APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC 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

Jinxin Fertility Group  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jinxin-fertility-group-ltd" target="_blank" data-smartkarma-citation="entities:28003:1" rel="noopener">Jinxin Fertility Co Ltd (1951 HK)</a> is looking to raise US$122m via a top-up placement. </li>
<li>Proceeds from the offering will be used to repay its outstanding convertible bond and general corporate purposes. </li>
<li>In this note, we will run the deal through our ECM framework and talk about the recent updates.</li>
</ul>



Jinxin Fertility Co Ltd (1951 HK) is looking to raise US$122m via a top-up placement. 
Proceeds from the offering will be used to repay its outstanding convertible bond and general corporate purposes. 
In this note, we will run the deal through our ECM framework and talk about the recent updates.


Jinxin Fertility Group Placement - Weak Track Record And Recent Deals Have Performed Poorly

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Jinxin Fertility Group  / Equity Bottom-Up

<ul>
<li>We have seen some positive policies released in China to support assisted reproduction. However, domestic policy support is more of a short-term catalyst and would not fundamentally change Jinxin’s prospects.</li>
<li>The number of assisted reproductive centers in China is close to supply-demand equilibrium. It’s hard to support Jinxin’s valuation expansion by relying on China market. The breakthrough point is internationalization.</li>
<li>Jinxin’s 2023 performance wouldn’t rebound largely. Investors could do short-term trade based on positive news/policy related to ARS in China.There’s no signal to support the complete reversal of share price.</li>
</ul>


We have seen some positive policies released in China to support assisted reproduction. However, domestic policy support is more of a short-term catalyst and would not fundamentally change Jinxin’s prospects.
The number of assisted reproductive centers in China is close to supply-demand equilibrium. It’s hard to support Jinxin’s valuation expansion by relying on China market. The breakthrough point is internationalization.
Jinxin’s 2023 performance wouldn’t rebound largely. Investors could do short-term trade based on positive news/policy related to ARS in China.There’s no signal to support the complete reversal of share price.


Jinxin Fertility Co Ltd (1951.HK) - Hard to Achieve Performance Reversal in 2023

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

<ul>
<li>Jinxin Fertility is a leading IVF service provider in China. It has done a series of M&amp;A in the past two years.</li>
<li>We examine the thesis of the company for a trade into 2023.</li>
<li>We believe the company has big potential to realize its synergy post acquisition and ramp up post expansion. More favorable policy to come.</li>
</ul>


Jinxin Fertility is a leading IVF service provider in China. It has done a series of M&amp;A in the past two years.
We examine the thesis of the company for a trade into 2023.
We believe the company has big potential to realize its synergy post acquisition and ramp up post expansion. More favorable policy to come.


<ul>
<li>China funeral industry has large growth potential.The total market scale would be about RMB400 billion if based on annual death toll of 10 million and per capita expenditure of RMB40,000.</li>
<li>Information asymmetry weakens the bargaining power of buyers. Administrative barriers raise the threshold of market access and weaken competition. So, related companies usually have high profitability and return on capital.</li>
<li>Changes in population structure would have a negative impact on most consumer goods, but demand of funeral industry would continue to rise. Investors would have both alpha and beta superposition.</li>
</ul>


China funeral industry has large growth potential.The total market scale would be about RMB400 billion if based on annual death toll of 10 million and per capita expenditure of RMB40,000.
Information asymmetry weakens the bargaining power of buyers. Administrative barriers raise the threshold of market access and weaken competition. So, related companies usually have high profitability and return on capital.
Changes in population structure would have a negative impact on most consumer goods, but demand of funeral industry would continue to rise. Investors would have both alpha and beta superposition.


China Funeral Industry - Investment Opportunity with Both Alpha and Beta Superposition

Thematic (Sector/Industry)

<ul>
<li>The 7th National VBP released results. 60 kinds of drugs won the bidding successfully, with price reduction of 48% on average. We analyzed its impact on companies. </li>
<li>The newly issued document about the payment management measures for new technology out of CHS-DRG payment scope is a solid encouragement to innovation and an important policy reform signal.</li>
<li>The national centralized procurement of orthopedic spine consumables has officially started, which is beneficial to those leading companies with complete product line.</li>
</ul>


The 7th National VBP released results. 60 kinds of drugs won the bidding successfully, with price reduction of 48% on average. We analyzed its impact on companies. 
The newly issued document about the payment management measures for new technology out of CHS-DRG payment scope is a solid encouragement to innovation and an important policy reform signal.
The national centralized procurement of orthopedic spine consumables has officially started, which is beneficial to those leading companies with complete product line.


China Healthcare Weekly (July.15)-7th VBP, Policy Correction Signs, Orthopedic Spine Consumables VBP

China

Jinxin Fertility Group Limited provides assisted reproductive services. The Company offers vitro fertilization services, embryo transfer services, management services, and other services. Jinxin Fertility Group also provides ancillary medical services.

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Jinxin Fertility Group (1951 HK)

Jinxin Fertility Group Placement - Weak Track Record And Recent Deals Have Performed Poorly

Jinxin Fertility Co Ltd (1951 HK) is looking to raise US$122m via a top-up placement. Proceeds from the offering will be used to repay its...

Ethan Aw

Jinxin Fertility Co Ltd (1951.HK) - Hard to Achieve Performance Reversal in 2023

The growth ceiling in China is obvious, which cannot support Jinxin’s valuation expansion.The breakthrough point is internationalization,...

Xinyao (Criss) Wang

2023 High Conviction: Jinxin Fertility

Jinxin Fertility is a leading IVF service provider in China. It has done a series of M&A in the past two years. We examine the thesis of the...

Ke Yan, CFA, FRM

China Funeral Industry - Investment Opportunity with Both Alpha and Beta Superposition

Death is inevitable, which provides continuous demand for China funeral industry. Related companies have high return on capital. investors will...

Xinyao (Criss) Wang

China Healthcare Weekly (July.15)-7th VBP, Policy Correction Signs, Orthopedic Spine Consumables VBP

The 7th National VBP released results. New technology payment management measures out of CHS-DRG scope is a policy correction signal.Orthopedic...

Xinyao (Criss) Wang

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