Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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

EDDA Healthcare and Technology / Equity Capital Markets

EDDA Healthcare and Technology Holding Limited (EDDA), offers innovative intelligent solutions to enable precision surgery. It aims to raise up to US$300m in its Hong Kong IPO.EDDA provides a precision surgery solution portfolio, consisting of surgical robots series IQQA-Guide, and a portfolio of precision surgery planning software, including IQQA-3D. It has also established a 3D precision surgery digital solution cloud platform in China (IQQA Cloud Platform) which integrates functions of IQQA-3D and enables physicians to collaborate remotely in real time.Through IQQA-3D and IQQA Cloud Platform, it has assisted in over 70,000 precision surgeries in China across 60 of the top 100 hospitals. Its precision surgery planning software is also registered in the United states. It is the largest player in China’s precision surgical planning market for thoracic and abdominal applications, with over a one-third market share, in terms of surgical cases completed in 2020, according to Frost &amp; Sullivan.

EDDA Healthcare and Technology Holding Limited (EDDA), offers innovative intelligent solutions to enable precision surgery. It aims to raise up to US$300m in its Hong Kong IPO.EDDA provides a precision surgery solution portfolio, consisting of surgical robots series IQQA-Guide, and a portfolio of precision surgery planning software, including IQQA-3D. It has also established a 3D precision surgery digital solution cloud platform in China (IQQA Cloud Platform) which integrates functions of IQQA-3D and enables physicians to collaborate remotely in real time.Through IQQA-3D and IQQA Cloud Platform, it has assisted in over 70,000 precision surgeries in China across 60 of the top 100 hospitals. Its precision surgery planning software is also registered in the United states. It is the largest player in China’s precision surgical planning market for thoracic and abdominal applications, with over a one-third market share, in terms of surgical cases completed in 2020, according to Frost &amp; Sullivan.

EDDA Healthcare Pre-IPO - RoboDoc - Has Been Around for a While but Is Just Getting the Robo Going

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Lepu Scientech Medical Technology (Shanghai) / Equity Capital Markets

Lepu Scientech Medical Technology (Shanghai)

After <a href="https://www.smartkarma.com/entities/lepu-biopharma-co-ltd" target="_blank" data-smartkarma-citation="entities:33231:1" rel="noopener">Lepu Biopharma (LBP HK)</a> submitted its application for listing on HKEX, on June 25, 2021, <a href="https://www.smartkarma.com/entities/lepu-scientech-medical-technology-shanghai-co-ltd" target="_blank" data-smartkarma-citation="entities:33578:1" rel="noopener">Lepu Scientech Medical Technology (Shanghai) (LSM HK)</a> also submitted its prospectus to the HKEX and applied for listing on the main board. It is expected that the spin-off and listing plan of several companies in “Lepu factions” would continue. However, under the frequent capital operation, how is the prospects of Lepu Scientech? This article mainly analyzed the industry characteristics, the business and the outlook of the Company.

After Lepu Biopharma (LBP HK) submitted its application for listing on HKEX, on June 25, 2021, Lepu Scientech Medical Technology (Shanghai) (LSM HK) also submitted its prospectus to the HKEX and applied for listing on the main board. It is expected that the spin-off and listing plan of several companies in “Lepu factions” would continue. However, under the frequent capital operation, how is the prospects of Lepu Scientech? This article mainly analyzed the industry characteristics, the business and the outlook of the Company.

Pre-IPO Lepu Scientech Medical Technology - High Gross Margin Does Not Mean High Moat

Shanghai MicroPort MedBot Group / Equity Capital Markets

On June 10th, 2021, <a href="https://www.smartkarma.com/entities/shanghai-microport-medbot-group-co-ltd" target="_blank" data-smartkarma-citation="entities:33485:1" rel="noopener">Shanghai MicroPort MedBot Group (MMG HK)</a> filed a prospectus with the HKEX, which greatly excited the domestic surgical robot industry. MicroPort MedBot is not the earliest entrant in the surgical robot industry, but it is developing rapidly. In 2014, <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> started to develop the laparoscopic surgery robot and incubated it as an internal project. In 2015, MicroPort MedBot was registered and established in China. After just five year’s development, MicroPort MedBot has become a globally top-tiered surgical robot company, and also the important reason for the current high valuation of MicroPort. This article mainly analyzed the industry characteristics, the core products, the business models and the concerns of MicroPort MedBot.

On June 10th, 2021, Shanghai MicroPort MedBot Group (MMG HK) filed a prospectus with the HKEX, which greatly excited the domestic surgical robot industry. MicroPort MedBot is not the earliest entrant in the surgical robot industry, but it is developing rapidly. In 2014, Microport Scientific (853 HK) started to develop the laparoscopic surgery robot and incubated it as an internal project. In 2015, MicroPort MedBot was registered and established in China. After just five year’s development, MicroPort MedBot has become a globally top-tiered surgical robot company, and also the important reason for the current high valuation of MicroPort. This article mainly analyzed the industry characteristics, the core products, the business models and the concerns of MicroPort MedBot.

Pre-IPO MicroPort MedBot - The Core Products, the Business Model and the Concerns

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Shanghai Bio-Heart Biological Technology / Equity Capital Markets

Shanghai Bio-heart Biological Technology is a China-based leading interventional cardiovascular device provider. It has two near commercial stage products and is looking to raise up to USD 200m via a Hong Kong listing.In our previous note, we looked at the company's two core products Bioheart and Iberis 2nd. Bioheart is a second generation bioresorbable DES that can be used in the PCI procedure. We think the DES segment is facing very intense competition from the early generation of DES that is non-bioresorbable as well as bioresorbable DES. As the price gap is huge, we are of the view that the product ramp-up will be slow and the patients will be sensitive to the pricing. Another near commercial stage product, Iberis 2nd, is used to treat uncontrollable hypertension. For this, there has been no commercialized product in the market as of now. The  technology aspect that it can help to reduce the blood pressure by ablating the nerve in the kidney artery is interesting but we are skeptical of the market potential given that this is unlikely to be included in the reimbursement list and the patient group has already been non-compliant to the medication. The company's management were mainly ex-employee from Microport Scientific, a leading international medical device player in China. It has a decent investor backing but we think it is short of blockbuster products.In this note, we provide our thoughts on the company's valuation.

Shanghai Bio-heart Biological Technology is a China-based leading interventional cardiovascular device provider. It has two near commercial stage products and is looking to raise up to USD 200m via a Hong Kong listing.In our previous note, we looked at the company's two core products Bioheart and Iberis 2nd. Bioheart is a second generation bioresorbable DES that can be used in the PCI procedure. We think the DES segment is facing very intense competition from the early generation of DES that is non-bioresorbable as well as bioresorbable DES. As the price gap is huge, we are of the view that the product ramp-up will be slow and the patients will be sensitive to the pricing. Another near commercial stage product, Iberis 2nd, is used to treat uncontrollable hypertension. For this, there has been no commercialized product in the market as of now. The  technology aspect that it can help to reduce the blood pressure by ablating the nerve in the kidney artery is interesting but we are skeptical of the market potential given that this is unlikely to be included in the reimbursement list and the patient group has already been non-compliant to the medication. The company's management were mainly ex-employee from Microport Scientific, a leading international medical device player in China. It has a decent investor backing but we think it is short of blockbuster products.In this note, we provide our thoughts on the company's valuation.

Shanghai Bio-Heart (上海百心安) Pre-IPO: Thoughts on Valuation

Quantitative Analysis

Hong Kong SFC reported aggregate short position as of Jun 04. The aggregate short value for equities decreased by $-1,244m (-1.7%) WoW but increased by $2,019m (+2.9%) over the preceding four weeks.Most shorted stocks by aggregate short value of positions are Ping An Insurance (Group) Company Of China, Ltd./2318 HK($5,659m, -9.6% WoW), Tencent Holdings Limited/700 HK($1,974m, -6.9% WoW), Zhongsheng Group Holdings Limited/881 HK($1,814m, +6.7% WoW), Meituan/3690 HK($1,788m, +38.6% WoW), China Merchants Bank Co., Ltd./3968 HK($1,784m, -5.0% WoW).<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/212/781/original/Hong_Kong_Market_Short_Position_Value_%28line%29_and_1W_Changes_%28bar%29_%28%24m%292021-06-13+11_15_47.png?1623560538" class="editor-image img-responsive" data-smartkarma-image-id="212781"></figure></section>

Hong Kong SFC reported aggregate short position as of Jun 04. The aggregate short value for equities decreased by $-1,244m (-1.7%) WoW but increased by $2,019m (+2.9%) over the preceding four weeks.Most shorted stocks by aggregate short value of positions are Ping An Insurance (Group) Company Of China, Ltd./2318 HK($5,659m, -9.6% WoW), Tencent Holdings Limited/700 HK($1,974m, -6.9% WoW), Zhongsheng Group Holdings Limited/881 HK($1,814m, +6.7% WoW), Meituan/3690 HK($1,788m, +38.6% WoW), China Merchants Bank Co., Ltd./3968 HK($1,784m, -5.0% WoW).

HK Short Interest: Short Spiked for Smoore, Microport

China

Microport Scientific Corp. manufactures interventional and minimally invasive devices for keyhole surgery. The Company's products are used to treat vascular diseases and is developing devices to treat diabetes and orthopedic diseases.

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Microport Scientific (853 HK)

EDDA Healthcare Pre-IPO - RoboDoc - Has Been Around for a While but Is Just Getting the Robo Going

EDDA Healthcare and Technology Holding Limited (EDDA), offers innovative intelligent solutions to enable precision surgery. It aims to raise up to...

Sumeet Singh

Pre-IPO Lepu Scientech Medical Technology - High Gross Margin Does Not Mean High Moat

This article mainly analyzed Lepu Scientech in terms of industry characteristics, related policies, the business, competition pattern, financial...

Xinyao (Criss) Wang

Pre-IPO MicroPort MedBot - The Core Products, the Business Model and the Concerns

This article analyzed MicroPort MedBot in terms of the industry characteristics, the core products, the business models (compared with Intuitive...

Xinyao (Criss) Wang

Shanghai Bio-Heart (上海百心安) Pre-IPO: Thoughts on Valuation

We provide a pre-money based valuation for Shanghai Bio-heart listing. We forecast the sales for its BRS and RDN respectively. We would re-iterate...

Ke Yan, CFA, FRM

HK Short Interest: Short Spiked for Smoore, Microport

We highlight WoW short spikes in Microport Scientific (853 HK) and Smoore International (6969 HK) in the latest Hong Kong SFC short interest...

Ke Yan, CFA, FRM

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