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 analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 111.4% as of May 19th.</li>
<li>The average A-H premium changed by -0.0ppt week on week, led by communication services, utilities, financials and offset by health care, information technology, energy.</li>
<li>We highlight weekly changes in A-H premium for China Zheshang, Shandong Gold, China Longyuan, BYD, Shenhua, China Life, Citic Bank, CEEC, China Telecom.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 111.4% as of May 19th.
The average A-H premium changed by -0.0ppt week on week, led by communication services, utilities, financials and offset by health care, information technology, energy.
We highlight weekly changes in A-H premium for China Zheshang, Shandong Gold, China Longyuan, BYD, Shenhua, China Life, Citic Bank, CEEC, China Telecom.


A-H Premium Weekly (May 19th): China Zheshang, Shandong Gold, China Longyuan, BYD, Shenhua

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Equity Bottom-Up

<ul>
<li>RemeGen’s C1Q23 top line came in as 31% of our C1H23 estimate while IFRS operating loss came in as 55%. </li>
<li>C1Q23 gross margin exceeded our C1H23 estimate by 12ppt, mainly due to restraining in shipment</li>
<li>We cut our product sales estimates and raise WACC by 1ppt to reflect concentrated risk, leading to TP reduction from US$64 to US$46.</li>
</ul>


RemeGen’s C1Q23 top line came in as 31% of our C1H23 estimate while IFRS operating loss came in as 55%. 
C1Q23 gross margin exceeded our C1H23 estimate by 12ppt, mainly due to restraining in shipment
We cut our product sales estimates and raise WACC by 1ppt to reflect concentrated risk, leading to TP reduction from US$64 to US$46.


[RemeGen (9995 HK) Target Price Change]: Chinese Biotech Must Confine to the Biotech Role

Thematic (Sector/Industry)

<ul>
<li>LI: Li Auto unveils all-electric solution and makes its AD Max 3.0 free (+)</li>
<li>9995HK: Hengrui disclosed the results of its HER2 ADC phase III clinical trial and will become a strong competitor in the ADC track(-)</li>
<li>LGEN:Novartis Signs Legend Bio/Johnson &amp; Johnson to help produce CAR-T(+)</li>
</ul>


LI: Li Auto unveils all-electric solution and makes its AD Max 3.0 free (+)
9995HK: Hengrui disclosed the results of its HER2 ADC phase III clinical trial and will become a strong competitor in the ADC track(-)
LGEN:Novartis Signs Legend Bio/Johnson &amp; Johnson to help produce CAR-T(+)


China TMT Update (Apr.19) - LI/9995HK/LGEN:Li Auto Unveils All-Electric Solution

<ul>
<li>9995HK: ADC gets heated up with another biotech license in biotech deal (-)</li>
<li>9926HK：Akeso's JV with SinoBio signed exclusive distribution of PD-1 drug with SE Asia and Oceania distributor</li>
<li>BGNE.US: Merck KGaA's BTK inhibitor drug hit with FDA hold due to liver injury...Impact to BGNE nil</li>
</ul>


9995HK: ADC gets heated up with another biotech license in biotech deal (-)
9926HK：Akeso's JV with SinoBio signed exclusive distribution of PD-1 drug with SE Asia and Oceania distributor
BGNE.US: Merck KGaA's BTK inhibitor drug hit with FDA hold due to liver injury...Impact to BGNE nil


China TMT Update(Apr.17) -  9995HK/9926HK/BGNE.US: ADC Gets Heated up with Another Biotech License

<ul>
<li>We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 112.5% as of Apr 14th.</li>
<li>The average A-H premium changed by -4.9ppt week on week, led by consumer discretionary, health care, financials.</li>
<li>We highlight weekly changes in A-H premium for Remegen, CREC, Yankuang Energy, CRRC, GWM, CICC.</li>
</ul>


We analyse the changes of A-H premium on 143 stocks over the last week. The average A-H premium was 112.5% as of Apr 14th.
The average A-H premium changed by -4.9ppt week on week, led by consumer discretionary, health care, financials.
We highlight weekly changes in A-H premium for Remegen, CREC, Yankuang Energy, CRRC, GWM, CICC.


A-H Premium Weekly (Apr 14th): Remegen, CREC, Yankuang Energy, CRRC, GWM, CICC

China

RemeGen Co., Ltd. operates biotechnology businesses. The Company develops therapeutic antibody drugs such as antibody drug conjugates (ADC), antibody fusion proteins, monoclonal antibodies and double antibodies. RemeGen provides solutions autoimmune diseases, tumor diseases, and ophthalmic diseases.

Price Gauge
52-week Range	0.00 - 0.00
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Remegen (9995 HK)

A-H Premium Weekly (May 19th): China Zheshang, Shandong Gold, China Longyuan, BYD, Shenhua

We analyzed A-H premium changes in the past week and highlight A-H premium changes for China Zheshang, Shandong Gold, China Longyuan, BYD, Shenhua,...

Ke Yan, CFA, FRM

[RemeGen (9995 HK) Target Price Change]: Chinese Biotech Must Confine to the Biotech Role

RemeGen’s C1Q23 top line came in as 31% of our C1H23 estimate while IFRS operating loss came in as 55%. C1Q23 gross margin exceeded our C1H23...

Blue Lotus Research Institute

China TMT Update (Apr.19) - LI/9995HK/LGEN:Li Auto Unveils All-Electric Solution

LI: Li Auto unveils all-electric solution (+)； 9995HK: Hengrui disclosed the results of its HER2 ADC phase III clinical trial；LGEN:Novartis Signs...

Blue Lotus Research Institute

China TMT Update(Apr.17) - 9995HK/9926HK/BGNE.US: ADC Gets Heated up with Another Biotech License

9995HK: ADC gets heated up with another biotech license in biotech deal (-); 9926HK：Akeso's JV with SinoBio signed exclusive distribution /）;...

Blue Lotus Research Institute

A-H Premium Weekly (Apr 14th): Remegen, CREC, Yankuang Energy, CRRC, GWM, CICC

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Remegen, CREC, Yankuang Energy, CRRC, GWM, CICC.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)