HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

The global spread of COVID-19 has given the vaccine industry unprecedented attention. With the increasing prosperity of the industry, many vaccine companies are increasingly enthusiastic about going public. On Sep 12, 2021, <a href="https://www.smartkarma.com/entities/aim-vaccine-co-ltd" target="_blank" data-smartkarma-citation="entities:33778:1" rel="noopener">AIM Vaccine (AIM HK)</a> submitted its listing application to the HKEX and officially started its IPO process. AIM is a leading vaccine company that covers the full value chain from R&amp;D to manufacturing and to commercialization. This insight mainly analyzed AIM in terms of the industry characteristics, the key vaccine products, the vaccine pipeline and related concerns of the Company.

The global spread of COVID-19 has given the vaccine industry unprecedented attention. With the increasing prosperity of the industry, many vaccine companies are increasingly enthusiastic about going public. On Sep 12, 2021, AIM Vaccine (AIM HK) submitted its listing application to the HKEX and officially started its IPO process. AIM is a leading vaccine company that covers the full value chain from R&amp;D to manufacturing and to commercialization. This insight mainly analyzed AIM in terms of the industry characteristics, the key vaccine products, the vaccine pipeline and related concerns of the Company.

Pre-IPO AIM Vaccine - Insights on Key Products, Pipeline and Concerns

Equity Bottom-Up

On August 30, 2021, <a href="https://www.smartkarma.com/entities/cansino-biologics-inc-cc0c90b7-e854-4ba3-929b-914be1bd0d89" target="_blank" data-smartkarma-citation="entities:32181:1" rel="noopener">CanSino Biologics Inc (688185 CH)</a> released it 2021/1H financial results. The revenue was RMB2.06 billion, up 51057.67% YoY, and the net profit was RMB937 million, which was the first time for CanSino to be profitable after successive years of losses. However, it seems that the market was not satisfied with the results. On August 31, the Company’s share price was down 3.34%. Although the share price was up 1.5% on September 1, it continued to fall by 4.94% on September 2 and 0.72% on September 3. It is also worth mentioning that since the beginning of Q3, CanSino’s share price has fallen by 52.56%, and the market value is also below RMB100 billion by the end of September 3. This insight mainly analyzed the concerns on key products and the outlook of the Company.

On August 30, 2021, CanSino Biologics Inc (688185 CH) released it 2021/1H financial results. The revenue was RMB2.06 billion, up 51057.67% YoY, and the net profit was RMB937 million, which was the first time for CanSino to be profitable after successive years of losses. However, it seems that the market was not satisfied with the results. On August 31, the Company’s share price was down 3.34%. Although the share price was up 1.5% on September 1, it continued to fall by 4.94% on September 2 and 0.72% on September 3. It is also worth mentioning that since the beginning of Q3, CanSino’s share price has fallen by 52.56%, and the market value is also below RMB100 billion by the end of September 3. This insight mainly analyzed the concerns on key products and the outlook of the Company.

CanSino Biologics (688185.CH/6185.HK) 2021/1H - Concerns on Key Products and the Outlook

Beijing Wantai Biological Phar / Equity Bottom-Up

By the end of July 13, 2021, the stock price of <a href="https://www.smartkarma.com/entities/beijing-wantai-biological-a" target="_blank" data-smartkarma-citation="entities:30129:1" rel="noopener">Beijing Wantai Biological-A (603392 CH) </a>was closed at RMB279.1/share, up 3090% compared with its IPO price (RMB8.75/share) in April, 2020. Last week, Wantai announced that its wholly-owned IVD subsidiary planned to invest RMB1.336 billion to build a new industrial base. After the completion of the project, it will have a reagent production capacity of 500 million persons per year and a inspection equipment production capacity of 9000 units/year. This insight mainly analyzed the outlook of Wantai’s IVD business and its core HPV vaccine business and the related concerns.

By the end of July 13, 2021, the stock price of Beijing Wantai Biological-A (603392 CH) was closed at RMB279.1/share, up 3090% compared with its IPO price (RMB8.75/share) in April, 2020. Last week, Wantai announced that its wholly-owned IVD subsidiary planned to invest RMB1.336 billion to build a new industrial base. After the completion of the project, it will have a reagent production capacity of 500 million persons per year and a inspection equipment production capacity of 9000 units/year. This insight mainly analyzed the outlook of Wantai’s IVD business and its core HPV vaccine business and the related concerns.

Beijing Wantai Biological (603392.CH) - How to Support Its High Valuation?

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>Last week, Biden’s administration surprised the whole pharmaceutical industry about the proposal to waive patent protections for coronavirus shots. However, our view is that the impact is likely to be limited.</li>
<li>The market size of COVID-19 vaccines in China is expected to reach RMB150 billion to RMB180 billion.</li>
<li>Recently, the National Health Care Security Administration, National Health Commission, NMPA and other related departments released documents about medium - and long-term development plan for the isotopes for medical purposes.</li>
</ul>Company news:News about the updated progress on new drugs of <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>, <a href="https://www.smartkarma.com/entities/jacobio-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:29696:1" rel="noopener">Jacobio Pharmaceuticals (1167 HK)</a>, <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a> and <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK).</a> Market review:Last week, stock price for healthcare sector in A share decreased 6.14%, while CSI 300 decreased 2.49% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
Last week, Biden’s administration surprised the whole pharmaceutical industry about the proposal to waive patent protections for coronavirus shots. However, our view is that the impact is likely to be limited.
The market size of COVID-19 vaccines in China is expected to reach RMB150 billion to RMB180 billion.
Recently, the National Health Care Security Administration, National Health Commission, NMPA and other related departments released documents about medium - and long-term development plan for the isotopes for medical purposes.
Company news:News about the updated progress on new drugs of BeiGene Ltd (6160 HK), Jacobio Pharmaceuticals (1167 HK), Everest Medicines (1952 HK) and Antengene (6996 HK). Market review:Last week, stock price for healthcare sector in A share decreased 6.14%, while CSI 300 decreased 2.49% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.  

Chongqing Zhifei Biological Products / Equity Bottom-Up

Recently, <a href="https://www.smartkarma.com/entities/chongqing-zhifei-biological-products-co-ltd" target="_blank" data-smartkarma-citation="entities:6245:1" rel="noopener">Chongqing Zhifei Biological Products (300122 CH)</a> released its 2020 and 2021Q1 financial results. In 2020, Zhifei achieved revenue of RMB15.19 billion, up 43.48% YoY, and the net profit was RMB3.3 billion, up 39.51% YoY. In 2021Q1, the revenue reached RMB3.927 billion, up 49.04% YoY, and the net profit was RMB938 million, up 81.69% YoY. Zhifei’s performance in 2021Q1 beat the market expectation. The following mainly analyzed the investment logic, key catalysts (such as COVID-19 vaccine etc.) in 2021 and thoughts on valuation.

Recently, Chongqing Zhifei Biological Products (300122 CH) released its 2020 and 2021Q1 financial results. In 2020, Zhifei achieved revenue of RMB15.19 billion, up 43.48% YoY, and the net profit was RMB3.3 billion, up 39.51% YoY. In 2021Q1, the revenue reached RMB3.927 billion, up 49.04% YoY, and the net profit was RMB938 million, up 81.69% YoY. Zhifei’s performance in 2021Q1 beat the market expectation. The following mainly analyzed the investment logic, key catalysts (such as COVID-19 vaccine etc.) in 2021 and thoughts on valuation.

Chongqing Zhifei Biological Products (300122.CH) - Could Zhifei Support Its Valuation?

China

Walvax Biotechnology Company Limited develops, manufactures and sells bio-pharmaceutical vaccination products.  The Company's products include haemophilus influenzae type b conjugate vaccine and meningococcal group A,C bivalent polysaccharide conjugate vaccine.

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Walvax Biotechnology Co A (300142 CH)

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Xinyao (Criss) Wang

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This article mainly analyzed Wantai in terms of the two core business IVD and HPV vaccine, their business outlook, the market pattern and the...

Xinyao (Criss) Wang

China Healthcare Weekly (May.7)

The article analyzed the potential impact on Biden’s proposal to waive IP protection on COVID-19 shots,market size of COVID-19 vaccine,new...

Xinyao (Criss) Wang

Chongqing Zhifei Biological Products (300122.CH) - Could Zhifei Support Its Valuation?

After its COVID-19 vaccine got approved in March, the investment logic is different. This article analyzed the key catalysts of Zhifei (agency...

Xinyao (Criss) Wang

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