Update On 3SBio (1530 HK)’s Spin-Off and Listing of Mandi

• Back on the 20th November 2025, pharma-play 3SBio (1530 HK) announced the spin-off and listing of 87.16%-held Mandi, a “hair loss and weight management treatments“ solutions provider, on the HKEx.

• 3SBio will distribute its stake in-specie, together with a concurrent global offering. An EGM has been set for the 23rd April for shareholders to vote on the in-specie distribution.

• Mandi accounted for 17% of 3SBio’s revs in the 1H25, and 12.5% of profit. No updated figures for 2H25 have been provided. 3SBio’s overall FY25 numbers were stellar.

The Trade:

• Given the size of Mandi - relative to 3SBio - higher market multiples will have a limited impact on 3SBio’s overall valuation.

• 3SBio’s share price popped 12% yesterday following the release of strong FY25 numbers. However, the stock is down 22% from my last note.

• My calcs suggest 3SBio is fairly valued here.

The insight is still labelled bullish as I’m not bearish 3SBio’s long-term value (although I don’t have a strong conviction here one way or another). I’m more bearish the spin-off will have any material impact on 3SBio.