In today’s briefing:
- Rigaku Holdings (268A JP) IPO: Trading Debut
- Orum Therapeutics IPO Valuation Analysis
- Pre-IPO Beijing Biostar Pharmaceuticals (PHIP Updates) – Some Points Worth the Attention
- Samsung Biologics (207940 KS): 3Q Result Beat Expectation; Guidance Raise Amid Increasing Order Book
- SBC: Fast Growing Solutions Provider in Expanding Medical Aesthetics Market, Initiating Coverage
Rigaku Holdings (268A JP) IPO: Trading Debut
- Rigaku Holdings (268A JP) priced its IPO at JPY1,260 per share to raise gross proceeds of US$856 million. The shares will start trading on 25 October.
- We previously discussed the IPO in Rigaku Holdings (268A JP) IPO: The Bull Case, Rigaku Holdings (268A JP) IPO: The Bear Case, Rigaku Holdings (268A JP) IPO: Valuation Insights.
- The peers have modestly derated since the prospectus was released on 20 September. The IPO price remains attractive.
Orum Therapeutics IPO Valuation Analysis
- Our base case target price for Orum Therapeutics is 35,170 won per share, which is within the IPO price range of 30,000 won to 36,000 won per share.
- Given the lack of upside relative to the target price, we have a Negative View of this IPO.
- FSS has requested correction to the company’s IPO prospectus. As a result, it now appears the IPO could be delayed.
Pre-IPO Beijing Biostar Pharmaceuticals (PHIP Updates) – Some Points Worth the Attention
- Biostar’s revenue growth decreased obviously in the first five months in 2024. Under the fierce competition and anti-corruption campaign, the expectation for the commercialization performance of Biostar is not high.
- Although Biostar has invested a lot of resources in market exposure, high customer concentration indicates that the Company faces challenges in marketing/customer relationship expansion. Biostar has also encountered overcapacity issues.
- After Series E Financing, Biostar’s post-investment valuation was RMB4.49 billion. But we’re not optimistic about the outlook of Biostar. This valuation could be difficult to achieve in HK stock market.
Samsung Biologics (207940 KS): 3Q Result Beat Expectation; Guidance Raise Amid Increasing Order Book
- In 3Q24, Samsung Biologics (207940 KS) reported 15% YoY revenue growth to KRW1,187B, driven by the contribution of Plant 4, the full utilization of Plants 1–3, and biosimilar products.
- The company has raised 2024 annual revenue growth guidance to 15–20% YoY from 10–15% earlier, driven by successful ramp-up of Plant 4 and favorable Fx movement.
- The company has signed record-breaking CMO contract with an Asian pharmaceutical company, thereby bringing the company’s total new contract value for the year to more than $3.3B.
SBC: Fast Growing Solutions Provider in Expanding Medical Aesthetics Market, Initiating Coverage
- SBC continues to expand its footprint organically and through strategic M&A to grow its franchisee network and revenue base.
- SBC can leverage its strong balance sheet and suite of solutions to lower the all-in costs for clinics to launch and / or extend their businesses and to support its overall expansion strategy.
- The rising acceptance of and popularity of aesthetic medicine in Japan and globally creates a tailwind for its growth, in our view.
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