Hutchmed (china) Share Discussion Threads

[nerdofsteel] 10/4/2021 05:35

I agree DBADVN, he is doing a great job, particularly in setting up the U.S operation in-house rather than partnering, ,I think that will pay off very well in the future. As for a Main Listing in London, smaller Companies with next to no resources have managed to do it (Tiziana last month for example) and I would have thought the NOMAD/in-house Broker would do the large majority of the legwork. There wouldn't even be a need for the Company to do Investor roadshows etc, it's purely a legal/admin exercise if they aren't raising new money.

[dbadvn] 09/4/2021 11:50

NoS, great point about cash flow.

I think ( as I've said before) that due to the unique overall position of HM that it will behave much more like a normal growth stock and the market will want to see the numbers before waking up. Recent investors are serious players who will have done very in depth due diligence and have now made their move. They are looking to at least double their investment in 3 years as an absolute minimum and they have other choices ...

Main market listing is a no-brainer now and next opportunity we should all ask CH straight out why its not been done . He needs a credible answer now , no more waffle about "right conditions ". I suspect that his answer will simply be "bandwidth" ie there is so much going on that he has not had enough time to get it done ( Covid is a factor here ) . I would accept that as long as there is a commitment to do it.

Having said that I think CH is doing a very good job right now of creating a robust commercial side of the company and expanding the management team to match.

[nerdofsteel] 09/4/2021 09:22

On another note, I've calculated that HCM now have enough cash to last until they become cashlow positive in H2 2024 (just).

[steeplejack] 08/4/2021 22:05

GWpharmaceuticals delisted from AIM and relies solely upon Nasdaq......BUTIts unlikely given these recent private placements that HCM would delist from London.In fact,i presume recent placees would be very much in favour of upgrading to a full LSE listing.

[sportii] 08/4/2021 20:36

Delisting from London, certainly, will not be fancied by the institutional investors who have invested 300-400 million USD in the recent months. LSE listed shares will have to be sold by all share holders, including GA, CPP and BPEA, following such delisting. That might lead to a fall in share price Also, giving up London market and relying solely on NYSE in the developed world, doesn’t sound too good for a Chinese pharmaceutical company in the present circumstances.

[cockneytrader] 08/4/2021 17:54

Or that they delist from London without upsetting too many people once the Asian placing is secured.

[cockneytrader] 08/4/2021 17:52

It may have something to do with penny pinching. What a £3 billion market cap firm is doing on AIM is beyond me.

[nerdofsteel] 08/4/2021 17:23

I agree, they need to get off AIM and move to a Main Market listing to attract a wider Fund audience + an Asian listing. I've put the question of AIM to them many times over the years and they simply do not grasp what the benefits would be of moving off it. My impression is that their view is we are listed in London and that's it, we don't care about the intricacies of the different listings and why some benefit shareholders more than others. Until their Corporate Advisor/Broker advises otherwise they seem to be happy as it is for some odd reason!

[sportii] 08/4/2021 13:21

Thanks Whatja for this information.
I hope these 3 institutional managers will be able to influence Hutchmed to migrate from AIM to the main LSE.

[whatja] 08/4/2021 12:42

Sportii...the registration seems to be avoiding some US requirement, probably marketing securities.....in that these are not tradable in US unless they are registered there. Same terms applied to General Atlantic and CPP deals.

[sportii] 08/4/2021 11:58

BPEA’s 15 million shares, equivalent to $100 million, are going to be registered on AIM market (as per company’s presentation). Is this of some consolation to the investors here in the UK?

[dbadvn] 08/4/2021 11:10

Completely agree NoS.

Most institutions that would want to buy cannot buy on AIM.

Asian listing and move to UK full listing my preferred option, that would bring in the punters....

[nerdofsteel] 08/4/2021 10:01

The London listing is a complete waste of time in my view, 8k shares traded so far today./ The sooner they get an Asian listing the better.

[its the oxman] 08/4/2021 08:40

Seems like our market is too weak and scared to push the price much before the US opens.

[its the oxman] 08/4/2021 08:39

A good indication of the significant value hcm offers and a strong vote of confidence. A lot of due diligence must have been done and another signal to the market to wake up. Happy to have bought more at these levels.

[nerdofsteel] 08/4/2021 08:18

The Company Corporate Presentation was updated as of yesterday:-

[nerdofsteel] 08/4/2021 08:07

Yet another positive vote of confidence by a Private Equity Firm with a track record in making large strategic investments, with a defined exit strategy. At $30.50 a share I'd say that is excellent value for them, hopefully that will give the present depressed valuation a lift.

[nerdofsteel] 08/4/2021 05:37

1. anti-china sentiment in the U.S.
2. I suspect some Institutions are wary because of the botched sale by CKHH a couple of years ago and do not want to see the same happen again

No one can be happy that despite 2 drugs being launched and a 3rd on the way we are still at the same valuation we were at almost 4 years ago. Something seems very wrong here.

An Asian listing is essential and may help to lift the valuation.

[my retirement fund] 07/4/2021 09:44

Why is this doing so badly?

[steeplejack] 07/4/2021 09:03

Indeed.However,the company has managed to recently attract some investor interest at $30 in private placements.Those new investors might kick a bit of botty if the shares continue to languish.

[nerdofsteel] 07/4/2021 08:26

I also think the botched placement into the market by CKHH in Dec 2018 has done lasting damage. Potential new large Institutional Investors will look closely at the history and think CKHH could do the same again, and will therefore avoid the Company with a barge-pole which is a shame. I still think only an Asian listing will get this to a correct valuation.