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

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The newly released national medical insurance account reform will undoubtedly have a big impact on the development of China healthcare industry. We analyzed related impact on companies.</li>
<li>In 2023, we think that CXO is not suitable for long-term hold any more but only for short-term trade. Comparatively speaking, the situation of pharmaceutical companies is better.</li>
<li>Investment is a process of constantly recognizing and breaking through oneself. In fact, it is to use a large number of “certain costs” to exchange for a few “fuzzy earnings”.</li>
</ul>


The newly released national medical insurance account reform will undoubtedly have a big impact on the development of China healthcare industry. We analyzed related impact on companies.
In 2023, we think that CXO is not suitable for long-term hold any more but only for short-term trade. Comparatively speaking, the situation of pharmaceutical companies is better.
Investment is a process of constantly recognizing and breaking through oneself. In fact, it is to use a large number of “certain costs” to exchange for a few “fuzzy earnings”.


China Healthcare Weekly (Feb.17) - CXO Vs Pharma, Medical Insurance Account Reform, Time to Reflect

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Biogen terminated partnership with InnoCare. On 15 Feb, Biogen terminated the collaboration with InnoCare on orelabrutinib for the treatment of multiple sclerosis (MS) and other autoimmune diseases.</li><li>The two parties started the collaboration in Jul 2021, and since then, InnoCare has received US$125mn upfront payment, and was eligible to receive up to US$812.5mn milestone payment and future sales royalties according to the original agreement.</li><li>However, due to the current termination, future payment will not happen, while InnoCare doesn’t need to return the upfront payment. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Biogen terminated partnership with InnoCare. On 15 Feb, Biogen terminated the collaboration with InnoCare on orelabrutinib for the treatment of multiple sclerosis (MS) and other autoimmune diseases.The two parties started the collaboration in Jul 2021, and since then, InnoCare has received US$125mn upfront payment, and was eligible to receive up to US$812.5mn milestone payment and future sales royalties according to the original agreement.However, due to the current termination, future payment will not happen, while InnoCare doesn’t need to return the upfront payment. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

InnoCare Pharma (9969 HK) – Breakup with Biogen on Orelabrutinib

<ul><li>InnoCare recorded total revenue of RMB196mn in 3Q22, including RMB183mn sales from orelabrutinib (+64% QoQ, +147 YoY).</li><li>Sales of orelabrutinib during 9M22 reached RMB400mn, representing +129% YoY growth.</li><li>The strong sales growth was mainly driven by the increasing market penetration after NRDL inclusion effective since Jan 2022. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

InnoCare recorded total revenue of RMB196mn in 3Q22, including RMB183mn sales from orelabrutinib (+64% QoQ, +147 YoY).Sales of orelabrutinib during 9M22 reached RMB400mn, representing +129% YoY growth.The strong sales growth was mainly driven by the increasing market penetration after NRDL inclusion effective since Jan 2022. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

InnoCare Pharma (9969 HK) – Strong sales of orelabrutinib in 3Q22

<ul>
<li>There’s an “insurmountable obstacle” to license-in business model. <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a> has to go all the way to the end. Otherwise, Antengene won't end up well.</li>
<li>Considering the pipeline quality/speed of clinical advancement/high cost of license-in/fierce competition/just APAC rights/limited cash balance, the biggest problem Antengene has to face is how to “survive this winter” .</li>
<li>Theoretically, Antengene is undervalued, so if willing to, investors could do short-term trade. However, due to the concerns, we are still bearish on Antengene’s outlook overall. </li>
</ul>


There’s an “insurmountable obstacle” to license-in business model. Antengene (6996 HK) has to go all the way to the end. Otherwise, Antengene won't end up well.
Considering the pipeline quality/speed of clinical advancement/high cost of license-in/fierce competition/just APAC rights/limited cash balance, the biggest problem Antengene has to face is how to “survive this winter” .
Theoretically, Antengene is undervalued, so if willing to, investors could do short-term trade. However, due to the concerns, we are still bearish on Antengene’s outlook overall. 


Antengene (6996.HK) 22H1-Defective Business Model and Uncompetitive Pipeline; Bearish on the Outlook

China

InnoCare Pharma Limited researches, develops, manufactures, and distributes pharmaceuticals. The Company produces antibiotic drugs, respiratory drugs, cardiovascular drugs, vitamin tablets, health care drugs, and other related products. InnoCare Pharma markets its products throughout China.

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InnoCare Pharma Ltd (9969 HK)

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

China Healthcare Weekly (Feb.17) - CXO Vs Pharma, Medical Insurance Account Reform, Time to Reflect

The medical insurance account reform will have a big impact on China healthcare. In 2023, we think CXO is not suitable for long-term hold but only...

Xinyao (Criss) Wang

InnoCare Pharma (9969 HK) – Breakup with Biogen on Orelabrutinib

On 15 Feb, Biogen terminated the collaboration with InnoCare on orelabrutinib for the treatment of multiple sclerosis (MS) and other autoimmune...

CMB International

InnoCare Pharma (9969 HK) – Strong sales of orelabrutinib in 3Q22

InnoCare recorded total revenue of RMB196mn in 3Q22, including RMB183mn sales from orelabrutinib (+64% QoQ, +147 YoY). Sales of orelabrutinib...

CMB International

Antengene (6996.HK) 22H1-Defective Business Model and Uncompetitive Pipeline; Bearish on the Outlook

There’s an “insurmountable obstacle” to license-in business model.Antengene has to go all the way to the end. Otherwise, it won't end up well. The...

Xinyao (Criss) Wang

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