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 Capital Markets

Hangzhou Kangji Medical Instrument Co., Ltd. / Equity Capital Markets

Hangzhou Kangji Medical Instrument Co., Ltd.

Kangji Medical is a domestic leader in minimally invasive surgery devices. It has three main product types, trocars, polymer ligation clips, and forceps.In our previous note, we discussed that the company experienced strong growth in the past six years during which the company's revenue tripled. We believe that its future growth will be driven by the growing minimally invasive surgery market (20-30% p.a.) and the replacement of international products by their domestic peers. The key risk is the central procurement that targets high-margin medical devices which will force companies to cut product prices in order to join the reimbursement scheme. Unlike other medical devices listings in Hong Kong, the company's management team does not have impressive working experience prior to founding the company. We also note that the company has a strong cash flow plus a flexible setting for production capacities. Thus, it does not really have a strong need for capital raising to fund expansion. In this note, we compare Kangji Medical to medical device peers listed in Hong Kong and China  A-share market. We note that Kangji Medical is a cash cow with financial metrics exceeding its peers by big margins. The only downside we find in our comparison is that it is underspending on the R&amp;D front. We have a preliminary valuation for Kangji at USD 2.6 bn.<h2>Our previous coverage on Kangji Medical</h2><a href="https://www.smartkarma.com/insights/kangji-medical-pre-ipo-track-record-of-growth-but-products-too-concentrated" target="_blank" rel="noopener">Kangji Medical (康基医疗) Pre-IPO: Track Record of Growth but Products Too Concentrated</a>

Kangji Medical is a domestic leader in minimally invasive surgery devices. It has three main product types, trocars, polymer ligation clips, and forceps.In our previous note, we discussed that the company experienced strong growth in the past six years during which the company's revenue tripled. We believe that its future growth will be driven by the growing minimally invasive surgery market (20-30% p.a.) and the replacement of international products by their domestic peers. The key risk is the central procurement that targets high-margin medical devices which will force companies to cut product prices in order to join the reimbursement scheme. Unlike other medical devices listings in Hong Kong, the company's management team does not have impressive working experience prior to founding the company. We also note that the company has a strong cash flow plus a flexible setting for production capacities. Thus, it does not really have a strong need for capital raising to fund expansion. In this note, we compare Kangji Medical to medical device peers listed in Hong Kong and China  A-share market. We note that Kangji Medical is a cash cow with financial metrics exceeding its peers by big margins. The only downside we find in our comparison is that it is underspending on the R&amp;D front. We have a preliminary valuation for Kangji at USD 2.6 bn.Our previous coverage on Kangji MedicalKangji Medical (康基医疗) Pre-IPO: Track Record of Growth but Products Too Concentrated

Kangji Medical (康基医疗) Pre-IPO: Superior Financial Metrics, Warrants a Premium

Venus Medtech, a China Hangzhou-based transcatheter heart valve medical device player, is looking to raise up to USD 300 million via a listing in Hong Kong. In this insight, we will look at the company's commercial product, VenusA-Valve, and the pipeline products, VenusA-Plus and VenusP-Valve.
We like the company's strong leadership in the market, its experienced management team and a strong line-up of pre-IPO investors.

Venus Medtech, a China Hangzhou-based transcatheter heart valve medical device player, is looking to raise up to USD 300 million via a listing in Hong Kong. In this insight, we will look at the company's commercial product, VenusA-Valve, and the pipeline products, VenusA-Plus and VenusP-Valve.
We like the company's strong leadership in the market, its experienced management team and a strong line-up of pre-IPO investors. 

Venus Medtech (启明医疗) IPO: Has the Elements for a Hot Healthcare Deal

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)

Kangji Medical (康基医疗) Pre-IPO: Superior Financial Metrics, Warrants a Premium

Kangji Medical is a domestic leader in minimally invasive surgery devices. It has three main product types, trocars, polymer ligation clips, and...

Ke Yan, CFA, FRM

Venus Medtech (启明医疗) IPO: Has the Elements for a Hot Healthcare Deal

Venus Medtech, a China Hangzhou-based transcatheter heart valve medical device player, is looking to raise up to USD 300 million via a listing in...

Ke Yan, CFA, FRM

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