HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Lepu Medical Technology A / Equity Capital Markets

<ul>
<li>Lepu suffered from the negative impact of VBP on drug/medical consumables, and its share price has yet to recover. We are not optimistic about the outlook of the traditional businesses.</li>
<li>Lepu’s expansion mainly relies on continuous M&amp;A. Whether these diversified businesses will produce synergies and how much performance they will contribute need to be tested by time and the market.</li>
<li>Excessive epitaxial expansion may not be a long-term solution. Lepu needs to focus more on endogenous growth and R&amp;D,which is good for sustainable long-term growth. Such business transformation takes time.</li>
</ul>


Lepu suffered from the negative impact of VBP on drug/medical consumables, and its share price has yet to recover. We are not optimistic about the outlook of the traditional businesses.
Lepu’s expansion mainly relies on continuous M&amp;A. Whether these diversified businesses will produce synergies and how much performance they will contribute need to be tested by time and the market.
Excessive epitaxial expansion may not be a long-term solution. Lepu needs to focus more on endogenous growth and R&amp;D,which is good for sustainable long-term growth. Such business transformation takes time.


Pre-IPO Lepu Medical Technology - Lepu Is in a Difficult Position and Turning It Around Takes Time

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>China started mulling an expansion of its Stock Connect relationships in late 2021 with plans to allow GDR issuance in Switzerland and eventually Germany.</li>
<li>New GDR issuance rules came into effect in February and companies started planning to issue GDRs in Switzerland in March.</li>
<li>The new SIX Listing Rules went into effect 25 July. Two companies priced GDRs on 22 July and two more yesterday. US$1.5bn so far. There are 6 more near-term.</li>
</ul>


China started mulling an expansion of its Stock Connect relationships in late 2021 with plans to allow GDR issuance in Switzerland and eventually Germany.
New GDR issuance rules came into effect in February and companies started planning to issue GDRs in Switzerland in March.
The new SIX Listing Rules went into effect 25 July. Two companies priced GDRs on 22 July and two more yesterday. US$1.5bn so far. There are 6 more near-term.


Chinese GDRs on the SIX Exchange - More Names, Smaller Discounts, Smaller Size, Less Liquidity

OrbusNeich Medical Group Holdings / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/orbusneich-medical-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:34918:1" rel="noopener">OrbusNeich Medical Group (NEICHZ HK)</a> has a rich pipeline with a leadership position in the PCI balloon markets.</li>
<li>Its global business layout would also help the Company “hedge” the negative domestic policy impact or regulation changes.</li>
<li>However, the fierce competition, market pattern, industry characteristics, centralized procurement and other concerns should not be neglected.</li>
</ul>



OrbusNeich Medical Group (NEICHZ HK) has a rich pipeline with a leadership position in the PCI balloon markets.
Its global business layout would also help the Company “hedge” the negative domestic policy impact or regulation changes.
However, the fierce competition, market pattern, industry characteristics, centralized procurement and other concerns should not be neglected.


Pre-IPO OrbusNeich Medical Group - The Industry, the Business and the Concerns

Thematic (Sector/Industry)

<ul>
<li>The Beijing municipality has added fertility treatment in its medical insurance program. We analyzed related impact.</li>
<li>If we hope to have more companies entering global TOP50 during “14th Five-Year Plan” period, domestic medical device companies need at least 25% annualized revenue growth to make it happen.</li>
<li>Actually, the national medical insurance doesn't determine market size directly but adjust the “distribution”. There's no need to focus solely on anti-tumor field, but rare diseases and central nervous system diseases.</li>
</ul>


The Beijing municipality has added fertility treatment in its medical insurance program. We analyzed related impact.
If we hope to have more companies entering global TOP50 during “14th Five-Year Plan” period, domestic medical device companies need at least 25% annualized revenue growth to make it happen.
Actually, the national medical insurance doesn't determine market size directly but adjust the “distribution”. There's no need to focus solely on anti-tumor field, but rare diseases and central nervous system diseases.


China Healthcare Weekly (Feb.25)-Assisted Reproduction, Medical Device Co. Globalization, New Growth

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Shanghai HeartCare Medical Technology / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-heartcare-medical-technology" target="_blank" data-smartkarma-citation="entities:32192:1" rel="noopener">Shanghai HeartCare Medical Technology (6609 HK)</a> has leadership positioning in China’s neuro-intervention medical device market. The company has an attractive product portfolio with large addressable market.</li>
<li>Core product, Captor is expected to earn revenue of RMB656 million in 2030. Patent infringement lawsuit against Medtronic regarding Heartcare’s core product Captor remains a major overhang on the stock.</li>
<li>Heartcare shares plunged 24% since its listing in August. The company aims to commercialize 10 products between 2022 and 2025. Investors with high-risk appetite can take position.</li>
</ul>



Shanghai HeartCare Medical Technology (6609 HK) has leadership positioning in China’s neuro-intervention medical device market. The company has an attractive product portfolio with large addressable market.
Core product, Captor is expected to earn revenue of RMB656 million in 2030. Patent infringement lawsuit against Medtronic regarding Heartcare’s core product Captor remains a major overhang on the stock.
Heartcare shares plunged 24% since its listing in August. The company aims to commercialize 10 products between 2022 and 2025. Investors with high-risk appetite can take position.


Shanghai HeartCare Medcl(6609 HK): Comprehensive Stroke Produce Portfolio Comes with a Pinch of Salt

China

Lepu Medical Technology (Beijing) Co., Ltd. develops, produces and sells medical devices and parts.  The Company also offers medical devices consulting services.  The company's products include stent system and blockage system.

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Lepu Medical Technology A (300003 CH)

Pre-IPO Lepu Medical Technology - Lepu Is in a Difficult Position and Turning It Around Takes Time

Lepu will be listed in Swiss, but it still suffers from declining performance due to VBP. Its R&D is weak and aggressive M&A carries more risks...

Xinyao (Criss) Wang

Chinese GDRs on the SIX Exchange - More Names, Smaller Discounts, Smaller Size, Less Liquidity

China amended its rules for GDR issuance in February 2022 and planned issuance in Switzerland to start this summer. Official issuance was permitted...

Travis Lundy

Pre-IPO OrbusNeich Medical Group - The Industry, the Business and the Concerns

The rich pipeline and large global business will help OrbusNeich “hedge” negative domestic policy impact. But fierce competition, slow progress in...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.25)-Assisted Reproduction, Medical Device Co. Globalization, New Growth

Assisted reproduction is covered by medical insurance; We analyzed the benchmark of medical device companies' globalization, clarify the...

Xinyao (Criss) Wang

Shanghai HeartCare Medcl(6609 HK): Comprehensive Stroke Produce Portfolio Comes with a Pinch of Salt

Comprehensive and innovative product portfolio addressing large patient pool is the key positive for the company. However, ongoing patent...

Tina Banerjee

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