Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>The HS HK-Listed Biotech Index ("Hang Seng Biotech Index") represents the 50 largest biotech companies listed in Hong Kong (HKEX).</li>
<li>In this insight, we take a look at the final rankings of potential ADDs/DELs and our capping flow expectations for the December 2024 index rebal event.</li>
<li>We expect two changes for the HSHKBIO index in December 2024. </li>
</ul>


The HS HK-Listed Biotech Index ("Hang Seng Biotech Index") represents the 50 largest biotech companies listed in Hong Kong (HKEX).
In this insight, we take a look at the final rankings of potential ADDs/DELs and our capping flow expectations for the December 2024 index rebal event.
We expect two changes for the HSHKBIO index in December 2024. 


Quiddity Leaderboard Hang Seng Biotech Dec 24: Two Changes Expected + Capping Flows

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>Accelerating the design and discovery of novel drugs and materials leveraging quantum physics, AI and robotic automation.</li><li>Founded by three MIT-trained physicists, QuantumPharm Inc. is a globally leading, quantum physics-based, AI-powered, and robotics-driven, innovative R&amp;D platform in terms of technological advantages, aiming to accelerate the design and discovery of novel drugs and materials.</li><li>The Company adopts a combination of quantum physics-based first-principles calculation, advanced AI, highperformance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&amp;D solutions and services to global conglomerates and innovative companies in the pharma and material science industries and beyond.</li></ul><p><em>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.</em></p>

Accelerating the design and discovery of novel drugs and materials leveraging quantum physics, AI and robotic automation.Founded by three MIT-trained physicists, QuantumPharm Inc. is a globally leading, quantum physics-based, AI-powered, and robotics-driven, innovative R&amp;D platform in terms of technological advantages, aiming to accelerate the design and discovery of novel drugs and materials.The Company adopts a combination of quantum physics-based first-principles calculation, advanced AI, highperformance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&amp;D solutions and services to global conglomerates and innovative companies in the pharma and material science industries and beyond.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.

QuantumPharm (2228 HK) - Advanced Quantum Physics-Based, AI-Powered and Robotics

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/quantumpharm-inc" target="_blank" data-smartkarma-citation="entities:40369:1" rel="noopener">QuantumPharm (QUP HK)</a> raised US$126m from its Hong Kong IPO.</li>
<li>QuantumPharm is a R&amp;D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&amp;D solutions.</li>
<li>We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.</li>
</ul>



QuantumPharm (QUP HK) raised US$126m from its Hong Kong IPO.
QuantumPharm is a R&amp;D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&amp;D solutions.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.


QuantumPharm IPO Trading - Lukewarm Insti Demand Combined with a Tight Float at Listing

<ul>
<li>
<a href="https://www.smartkarma.com/entities/quantumpharm-inc" target="_blank" data-smartkarma-citation="entities:40369:1" rel="noopener">QuantumPharm (QUP HK)</a> is looking to raise US$144m from its Hong Kong IPO.</li>
<li>QuantumPharm is a R&amp;D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&amp;D solutions.</li>
<li>In our previous notes, we looked at the firm’s past performance and PHIP updates. In this note, we share our thoughts on valuations. </li>
</ul>



QuantumPharm (QUP HK) is looking to raise US$144m from its Hong Kong IPO.
QuantumPharm is a R&amp;D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&amp;D solutions.
In our previous notes, we looked at the firm’s past performance and PHIP updates. In this note, we share our thoughts on valuations. 


QuantumPharm IPO - Most of the Potential Has Already Been Baked In

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>We have always been concerned about QuantumPharm’s business model. It is relatively difficult for a service provider like QuantumPharm to scale up revenue by just relying on charging service fees.</li>
<li>For AI pharmaceutical companies, how to make money is a pain point for entire industry. Just focusing on preclinical stages would limit profitability.We haven’t seen any certainty of achieving breakeven.</li>
<li>Increasing competition would bring more challenges for QuantumPharm. Post-investment valuation in 2021 was too expensive.If its future performance falls short of expectations, then sooner or later the valuation will collapse. </li>
</ul>


We have always been concerned about QuantumPharm’s business model. It is relatively difficult for a service provider like QuantumPharm to scale up revenue by just relying on charging service fees.
For AI pharmaceutical companies, how to make money is a pain point for entire industry. Just focusing on preclinical stages would limit profitability.We haven’t seen any certainty of achieving breakeven.
Increasing competition would bring more challenges for QuantumPharm. Post-investment valuation in 2021 was too expensive.If its future performance falls short of expectations, then sooner or later the valuation will collapse. 


Pre-IPO QuantumPharm (PHIP Updates) - Some Points Worth the Attention

Hong Kong

QuantumPharm Inc. develops quantum physics-based, AI-powered, and robotics-driven integrated technology platform. The Company offers quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation for pharmaceutical material, and other fields. QuantumPharm serves customers across worldwide.

Price Gauge
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QuantumPharm (2228 HK)

Quiddity Leaderboard Hang Seng Biotech Dec 24: Two Changes Expected + Capping Flows

Assuming the two index changes expected in this insight take place, there will be US$33mn capping flow which translates to a turnover of 2.8%. Five...

Janaghan Jeyakumar, CFA