In today’s briefing:
- Huge Hogy Medical (3593) Buyback from the Founding Family
- Lepu Biopharma IPO: PHIP Updates
- Hartalega (HTHB.KL) – Likely To Go Into The Red In 4 Q
Huge Hogy Medical (3593) Buyback from the Founding Family
- Hogy Medical’s founder passed and there was a re-arranging of deckchairs among the Hoki family ownership in 2021.
- Earnings are not growing yet, but the mix is improving on a forward basis and consensus is decidedly more bullish than trend would suggest.
- Now the company is buying back a LOT of stock from the Hoki family. This changes things.
Lepu Biopharma IPO: PHIP Updates
- Lepu Biopharma (LBP HK) is a biopharmaceutical company focusing on oncology therapeutics. The company has filed for an IPO to list on the Hong Kong Stock Exchange.
- Lepu has the leading ADC candidate pipeline in China, in terms of number of clinical-stage ADC drug candidates. In our previous insight, we discussed the company’s business, products and outlook.
- In this follow-up insight, we have highlighted and discussed some of the key new data points from the company’s Post Hearing Information Pack (PHIP).
Hartalega (HTHB.KL) – Likely To Go Into The Red In 4 Q
- 4QFY22 to be hit by lower ASP and prosperity tax
- Results impacted by lower ASP and utilisation
- Key highlights from 3QFY22 concall:
- Earnings adjustments
3QFY3/22 net profit of MYR259m (-74% QoQ, -72% YoY) was in line. Hartalega is likely to go into the red in 4QFY22 on lower ASP (-30% QoQ) and Prosperity tax. We lower our FY22/23/24 earnings forecasts by 22-25% after factoring in the prosperity tax and tweaking our ASP and utilisation rate assumptions. Our TP is lowered to MYR3.01 (-99 sen) on an unchanged 19.4x CY23 PER (-1SD of historical mean). Reiterate SELL.
Before it’s here, it’s on Smartkarma
