In today’s briefing:
- A Pair Trade Between Hanmi Science and Hanmi Pharm
- CSL Ltd (CSL AU): FY23 Guidance Cut Drags Near-Term Prospect; Long-Term Growth Drivers Still Intact
- M3: Growth Slowing Down Despite Long List of M&As Continuing
- ESG Report: Hanmi Pharmaceutical Co. (128940 KS) And Hanmi Science (008930 KS)
A Pair Trade Between Hanmi Science and Hanmi Pharm
- There has been a big divergence in the share prices of Hanmi Science and Hanmi Pharm in the past two months.
- This divergence in share price appears to be a bit too excessive and we believe this gap is likely to narrow in the coming weeks.
- We like a pair trade between going long Hanmi Science and going short on Hanmi Pharm.
CSL Ltd (CSL AU): FY23 Guidance Cut Drags Near-Term Prospect; Long-Term Growth Drivers Still Intact
- CSL Ltd (CSL AU) has reduced its profit projection for FY23 due to higher-than-anticipated adverse impact from Fx. The company now expects a Fx headwind of $230–250M from $175M earlier.
- After considering modest recovery of CSL Behring gross margin and generic competition for Ferinject in Europe, CSL expects FY24 NPATA to grow 13–18% to $2.9–3.0B at constant currency.
- All eyes are now on the U.S. launch of the one-time gene therapy Hemgenix for Hemophilia B. CSL expects the first patient to take Hemgenix within the next few weeks.
M3: Growth Slowing Down Despite Long List of M&As Continuing
- M3’s share price dropped around 9% after 4QFY03/2023 earnings, however, it went up by more than 8% since then following the announcement regarding the acquisition of Kantar’s healthcare research businesses.
- Our estimates suggest that new acquisition would not contribute to any meaningful growth in the near term. Despite having large no. of M&A deals, growth rates have started to fall.
- We think there is further downside to M3 Inc (2413 JP) ‘s consensus FY+2 earnings estimates and we would recommend shorting the stock.
ESG Report: Hanmi Pharmaceutical Co. (128940 KS) And Hanmi Science (008930 KS)
- Hanmi Pharmaceutical and Hanmi Science have demonstrated consistent financial performance through aggressive R&D investments, with significant achievements based on internally developed products in 2022.
- The new leadership structure of the company has the potential to improve corporate governance transparency, but there is a need for further shareholder-friendly changes, such as expanding dividend policies.
- Overall, the company’s current status, valuation, and ESG performance trends indicate positive prospects, including transparent management practices, sustained investment in R&D, and plans to enhance dividend policies.
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