IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Joinn Laboratories China  Lt / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/joinn-laboratories-china-co-a" target="_blank" data-smartkarma-citation="entities:28273:1" rel="noopener">Joinn Laboratories China Co-A (603127 CH)</a> is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019 and ranked the third among the world’s non-clinical drug safety assessment CRO’s as measured by revenues in 2019, according to Frost &amp; Sullivan. JOINN which is listed on the Shanghai Stock Exchange is seeking a listing hearing for a H-Share listing to raise up to $600 million, according to press reports.</p><div class="content-highlight"><p>Investor sentiment on the China CRO industry remains strong with the H-shares of <a href="https://www.smartkarma.com/entities/hangzhou-tigermed-consulting-co-ltd-1008d609-73bd-4d76-8315-b29502a448ff" target="_blank" data-smartkarma-citation="entities:29212:1" rel="noopener">Hangzhou Tigermed Consulting (H) (3347 HK)</a>, <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> and <a href="https://www.smartkarma.com/entities/pharmaron-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:28428:1" rel="noopener">Pharmaron Beijing Co Ltd-H (3759 HK)</a> up 73%, 174% and 297% since the H-share listing, respectively. JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we think that JOINN’s fundamentals are attractive as the positives outweigh the negatives. </p></div>

Joinn Laboratories China Co-A (603127 CH) is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019 and ranked the third among the world’s non-clinical drug safety assessment CRO’s as measured by revenues in 2019, according to Frost &amp; Sullivan. JOINN which is listed on the Shanghai Stock Exchange is seeking a listing hearing for a H-Share listing to raise up to $600 million, according to press reports.Investor sentiment on the China CRO industry remains strong with the H-shares of Hangzhou Tigermed Consulting (H) (3347 HK), WuXi AppTec Co. Ltd. (2359 HK) and Pharmaron Beijing Co Ltd-H (3759 HK) up 73%, 174% and 297% since the H-share listing, respectively. JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we think that JOINN’s fundamentals are attractive as the positives outweigh the negatives. 

JOINN Laboratories IPO Initiation: On-Demand Science

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Hangzhou Tigermed Consulting C / Equity Bottom-Up

<p style="text-align: justify;"><a target="_blank"></a><a href="https://www.smartkarma.com/entities/hangzhou-tigermed-consulting-h" target="_blank" data-smartkarma-citation="entities:29212:1" rel="noopener">Hangzhou Tigermed Consulting (H) (3347 HK)</a> released the third quarter report of 2020. In the first three quarters of 2020, Q1-Q3 accumulated revenue reached RMB2.33 billion, with a YoY growth rate of 13.27%. Net income attributed to shareholders in the first three quarters reached RMB1.318 billion, up 149.57% YoY. Net income after deducting non-recurring gains and losses in Q1-Q3 was RMB498 million, up 13.57% YoY. The company's Q3 single quarter revenue reached RMB848 million, up 22.31% YoY. Net income attributed to shareholders in Q3 was RMB319 million, up 81.37% YoY. Net income after deducting non-recurring gains and losses in Q3 reached RMB195 million, up 29.35% YoY. Tigermed has gradually recovered from the epidemic with strong performance in Q3. </p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/169/276/original/image_94552562551604465156309.png?1604465157" class="editor-image img-responsive" data-smartkarma-image-id="169276"></figure>
<p style="text-align: justify;"><em>Source: WIND</em></p>

Hangzhou Tigermed Consulting (H) (3347 HK) released the third quarter report of 2020. In the first three quarters of 2020, Q1-Q3 accumulated revenue reached RMB2.33 billion, with a YoY growth rate of 13.27%. Net income attributed to shareholders in the first three quarters reached RMB1.318 billion, up 149.57% YoY. Net income after deducting non-recurring gains and losses in Q1-Q3 was RMB498 million, up 13.57% YoY. The company's Q3 single quarter revenue reached RMB848 million, up 22.31% YoY. Net income attributed to shareholders in Q3 was RMB319 million, up 81.37% YoY. Net income after deducting non-recurring gains and losses in Q3 reached RMB195 million, up 29.35% YoY. Tigermed has gradually recovered from the epidemic with strong performance in Q3. 

Source: WIND

Tigermed (300347.CN/03347.HK) - Q3 Performance Recovered with Optimistic Future Development

Hangzhou Tigermed Consulting C / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/hangzhou-tigermed-consulting-h" target="_blank" data-smartkarma-citation="entities:29212:1" rel="noopener">Hangzhou Tigermed Consulting (H) (3347 HK)</a> is a global contract research organisation (CRO). Tigermed is the largest clinical CRO in China with a market share of 8.4% as measured by revenue in China’s clinical CRO market in 2019, according to Frost &amp; Sullivan. Tigermed's H-shares will commence trading on Friday, 7 August. Tigermed priced its IPO at HK$100 per share, at the top end of the indicative price range of HK$88-100 per share. Tigermed raised net proceeds of HK$10,272.5 million ($1.3 billion).</p></div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/tigermed-ipo-initiation-trade-offs" target="_blank" rel="noopener">our initiation note</a>, we stated that Tigermed’s financial performance is creditable on a standalone basis and in comparison, to peers. However, our enthusiasm was tempered by a seemingly aggressive revenue recognition policy. Our <a href="https://www.smartkarma.com/insights/tigermed-ipo-phip-highlights-the-trade-offs" target="_blank" rel="noopener">follow-on note</a> which examined the PHIP suggested that the positives outweigh the negatives. Our <a href="https://www.smartkarma.com/insights/tigermed-ipo-valuation-insights" target="_blank" rel="noopener">valuation analysis</a> suggests that the IPO valuation is attractive at the low-end of the proposed IPO price range. Overall, with the rise in Tigermed's A-share price since the announcement of the price range, Tigermed's H-shares discount to the A-shares is attractive at the IPO price.</p></div></div>

Hangzhou Tigermed Consulting (H) (3347 HK) is a global contract research organisation (CRO). Tigermed is the largest clinical CRO in China with a market share of 8.4% as measured by revenue in China’s clinical CRO market in 2019, according to Frost &amp; Sullivan. Tigermed's H-shares will commence trading on Friday, 7 August. Tigermed priced its IPO at HK$100 per share, at the top end of the indicative price range of HK$88-100 per share. Tigermed raised net proceeds of HK$10,272.5 million ($1.3 billion).In our initiation note, we stated that Tigermed’s financial performance is creditable on a standalone basis and in comparison, to peers. However, our enthusiasm was tempered by a seemingly aggressive revenue recognition policy. Our follow-on note which examined the PHIP suggested that the positives outweigh the negatives. Our valuation analysis suggests that the IPO valuation is attractive at the low-end of the proposed IPO price range. Overall, with the rise in Tigermed's A-share price since the announcement of the price range, Tigermed's H-shares discount to the A-shares is attractive at the IPO price.

<div><p><a href="https://www.smartkarma.com/entities/hangzhou-tigermed-consulting-h" target="_blank" data-smartkarma-citation="entities:29212:1" rel="noopener">Hangzhou Tigermed Consulting (H) (3347 HK)</a> is a global contract research organisation (CRO). Tigermed is the largest clinical CRO in China with a market share of 8.4% as measured by revenue in China’s clinical CRO market in 2019, according to Frost &amp; Sullivan. Tigermed has launched its Hong Kong IPO at an indicative price range of HK$88-100 per share to raise gross proceeds of $1.2-1.4 billion.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/tigermed-ipo-initiation-trade-offs" target="_blank" rel="noopener">our initiation note</a>, we stated that Tigermed’s financial performance is creditable on a standalone basis and in comparison, to peers. However, our enthusiasm was tempered by a seemingly aggressive revenue recognition policy. Our <a href="https://www.smartkarma.com/insights/tigermed-ipo-phip-highlights-the-trade-offs" target="_blank" rel="noopener">follow-on note</a> which examined the PHIP suggested that the positives outweigh the negatives. Our valuation analysis suggests that the IPO valuation is attractive at the low-end of the proposed IPO price range. </p></div></div></div>

Hangzhou Tigermed Consulting (H) (3347 HK) is a global contract research organisation (CRO). Tigermed is the largest clinical CRO in China with a market share of 8.4% as measured by revenue in China’s clinical CRO market in 2019, according to Frost &amp; Sullivan. Tigermed has launched its Hong Kong IPO at an indicative price range of HK$88-100 per share to raise gross proceeds of $1.2-1.4 billion.In our initiation note, we stated that Tigermed’s financial performance is creditable on a standalone basis and in comparison, to peers. However, our enthusiasm was tempered by a seemingly aggressive revenue recognition policy. Our follow-on note which examined the PHIP suggested that the positives outweigh the negatives. Our valuation analysis suggests that the IPO valuation is attractive at the low-end of the proposed IPO price range. 

Hangzhou Tigermed Consulting (A) / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/hangzhou-tigermed-consulting-co-ltd" target="_blank" data-smartkarma-citation="entities:397:1" rel="noopener">Hangzhou Tigermed Consulting (300347 CH)</a> is a global contract research organisation (CRO). Tigermed is the largest clinical CRO in China with a market share of 8.4% as measured by revenue in China’s clinical CRO market in 2019, according to Frost &amp; Sullivan. Tigermed has won approval for a H-Share listing to raise $1 billion, according to press reports. Market sentiment on the China CRO industry remains highly positive with A-Shares of Tigermed, <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd" target="_blank" data-smartkarma-citation="entities:27092:1" rel="noopener">WuXi AppTec Co Ltd (603259 CH)</a> and <a href="https://www.smartkarma.com/entities/pharmaron-beijing-co-ltd-a" target="_blank" data-smartkarma-citation="entities:28277:1" rel="noopener">Pharmaron Beijing Co., Ltd. (A) (300759 CH)</a> up 71%, 55% and 119% YTD, respectively. </p><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/tigermed-ipo-initiation-trade-offs" target="_blank" rel="noopener">our initiation note</a>, we stated that Tigermed’s financial performance is creditable on a standalone basis and in comparison, to peers. However, our enthusiasm was tempered by a seemingly aggressive revenue recognition policy. The PHIP which outlines the 1Q20 results is incrementally negative largely due to the weak revenue growth, in our view. On balance, we continue to think that the positives outweigh the negatives. </p></div>

Hangzhou Tigermed Consulting (300347 CH) is a global contract research organisation (CRO). Tigermed is the largest clinical CRO in China with a market share of 8.4% as measured by revenue in China’s clinical CRO market in 2019, according to Frost &amp; Sullivan. Tigermed has won approval for a H-Share listing to raise $1 billion, according to press reports. Market sentiment on the China CRO industry remains highly positive with A-Shares of Tigermed, WuXi AppTec Co Ltd (603259 CH) and Pharmaron Beijing Co., Ltd. (A) (300759 CH) up 71%, 55% and 119% YTD, respectively. In our initiation note, we stated that Tigermed’s financial performance is creditable on a standalone basis and in comparison, to peers. However, our enthusiasm was tempered by a seemingly aggressive revenue recognition policy. The PHIP which outlines the 1Q20 results is incrementally negative largely due to the weak revenue growth, in our view. On balance, we continue to think that the positives outweigh the negatives. 

Tigermed IPO: PHIP Highlights the Trade-Offs

China

Frontage Holdings Corporation operates as a biotechnology company. The Company offers clinical trials, bioequivalence studies, medical writing, and agrochemical services. Frontage Holdings serves customers in Hong Kong.

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Frontage Holdings (1521 HK)

JOINN Laboratories IPO Initiation: On-Demand Science

JOINN is seeking a listing hearing for a H-Share listing to raise up to $600 million, according to press reports. On balance, we think that JOINN’s...

Arun George

Tigermed (300347.CN/03347.HK) - Q3 Performance Recovered with Optimistic Future Development

This article analyzed Tigermed's business, growth potential, global layout, equity investment and also made forecast and rating for this company.

Xinyao (Criss) Wang

Tigermed IPO: Trading Debut

Hangzhou Tigermed Consulting (H) (3347 HK) is a global contract research organisation (CRO). Tigermed is the largest clinical CRO in China with a...

Arun George

Tigermed IPO: Valuation Insights

Hangzhou Tigermed Consulting (H) (3347 HK) is a global contract research organisation (CRO). Tigermed is the largest clinical CRO in China with a...

Arun George

Tigermed IPO: PHIP Highlights the Trade-Offs

Hangzhou Tigermed Consulting (300347 CH) is a global contract research organisation (CRO). Tigermed is the largest clinical CRO in China with a...

Arun George

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