HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<p><strong>Industry Viewpoints:</strong></p><ul>
<li>With the gradual promotion of the intensive procurement of high-value consumables, some medical device companies are facing pressure. However, we still believe that the golden investment trend of the medical device industry in China is unchanged.</li>
<li>If it is the age of macromolecular drugs currently, then the future could be the cell and gene therapy.</li>
<li>Cosmetic contact lenses have entered an outbreak cycle with a CAGR of over 40% and sales of over RMB20 billion by 2020.</li>
</ul><p><strong>Company News:</strong></p><p style="text-align: start;">News of updated progress of new drugs from <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a>, <a href="https://www.smartkarma.com/entities/shanghai-junshi-bioscience-h" target="_blank" data-smartkarma-citation="entities:27760:1" rel="noopener">Shanghai Junshi Bioscience Co. Ltd. (1877 HK)</a> and <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a>.</p><p><strong>Market Review:</strong></p><p style="text-align: start;">Last week, stock price for healthcare sector in A share decreased 1.71%, while CSI 300 decreased 1.37% over the same period of time.</p><p><strong>Risk Disclosure:</strong></p><p style="text-align: start;">Policy risk, R&amp;D risk, Company risk and COVID-19 risk.</p>

Industry Viewpoints:
With the gradual promotion of the intensive procurement of high-value consumables, some medical device companies are facing pressure. However, we still believe that the golden investment trend of the medical device industry in China is unchanged.
If it is the age of macromolecular drugs currently, then the future could be the cell and gene therapy.
Cosmetic contact lenses have entered an outbreak cycle with a CAGR of over 40% and sales of over RMB20 billion by 2020.
Company News:News of updated progress of new drugs from Antengene (6996 HK), Shanghai Junshi Bioscience Co. Ltd. (1877 HK) and CSPC Pharmaceutical Group (1093 HK).Market Review:Last week, stock price for healthcare sector in A share decreased 1.71%, while CSI 300 decreased 1.37% over the same period of time.Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

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

<div><p><a href="https://www.smartkarma.com/entities/joinn-laboratories-h" target="_blank" data-smartkarma-citation="entities:31498:1" rel="noopener">Joinn Laboratories (H) (6127 HK)</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, according to Frost &amp; Sullivan. JOINN's H-shares will commence trading on Friday, 26 February. JOINN priced its H-share listing at HK$151. The <a href="https://inews.hket.com/article/2886409/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E6%98%AD%E8%A1%8D%E6%96%B0%E8%97%A56127%E6%9A%97%E7%9B%A4%E6%BD%9B%E6%B0%B4%E3%80%80%E8%BC%83%E6%8B%9B%E8%82%A1%E5%83%B9%E4%BD%8E%E7%B4%843-?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">last traded grey market price</a> across three brokerages vary from a high of HK$146.70 to a low of HK$142.00 per H-share, according to press reports.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-initiation-on-demand-science" target="_blank" data-smartkarma-citation="insights:47482" rel="noopener">JOINN Laboratories IPO Initiation: On-Demand Science</a>, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-phip-points-to-progress" target="_blank" data-smartkarma-citation="insights:47985" rel="noopener">JOINN Laboratories IPO: PHIP Points to Progress</a>, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:48236" rel="noopener">JOINN Laboratories IPO: Valuation Insights</a>, we noted that the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive.</p></div><div>
<div class="content-highlight"><p>Since the bookbuilding was launched, JOINN's CRO peers have materially derated. Over this period, JOINN A-shares have declined 12% from RMB161.35 (prior to launch) to close at RMB141.19 per A-share. Largely due to this derating, we think that JOINN is fairly priced at the H-share listing price of HK$151. On the other hand, the low grey market price of HK$142 per H-share is attractive from both an AH discount and a CY2021 P/E basis.</p></div>
<p></p>
</div>

Joinn Laboratories (H) (6127 HK) 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, according to Frost &amp; Sullivan. JOINN's H-shares will commence trading on Friday, 26 February. JOINN priced its H-share listing at HK$151. The last traded grey market price across three brokerages vary from a high of HK$146.70 to a low of HK$142.00 per H-share, according to press reports.In JOINN Laboratories IPO Initiation: On-Demand Science, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In JOINN Laboratories IPO: PHIP Points to Progress, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In JOINN Laboratories IPO: Valuation Insights, we noted that the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive.
Since the bookbuilding was launched, JOINN's CRO peers have materially derated. Over this period, JOINN A-shares have declined 12% from RMB161.35 (prior to launch) to close at RMB141.19 per A-share. Largely due to this derating, we think that JOINN is fairly priced at the H-share listing price of HK$151. On the other hand, the low grey market price of HK$142 per H-share is attractive from both an AH discount and a CY2021 P/E basis.



<div><p><a href="https://www.smartkarma.com/entities/joinn-laboratories-h" target="_blank" data-smartkarma-citation="entities:31498:1" rel="noopener">Joinn Laboratories (H) (6127 HK)</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, according to Frost &amp; Sullivan. </p></div><div>
<p>In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-initiation-on-demand-science" target="_blank" data-smartkarma-citation="insights:47482" rel="noopener">JOINN Laboratories IPO Initiation: On-Demand Science</a>, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-phip-points-to-progress" target="_blank" data-smartkarma-citation="insights:47985" rel="noopener">JOINN Laboratories IPO: PHIP Points to Progress</a>, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-valuation-first-look" target="_blank" data-smartkarma-citation="insights:48172" rel="noopener">JOINN Laboratories IPO: Valuation First Look</a>, we took a first look at the potential AH discount range for JOINN's H-share listing. </p>
<p>JOINN has launched its Hong Kong IPO at an indicative price range of HK$133-151 per H-share to raise net proceeds of HK$5,909.8 million ($762 million), at the mid-point of the price range. Ten cornerstone investors will subscribe for $268 million of the offer shares (33.8% of the offer shares at the mid-point of the IPO price). The cornerstone investors include OrbiMed Funds, Lake Bleu Capital, China Structural Reform Fund, China Pinnacle Equity Management, Sequoia Capital, Janchor Partners, CRF Investment,  Carmignac Funds, Octagon Capital and Valliance Fund.</p>
<div class="content-highlight"><p>Overall, the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive, in our view.</p></div>
</div>

Joinn Laboratories (H) (6127 HK) 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, according to Frost &amp; Sullivan. 
In JOINN Laboratories IPO Initiation: On-Demand Science, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In JOINN Laboratories IPO: PHIP Points to Progress, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In JOINN Laboratories IPO: Valuation First Look, we took a first look at the potential AH discount range for JOINN's H-share listing. 
JOINN has launched its Hong Kong IPO at an indicative price range of HK$133-151 per H-share to raise net proceeds of HK$5,909.8 million ($762 million), at the mid-point of the price range. Ten cornerstone investors will subscribe for $268 million of the offer shares (33.8% of the offer shares at the mid-point of the IPO price). The cornerstone investors include OrbiMed Funds, Lake Bleu Capital, China Structural Reform Fund, China Pinnacle Equity Management, Sequoia Capital, Janchor Partners, CRF Investment,  Carmignac Funds, Octagon Capital and Valliance Fund.
Overall, the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive, in our view.


JOINN Laboratories IPO: Valuation Insights

<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, according to Frost &amp; Sullivan. JOINN is seeking to raise as much as $600 million through a Hong Kong IPO, according to press reports.</p><div>
<p>In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-initiation-on-demand-science" target="_blank" data-smartkarma-citation="insights:47482" rel="noopener">JOINN Laboratories IPO Initiation: On-Demand Science</a>, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-phip-points-to-progress" target="_blank" data-smartkarma-citation="insights:47985" rel="noopener">JOINN Laboratories IPO: PHIP Points to Progress</a>, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look and has attractive fundamentals. </p>
<div class="content-highlight"><p>As is typical of Chinese-listed issuers floating in Hong Kong, JOINN’s H-shares will be offered on a discount to its A-shares (AH discount). In this note, we take a first look at the potential AH discount range for JOINN's H-share listing. </p></div>
</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, according to Frost &amp; Sullivan. JOINN is seeking to raise as much as $600 million through a Hong Kong IPO, according to press reports.
In JOINN Laboratories IPO Initiation: On-Demand Science, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In JOINN Laboratories IPO: PHIP Points to Progress, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look and has attractive fundamentals. 
As is typical of Chinese-listed issuers floating in Hong Kong, JOINN’s H-shares will be offered on a discount to its A-shares (AH discount). In this note, we take a first look at the potential AH discount range for JOINN's H-share listing. 


JOINN Laboratories IPO: Valuation First Look

<div><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 is seeking to raise as much as $600 million through a Hong Kong IPO, according to press reports.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-initiation-on-demand-science" target="_blank" data-smartkarma-citation="insights:47482" rel="noopener">JOINN Laboratories IPO Initiation: On-Demand Science</a>, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. </p></div><div><div><div class="content-highlight"><p>In this note, we look at the PHIP which disclose the 9M20 results and recent developments. Overall, we continue to believe that JOINN is worth a closer look and has attractive fundamentals. </p></div></div></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 is seeking to raise as much as $600 million through a Hong Kong IPO, according to press reports.In JOINN Laboratories IPO Initiation: On-Demand Science, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In this note, we look at the PHIP which disclose the 9M20 results and recent developments. Overall, we continue to believe that JOINN is worth a closer look and has attractive fundamentals. 

JOINN Laboratories IPO: PHIP Points to Progress

China

Pharmaron Beijing Co., Ltd. engages in discovery, development, and manufacturing spectrum for small molecule drugs, cell therapies, and gene therapies as well as providing testing services for medical devices and clinic research. The Company offers laboratory, clinical development, chemistry manufactory and control, and other services. Pharmaron Beijing conducts businesses based in China.

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Pharmaron Beijing (300759 CH)

China Healthcare Weekly (Apr.16)

The article analyzed the investment opportunities in China medical device industry under VBP, future trend of cell and gene therapy, market...

Xinyao (Criss) Wang

JOINN Laboratories IPO: Trading Debut

The grey market price varies from HK$146.70-HK$142.00 per H-share vs listing price of HK$151. JOINN is fairly priced at the H-share listing price...

Arun George

JOINN Laboratories IPO: Valuation Insights

JOINN has launched its HK IPO at an indicative price range of HK$133-151 per H-share. The combination of a reasonable AH discount and relative...

Arun George

JOINN Laboratories IPO: Valuation First Look

JOINN is seeking to raise as much as $600 million through a HK IPO, according to press reports. In this note, we take a first look at the potential...

Arun George

JOINN Laboratories IPO: PHIP Points to Progress

JOINN is seeking to raise as much as $600 million through an HK IPO. The PHIP which disclose the 9M20 results reinforce our view that JOINN has...

Arun George

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