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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/virtus-health-ltd" target="_blank" data-smartkarma-citation="entities:14776:1" rel="noopener">Virtus Health (VRT AU)</a> announced an offer from CapVest comprising of A$7.60 per share via a scheme (a 7.0% premium to BGH’s A$7.10 offer) or A$7.50 via an off-market takeover. </li>
<li>CapVest’s offer is contingent on exclusivity and cost recovery protections. The Board will recommend a binding offer of at least A$7.60 via a scheme or A$7.50 via an off-market takeover.</li>
<li>Due to the healthy premium to historical multiples and share prices implied by the CapVest offer, it is likely that BGH will be hesitant to start a bidding war.    </li>
</ul>



Virtus Health (VRT AU) announced an offer from CapVest comprising of A$7.60 per share via a scheme (a 7.0% premium to BGH’s A$7.10 offer) or A$7.50 via an off-market takeover. 
CapVest’s offer is contingent on exclusivity and cost recovery protections. The Board will recommend a binding offer of at least A$7.60 via a scheme or A$7.50 via an off-market takeover.
Due to the healthy premium to historical multiples and share prices implied by the CapVest offer, it is likely that BGH will be hesitant to start a bidding war.    


Virtus Receives a Competing Offer from CapVest

<ul>
<li>BGH Capital has lobbed a non-binding A$7.10 cash per share offer. The offer price represents a 36.3% premium to the unaffected price of A$5.21 (13 December).</li>
<li>On 13 December, BGH Capital acquired a 9.99% stake at A$7.10 per share and has entered into a swap deal for another 10.00% stake. </li>
<li>We think that the offer is reasonable in the context of historical share prices and multiples. At the last close price of A$6.70, the gross spread is 6.0%.</li>
</ul>


BGH Capital has lobbed a non-binding A$7.10 cash per share offer. The offer price represents a 36.3% premium to the unaffected price of A$5.21 (13 December).
On 13 December, BGH Capital acquired a 9.99% stake at A$7.10 per share and has entered into a swap deal for another 10.00% stake. 
We think that the offer is reasonable in the context of historical share prices and multiples. At the last close price of A$6.70, the gross spread is 6.0%.


Virtus Receives a A$7.10 Per Share Offer from BGH Capital

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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 Bottom-Up

Jinxin Fertility Group  / Equity Bottom-Up

<ul>
<li>Jinxin Fertility is a leading IVF player with strong foothold in Southwest China, Greater Bay Area in China and the Westcoast of the US.</li>
<li>The company's growth will come from both organic and inorganic expansion, with recovery of international business as its long term catalyst.</li>
<li>The company's valuation is appealing with potential of more than 100% upside. </li>
</ul>


Jinxin Fertility is a leading IVF player with strong foothold in Southwest China, Greater Bay Area in China and the Westcoast of the US.
The company's growth will come from both organic and inorganic expansion, with recovery of international business as its long term catalyst.
The company's valuation is appealing with potential of more than 100% upside. 


2022 High Conviction: Tail Winds for Jinxin Fertility

<p>Jinxin Fertility announced that it is acquiring the Jinxin Woman and Children Hospital from its main shareholder with a mix of cash and convertible bond. We attended the call which provided more details of the transaction and the rationale behind. While the transaction is EPS accretive to the listed company and the explanation makes sense as to capture more value over the O&amp;B value chain, we do think the acquisition could be viewed as controversial. Though we continue to like the company, we think there could be de-rating of the PER multiple due to increasing contribution from traditional O&amp;B business.  </p>

Jinxin Fertility announced that it is acquiring the Jinxin Woman and Children Hospital from its main shareholder with a mix of cash and convertible bond. We attended the call which provided more details of the transaction and the rationale behind. While the transaction is EPS accretive to the listed company and the explanation makes sense as to capture more value over the O&amp;B value chain, we do think the acquisition could be viewed as controversial. Though we continue to like the company, we think there could be de-rating of the PER multiple due to increasing contribution from traditional O&amp;B business.  

Jinxin Fertility: Accretive but Slightly Controversial Acquisition of Jinxin WCH

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Hygeia Healthcare Group / Equity Bottom-Up

<p>Recently, <a href="https://www.smartkarma.com/entities/hygeia-healthcare-group" target="_blank" data-smartkarma-citation="entities:28875:1" rel="noopener">Hygeia Healthcare Group (6078 HK)</a> released its 2021/1H financial report. The revenue increased by 47.4% to RMB931.7 million, and the net profit increased by 8,450.0% to RMB205.2 million. The non-IFRS adjusted net profit increased by 53.1% to RMB205.2 million. It can be seen that, as the number of patient visits and the average spending per outpatient and inpatient visit continued to increase, Hygeia maintained its strong growth momentum. This insight mainly analyzed the business, doctor resources and outlook of the Company.</p>

Recently, Hygeia Healthcare Group (6078 HK) released its 2021/1H financial report. The revenue increased by 47.4% to RMB931.7 million, and the net profit increased by 8,450.0% to RMB205.2 million. The non-IFRS adjusted net profit increased by 53.1% to RMB205.2 million. It can be seen that, as the number of patient visits and the average spending per outpatient and inpatient visit continued to increase, Hygeia maintained its strong growth momentum. This insight mainly analyzed the business, doctor resources and outlook of the Company.

Hygeia Healthcare (6078.HK) 2021H1 - Efficient Expansion and Management Support the Positive Outlook

China

Shenzhen Neptunus Bioengineering Co., Ltd. develops, manufactures, and markets biochemical pharmaceuticals, biological products, traditional Chinese medicines, and healthcare products.  Through its subsidiaries, the Company also manufactures food.

Searainbow Holding Corp., produces chemical fibers and other textile products. The company, through its subsidiaries, also provides medical e-commerce and on-line games.

Nanjing Pharmaceutical Co. Ltd. distributes a broad range of drugs. The Company also manufactures medicines,medical apparatus, chemical reagents, and glassware.

Guangxi Liuzhou Pharmaceutical Co. Ltd. manufactures pharmaceuticals. The Company researches, develops, produces, processes, and distributes capsules, granules, tablets, pills, plasters, and raw material medicines.

Zhejiang Dian Diagnostics Co., Ltd. provides medical diagnostic solutions, as an outsourcer, to various general hospitals, specialized hospitals, community health service centers (stations), township (county) hospitals, medical centers,  disease prevention and control centers.

China Resources Medical Holdings Company Limited operates hospitals and clinics. The Company offers clinical treatment, healthcare management, public sanitary, and other medical health services. China Resources Medical Holdings also operates supply chain management, financing, real estate development, consumption, and other businesses.

Cachet Pharmaceutical Co., Ltd manages pharmaceutical services, wholesale and retail businesses.  The Company also operates the logistics services related to pharmacy.

Zhejiang Zhenyuan Co., Ltd. wholesales and retails traditional Chinese medicines, Chinese medicine materials, chemical preparations, and healthcare products.  Through its subsidiaries, the Company also manufactures pharmaceuticals.

Shandong Realcan Pharmaceutical Company Limited is a pharmaceutical direct seller. The Company's main business is distributing drugs to high-end medical market, basic health care market and commercial distribution.

Shandong Realcan Pharmaceutical (002589 CH)

China Pioneer Pharma Holdings Ltd is a marketing, promotion and channel management service provider dedicated to imported pharmaceutical products and medical devices in China.

Regis Healthcare Limited is a treatment program that offers Family Therapy, Clinical Psychology, Education and Occupational Therapy.

Chularat Hospital PCL owns medical centers and hospitals. The Company operates a variety of centers specializing in treatments such as hand surgery, open heart surgery, and strokes as well as providing emergency services and patient care. Chularat Hospital serves the medial industry throughout Thailand.

BML, INC. operates medical laboratories and develops software for clinical testing.  The Company conducts clinical testing in a variety of fields, including endocrine, blood and blood plasma, protein, biochemical, virus, immune systems, and bacteria.  BML conducts testing primarily  for hospitals and medical institutions.

Vibhavadi Medical Center Public Company Limited owns and operates the Vibhavadi Hospital. Located in Bangkok, the Hospital provides full range of medical services.

H.U. Group Holdings Inc. provides health care testing services. The Company provides contract clinical testing and clinical laboratory drug services for cancer, malignant tumor, hypothyroidism, diabetes, and infectious diseases. H.U. Group Holdings also conducts sterilization related business.

Rhoen-Klinikum AG operates general, rehabilitation, and emergency health care facilities which offer inpatient and outpatient medical care to various communities in Germany.  These clinics and hospitals offer cardiological, surgical, psychiatric, neurological and neurosurgical, orthopedic, addiction treatment, and physical therapy services.

CVS Group PLC provides animal veterinary and related services. The Company sells animal medicines and a range of pet products directly to consumers. CVS Group operates throughout the United Kingdom.

Netcare Limited is a South African hospital promotion and management company that owns and operates a number of private hospitals and clinics.

Life Healthcare Group Holdings Ltd operates healthcare facilities in South Africa.  The Company operates acute care hospitals, long-term care facilities, physical and cognitive rehabilitation services for disabling injuries, and on-site occupational and primary healthcare services.

Selcuk Ecza Deposu Ticaret ve Sanayi A.S. distributes pharmaceutical products.

Selcuk Ecza Deposu Ticaret ve Sanayi A.S. (SELEC TI)

Selcuk Ecza Deposu Ticaret ve Sanayi A.S.

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)

Virtus Receives a Competing Offer from CapVest

CapVest's offer comprises A$7.60 via a scheme (7.0% premium to BGH’s A$7.10 offer) or A$7.50 via an off-market takeover. Due to the healthy...

Arun George

2022 High Conviction: Tail Winds for Jinxin Fertility

We like Jinxin Fertility as a leading IVF player with strong foothold in Southwest China, Greater Bay Area in China and the Westcoast of the US. It...

Ke Yan, CFA, FRM

Jinxin Fertility: Accretive but Slightly Controversial Acquisition of Jinxin WCH

We attended management call to understand its acquisition of Jinxin Woman and Children Hospital. Though the deal dilutes the core IVF business it...

Ke Yan, CFA, FRM

Hygeia Healthcare (6078.HK) 2021H1 - Efficient Expansion and Management Support the Positive Outlook

This article analyzed Hygeia in terms of its 2021/1H financial result, the management mode, talent cultivation, new policy on professional title...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Virtus Receives a Competing Offer from CapVest

CapVest's offer comprises A$7.60 via a scheme (7.0% premium to BGH’s A$7.10 offer) or A$7.50 via an off-market takeover. Due to the healthy...

Arun George

Virtus Receives a A$7.10 Per Share Offer from BGH Capital

BGH Capital has lobbed a non-binding A$7.10 cash per share offer, a 36.3% premium to the unaffected price. The offer is reasonable in the context...

Arun George

2022 High Conviction: Tail Winds for Jinxin Fertility

We like Jinxin Fertility as a leading IVF player with strong foothold in Southwest China, Greater Bay Area in China and the Westcoast of the US. It...

Ke Yan, CFA, FRM

Jinxin Fertility: Accretive but Slightly Controversial Acquisition of Jinxin WCH

We attended management call to understand its acquisition of Jinxin Woman and Children Hospital. Though the deal dilutes the core IVF business it...

Ke Yan, CFA, FRM

Hygeia Healthcare (6078.HK) 2021H1 - Efficient Expansion and Management Support the Positive Outlook

This article analyzed Hygeia in terms of its 2021/1H financial result, the management mode, talent cultivation, new policy on professional title...

Xinyao (Criss) Wang