External broker reports(aggregated public sources), JF Apex Securities Berhad

JF Apex Securities Bhd

External broker reports(aggregated public sources)

Equity Bottom-Up

<div class="content-highlight">Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</div>

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Hartalega Holdings Berhad - Back to earth amid a sturdy start

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

CTOS Digital (CTOS) aims to raise up to US$300m via its Malaysian IPO. It is majority owned by Creador, a PE firm. CTOS is an investment holding whose subsidiaries are principally involved in the business of credit reporting, digital software related services, software development, outsourcing and training services and investment holding.CTOS was the largest credit reporting agency (CRA) in Malaysia with an estimated market share in terms of revenue of 71.2% in 2020 according to the IMR Report. Its associate, Experian, was the second largest CRA in Malaysia, with an estimated market share in terms of revenue of 17.5%.

CTOS Digital (CTOS) aims to raise up to US$300m via its Malaysian IPO. It is majority owned by Creador, a PE firm. CTOS is an investment holding whose subsidiaries are principally involved in the business of credit reporting, digital software related services, software development, outsourcing and training services and investment holding.CTOS was the largest credit reporting agency (CRA) in Malaysia with an estimated market share in terms of revenue of 71.2% in 2020 according to the IMR Report. Its associate, Experian, was the second largest CRA in Malaysia, with an estimated market share in terms of revenue of 17.5%.

CTOS Digital Pre-IPO - Credit Where Credit’s Due

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Intco Medical Technology  Lt / Equity Capital Markets

On January 29th, 2021, the A-share listed company <a href="https://www.smartkarma.com/entities/intco-medical-technology-co-ltd-a" target="_blank" data-smartkarma-citation="entities:29782:1" rel="noopener">Intco Medical Technology Co., Ltd-A (300677 CH)</a> submitted its prospectus to the HKEX, officially starting the process of IPO in Hong Kong. Meanwhile, the Company released the financial results in 2020. Intco achieved revenue of RMB13.8 billion in 2020, up 564.29% YoY. Net income attributed to shareholders in 2020 was RMB7 billion, up 3829.22% YoY. The results were in line with expectations.

On January 29th, 2021, the A-share listed company Intco Medical Technology Co., Ltd-A (300677 CH) submitted its prospectus to the HKEX, officially starting the process of IPO in Hong Kong. Meanwhile, the Company released the financial results in 2020. Intco achieved revenue of RMB13.8 billion in 2020, up 564.29% YoY. Net income attributed to shareholders in 2020 was RMB7 billion, up 3829.22% YoY. The results were in line with expectations.

Pre-IPO Intco Medical Technology - Economies of Scale or Overcapacity?

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

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.

<a href="https://www.smartkarma.com/entities/intco-medical-technology-co-ltd-a" target="_blank" data-smartkarma-citation="entities:29782:1" rel="noopener">Intco Medical Technology Co., Ltd-A (300677 CH)</a> is the largest disposable gloves provider in China and the third-largest in the world as measured by production capacity as of 31 December 2020, according to Frost &amp; Sullivan. Intco which listed its A Share on the Shenzhen Stock Exchange on 21 July 2017, is seeking an H Share listing to raise $1 billion, according to press reports. <div class="content-highlight">Intco along with its global peers have benefited tremendously from the demand-supply imbalance for gloves due to the COVID-19 pandemic. Most peer share prices have declined since the start of the year in expectation of peak quarterly earnings in the second or third quarter of 2021. The glove industry has gone through two previous cycles but has re-rated at each cycle – sector average P/E of 11x in 2007-11 and P/E of 18x in 2013-17. As the industry continues to be underpinned by structural growth drivers, the sector will likely re-rate as sector earnings normalise. Overall, we think that Intco has attractive fundamentals to benefit from these market dynamics. </div>

Intco Medical Technology Co., Ltd-A (300677 CH) is the largest disposable gloves provider in China and the third-largest in the world as measured by production capacity as of 31 December 2020, according to Frost &amp; Sullivan. Intco which listed its A Share on the Shenzhen Stock Exchange on 21 July 2017, is seeking an H Share listing to raise $1 billion, according to press reports. Intco along with its global peers have benefited tremendously from the demand-supply imbalance for gloves due to the COVID-19 pandemic. Most peer share prices have declined since the start of the year in expectation of peak quarterly earnings in the second or third quarter of 2021. The glove industry has gone through two previous cycles but has re-rated at each cycle – sector average P/E of 11x in 2007-11 and P/E of 18x in 2013-17. As the industry continues to be underpinned by structural growth drivers, the sector will likely re-rate as sector earnings normalise. Overall, we think that Intco has attractive fundamentals to benefit from these market dynamics. 

Intco Medical IPO Initiation: Riding the Cycle

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Intco Medical, a leading glove manufacturer in China, is planning to raise at least USD 1bn from a Hong Kong listing. The company is a strong player in the PVC glove market but is currently a small player in the nitrile glove segment. With the strong demand of nitrile gloves brought by the COVID-19 pandemic, the demand of nitrile gloves surged multiple times. The company has set a plan to expand its nitrile glove capacity by 6 times over the next four years. Based on its current plan, its total glove production capacity (nitrile and PVC) will rank in second place by the end of 2021E.Besides expanding its glove production plants, the company has also invested in the upstream thermal plants to reduce energy costs and nitrile latex manufacturing plants to secure supply of the key raw materials, further increasing its lead in the unit costs. We think the company's A-share valuation is not demanding and note that the stock has done well since the COVID-19 pandemic last year. Having said that, the industry has the issue of peaking ASP which justifies the undemanding valuation.

Intco Medical, a leading glove manufacturer in China, is planning to raise at least USD 1bn from a Hong Kong listing. The company is a strong player in the PVC glove market but is currently a small player in the nitrile glove segment. With the strong demand of nitrile gloves brought by the COVID-19 pandemic, the demand of nitrile gloves surged multiple times. The company has set a plan to expand its nitrile glove capacity by 6 times over the next four years. Based on its current plan, its total glove production capacity (nitrile and PVC) will rank in second place by the end of 2021E.Besides expanding its glove production plants, the company has also invested in the upstream thermal plants to reduce energy costs and nitrile latex manufacturing plants to secure supply of the key raw materials, further increasing its lead in the unit costs. We think the company's A-share valuation is not demanding and note that the stock has done well since the COVID-19 pandemic last year. Having said that, the industry has the issue of peaking ASP which justifies the undemanding valuation.

Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1

Malaysia

Hartalega Holdings Bhd. manufactures a wide range of latex gloves. The Company's products include natural rubber examination gloves, nitrile examination gloves, nitrile clean room gloves and natural rubber surgical gloves.

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Hartalega Holdings (HART MK)

Hartalega Holdings Berhad - Back to earth amid a sturdy start

Hold Hartalega Holdings Berhad: Hartalega Holdings Berhad - Back to earth amid a sturdy start. - By: JF Apex Securities Bhd

JF Apex Securities Bhd

CTOS Digital Pre-IPO - Credit Where Credit’s Due

CTOS Digital (CTOS) aims to raise up to US$300m via its Malaysian IPO. It is majority owned by Creador, a PE firm. It has an over 70% market share...

Sumeet Singh

Pre-IPO Intco Medical Technology - Economies of Scale or Overcapacity?

The article analyzed Intco Medical in terms of market potential, business (entry barrier, technology, capacity), financial position compared with...

Xinyao (Criss) Wang

Intco Medical IPO Initiation: Riding the Cycle

Intco is seeking an H Share listing to raise $1 billion, according to press reports. Overall, we think that Intco has attractive fundamentals to...

Arun George

Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1

We think the company's valuation is not demanding and note that the stock has done well since the COVID-19 pandemic last year with only the issue...

Ke Yan, CFA, FRM

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