HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Microport Cardioflow Medtech / Equity Bottom-Up

<ul>
<li>TAVR was once envisioned with infinite optimism as a "hundred billion yuan market", attracting massive amounts of capital/companies to enter. However, the commercialization status of TAVR companies is much bleak.</li>
<li>High cost of TAVR surgery without medical insurance reimbursement and limited number of qualified hospitals to carry out such complicated surgery are the major reasons for the unsatisfactory sales growth. </li>
<li>Venus Medtech's market share would continue to be challenged. MicroPort CardioFlow's low gross margin and slow product iteration are the problems. Peijia could be “dark horse” if positive momentum continues. </li>
</ul>


TAVR was once envisioned with infinite optimism as a "hundred billion yuan market", attracting massive amounts of capital/companies to enter. However, the commercialization status of TAVR companies is much bleak.
High cost of TAVR surgery without medical insurance reimbursement and limited number of qualified hospitals to carry out such complicated surgery are the major reasons for the unsatisfactory sales growth. 
Venus Medtech's market share would continue to be challenged. MicroPort CardioFlow's low gross margin and slow product iteration are the problems. Peijia could be “dark horse” if positive momentum continues. 


CardioFlow (2160.HK) Vs Venus MedTech (2500.HK) Vs Peijia Medical (9996.HK) - Dark Horse Is Emerging

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

Acotec Scientific Holdings / Event-Driven

<ul>
<li>As expected, <a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a>’s partial offer from <a href="https://www.smartkarma.com/entities/boston-scientific-corp" target="_blank" data-smartkarma-citation="entities:11115:1" rel="noopener">Boston Scientific (BSX US)</a> at HK$20 per share is now unconditional. The final closing date is 9 February.</li>
<li>The current acceptances representing 78.59% of outstanding shares imply current proration is 82.71%. Current pro-ration suggests CA Medtech post-offer shares will be counted towards the public float.</li>
<li>Based on the current proration of 82.71% and at the last close price of HK$19.78 per share, the breakeven price is HK$19.00 per share. </li>
</ul>


As expected, Acotec Scientific Holdings (6669 HK)’s partial offer from Boston Scientific (BSX US) at HK$20 per share is now unconditional. The final closing date is 9 February.
The current acceptances representing 78.59% of outstanding shares imply current proration is 82.71%. Current pro-ration suggests CA Medtech post-offer shares will be counted towards the public float.
Based on the current proration of 82.71% and at the last close price of HK$19.78 per share, the breakeven price is HK$19.00 per share. 


Acotec (6669 HK): Boston Scientific’s HK$20 Partial Offer Unconditional

<ul>
<li>
<a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a>’s partial offer from <a href="https://www.smartkarma.com/entities/boston-scientific-corp" target="_blank" data-smartkarma-citation="entities:11115:1" rel="noopener">Boston Scientific (BSX US)</a> at HK$20 per share is now open. The IFA opines it to be fair and reasonable.</li>
<li>The partial offer is conditional on the offeror hitting 50.01% voting rights. Irrevocables ensure that it will be declared unconditional on or before the first closing date (26 January).</li>
<li>Based on a minimum proration of 71.31% and at the current share price of HK$17.20 per share, the estimated breakeven price is HK$10.38 per share.</li>
</ul>



Acotec Scientific Holdings (6669 HK)’s partial offer from Boston Scientific (BSX US) at HK$20 per share is now open. The IFA opines it to be fair and reasonable.
The partial offer is conditional on the offeror hitting 50.01% voting rights. Irrevocables ensure that it will be declared unconditional on or before the first closing date (26 January).
Based on a minimum proration of 71.31% and at the current share price of HK$17.20 per share, the estimated breakeven price is HK$10.38 per share.


Acotec (6669 HK): Boston Scientific’s HK$20 Partial Offer Now Open

<ul>
<li>Among domestic enterprises, <a href="https://www.smartkarma.com/entities/microport-neurotech-limited" target="_blank" data-smartkarma-citation="entities:35379:1" rel="noopener">MicroPort NeuroTech (2172 HK)</a>’s product richness takes the lead. With the support of <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>, the production quality system and capacity are relatively more guaranteed. </li>
<li>Fierce competition and centralized procurement are the major challenges, but the rich domestic distribution network and promising internationalization prospects would help NeuroTech find way out.</li>
<li>By reducing the size of the IPO to maintain a good share price, at the expense of stock liquidity, it doesn’t really solve the problem.There’s risk of overvaluation for NeuroTech.</li>
</ul>


Among domestic enterprises, MicroPort NeuroTech (2172 HK)’s product richness takes the lead. With the support of Microport Scientific (853 HK), the production quality system and capacity are relatively more guaranteed. 
Fierce competition and centralized procurement are the major challenges, but the rich domestic distribution network and promising internationalization prospects would help NeuroTech find way out.
By reducing the size of the IPO to maintain a good share price, at the expense of stock liquidity, it doesn’t really solve the problem.There’s risk of overvaluation for NeuroTech.


MicroPort NeuroTech (2172.HK) 22H1 - Advantages Deserve Recognition, but with Overvaluation Risk

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

Jenscare Scientific / Equity Capital Markets

<ul>
<li>Jenscare, a China based structural heart disease focused medical device company, plans to raise up to USD 30m via a Hong Kong listing.</li>
<li>In our previous insight, we discussed that there have been many TAVR companies listed in Hong Kong but we think Jenscare has a differentiated portfolio.</li>
<li>In this note, we will look at updates in its latest filing and highlight massive delays in its product candidates. We also provide a quick thought on its valuation.</li>
</ul>


Jenscare, a China based structural heart disease focused medical device company, plans to raise up to USD 30m via a Hong Kong listing.
In our previous insight, we discussed that there have been many TAVR companies listed in Hong Kong but we think Jenscare has a differentiated portfolio.
In this note, we will look at updates in its latest filing and highlight massive delays in its product candidates. We also provide a quick thought on its valuation.


Jenscare (宁波健世科技) Pre-IPO:  Massive Delays After Missing the Boat

China

Peijia Medical Ltd. produces and sells medical devices. The Company develops and sells heart valve disease treatment medical devices and other products. Peijia Medical Technology markets its products throughout China. 

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Peijia Medical (9996 HK)

CardioFlow (2160.HK) Vs Venus MedTech (2500.HK) Vs Peijia Medical (9996.HK) - Dark Horse Is Emerging

After four years of anticipation, the golden age of TAVR still has not arrived. Although there are common industry pain points, CardioFlow/Venus...

Xinyao (Criss) Wang

Acotec (6669 HK): Boston Scientific’s HK$20 Partial Offer Unconditional

Based on the current proration of 82.71% and at the last close price of HK$19.78 per share, the breakeven price is HK$19.00 per share.

Arun George

Acotec (6669 HK): Boston Scientific’s HK$20 Partial Offer Now Open

Irrevocables ensure that it will be declared unconditional on or before the first closing date. Based on a minimum proration of 71.31% and at the...

Arun George

MicroPort NeuroTech (2172.HK) 22H1 - Advantages Deserve Recognition, but with Overvaluation Risk

NeuroTech has advantages in product richness/quality system, but fierce competition/product homogenization, centralized procurement are major...

Xinyao (Criss) Wang

Jenscare (宁波健世科技) Pre-IPO: Massive Delays After Missing the Boat

We look at updates in Jenscare's latest filing and highlight massive delays in its product candidates as it is pre-marketing the listing. We also...

Ke Yan, CFA, FRM

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