Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 26 February. The constituent changes will be effective after the close of trading on 12 March.</p><p>For the Hang Seng Composite Index (HSCI) there are 36 inclusions and 29 deletions, taking the number of index constituents up to 500.</p><p>Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. Secondary Listings are not eligible for inclusion in the Stock Connect program.</p><p>Of the 36 inclusions, 4 are already a part of Stock Connect by virtue of having listed A-shares, 2 are Secondary listings and will not be included in Stock Connect, 9 will be added to Shanghai and Shenzhen Stock Connect, while 21 stocks will only be added to Shenzhen Stock Connect.</p><p>Of the 29 index deletions, 13 are not a part of Stock Connect, 7 will continue to remain a part of Stock Connect by virtue of having listed A-shares, while 9 will be deleted from the Stock Connect program.</p><p>We identify 4 stocks that could sell off ahead of their removal from the Stock Connect Buy list, while Biotech stocks could be in focus ahead of their inclusion in the Stock Connect Buy and Sell list.</p>

The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 26 February. The constituent changes will be effective after the close of trading on 12 March.For the Hang Seng Composite Index (HSCI) there are 36 inclusions and 29 deletions, taking the number of index constituents up to 500.Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. Secondary Listings are not eligible for inclusion in the Stock Connect program.Of the 36 inclusions, 4 are already a part of Stock Connect by virtue of having listed A-shares, 2 are Secondary listings and will not be included in Stock Connect, 9 will be added to Shanghai and Shenzhen Stock Connect, while 21 stocks will only be added to Shenzhen Stock Connect.Of the 29 index deletions, 13 are not a part of Stock Connect, 7 will continue to remain a part of Stock Connect by virtue of having listed A-shares, while 9 will be deleted from the Stock Connect program.We identify 4 stocks that could sell off ahead of their removal from the Stock Connect Buy list, while Biotech stocks could be in focus ahead of their inclusion in the Stock Connect Buy and Sell list.

HSCI Index Rebalance & Stock Connect: Inclusions & Exclusions

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Bio-Thera Solutions Ltd / Equity Capital Markets

<p>In February 2020, <a href="https://www.smartkarma.com/entities/bio-thera-solutions-ltd" target="_blank" data-smartkarma-citation="entities:29127:1" rel="noopener">Bio-Thera Solutions Ltd (688177 CH)</a> completed its listing on the SSE STAR Market. Then in 2020/2H, Bio-Thera planned to list on the Hong Kong Stock Exchange, becoming another biopharmaceutical company with "A+H" listing. Currently the Company’s market value was about RMB13.5 billion. So how about this company? The following provides the insights on its pipeline and related competitive landscape. </p>

In February 2020, Bio-Thera Solutions Ltd (688177 CH) completed its listing on the SSE STAR Market. Then in 2020/2H, Bio-Thera planned to list on the Hong Kong Stock Exchange, becoming another biopharmaceutical company with "A+H" listing. Currently the Company’s market value was about RMB13.5 billion. So how about this company? The following provides the insights on its pipeline and related competitive landscape. 

Pre-IPO Bio-Thera Solutions - Insights on Pipeline and the Competitive Landscape

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

HBM Holdings Limited / Equity Capital Markets

<p>Pre-revenue biotechnology company Harbour Biomed looks to raise US$230 million in an IPO on the HKEX. Because of the short timetable for the offering, the analysis in this Insight will be shorter than normal. We think that the proposed pre-money valuation of US$950 -1,043MM is fair, and the company has rich newsflow and numerous catalysts ahead in 2021/22. We would take the deal.</p>

Pre-revenue biotechnology company Harbour Biomed looks to raise US$230 million in an IPO on the HKEX. Because of the short timetable for the offering, the analysis in this Insight will be shorter than normal. We think that the proposed pre-money valuation of US$950 -1,043MM is fair, and the company has rich newsflow and numerous catalysts ahead in 2021/22. We would take the deal.

Harbour Biomed IPO: Positive Thoughts in Brief

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.

<div><p><a href="https://www.smartkarma.com/entities/harbour-biomed-holdings-limited" target="_blank" data-smartkarma-citation="entities:29717:1" rel="noopener">Harbour Biomed (2142 HK)</a> is a biopharmaceutical company with a focus on discovering, developing and commercialising differentiated antibody therapeutics in immunology and oncology disease areas. Harbour has launched a Hong Kong IPO to raise net proceeds of HK$1,589.5 million ($205 million) at the mid-point of the IPO price range of HK$11.70-12.92 per share.</p></div><div><p>Nine cornerstone investors have agreed to invest about $92 million in the IPO (41.92% of the offer shares at the mid-point of the IPO price range). Cornerstone investors include BlackRock, <a href="https://www.smartkarma.com/entities/hbm-healthcare-investments-ag" target="_blank" data-smartkarma-citation="entities:22373:1" rel="noopener">Hbm Healthcare Investments Ag (HBMN SW)</a>, Hillhouse Capital, Hudson Bay Capital, Octagon Capital, Anlan Fund, <a href="https://www.smartkarma.com/entities/legend-holdings-corp-h" target="_blank" data-smartkarma-citation="entities:517:1" rel="noopener">Legend Holdings Corp H (3396 HK)</a>, OrbiMed and 3W.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/hbm-holdings-harbour-biomed-ipo-initiation-making-resistance-futile" target="_blank" data-smartkarma-citation="insights:45740" rel="noopener">HBM Holdings (Harbour Biomed) IPO Initiation: Making Resistance Futile</a>, we stated that the prospects of Harbour’s core drug assets are favourable. Overall, a strong cornerstone investor lineup and our valuation analysis suggest that the IPO price range is attractive. </p></div></div></div>

Harbour Biomed (2142 HK) is a biopharmaceutical company with a focus on discovering, developing and commercialising differentiated antibody therapeutics in immunology and oncology disease areas. Harbour has launched a Hong Kong IPO to raise net proceeds of HK$1,589.5 million ($205 million) at the mid-point of the IPO price range of HK$11.70-12.92 per share.Nine cornerstone investors have agreed to invest about $92 million in the IPO (41.92% of the offer shares at the mid-point of the IPO price range). Cornerstone investors include BlackRock, Hbm Healthcare Investments Ag (HBMN SW), Hillhouse Capital, Hudson Bay Capital, Octagon Capital, Anlan Fund, Legend Holdings Corp H (3396 HK), OrbiMed and 3W.In HBM Holdings (Harbour Biomed) IPO Initiation: Making Resistance Futile, we stated that the prospects of Harbour’s core drug assets are favourable. Overall, a strong cornerstone investor lineup and our valuation analysis suggest that the IPO price range is attractive. 

HBM Holdings (Harbour Biomed) IPO: Valuation Insights

<p><a href="https://www.smartkarma.com/entities/harbour-biomed-holdings-limited" target="_blank" data-smartkarma-citation="entities:29717:1" rel="noopener">Harbour Biomed (HMD HK)</a> is a biopharmaceutical company with a focus on discovering, developing and commercialising differentiated antibody therapeutics in immunology and oncology disease areas. Harbour is backed by Legend Capital, GIC, CDH Investments, <a href="https://www.smartkarma.com/entities/sk-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:393:1" rel="noopener">SK Holdings (034730 KS)</a>, OrbiMed, Octagon Capital and Sage Partners. The Series C round in July 2020 raised $102.8 million at a post-money valuation of $780 million. </p><div class="content-highlight"><p>Harbour is seeking to raise $300 million through a Hong Kong IPO, according to press reports. Harbour’s three antibody platforms (HCAb Platform, HBICE Platform and H2L2 Platform) are a key source of differentiation. Overall, we believe that Harbour’s clinical assets are attractive. </p></div>

Harbour Biomed (HMD HK) is a biopharmaceutical company with a focus on discovering, developing and commercialising differentiated antibody therapeutics in immunology and oncology disease areas. Harbour is backed by Legend Capital, GIC, CDH Investments, SK Holdings (034730 KS), OrbiMed, Octagon Capital and Sage Partners. The Series C round in July 2020 raised $102.8 million at a post-money valuation of $780 million. Harbour is seeking to raise $300 million through a Hong Kong IPO, according to press reports. Harbour’s three antibody platforms (HCAb Platform, HBICE Platform and H2L2 Platform) are a key source of differentiation. Overall, we believe that Harbour’s clinical assets are attractive. 

HBM Holdings (Harbour Biomed) IPO Initiation: Making Resistance Futile

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.

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Remegen (9995 HK)

HSCI Index Rebalance & Stock Connect: Inclusions & Exclusions

There are 36 inclusions/ 29 exclusions for the Hang Seng Composite Index. 9 stocks will be deleted from the Stock Connect Buy list & there are a...

Brian Freitas

Pre-IPO Bio-Thera Solutions - Insights on Pipeline and the Competitive Landscape

This article summarized the insights on major products of Bio-Thera Solutions in the pipeline and related competitive landscape with other key...

Xinyao (Criss) Wang

Harbour Biomed IPO: Positive Thoughts in Brief

This Insight includes a brief analysis of Harbour Biomed and its proposed listing on the HKEX. We like the deal at the price range offered.

Kemp Dolliver, CFA

HBM Holdings (Harbour Biomed) IPO: Valuation Insights

Harbour has launched an HK IPO to raise net proceeds of $205 million at the mid-point of the price range. Overall, strong cornerstones and our...

Arun George

HBM Holdings (Harbour Biomed) IPO Initiation: Making Resistance Futile

Harbour is seeking to raise $300 million through a Hong Kong IPO. Harbour’s three antibody platforms are a key source of differentiation. Overall,...

Arun George

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