The first “North+Port” project is ready to be launched.

Following the announcement by Leisure Guard (833575.BJ) on December 27, 2023, that it plans to go public in Hong Kong, its IPO plan was officially implemented.

On January 29, Leisure Guard submitted an IPO application to the Hong Kong Stock Exchange.

This means that Leisure Guard is expected to become the first company in the entire market to achieve a “North + Hong Kong” listing. This is also the first company listed on the Beijing Stock Exchange to go public in Hong Kong.

As early as June 29, 2023, the Beijing Stock Exchange signed a memorandum of understanding on cooperation with the Hong Kong Stock Exchange to support listed companies that meet the requirements of both markets to apply for listing in each other's markets.

Among them, companies listed on the Beijing Stock Exchange that meet the requirements for issuance and listing on the Hong Kong Stock Exchange may submit application documents for issuance and listing to the Hong Kong Stock Exchange and then report them to the Securities Regulatory Commission for the record in accordance with the provisions of the “Trial Measures on the Administration of Overseas Issuance and Listing of Domestic Enterprises”.

Now, along with Leisure Guard's submission to the Hong Kong Stock Exchange, it is highly anticipated whether more projects will be listed in the “North + Hong Kong” region in the future.

The market reacted positively to the Hong Kong listing of Leisure Guard.

On January 30, the closing price of Leisure Guard was 19.15 yuan/share, a single-day increase of 3.07%.

As a vaccine company, Leisure Guard has yet to commercialize any products. The net loss for the first three quarters of 2023 was 225 million yuan.

Looking at the research pipeline, Leisure Guard has deployed a total of nine vaccine products, including the trivalent HPV vaccine, the nine-valent HPV vaccine (for women and men), the 15-valent HPV vaccine, and the respiratory syncytial virus vaccine.

Among them, the trivalent HPV vaccine and the nine-valent HPV vaccine (for women and men) are the core products of Leisure Guard, and they are all in phase 3 clinical trials.

Leisure Guard expects to submit marketing applications for the trivalent HPV vaccine and the nine-valent HPV vaccine (for women) in 2024 and 2025.

In this sprint to the Hong Kong Stock Exchange IPO, Leisure Guard plans to raise funds to promote phase III clinical trials of the trivalent HPV vaccine and the nine-valent HPV vaccine (for women and men), as well as commercialization activities after related products are marketed.

Regarding the future commercialization of trivalent and nine-valent HPV vaccines, Leisure Guard believes that the two have complementary effects.

“In terms of sales, we believe that the company's trivalent and nine-valent HPV vaccines can play complementary roles. In the future, the nine-valent HPV vaccine will become the main product sold by the company, while the trivalent HPV vaccine can position the sinking market and target price-sensitive groups.” Leisure Guardian pointed out during an investor survey.

It is worth noting that with the expansion of MSD's nine-valent HPV vaccine in 2022, Wantai Biotech (603392.SH) and Watson Biotech (300142.SZ)'s bivalent HPV vaccine sales have been greatly impacted.

According to the performance forecast, Wantai Biotech expects net profit to be 1.2 billion yuan to 1,350 million yuan in 2023, a year-on-year decrease of 71.49% to 74.66%; Watson Biotech's net profit for the same period is 400 million yuan to 460 million yuan, a decrease of 37% to 45% year-on-year.

Both said that MSD's nine-valent HPV vaccine is expanding, and revenue from the bivalent HPV vaccine has declined.

This may have all brought uncertainty to Leisure Guard's sale of the low-cost HPV vaccine.

At the same time, many companies such as Wantai Biotech, Watson Biotech, and Recco Biotech (2179.HK) are all promoting research and development of the nine-valent HPV vaccine, and domestic competition for the nine-valent HPV vaccine may heat up.

Leisure Guard is seeking to go overseas as a “safe haven” and plans to bring the nine-valent HPV vaccine (for women) to the Indonesian market.

As of November 2023, Leisure Guard's nine-valent HPV vaccine (for women) is undergoing phase 3 clinical trials in Indonesia, and it is expected that a marketing application will be submitted to the local regulatory authorities in 2025.

ASEAN countries may become important international markets for Recreation Guardians in the future.

“We expect to submit the BLA for the nine-valent HPV vaccine candidate to Indonesian BPOM in 2025 to prevent HPV infection and related diseases in women, and further expand it to other ASEAN countries using the clinical trial data we have collected in China and Indonesia.” The Recreation Guard said.

The market is waiting to see if the Southeast Asian market can bring more revenue to Leisure Guardians and help them get out of the loss situation as soon as possible.