In today’s briefing:
- New Ruipeng Pet Group Pre-IPO Peer Comparison – Largest Domestic Player, but Smallest Margins
- Syngene International Ltd (SYNG IN): Well-Positioned to Capitalize On Strong Industry Tailwind
- Bayer: New CEO Announced. Our Bull Case Gets Stronger. Stock +12.6% Since Initial Note
- CStone Pharmaceuticals Placement (2616.HK) – There Is No Certainty that the Dilemma Will Reverse
New Ruipeng Pet Group Pre-IPO Peer Comparison – Largest Domestic Player, but Smallest Margins
- New Ruipeng Pet Group (RPET US) is looking to raise at least US$100m in its upcoming US IPO.
- New Ruipeng Pet Group (Ruipeng) is a pet services platform, primarily offering pet care services, supply chain services and local services, covering the entire lifecycle of pets.
- In our previous notes, we have looked at the company’s past performance. In this note, we undertake a peer comparison.
Syngene International Ltd (SYNG IN): Well-Positioned to Capitalize On Strong Industry Tailwind
- Syngene International Ltd (SYNG IN) provides integrated services from early discovery to commercial supply across all major therapeutic areas and modalities. The company has 400+ active clients.
- To capitalize on the secular industry tailwind, the company has been investing to enhance capacity and capability, which has led to extension of existing client relations and engaging new clients.
- For FY23, the company expects high-teens revenue growth and EBITDA margin of ~30%. Operating leverage is expected to improve from next year onwards, and that should improve the overall profitability.
Bayer: New CEO Announced. Our Bull Case Gets Stronger. Stock +12.6% Since Initial Note
- Bayer announced a new CEO today. Former Roche executive Anderson will take over the new role in June.
- Our Target Price for the time being is €78.60, implying 25% upside from the current share price
- The equity story expands across all of Bayer’s three segments. Positive signs in Pharma, Crops Sciences, and Consumer Health are showing, which we believe are misunderstood by the investment community
CStone Pharmaceuticals Placement (2616.HK) – There Is No Certainty that the Dilemma Will Reverse
- The revenue brought by CStone’s differentiated layout of pipeline does not match the R&D investment. CStone needs to in-license more late-stage products, but the Company is not cash rich.
- CStone was incubated by WuXi Bio. Its business model is“VC+IP+CRO”. Cstone doesn’t have independent R&D capability. The increasingly low cost performance of in-licensed products has made the capital “reconsider” .
- Cstone doesn’t have the potential to be a biopharma as it licensed out the key/core candidates. Its future valuation growth would be “discounted”. Corporate governance/instability is also a concern.
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