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.

Equity Capital Markets

Joinn Laboratories China  Lt / Equity Capital Markets

Joinn Lab is a leading China-based CRO company seeking a USD 400-500 m H-share listing in Hong Kong. In this note, we will discuss Joinn Lab's business segment. We note that it has a strong presence in the drug safety segment, particularly the IND application for biologic candidates thanks to its long history in the market and high standard of lab facilities and operation. We think the company has strong growth ahead, driven by the Wuzhou breeding facility, Suzhou lab and California lab in the next two years, followed by expansion in Chongqing and Guangzhou in the longer term. We are of the view that investors would like to pay a premium for the company's strong leadership in the niche market and high growth ahead, but the premium will be offset by its smaller size of operation compared to other CRO players.

Joinn Lab is a leading China-based CRO company seeking a USD 400-500 m H-share listing in Hong Kong. In this note, we will discuss Joinn Lab's business segment. We note that it has a strong presence in the drug safety segment, particularly the IND application for biologic candidates thanks to its long history in the market and high standard of lab facilities and operation. We think the company has strong growth ahead, driven by the Wuzhou breeding facility, Suzhou lab and California lab in the next two years, followed by expansion in Chongqing and Guangzhou in the longer term. We are of the view that investors would like to pay a premium for the company's strong leadership in the niche market and high growth ahead, but the premium will be offset by its smaller size of operation compared to other CRO players.

Joinn Lab (昭衍新药) A+H: Leader in the Niche Drug Safety CRO Segment

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.

<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.<div class="content-highlight">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. </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

Joinn Laboratories China  Lt / Equity Bottom-Up

<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> recently released the third quarter report. The Q1-Q3 accumulated revenue was RMB632 million with a YoY growth rate of 81.2%. Net income attributed to shareholders in the first three quarters was RMB118 million, up 53.2% YoY. Q1-Q3 net income after deducting non-recurring gains and losses were RMB99 million, up 61.3% YoY. Q3 single quarter revenue, net income attributed to shareholders, and net income after deducting non-recurring gains and losses reached RMB234 million, RMB43 million and RMB34 million respectively, with YoY growth rates of 58.7%, 15.9% and 8.62% respectively. Performance was in line with expectations.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/396/original/image_43871431605317607684.png?1605317608" class="editor-image img-responsive" data-smartkarma-image-id="171396"></figure>Source: WIND

Joinn Laboratories China Co-A (603127 CH) recently released the third quarter report. The Q1-Q3 accumulated revenue was RMB632 million with a YoY growth rate of 81.2%. Net income attributed to shareholders in the first three quarters was RMB118 million, up 53.2% YoY. Q1-Q3 net income after deducting non-recurring gains and losses were RMB99 million, up 61.3% YoY. Q3 single quarter revenue, net income attributed to shareholders, and net income after deducting non-recurring gains and losses reached RMB234 million, RMB43 million and RMB34 million respectively, with YoY growth rates of 58.7%, 15.9% and 8.62% respectively. Performance was in line with expectations.Source: WIND

JOINN Laboratories - Q3 Performance in Line with Expectations; Promising Globalization After HK IPO

Thematic (Sector/Industry)

China’s new volume-based purchasing policy is undoubtedly a revolution for China healthcare industry. The implementation of this new policy has brought great challenges and pressure to many domestic pharmaceutical companies. However, at the same time, it also brings new opportunities - The golden age for China CRO industry is coming.

China’s new volume-based purchasing policy is undoubtedly a revolution for China healthcare industry. The implementation of this new policy has brought great challenges and pressure to many domestic pharmaceutical companies. However, at the same time, it also brings new opportunities - The golden age for China CRO industry is coming.

Insights On China Healthcare Policy - 4+7: New Volume-Based Purchasing Policy

China

Joinn Laboratories (China) Co., Ltd. operates as a medicines development company. The Company offers drug development, pharmaceutical analysis, pharmacologic testing, and other related services. Joinn Laboratories (China) also provides pesticide and medical device safety evaluation services.

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Joinn Laboratories China Lt (603127 CH)

Joinn Lab (昭衍新药) A+H: Leader in the Niche Drug Safety CRO Segment

Investors would like to pay a premium for the company's strong leadership in the niche market and high growth ahead, but the premium will be offset...

Ke Yan, CFA, FRM

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

JOINN Laboratories - Q3 Performance in Line with Expectations; Promising Globalization After HK IPO

The article analyzed JOINN Lab's Q3 performance in both business and financial aspects, and also made forecast and rating for the Company.

Xinyao (Criss) Wang

Insights On China Healthcare Policy - 4+7: New Volume-Based Purchasing Policy

This article analyzed China’s revolutionary volume-based purchasing policy, its impact on domestic healthcare companies and related investment...

Xinyao (Criss) Wang

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