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

Shanghai NewMed Medical / Equity Capital Markets

<p>Shanghai NewMed, a China-based heart valve medical device company, plans to raise up to USD 200m via a Hong Kong listing.</p><p>The company's core TAVR (transcatheter aortic valve replacement) product Prizvalve is a few years behind its competitors, despite its unique balloon expandable design. The selling point for the company is that in the international market such design is better than the self-expandable design which is mainstream in China. On the other hand, the company is leading the TMVR (transcatheter mitral valve replacement) development which is potentially a bigger market than the TAVR. </p><p>The company has quality institutional investors alongside individual investors, as well as an experienced management team. We think investors should follow the IPO.</p>

Shanghai NewMed, a China-based heart valve medical device company, plans to raise up to USD 200m via a Hong Kong listing.The company's core TAVR (transcatheter aortic valve replacement) product Prizvalve is a few years behind its competitors, despite its unique balloon expandable design. The selling point for the company is that in the international market such design is better than the self-expandable design which is mainstream in China. On the other hand, the company is leading the TMVR (transcatheter mitral valve replacement) development which is potentially a bigger market than the TAVR. The company has quality institutional investors alongside individual investors, as well as an experienced management team. We think investors should follow the IPO.

NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR

Jenscare Scientific / Equity Capital Markets

<p>Jenscare, a China based structural heart disease focused medical device company, plans to raise up to USD 300m via a Hong Kong listing.</p><p>There have been many aortic heart valve replacement (TAVR) companies listed in Hong Kong but we think Jenscare has a differentiated portfolio in the area of heart valve replacement. Its TTVR product for the tricuspid valve will be leader the market for a few years and its TAVR product has a different indication for aortic regurgitation vs the aortic stenosis from other TAVR players. </p><p>With quality pre-IPO investors, experienced management team and differentiated portfolio, we think investors should follow the IPO.</p>

Jenscare, a China based structural heart disease focused medical device company, plans to raise up to USD 300m via a Hong Kong listing.There have been many aortic heart valve replacement (TAVR) companies listed in Hong Kong but we think Jenscare has a differentiated portfolio in the area of heart valve replacement. Its TTVR product for the tricuspid valve will be leader the market for a few years and its TAVR product has a different indication for aortic regurgitation vs the aortic stenosis from other TAVR players. With quality pre-IPO investors, experienced management team and differentiated portfolio, we think investors should follow the IPO.

Jenscare (宁波健世科技) Pre-IPO: Differentiated Heart Valve Portfolio

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.

Shanghai HeartCare Medical Technology / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/shanghai-heartcare-medical-technology-corporation-limited" target="_blank" data-smartkarma-citation="entities:32192:1" rel="noopener">Shanghai HeartCare Medical Technology (6609 HK)</a> is a China-based neuro-interventional medical device manufacturer with a product portfolio that spans the treatment and prevention of ischemic stroke to the treatment of haemorrhagic stroke. HeartCare’s product portfolio consists of a total of 23 commercialised products and product candidates, including four ischemic stroke treatment devices with NMPA approval.</p></div><div><p>HeartCare has launched an HKEx IPO to raise net proceeds of HK$980.6 million ($126 million) at the mid-point of the IPO price range of HK$160.00-171.00 per share. Ten cornerstone investors will subscribe for $66 million worth of the offer shares (46.96% of the offer shares at the mid-point). Pricing will be finalised on 13 August and the shares will list on 20 August.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/shanghai-heartcare-medical-ipo-initiation-surviving-strokes" target="_blank" data-smartkarma-citation="insights:50331" rel="noopener">Shanghai HeartCare Medical IPO Initiation: Surviving Strokes</a>, we opined that HeartCare only started to generate revenue in 1Q20 through the commercialisation of two products (SupSelek and ExtraFlex). Captor thrombectomy device, a core product, was commercialised in December 2020 and Fullblock balloon guiding catheter was commercialised in April 2021. HeartCare aims to commercialise nine currently late-stage product candidates in 2021 and ten currently earlier-stage product candidates between 2022 and 2025. With a strong near-term commercialisation pipeline, HeartCare has shifted from a concept to a revenue-generating stock. We concluded that HeartCare’s product portfolio is attractive.  </p></div><div><div>
<p>HeartCare is braving the moribund IPO market for Chinese stocks by seeking to raise a lower amount than the original target of a $300 million raise. Despite the sell-off on Chinese names, <a href="https://www.smartkarma.com/entities/zylox-tonbridge-medical-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:32974:1" rel="noopener">Zylox-Tonbridge Medical Technology (2190 HK)</a>, a peer, is trading 9% above its IPO price (listed 5 July 2021), suggesting that sentiment on the Chinese medical devices sector remains positive.  </p>
<div class="content-highlight"><p>Our base-case DCF valuation is HK$186.51 per share, which is a 13% upside to the mid-point of the IPO price range of HK$160.00-171.00 per share. Consequently, we would participate in the IPO. </p></div>
</div></div>

Shanghai HeartCare Medical Technology (6609 HK) is a China-based neuro-interventional medical device manufacturer with a product portfolio that spans the treatment and prevention of ischemic stroke to the treatment of haemorrhagic stroke. HeartCare’s product portfolio consists of a total of 23 commercialised products and product candidates, including four ischemic stroke treatment devices with NMPA approval.HeartCare has launched an HKEx IPO to raise net proceeds of HK$980.6 million ($126 million) at the mid-point of the IPO price range of HK$160.00-171.00 per share. Ten cornerstone investors will subscribe for $66 million worth of the offer shares (46.96% of the offer shares at the mid-point). Pricing will be finalised on 13 August and the shares will list on 20 August.In Shanghai HeartCare Medical IPO Initiation: Surviving Strokes, we opined that HeartCare only started to generate revenue in 1Q20 through the commercialisation of two products (SupSelek and ExtraFlex). Captor thrombectomy device, a core product, was commercialised in December 2020 and Fullblock balloon guiding catheter was commercialised in April 2021. HeartCare aims to commercialise nine currently late-stage product candidates in 2021 and ten currently earlier-stage product candidates between 2022 and 2025. With a strong near-term commercialisation pipeline, HeartCare has shifted from a concept to a revenue-generating stock. We concluded that HeartCare’s product portfolio is attractive.  
HeartCare is braving the moribund IPO market for Chinese stocks by seeking to raise a lower amount than the original target of a $300 million raise. Despite the sell-off on Chinese names, Zylox-Tonbridge Medical Technology (2190 HK), a peer, is trading 9% above its IPO price (listed 5 July 2021), suggesting that sentiment on the Chinese medical devices sector remains positive.  
Our base-case DCF valuation is HK$186.51 per share, which is a 13% upside to the mid-point of the IPO price range of HK$160.00-171.00 per share. Consequently, we would participate in the IPO. 


Shanghai HeartCare Medical IPO: Valuation Insights

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Lepu Scientech Medical Technology (Shanghai) / Equity Capital Markets

Lepu Scientech Medical Technology (Shanghai)

<p>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.</p>

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

<p>Cardiovascular medical device market has always been one of the largest segments in the global medical device industry. Among them, the interventional therapies of structural heart diseases, represented by transcatheter valvular therapeutics, are booming and have become a highlight in the field of cardiovascular diseases, bringing another revolution in interventional cardiology. On June 21, <a href="https://www.smartkarma.com/entities/jenscare-scientific-co-ltd" target="_blank" data-smartkarma-citation="entities:33525:1" rel="noopener">Jenscare Scientific (JCS HK)</a>, a globally influential medical device company dedicated to the development of innovative products for the treatment of structural heart diseases, submitted the prospectus to HKEX and officially started the IPO process. This insights mainly analyzed the industry characteristics, the business, the financial position and the related challenges.</p>

Cardiovascular medical device market has always been one of the largest segments in the global medical device industry. Among them, the interventional therapies of structural heart diseases, represented by transcatheter valvular therapeutics, are booming and have become a highlight in the field of cardiovascular diseases, bringing another revolution in interventional cardiology. On June 21, Jenscare Scientific (JCS HK), a globally influential medical device company dedicated to the development of innovative products for the treatment of structural heart diseases, submitted the prospectus to HKEX and officially started the IPO process. This insights mainly analyzed the industry characteristics, the business, the financial position and the related challenges.

Pre-IPO Jenscare Scientific - The Industry Characteristics, the Business and the Challenges

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)

NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR

NewMed plans to raise at least USD 200m via a Hong Kong listing. We take a look at its Prizvalve, replacement valve for the aortic valve, and Mi...

Ke Yan, CFA, FRM

Jenscare (宁波健世科技) Pre-IPO: Differentiated Heart Valve Portfolio

Jenscare has a differentiated heart valve portfolio with leadership in the tricuspid heart valve replacement segment. We think the company is...

Ke Yan, CFA, FRM

Shanghai HeartCare Medical IPO: Valuation Insights

Our base-case DCF valuation is HK$186.51 per share, which is a 13% upside to the mid-point of the IPO price range of HK$160.00-171.00 per share.

Arun George

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 Jenscare Scientific - The Industry Characteristics, the Business and the Challenges

The article mainly analyzed Jenscare in terms of the industry characteristics of China interventional therapies of structural heart disease,the...

Xinyao (Criss) Wang

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