IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

JOINN Laboratories IPO: PHIP Points to Progress

JOINN Laboratories IPO: Valuation Insights

JOINN Laboratories IPO Initiation: On-Demand Science

JOINN Laboratories IPO: Valuation First Look

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Joinn Laboratories China  Lt / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/joinn-laboratories-h" target="_blank" data-smartkarma-citation="entities:31498:1" rel="noopener">Joinn Laboratories (H) (6127 HK)</a> is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. JOINN's H-shares will commence trading on Friday, 26 February. JOINN priced its H-share listing at HK$151. The <a href="https://inews.hket.com/article/2886409/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E6%98%AD%E8%A1%8D%E6%96%B0%E8%97%A56127%E6%9A%97%E7%9B%A4%E6%BD%9B%E6%B0%B4%E3%80%80%E8%BC%83%E6%8B%9B%E8%82%A1%E5%83%B9%E4%BD%8E%E7%B4%843-?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">last traded grey market price</a> across three brokerages vary from a high of HK$146.70 to a low of HK$142.00 per H-share, according to press reports.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-initiation-on-demand-science" target="_blank" data-smartkarma-citation="insights:47482" rel="noopener">JOINN Laboratories IPO Initiation: On-Demand Science</a>, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-phip-points-to-progress" target="_blank" data-smartkarma-citation="insights:47985" rel="noopener">JOINN Laboratories IPO: PHIP Points to Progress</a>, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In <a href="https://www.smartkarma.com/insights/joinn-laboratories-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:48236" rel="noopener">JOINN Laboratories IPO: Valuation Insights</a>, we noted that the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive.</p></div><div>
<div class="content-highlight"><p>Since the bookbuilding was launched, JOINN's CRO peers have materially derated. Over this period, JOINN A-shares have declined 12% from RMB161.35 (prior to launch) to close at RMB141.19 per A-share. Largely due to this derating, we think that JOINN is fairly priced at the H-share listing price of HK$151. On the other hand, the low grey market price of HK$142 per H-share is attractive from both an AH discount and a CY2021 P/E basis.</p></div>
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Joinn Laboratories (H) (6127 HK) is a global contract research organisation (CRO). JOINN is the largest CRO in non-clinical drug safety assessment in China with a revenue market share of 15.5% in 2019, according to Frost &amp; Sullivan. JOINN's H-shares will commence trading on Friday, 26 February. JOINN priced its H-share listing at HK$151. The last traded grey market price across three brokerages vary from a high of HK$146.70 to a low of HK$142.00 per H-share, according to press reports.In JOINN Laboratories IPO Initiation: On-Demand Science, we stated that JOINN potentially gives investors another avenue to gain exposure to the China CRO industry. On balance, we concluded that JOINN’s fundamentals are attractive as the positives outweigh the negatives. In JOINN Laboratories IPO: PHIP Points to Progress, we noted that the 9M20 results reinforce our belief that JOINN is worth a closer look at and has attractive fundamentals. In JOINN Laboratories IPO: Valuation Insights, we noted that the combination of a reasonable AH discount and relative valuation suggests the proposed H-share price range is attractive.
Since the bookbuilding was launched, JOINN's CRO peers have materially derated. Over this period, JOINN A-shares have declined 12% from RMB161.35 (prior to launch) to close at RMB141.19 per A-share. Largely due to this derating, we think that JOINN is fairly priced at the H-share listing price of HK$151. On the other hand, the low grey market price of HK$142 per H-share is attractive from both an AH discount and a CY2021 P/E basis.



Hangzhou Tigermed Consulting (A) (300347 CH)

Joinn Laboratories China Lt

JOINN Laboratories IPO: Trading Debut