HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>China attaches great importance to gene therapy and related products, which would be a leader of the third industrial revolution in biomedicine and have broad prospects for future development.</li>
<li>With obvious strength in this field,<a href="https://www.smartkarma.com/entities/genscript-biotech-corp" target="_blank" data-smartkarma-citation="entities:21041:1" rel="noopener">Genscript Biotech (1548 HK)</a>’s businesses are in line with the future trend and the outlook is also quite promising, indicating exponential growth potential in valuation.</li>
<li>However, the potential risks on deterioration of international relations and the concerns on CAR-T commercialization should not be neglected by investors.</li>
</ul>


China attaches great importance to gene therapy and related products, which would be a leader of the third industrial revolution in biomedicine and have broad prospects for future development.
With obvious strength in this field,Genscript Biotech (1548 HK)’s businesses are in line with the future trend and the outlook is also quite promising, indicating exponential growth potential in valuation.
However, the potential risks on deterioration of international relations and the concerns on CAR-T commercialization should not be neglected by investors.


Genscript Biotech (1548.HK) - The Strength and the Concerns

Porton Pharma Solutions / Equity Bottom-Up

<ul>
<li>Porton made a successful turnaround and the CGT business layout is also in the right direction. The US$217 million new order would improve the certainties of its 2022 performance.</li>
<li>The concerns on potential deterioration of international relations and the broken logic in CXO sector also apply to <a href="https://www.smartkarma.com/entities/porton-pharma-solutions-ltd" target="_blank" data-smartkarma-citation="entities:14201:1" rel="noopener">Porton Pharma Solutions (300363 CH)</a>, which should be aware of by investors.</li>
<li>So, there is a long way to go for Porton to truly get into the first tier. It may not be a good buying point currently considering the high valuation.</li>
</ul>


Porton made a successful turnaround and the CGT business layout is also in the right direction. The US$217 million new order would improve the certainties of its 2022 performance.
The concerns on potential deterioration of international relations and the broken logic in CXO sector also apply to Porton Pharma Solutions (300363 CH), which should be aware of by investors.
So, there is a long way to go for Porton to truly get into the first tier. It may not be a good buying point currently considering the high valuation.


Porton Pharma Solutions (300363.CH) - Not Easy to Get into the First Tier

Thematic (Sector/Industry)

<ul>
<li>For Pfizer,orders on COVID-19 vaccine and Paxlovid would generate over US$50 billion revenue in 2022. So whether Pfizer would pursue for new M&amp;A opportunities become the focus of the market.</li>
<li>The oral COVID-19 antivirals are a great opportunity for the development of Chinese API companies, improving the overall valuation. However, CXOs are actually the first to benefit from this market.</li>
<li>If the COVID mutates in a more transmissible direction, the valuation and forecast of related companies in this industrial chain needs readjustment.However, if it doesn’t, the logic would change again.</li>
</ul>


For Pfizer,orders on COVID-19 vaccine and Paxlovid would generate over US$50 billion revenue in 2022. So whether Pfizer would pursue for new M&amp;A opportunities become the focus of the market.
The oral COVID-19 antivirals are a great opportunity for the development of Chinese API companies, improving the overall valuation. However, CXOs are actually the first to benefit from this market.
If the COVID mutates in a more transmissible direction, the valuation and forecast of related companies in this industrial chain needs readjustment.However, if it doesn’t, the logic would change again.


Oral COVID-19 Antivirals and the Impact on China

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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

Asymchem Laboratories Tianjin / Equity Capital Markets

<ul>
<li>Asymchem Laboratories (AL) aims to raise around US$1-1.5bn in its H-share listing in Hong Kong.</li>
<li>AL is a provider of outsourced pharmaceutical development and manufacturing solutions and services. </li>
<li>In this note, we will talk about the recent updates, undertake a peer comparison and look at the likely valuations.</li>
</ul>


Asymchem Laboratories (AL) aims to raise around US$1-1.5bn in its H-share listing in Hong Kong.
AL is a provider of outsourced pharmaceutical development and manufacturing solutions and services. 
In this note, we will talk about the recent updates, undertake a peer comparison and look at the likely valuations.


Asymchem Labs A/H Listing - PHIP Updates and a Look at Valuations

Asymchem Laboratories Tianjin / Equity Bottom-Up

<p>On August 15, 2021, <a href="https://www.smartkarma.com/entities/asymchem-laboratories-tianjin-co-ltd" target="_blank" data-smartkarma-citation="entities:28265:1" rel="noopener">Asymchem Laboratories (002821 CH)</a> released its 2021/1H financial results. In the first half of 2021, the revenue of Asymchem was RMB1.76 billion, up 39.04% YoY. Net profit attributed to shareholders was RMB429 million, up 36.03% YoY. Net profit after deducting non-recurring gains and losses was RMB353 million, up 27.29% YoY. Obviously, the market is not satisfied with the performance. On August 16, Asymchem share price decreased by 10%. Meanwhile, the star institution Hillhouse Capital significantly reduced its holdings of about 2.2 million shares, which could lead to more concerns from the investors. This article mainly analyzed the performance of Asymchem in 2021/1H, the concerns and the outlook of the Company. </p>

On August 15, 2021, Asymchem Laboratories (002821 CH) released its 2021/1H financial results. In the first half of 2021, the revenue of Asymchem was RMB1.76 billion, up 39.04% YoY. Net profit attributed to shareholders was RMB429 million, up 36.03% YoY. Net profit after deducting non-recurring gains and losses was RMB353 million, up 27.29% YoY. Obviously, the market is not satisfied with the performance. On August 16, Asymchem share price decreased by 10%. Meanwhile, the star institution Hillhouse Capital significantly reduced its holdings of about 2.2 million shares, which could lead to more concerns from the investors. This article mainly analyzed the performance of Asymchem in 2021/1H, the concerns and the outlook of the Company. 

Asymchem Laboratories (002821.CH) 2021H1 Results - Not Good Enough

China

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

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

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)

China Shineway Pharmaceutical (2877.HK) is the largest manufacturer of Chinese medicine injections, soft capsules, and granules in China.

Jiuzhitang Co., Ltd. produces, processes, and sells traditional Chinese medicines and health care products.  The Company's products focus on the treatment of hepatitis and anemia.  Jiuzhitang also provides drug distribution services.

Shandong Lukang Pharmaceutical Co., Ltd. develops, manufactures, and markets a variety of antibiotic products. The Company's products include antibiotic raw materials, semi-synthetic antibiotic raw materials, antibiotic preparations for humans, animals, and plants.

Guilin Sanjin Pharmaceutical Co Ltd is a pharmaceutical company. The Company specializes in research and production of Traditional Chinese Medicine(TCM) and natural medicines.

Guilin Sanjin Pharmaceutical Co Ltd A (002275 CH)

Hengkang Medical Group Co Ltd engages in the R&D, manufacturing, and sales of pharmaceuticals then further expanded its operations to retail health products and provide health care services through the acquisition of hospitals.

Shanghai Kaibao Pharmaceutical CO.,LTD. produces pharmaceutical products.  The Company's products include injection fluid, medical tablet, capsules, and Chinese medicine extracts.

Shanghai Kaibao Pharmaceutical Co,Ltd. (300039 CH)

Guangxi Wuzhou Zhongheng Group Co., Ltd. is an investment holding company. Through its subsidiaries, the Company manufactures Chinese medicine, develops real estate, undertakes infrastructure construction projects, and operates hotels.

Guangxi Wuzhou Zhongheng Group Co (600252 CH)

Guizhou Xinbang Pharmaceutical Co., Ltd. has operations in Chinese herbal plant plantation, drug development, pharmaceutical production and sales. The Company's products include cerebral vascular pharmaceuticals and digestion related pharmaceuticals.

Guizhou Xinbang Pharmaceutical Co,Ltd. (002390 CH)

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.

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.

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)

Mochida Pharmaceutical Co., Ltd. produces and sells a variety of pharmaceuticals and skin care products.  The Company's main product is circulatory agents. Mochida Pharmaceutical also distributes medical instruments and equipment used for surgery and diagnosis.

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.

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

FDC Limited is a pharmaceutical research and development company, which specializes in the areas of synthetics (basic drugs), nutraceuticals, formulations and biotechnology products.

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.

Sun Pharma Advanced Research Company Ltd. develops advanced pharmaceutical ingredients and produces generic drugs.

Sun Pharma Advanced Research Company (SPADV IN)

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.

Porton Pharma Solutions Ltd. is a China-based custom manufacturing services provider(CMO), serving the global pharmaceutical industry with custom and contract chemical development and manufacturing services from preclinical development to commercial supply.

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Porton Pharma Solutions (300363 CH)

Genscript Biotech (1548.HK) - The Strength and the Concerns

This insight analyzed Genscript's three largest segments (life-science services and products, CDMO, cell therapy), strength in CGT, and concerns on...

Xinyao (Criss) Wang