4 billion) by 2030.</li>
</ul>



HK inno.N (195940 KS) is expected to see significant improvement in operating profit margin this year to 10.9% (vs. 8% in 2023).
Growing sales of flagship drug K-CAB, increasing capacity utilization in new IV fluids plant, and improving profitability of health and beauty products segment, will be three important margin drivers.
With accelerating global presence, HK inno is on track to achieve its target of entering 100 countries by 2028 and achieve global sales of KRW2 trillion ($1.4 billion) by 2030.


HK Inno.N (195940 KS): 2024 Will See Robust Profit Growth On Growing Momentum of Key Drug

<ul>
<li>In 2023, <a href="https://www.smartkarma.com/entities/hanmi-pharm-co-ltd" target="_blank" data-smartkarma-citation="entities:12476:1" rel="noopener">Hanmi Pharm (128940 KS)</a> reported 12% and 40% growth in revenue and operating profit, respectively, driven by double-digit revenue increase from Rosuzet and improving performance of China subsidiary.</li>
<li>In January, the company has enrolled first patient in phase 3 trial of type 2 diabetes/obesity drug candidate Efpeglenatide. The study is expected to complete in 2026.</li>
<li>Hanmi Science-OCI merger has hit a roadblock. Although merger with OCI will bring synergistic effect, Hanmi Pharm will continue to grow even if the merger does not happen.</li>
</ul>


In 2023, Hanmi Pharm (128940 KS) reported 12% and 40% growth in revenue and operating profit, respectively, driven by double-digit revenue increase from Rosuzet and improving performance of China subsidiary.
In January, the company has enrolled first patient in phase 3 trial of type 2 diabetes/obesity drug candidate Efpeglenatide. The study is expected to complete in 2026.
Hanmi Science-OCI merger has hit a roadblock. Although merger with OCI will bring synergistic effect, Hanmi Pharm will continue to grow even if the merger does not happen.


OCI Or No OCI, Hanmi Pharm (128940 KS) Will Continue to Roar on Strong Base Business and Pipeline

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hyosung-corporation" target="_blank" data-smartkarma-citation="entities:20712:1" rel="noopener">Hyosung Corporation (004800 KS)</a> has announced that it is spinning off part of its business holdings to Hyosung New Holding Corporation in a 0.818:0.182 ratio.</li>
<li>The stock will remain suspended from late June to late July. We expect <a href="https://www.smartkarma.com/entities/hyosung-corporation" target="_blank" data-smartkarma-citation="entities:20712:1" rel="noopener">Hyosung Corporation (004800 KS)</a> to maintain its index membership while the New Entity will not be added.</li>
<li>The dynamics between listed ETFs and non-listed passive trackers differ and we take a look at the potential index flows.</li>
</ul>



Hyosung Corporation (004800 KS) has announced that it is spinning off part of its business holdings to Hyosung New Holding Corporation in a 0.818:0.182 ratio.
The stock will remain suspended from late June to late July. We expect Hyosung Corporation (004800 KS) to maintain its index membership while the New Entity will not be added.
The dynamics between listed ETFs and non-listed passive trackers differ and we take a look at the potential index flows.


Hyosung Corp (004800 KS): Spin-Off & KOSPI200 Index Implications

South Korea

HLB Life Science Co., Ltd. wholesales and distributes pharmaceutical drugs. The Company through its subsidiaries provides targeted therapy, cell therapy, new drug development, medical devices production, and other related services. HLB Life Science also offers solar, geothermal, and other renewable energy engineering services.

Chong Kun Dang Pharmaceutical Corp. manufactures pharmaceutical products.  The Company produces medical drugs in the fields of systemic anti-infective, cardiovascular system, alimentary tract, metabolism, and sensory organs.

Chong Kun Dang Pharmaceutical (185750 KS)

Caregen Co., Ltd. manufactures medical equipment based on their research on Growth Factors and purified Biomimetic Peptides.  The Company's products include Dermaheal and Renokin.

Mezzion Pharma Co Ltd develops pharmaceutical products and out-licenses them to foreign countries including Canada, Mexico, Russia, and the United States. The Company's main products are for benign prostatic hyperplasia and erectile dysfunction.

Oscotec Inc. manufactures bone and dental related medical equipment. The Company also produces a wide range of bone related medicine such as medicine to cure osteoporosis, arthritis, periodontal, and also provides R & D service.

HANALL BIOPHARMA CO., LTD. manufactures prescription drugs for hospitals. The Company specializes in making oral and non-oral antibiotics and amino-acid infusions.

Daewoong Co., Ltd. is a investment holding company which operates biotechnology, marketing system, and healthcare entities.  The Company also invests and develops over-the-counter drugs (OTC).

JW Pharmaceutical Corp manufactures prescription and over-the counter drugs. The Company produces transfusion fluids, antibiotics, anesthetics, and respiratory and circulatory medications.

Dongkook Pharmaceutical Co., Ltd. produces pharmaceutical products. The Company's products include gum treatment drugs, antibiotics, and injections. Dongkook Pharmaceutical also produces raw material medicines.

Dongkook Pharmaceutical Co Ltd (086450 KS)

Dong-A Socio Holdings Co., Ltd. manufactures pharmaceutical products, including vaccines, AIDS diagnostic kit, chemotherapeutic, nutrition and health drinks, antipyretic, analgesic, and other over-the-counter drugs.  The Company, through its subsidiaries, produces cosmetics, and provides logistic and financial services.

Strides Pharma Science Limited operates as a pharmaceutical company. The Company provides research and development of biotherapeutic drugs and devices including biosimilars, biobetters, novel formulations, and drug loaded devices.

Tong Ren Tang Technologies Company Limited manufactures, distributes, and researches, and develops Chinese patent medicine.

Tong Ren Tang Technologies Co, Ltd. (1666 HK)

Sosei Group Corporation is a holding company which was established through reorganization.  The Group companies are biopharmaceutical companies specializing in drug development.  Sosei Group enters into license agreements primarily with US, EU, and Japanese companies to market the licensed drugs in Japan and find alternative usage on such drugs.

Sumitomo Dainippon Pharma Co., Ltd. mainly manufactures and markets pharmaceuticals for human and veterinary use. The Company also produces and sells livestock feeds, food additives, and chemical products, as well as conducts clinical pathology tests for animals. Sumitomo Dainippon Pharma conducts businesses across worldwide.

Beijing Tong Ren Tang Chinese Medicine Co. Ltd. is a Chinese medicine manufacturer. The Company mainly develops and produces health products, including patent medicines and health-care products.

Beijing Tong Ren Tang Chinese Medicine (3613 HK)

Jianmin Pharmaceutical Group Co., Ltd. develops and manufactures Chinese traditi onal medicines. The Company's main products are pediatric medicines.

Collegium Pharmaceutical Inc. offers pharmaceutical products. The Company develops and commercializes prescription and over-the-counter pharmaceuticals for the treatment of central nervous system, respiratory, and skin related disorders.

Shandong Shanda WIT Science & Technology Co Ltd develops the Shandong University National University Technology Zone, manufactures chlorine dioxide generators, telecommunication network systems, industrial automatic control systems, as well as develops computer software.  The Company also produces medical products.

Shandong Shanda Wit Scienc & Tech (000915 CH)

Innoviva, Inc. is a healthcare focused asset management company. The Company intends to participate in the development, commercialization and financial management of bio-pharmaceuticals. Innoviva operates in the United States.

Marksans Pharma Limited manufactures active ingredients that are used to produce finished drugs.

Daewoong Pharmaceutical Co., Ltd. develops various kinds of medical drugs and vitamin supplements.  The Company's medical drugs are used in areas, such as cardiology, dermatology, anti-biotic, and many other medical areas.  Dae Woong's over-the-counter products include smoking deterrents, vitamins, and minerals.

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Daewoong Pharmaceutical Co (069620 KS)

KRX Short Interest Weekly (Jul 12th): Samsung Electronics, Posco

We analyzed KRX short interest report for the past week and highlighted short interest changes in Samsung Electronics, Posco.

Ke Yan, CFA, FRM

Hugel Inc (145020 KS): Favorable Court Ruling Paves US Entry; Record High 1Q Sales

Hugel wins favorable preliminary ruling in US, revealing strain theft claim baseless. The company plans to launch Letybo in 2H24 in US, while...

Tina Banerjee

HK Inno.N (195940 KS): 2024 Will See Robust Profit Growth On Growing Momentum of Key Drug

HK inno will see significant improvement in op. margin this year, riding on growing sales of K-CAB, increasing capacity utilization in new IV fluid...

Tina Banerjee

OCI Or No OCI, Hanmi Pharm (128940 KS) Will Continue to Roar on Strong Base Business and Pipeline

Hanmi Pharm has submitted phase 1 clinical trial application for its next-generation obesity drug candidate HM15275 in the U.S., with an aim to...

Tina Banerjee

Hyosung Corp (004800 KS): Spin-Off & KOSPI200 Index Implications

Hyosung Corp is spinning-off part of its businesses to a new entity. The surviving entity will maintain its KS200 membership while the new entity...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

KRX Short Interest Weekly (Jul 12th): Samsung Electronics, Posco

We analyzed KRX short interest report for the past week and highlighted short interest changes in Samsung Electronics, Posco.

Ke Yan, CFA, FRM

Hugel Inc (145020 KS): Favorable Court Ruling Paves US Entry; Record High 1Q Sales

​Hugel wins favorable preliminary ruling in US, revealing strain theft claim baseless. The company plans to launch Letybo in 2H24 in US, while...

Tina Banerjee

HK Inno.N (195940 KS): 2024 Will See Robust Profit Growth On Growing Momentum of Key Drug

HK inno will see significant improvement in op. margin this year, riding on growing sales of K-CAB, increasing capacity utilization in new IV fluid...

Tina Banerjee

OCI Or No OCI, Hanmi Pharm (128940 KS) Will Continue to Roar on Strong Base Business and Pipeline

Hanmi Pharm has submitted phase 1 clinical trial application for its next-generation obesity drug candidate HM15275 in the U.S., with an aim to...

Tina Banerjee

Hyosung Corp (004800 KS): Spin-Off & KOSPI200 Index Implications

Hyosung Corp is spinning-off part of its businesses to a new entity. The surviving entity will maintain its KS200 membership while the new entity...

Brian Freitas

Hugel wins favorable preliminary ruling in US, revealing strain theft claim baseless. The company plans to launch Letybo in 2H24 in US, while...