In today’s briefing:
- Pine Care Group (1989 HK): Chinachem Takeover Offers a Good Exit Opportunity for Investors
- Jenscare (健世科技) IPO: Candidate for Shorts
- Shanghai/Shenzhen Southbound Connect: Weekly Moves (23 September 2022)
- Shareholder Returns Offered by Companies that Do Not Meet Prime Market Listing Criteria Are…..
- SillaJen Inc (215600 KS): Baselia Deal Enriches Pipeline; Stock Trading Resumption Decision Soon
- Lepu Scientech Medical Technology Pre-IPO Tearsheet
Pine Care Group (1989 HK): Chinachem Takeover Offers a Good Exit Opportunity for Investors
- Hong Kong’s leading property developer, Chinachem Group agreed to acquire a 56.15% stake in Pine Care Group (1989 HK) for HKD451.2 million ($57.5 million) from its controlling shareholders.
- Post-Acquisition, Chinachem will launch an unconditional mandatory offer for the remaining shares, which it does not hold at HKD0.89 per share, same as the purchase price.
- Considering delisting risk, limited upside potential of the shares after a huge run-up, and muted growth outlook of the company, investors should tender their holdings.
Jenscare (健世科技) IPO: Candidate for Shorts
- Jenscare is a China-based medical device company with a focus on structural heart disease. The company launched a deal to raise up to USD 30m via a Hong Kong listing.
- In our previous note, we looked at the company’s product lines and provided a brief overview on the company’s valuation.
- In this note, we provide an update for the book building. We provide our quick thoughts on the valuation and deal dynamics.
Shanghai/Shenzhen Southbound Connect: Weekly Moves (23 September 2022)
- Inside is a recap of movements in the last week relating to the Shanghai and Shenzhen-Hong Kong Stock Connect facilities, broken down by company and industry.
- Overall, the net inflow over the past week was ~US$1.1bn, split (+US$0.8bn) for Shanghai and (+US$0.3bn) for Shenzhen.
- The largest inflows were into Wuxi Biologics (2269 HK) and Tencent (700 HK). The largest outflows were in Geely Auto (175 HK) and HKEX (388 HK).
Shareholder Returns Offered by Companies that Do Not Meet Prime Market Listing Criteria Are…..
- The current criteria of 10 billion-yen in tradable market capitalization is too small by definition of prime market, “market-cap suitable for institutional investors,” and should be reviewed in near future.
- It’s natural that there will be difference in the stock prices of companies that can show results that are in line with their disclosed plans and those that are not.
- Simply raising shareholder returns won’t, in theory, positively impact on stock price. Mere increased shareholder returns would be seen as sign that the company reached the end of its rope.
SillaJen Inc (215600 KS): Baselia Deal Enriches Pipeline; Stock Trading Resumption Decision Soon
- SillaJen Inc (215600 KS) has developed a differentiated pipeline of oncolytic vaccinia immunotherapy. Its lead drug candidate Pexa-Vec is in phase 2 clinical trial for renal cell carcinoma.
- SillaJen has acquired a first-in-class anti-cancer drug candidate BAL0891 from Basilea for upfront payment of $14 million. The company’s cash position is capable to fund the acquisition and R&D expenses.
- Korean Stock Exchange is expected to announce its decision on SillaJen stock trading resumption by October 12.
Lepu Scientech Medical Technology Pre-IPO Tearsheet
- Lepu Scientech Medical Technology (Shanghai) (LSM HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC.
- Lepu Scientech Medical Technology (LSMT) is an interventional medical device provider in China for congential heart disease (CHD).
- It is the largest manufacturer of CHD occluder products and related procedural accessories in China, according to Frost & Sullivan.
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