HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Acotec Scientific Holdings / Equity Bottom-Up

<ul>
<li>Acotec’s 2023 performance was unsatisfactory. Core products suffered weak growth. Positive trend of continuing to optimize revenue structure was broken. Sales of latecomers’ competing products would expand rapidly in 2024/2025. </li>
<li>Revenue proportion in overseas markets was still below 5% in 2023. If no highlights in Acotec’s cooperation with Boston Scientific in 2024, this collaboration could be considered a failure.</li>
<li>Due to VBP, margin could further decline. If it's just the current situation, then Acotec is not as good as Zylox-Tonbridge. So, its valuation should also be lower than Zylox-Tonbridge.</li>
</ul>


Acotec’s 2023 performance was unsatisfactory. Core products suffered weak growth. Positive trend of continuing to optimize revenue structure was broken. Sales of latecomers’ competing products would expand rapidly in 2024/2025. 
Revenue proportion in overseas markets was still below 5% in 2023. If no highlights in Acotec’s cooperation with Boston Scientific in 2024, this collaboration could be considered a failure.
Due to VBP, margin could further decline. If it's just the current situation, then Acotec is not as good as Zylox-Tonbridge. So, its valuation should also be lower than Zylox-Tonbridge.


Acotec Scientific Holdings (6669.HK) - The Company Is Now In Trouble

<ul>
<li>After 23H1 results were released, we have seen some positive business progress in internationalization. There has been no obvious negative news about performance. Acotec's future prospects are still relatively optimistic.</li>
<li>Contrary to solid fundamentals, Acotec's stock price continues to decline. The sluggish stock price performance is not directly related to fundamentals, but rather to poor liquidity and unsatisfactory capital inflows.</li>
<li>Stock price hasn’t bottomed yet, so investors're not advised to rush to buy the dip.For market value management, Acotec's management need to invest more energy/time to maximize shareholder value/investors’ returns.</li>
</ul>


After 23H1 results were released, we have seen some positive business progress in internationalization. There has been no obvious negative news about performance. Acotec's future prospects are still relatively optimistic.
Contrary to solid fundamentals, Acotec's stock price continues to decline. The sluggish stock price performance is not directly related to fundamentals, but rather to poor liquidity and unsatisfactory capital inflows.
Stock price hasn’t bottomed yet, so investors're not advised to rush to buy the dip.For market value management, Acotec's management need to invest more energy/time to maximize shareholder value/investors’ returns.


Acotec Scientific Holdings (6669.HK) - The Fall in Share Price Is Not over Yet

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Acotec Scientific Holdings / Event-Driven

<ul>
<li>Back on the 12 December, <strong><a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a></strong> announced a Partial Offer from <strong><a href="https://www.smartkarma.com/entities/boston-scientific-corp" target="_blank" data-smartkarma-citation="entities:11115:1" rel="noopener">Boston Scientific (BSX US)</a></strong>
</li>
<li>The Offer Price of $20/share is for up to 65% of shares out. Irrevocables total up to 60.14% of shares out, sufficient to clear the minimum tendering condition.</li>
<li>My initial read was that the proration was simply 65%. That was wrong. It is higher. Plus there are some interesting quirks to avoid breaching the public float post-Offer.</li>
</ul>


Back on the 12 December, Acotec Scientific Holdings (6669 HK) announced a Partial Offer from Boston Scientific (BSX US)

The Offer Price of $20/share is for up to 65% of shares out. Irrevocables total up to 60.14% of shares out, sufficient to clear the minimum tendering condition.
My initial read was that the proration was simply 65%. That was wrong. It is higher. Plus there are some interesting quirks to avoid breaching the public float post-Offer.


Acotec/Boston Scientific: Even Higher Proration

<ul>
<li>Acotec’s revenue streams became more diversified in 23H1. New product launch in the next 1-2 years would further relieve the dependence on DCB products, leading to healthier revenue structure.</li>
<li>Acotec disclosed details of its collaboration with Boston Scientific.If the caps are fully implemented, revenue growth of Acotec will be impressive. Acotec has the ability to resist centralized procurement risks.</li>
<li>Concerns include how much negative impact anti-corruption campaign will have on Acotec’s performance in 23H2, and to what extent the deal with Boston Scientific would be implemented?</li>
</ul>


Acotec’s revenue streams became more diversified in 23H1. New product launch in the next 1-2 years would further relieve the dependence on DCB products, leading to healthier revenue structure.
Acotec disclosed details of its collaboration with Boston Scientific.If the caps are fully implemented, revenue growth of Acotec will be impressive. Acotec has the ability to resist centralized procurement risks.
Concerns include how much negative impact anti-corruption campaign will have on Acotec’s performance in 23H2, and to what extent the deal with Boston Scientific would be implemented?


Acotec Scientific (6669.HK) - Growth Is Expected to Continue, But Risks Behind Can't Be Ignored

Shenzhen Mindray Bio-Medical Electronics / Equity Bottom-Up

<ul>
<li>Mindray's 23H1 results were in line with expectations. The high growth in Q2 has given us more confidence in the “complementarity of performance” between different business lines of the company.</li>
<li>Mindray is right to acquire DiaSys,but Mindray should disclose the impact of M&amp;A on financial statements.When investors understand how to "quantify" M&amp;As, positive news would be reflected in stock price.</li>
<li>The anti-corruption campaign and foreign capital outflows have weighed on Mindray’s share prices. Based on our analysis, the decline offers a good buying opportunity and share price will rebound afterwards.</li>
</ul>


Mindray's 23H1 results were in line with expectations. The high growth in Q2 has given us more confidence in the “complementarity of performance” between different business lines of the company.
Mindray is right to acquire DiaSys,but Mindray should disclose the impact of M&amp;A on financial statements.When investors understand how to "quantify" M&amp;As, positive news would be reflected in stock price.
The anti-corruption campaign and foreign capital outflows have weighed on Mindray’s share prices. Based on our analysis, the decline offers a good buying opportunity and share price will rebound afterwards.


Shenzhen Mindray Bio-Medical Electronics (300760.CH) - Some Points Worth the Attention

China

Acotec Scientific Holdings Limited develops medical equipment. The Company develops, manufactures and markets thrombus aspiration catheter, drug-coated ballon, and other products. Acotec Scientific Holdings markets its products throughout China.

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Acotec Scientific Holdings (6669 HK)