IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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

Hangzhou Kangji Medical Instrument Co., Ltd. / Equity Capital Markets

Hangzhou Kangji Medical Instrument Co., Ltd.

<div><p><a href="https://www.smartkarma.com/entities/hangzhou-kangji-medical-instrument-co-ltd" target="_blank" data-smartkarma-citation="entities:28938:1" rel="noopener">Kangji Medical (1498779D CH)</a> is the largest domestic minimally invasive surgical instruments and accessories (MISIA) platform in China, with a 2.7% share of China’s MISIA market in 2019, according to CIC. Kangji has launched a Hong Kong IPO to raise proceeds of $359-404 million.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/kangji-medical-ipo-initiation-the-cutting-edge" target="_blank" rel="noopener">our initiation note</a>, we stated that Kangji is a play on China’s large and fast-growing MISIA market which is driven by favourable market trends such as the increasing usage of disposable products, growing acceptance of domestic products and market consolidation. Overall, Kangji has strong fundamentals and is a good IPO candidate, in our view. Overall, we think that a reasonable valuation and strong cornerstone support makes Kangji tempting at the proposed pricing range. </p></div></div></div>

Kangji Medical (1498779D CH) is the largest domestic minimally invasive surgical instruments and accessories (MISIA) platform in China, with a 2.7% share of China’s MISIA market in 2019, according to CIC. Kangji has launched a Hong Kong IPO to raise proceeds of $359-404 million.In our initiation note, we stated that Kangji is a play on China’s large and fast-growing MISIA market which is driven by favourable market trends such as the increasing usage of disposable products, growing acceptance of domestic products and market consolidation. Overall, Kangji has strong fundamentals and is a good IPO candidate, in our view. Overall, we think that a reasonable valuation and strong cornerstone support makes Kangji tempting at the proposed pricing range. 

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

AK Medical Holdings Limited / Equity Capital Markets

<p>AK Medical Holdings (1789 HK) is a new listing with a proposed price range of HKD1.66 -2.00. The company is China's leading (in volume) orthopedic joint and spine replacement device manufacturer. AK Medical has taken share over the last few years by carving out a position as a high-quality domestic player that can undercut high-priced imported products. In addition, AK Medical has established a cutting-edge position in using 3D printing technology to manufacture products. The position is noteworthy, but we would not assign much value to this distinction at this point.</p><p>The expected pricing date is Tuesday, December 12, 2017 (EST) / Wednesday, December 13, 2017 (HKT) with an expected settlement and listing date of Wednesday, December 20, 2017. </p><p>This Insight will be relatively brief given the timetable and offering size (less than US$100 million) with heavy use of content from the offering document. If a picture is worth 1,000 words (百闻不如一见), then you should be well informed by the end.</p><p>We have several outstanding questions regarding reimbursement risk and working capital policies, but are inclined to take the deal assuming that management's responses are thoughtful and sensible.</p>

AK Medical Holdings (1789 HK) is a new listing with a proposed price range of HKD1.66 -2.00. The company is China's leading (in volume) orthopedic joint and spine replacement device manufacturer. AK Medical has taken share over the last few years by carving out a position as a high-quality domestic player that can undercut high-priced imported products. In addition, AK Medical has established a cutting-edge position in using 3D printing technology to manufacture products. The position is noteworthy, but we would not assign much value to this distinction at this point.The expected pricing date is Tuesday, December 12, 2017 (EST) / Wednesday, December 13, 2017 (HKT) with an expected settlement and listing date of Wednesday, December 20, 2017. This Insight will be relatively brief given the timetable and offering size (less than US$100 million) with heavy use of content from the offering document. If a picture is worth 1,000 words (百闻不如一见), then you should be well informed by the end.We have several outstanding questions regarding reimbursement risk and working capital policies, but are inclined to take the deal assuming that management's responses are thoughtful and sensible.

AK Medical: Take It If The Answers Are Good

China

Beijing Chunlizhengda Medical Instruments Co.,Ltd. designs, develops, manufactures and markets patented implants and instruments for joint replacement, spinal fixation and trauma.

Beijing Chunlizhengda Medical Instruments (1858 HK)

Beijing Chunlizhengda Medical Instruments

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Beijing Chunlizhengda Medical Instruments (1858 HK)

Kangji Medical IPO: Valuation Insights

Kangji Medical (1498779D CH) is the largest domestic minimally invasive surgical instruments and accessories (MISIA) platform in China, with a 2.7%...

Arun George

AK Medical: Take It If The Answers Are Good

AK Medical Holdings (1789 HK) is a new listing with a proposed price range of HKD1.66 -2.00. The company is China's leading (in volume) orthopedic...

Kemp Dolliver, CFA

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