HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Shanghai Bio-Heart Biological Technology / Equity Capital Markets

<p>On Feb. 26, 2021, <a href="https://www.smartkarma.com/entities/shanghai-bio-heart-biological-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:32174:1" rel="noopener">Shanghai Bio-Heart Biological Technology (BHT HK)</a> applied to list on the main board of the Hong Kong Stock Exchange. In China, cardiovascular medical device market is a very promising market with large growth potential. Domestic leading companies include <a href="https://www.smartkarma.com/entities/lepu-medical-technology-a" target="_blank" data-smartkarma-citation="entities:16654:1" rel="noopener">Lepu Medical Technology A (300003 CH)</a> and <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK)</a>. Bio-heart’s business mainly focuses on bioresorbable scaffolds (BRS) and renal denervation (RDN). So how about Bio-heart compared with other strong players in the market? The following mainly analyzed both the strengths and the concerns of the Company.</p>

On Feb. 26, 2021, Shanghai Bio-Heart Biological Technology (BHT HK) applied to list on the main board of the Hong Kong Stock Exchange. In China, cardiovascular medical device market is a very promising market with large growth potential. Domestic leading companies include Lepu Medical Technology A (300003 CH) and Microport Scientific (853 HK). Bio-heart’s business mainly focuses on bioresorbable scaffolds (BRS) and renal denervation (RDN). So how about Bio-heart compared with other strong players in the market? The following mainly analyzed both the strengths and the concerns of the Company.

Pre-IPO Shanghai Bio-Heart Biological Technology - Here Are the Strength and Concerns

Thematic (Sector/Industry)

<p><strong>1. Industry viewpoints:</strong></p><ul>
<li>An important document supporting the development of the traditional Chinese medicine industry has been released recently.</li>
<li>The market size of cardiac pacemakers in China is expected to reach RMB28 billion in the future.</li>
<li>China's health care products market is expected to maintain rapid growth in the future. </li>
</ul><p><strong>2. Company news:</strong></p><p style="text-align: start;">News about the progress of new drugs and strategic collaboration from <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, <a href="https://www.smartkarma.com/entities/sihuan-pharmaceutical-hldgs" target="_blank" data-smartkarma-citation="entities:33:1" rel="noopener">Sihuan Pharmaceutical Hldgs (460 HK)</a> and <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH).</a></p><p><strong>3. Market review:</strong></p><p style="text-align: start;">Last week, stock price for healthcare sector in A share increased 6.31%, while CSI 300 increased 5.91% over the same period of time.</p><p><strong>4. Risk disclosure:</strong></p><p style="text-align: start;">Policy risk, R&amp;D risk, Company risk and COVID-19 risk.</p>

1. Industry viewpoints:
An important document supporting the development of the traditional Chinese medicine industry has been released recently.
The market size of cardiac pacemakers in China is expected to reach RMB28 billion in the future.
China's health care products market is expected to maintain rapid growth in the future. 
2. Company news:News about the progress of new drugs and strategic collaboration from Innovent Biologics Inc (1801 HK), Sihuan Pharmaceutical Hldgs (460 HK) and Jiangsu Hengrui Medicine (600276 CH).3. Market review:Last week, stock price for healthcare sector in A share increased 6.31%, while CSI 300 increased 5.91% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Chine Healthcare Weekly(Feb12)-TCM New Policy,Cardiac Pacemaker,Health Care Product,Innovent,Hengrui

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Microport Cardioflow Medtech / Equity Capital Markets

<p>We think that the proposed valuation for MicroPort CardioFlow's HKEX listing is pricey based on our DCF analysis, but the business has very good momentum resulting from a favorable product cycle and adoption of a new procedure. We would take the deal.</p>

We think that the proposed valuation for MicroPort CardioFlow's HKEX listing is pricey based on our DCF analysis, but the business has very good momentum resulting from a favorable product cycle and adoption of a new procedure. We would take the deal.

MicroPort CardioFlow: What You Have to Assume

<p><a href="https://www.smartkarma.com/entities/microport-cardioflow-medtech-corporation" target="_blank" data-smartkarma-citation="entities:31084:1" rel="noopener">MicroPort CardioFlow (1844972D HK)</a> has filed a PHIP in conjunction with its planned listing on the HKEX. This Insight discusses the incremental disclosures; developments in the TAVR market; and the nascent TMV opportunity. We tag this Insight as Bullish pending announcement of the offering's terms. </p>

MicroPort CardioFlow (1844972D HK) has filed a PHIP in conjunction with its planned listing on the HKEX. This Insight discusses the incremental disclosures; developments in the TAVR market; and the nascent TMV opportunity. We tag this Insight as Bullish pending announcement of the offering's terms. 

MicroPort CardioFlow: PHIP Updates and More on TMV

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.

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 (9997 HK)</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 will commence trading on Monday, 29 June. Kangji priced its IPO at HK$13.88, at the top-end of the indicative price range of HK$12.36-13.88 per share. Kangji raised net proceeds of HK$2,955.5 million ($381 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 has strong fundamentals and is a good IPO candidate, in our view. In light of Kangji's attractive fundamentals and the improving sentiment towards H-listed medtech peers (based on the multiple expansion), we think that the IPO price is attractive. </p></div></div></div>

Kangji Medical (9997 HK) 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 will commence trading on Monday, 29 June. Kangji priced its IPO at HK$13.88, at the top-end of the indicative price range of HK$12.36-13.88 per share. Kangji raised net proceeds of HK$2,955.5 million ($381 million).In our initiation note, we stated that Kangji has strong fundamentals and is a good IPO candidate, in our view. In light of Kangji's attractive fundamentals and the improving sentiment towards H-listed medtech peers (based on the multiple expansion), we think that the IPO price is attractive. 

China

Lifetech Scientific Corporation develops, manufactures and markets minimally invasive interventional medical devices for cardiovascular and peripheral vascular diseases and disorders.  The Company produces congenital heart defect occluders, vena cava filters, stent grafts, balloon catheters, and vascular plugs.

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Lifetech Scientific (1302 HK)

Pre-IPO Shanghai Bio-Heart Biological Technology - Here Are the Strength and Concerns

The article analyzed Shanghai Bio-Heart Biological in terms of strength (core product, market potential) and concerns (competition, intensive...

Xinyao (Criss) Wang

Chine Healthcare Weekly(Feb12)-TCM New Policy,Cardiac Pacemaker,Health Care Product,Innovent,Hengrui

This article analyzed industry viewpoints include new policy about traditional Chinese medicine, cardiac pacemakers market, health care products...

Xinyao (Criss) Wang

MicroPort CardioFlow: What You Have to Assume

We think that the proposed valuation for MicroPort CardioFlow's HKEX listing is pricey, but the business has very good momentum. We would take the...

Kemp Dolliver, CFA

MicroPort CardioFlow: PHIP Updates and More on TMV

MicroPort CardioFlow plans an HKEX listing. This Insight discusses updated disclosures in its PHIP filing; developments in the TAVR market; the...

Kemp Dolliver, CFA

Kangji Medical IPO: Trading Debut

Kangji Medical (9997 HK) is the largest domestic minimally invasive surgical instruments and accessories (MISIA) platform in China, with a 2.7%...

Arun George

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