In today’s briefing:
- STAR50 Index Rebalance Preview: 5 Changes Forecast as Review Period Ends
- Osstem Implant: Details of Tender Offer & Chairman Choi’s Children Exchange CB Call Options for BWs
- Concord Biotech Pre-IPO – Sales Have Been Growing but Watch Out for Its High Concentration Risk
- Shanghai MicroPort MedBot Group (2252.HK) – Recognize the Reality but Don’t Give up Hope
STAR50 Index Rebalance Preview: 5 Changes Forecast as Review Period Ends
- The review period for the March rebalance ends today. We forecast 2 changes using a 12-month minimum listing history, and 5 changes using a 6-month minimum listing history.
- We expect the index committee to continue using a 6-month minimum listing history. The impact on the potential deletes is a lot higher than the impact on the potential adds.
- With 5 changes to the index, estimated one-way turnover is 5.1% resulting in a one-way trade of CNY 4,549m. There is a reasonably large reverse funding trade.
Osstem Implant: Details of Tender Offer & Chairman Choi’s Children Exchange CB Call Options for BWs
- We provide details of the Osstem Implant tender offer as well as Chairman Choi’s children exchange of CB call options for BWs.
- We believe that the majority of the minority shareholders in Osstem Implant are not likely to sell their shares at 190,000 won per share but hold on to it.
- Over a longer time frame, Osstem’s share price could reach higher levels driven by its improving sales and profit growth, deep valuation discount to global peers, and further M&A fight.
Concord Biotech Pre-IPO – Sales Have Been Growing but Watch Out for Its High Concentration Risk
- Concord Biotech Ltd (658823Z IN) is looking to raise around US$250m in its upcoming India IPO.
- Concord Biotech (Concord) is an India-based biopharma firm, which develops and manufactures fermentation-based active pharmaceutical ingredients (APIs).
- As per F&S, it was one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on FY21 volume.
Shanghai MicroPort MedBot Group (2252.HK) – Recognize the Reality but Don’t Give up Hope
- New policy about surgical robots was released, which is conducive to the promotion and popularization of surgical robots in China. However, the situation is not as simple as it seems.
- We deep dive the business environment of surgical robots in China.Even with favorable policies, both surgical robot systems and consumables have to reduce price largely so as to be affordable.
- It’s difficult to make profits in China. Medbot could lose money for quite some time.Without solid internationalization, the rally cannot be sustained for a long time only by policy catalyst.
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