HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Shanghai Hanyu Medical Technology / Equity Capital Markets

On April 14, 2021, <a href="https://www.smartkarma.com/entities/shanghai-hanyu-medical-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:33016:1" rel="noopener">Shanghai Hanyu Medical Technology (SHM HK)</a> submitted its listing application to the main board of the Hong Kong Stock Exchange. According to the data of TianYanCha, the Series D financing was completed in 2020, and in March 2021, Hanyu completed the Series D+ financing, led by Yunfeng Capital. Shortly after about a month, Hanyu officially launch its IPO plan. So how about the company? This insight mainly analyzed the market potential and the product candidates of Hanyu.

On April 14, 2021, Shanghai Hanyu Medical Technology (SHM HK) submitted its listing application to the main board of the Hong Kong Stock Exchange. According to the data of TianYanCha, the Series D financing was completed in 2020, and in March 2021, Hanyu completed the Series D+ financing, led by Yunfeng Capital. Shortly after about a month, Hanyu officially launch its IPO plan. So how about the company? This insight mainly analyzed the market potential and the product candidates of Hanyu.

Pre-IPO Shanghai Hanyu Medical Technology - Insights on the Industry and the Products

APAC IPOs & Placements

Zhen Zhou, Toh

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.

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.
Asia IPO pipeline continues to build up with multiple new filings. Zomato filed its draft prospectus in India and Del Monte Philippines in the Philippines, looking to raise US$1bn and US$790m, respectively. In the U.S, Hello Inc (last Friday), Ximalaya, Qiniu Cloud filed with the SEC. The former two companies are looking to raise about US$1bn each while Qiniu Cloud is likely targeting a US$500m IPO. Hong Kong had a number of filings with R&amp;F Property Services being the notable one, looking to raise US$700m.
JD Logistics, SF REIT, Edding Group, and New Hope Service have won approval for their Hong Kong listings. JD Logistics was aiming to raise US$4bn and should start premarketing this coming week. SF REIT got its approval last week and filed its PHIP last Sunday. It is looking to raise US$300m and will likely launch its bookbuild next week. The latter two are expected to raise up to US$300m and US$150m, respectively. 

Edding Group (亿腾医药) Pre-IPO: Distributor Turning Pharmaceutical
Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party
JD Logistics (京东物流) Pre-IPO - Peer Comparison - Shielded from Price War 
JD Logistics (京东物流) Pre-IPO - Tethered to JD Group and Looking Beyond 
JD Logistics (京东物流) Pre-IPO - Thoughts on Valuation
SF REIT Pre-IPO - One Trick Pony, Who’s Not Doing the Trick

Hong Kong placement deal flow slowed (naturally) from a record last week. Wuxi Biologics Holdings came back to the market to sell another block ahead of its stipulated lock-up from January this year. The selldown was largely expected. Other placements in Hong Kong included Tsingtao Brewery Co Ltd H (168 HK) and Fuyao Glass Industry Group (3606 HK).  In the Philippines, AC Energy Corp (ACEN PM)'s re-IPO was priced close to the low-end. The deal will trade on 14th May.

Wuxi Biologics Placement - Market Is Likely Well-Positioned for the Selldown
Tsingtao Brewery Placement - Fosun Is Back Again, Settling into a Pattern
Fuyao Glass Placement - Expected Deal but Expensive Valuation

AC Energy Re-IPO - Lots of Moving Parts, Needs the Dust to Settle 

In Hong Kong, we wrote on Shanghai Hanyu Medical Technology (SHM HK), a leading player in the mitral valve devices market. While the company has a huge market potential, it had a weak investor line-up and lack of management experience .
Shanghai Hanyu (捍宇医疗) Pre-IPO: Not a Straight-A but Listing at Right Time
Zhaoke Ophthalmology Pharmaceutical (6622 HK) debuted below its IPO price on Thursday despite having a decent cornerstone line-up. It closed 25% below IPO price on Friday.

Zhaoke Ophthalmic (兆科眼科): Could Be Over-Valued for Pre-IPO Round
Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Thoughts on Valuation
Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Beware of Aggressive “Guidance”
Zhaoke Ophthalmic (兆科眼科) IPO: Rationalize the Valuation
Zhaoke Ophthalmic (兆科眼科) IPO Trading: Strong Cornerstone Doesn’t Save the Deal

For China ADRs, we initiated on Hello Inc (1883864D US). The company operates a mobile app, Hello, which provides local services that includes two-wheeler services and a carpooling market place.
Hello Inc (哈罗出行) Pre-IPO - Nowhere near Being Sustainable
In India, Powergrid Infrastructure Investment Trust (1883964D IN) launched its IPO bookbuild on Thursday. Books will close on Monday and shares will trade on 17th May.

POWERGRID InvIT Pre-IPO - Always going to be tricky with a declining yield
POWERGRID InvIT IPO - Assets Are Fine, Declining Yield Is Not

In the Philippines, Monde Nissin Corp’s (0191881D PM) has started premarketing. We compared its meat alternative business with global competitors and shared our thoughts on valuation. 

Monde Nissin Pre-IPO - The Positives - High Market Share
Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA
Monde Nissin Pre-IPO - Peer Comparison for Food Business
Monde Nissin Pre-IPO - Peer Comparison for Meat Alternative Business
Monde Nissin Pre-IPO - Thoughts on Valuation

Credits to Clarence Chu for helping out with the note.
Accuracy Rate:Our overall accuracy rate is 74.1% for IPOs and 67.3% for Placements (Performance measurement criteria is explained at the end of the note)New IPO filings this week  

R&amp;F Property Services (Hong Kong, US$700m)
Readboy Education Holding Company Limited (Hong Kong, &gt;US$100m)
Lepu Biopharma (Hong Kong, &gt;US$100m)
Hangzhou Xpower Technology (Hong Kong, &gt;US$100m)
Ximalaya (China ADR, US$1bn)
Hello Inc (China ADR, US$1bn)
Qiniu Ltd. (China ADR, US$500m)
Zomato Limited (India, US$1bn)
Del Monte Philippines (Philippines, US$790m)
News on Upcoming IPOs  
Hong Kong/China
R&amp;F Property Services plans US$700m HK IPO
SF REIT starts pre-marketing HK IPO
ByteDance plays down IPO plans
JD Logistics wins approval for HK IPO
Hong Kong’s WeLab reportedly aims for IPO at valuation up to $2 billion
Three Gorges Renewables kicks off China’s biggest IPO of the year
China set for first batch of infra-REIT listings
New Hope Service, Edding win listing approvals

Vanke Said to Prepare for $2 Billion Property Management IPO 

US/China ADRs
Chinese Local Mobility Firm Hello Inc. Files for U.S. IPO
Xiaohongshu mulls US IPO of up to US$1bn this year
Onion Global launches US$116m NYSE IPO
China’s Ximalaya, Qiniu file for IPO in US
India
Poonawalla-backed Wellness Forever plans $160-mn listing
PowerGrid launches up to Rs77bn InvIT IPO
Arohan Financial Services, Dodla Dairy get Sebi's go ahead for IPO
Nuvoco Vistas plans to file for Rs50bn IPO
India: Info Edge to sell stake worth $100m in Zomato’s upcoming IPO
Ant-backed Zomato files for Rs82.5bn IPO
Tata Power mulling $473 million renewable energy unit IPO
Others
KKR’s pubs group Aus Venue Co valued up to $1.32b ahead of IPO
Bell Potter, Macquarie analysts start selling Best &amp; Less
Pepper Money seeks ASX IPO of A$450m
ASX-listed Sezzle plans to file for US IPO
Chemist Warehouse eyes ASX IPO
Kakao Pay files for KRX IPO
Asia Aviation plans to list Thai AirAsia
Del Monte Philippines files for Ps38.3bn PSE IPO
Japan Startup That Helps Firms Fetch User Data Eyes U.S. Listing
Indonesia Plans IPOs for Dozens of State Companies
Keypath Education considers $1b+ Australian float; drafts in Macquarie
Analysis on Upcoming IPOs

Name
Insight

Hong Kong

Betta Pharma
Betta Pharma (贝达医药) A+H: Tier 2 Player Struggled to Break Out 


ByteDance
ByteDance (字节跳动) IPO: How Jinri Toutiao Paves The Way for a Bigger Empire (Part 1)


ByteDance
ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 


ByteDance
ByteDance (字节跳动) IPO: Tiktok the No.1 Short Video App for a Good Reason (Part 2)


ByteDance
ByteDance (字节跳动) Pre-IPO: How Has It Done in 1H? 


ByteDance
ByteDance: The Unlisted Company’s Video Apps Leading the Market and Threatening Internet Giants 


ByteDance
ByteDance (字节跳动) Pre-IPO: Why Facebook Should Worry About TikTok 


ByteDance
ByteDance (字节跳动) Pre-IPO - Globally the Most Downloaded App for Jan 2020 Driven by India 


ByteDance
ByteDance (字节跳动) Pre-IPO: Global Ambition Meets Regulatory Challenges 


Chaoju
Chaoju Eye Care (朝聚眼科) Pre-IPO: Growth Prospect Far from Being Impressive 


Dida
Dida Pre-IPO - Making Hay While Big Brother Retreats 


Dida
Dida Pre-IPO - Earnings Forecast and First Stab at Valuation 


Dida
Dida Pre-IPO - Peer Comparison - Lagging in Scale, Leading in Profitability 


Edding Grp
Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party 


Edding Grp
Edding Group (亿腾医药) Pre-IPO: Notes from Latest Financials and Its Related Party 


Hanyu
Shanghai Hanyu (捍宇医疗) Pre-IPO: Not a Straight-A but Listing at Right Time 


Intco Med
Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1 


Kilcoy
Kilcoy Global Foods Pre-IPO - Rapid Earnings Growth on the Back of Margin Improvement 


JD Logistics
JD Logistics (京东物流) Pre-IPO - Tethered to JD Group and Looking Beyond 


JD Logistics
JD Logistics (京东物流) Pre-IPO - Thoughts on Valuation 


JD Logistics
JD Logistics (京东物流) Pre-IPO - Peer Comparison - Shielded from Price War 


Kilcoy
Kilcoy Global Foods Pre-IPO - A Lot of Things Still Remain Unexplained 


Kindstar
Kindstar (康圣环球) Pre-IPO: Issues with Scalability 


Kindstar
Kindstar (康圣环球) Pre-IPO: Is It Worth the Premium? 


RemeGen

RemeGen (荣昌生物) Pre-IPO: Thoughts on Valuation of RC18 and RC48 


Bio-heart

Shanghai Bio-Heart (上海百心安) Pre-IPO: Needs a Long Runway 


Toplist

Toplist China Pre-IPO - Overwhelmingly More Negatives than Positives 


Tasly

Tasly Biopharm (天士力生物) IPO: Visible Growth from Approved Drug but Lacks Blockbusters 


WeDoctor

WeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More 


WeDoctor

WeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor 


WeDoctor

We Doctor (微医) Pre-IPO - Peer Comparison - Picking Its Battles Wisely 


WeDoctor

We Doctor (微医) Pre-IPO - Forecasts, Early Thoughts on Valuation, and Acquisition Gripes 


Youran Dairy

China Youran Dairy(悠然牧业) Pre-IPO - A Leader Pulling Ahead in a Fragmented Market 

India

Aadhar Housing

Aadhar Housing Finance Pre-IPO - Decent past Growth but Comes with Weird Disclosures 


ASK

ASK Investment Managers Pre-IPO - Riding on a Wave of Wealth 


Anmol Ind
Anmol Industries Pre-IPO Quick Take - No Growth, Generous Payments to Founders


Bharat Hotel
Bharat Hotels Pre-IPO - Catching up with Peers 


Bajaj En
Bajaj Energy Pre-IPO - Supposed to Deliver Steady Performance if Only Its Sole Client Would Let It 


CMS Info
CMS Info Systems Pre-IPO - When a PE Sells to Another PE... Only One Gets the Timing Right


Crystal Crop
Crystal Crop Protection Pre-IPO - DRHP Raises More Questions than in Answers


ESAF SFB

ESAF Small Finance Bank Pre-IPO - Growing Fast but Remains Highly Dependant on a Related Party 


Flemingo 
Flemingo Travel Retail Pre-IPO - Its a Different Business in Every Country


Emami Cem

Emami Cement Pre-IPO - Still in Ramp Up Phase but Shares Pledge Might Lead to an Early IPO 


NSE
NSE IPO Preview- Not Only Fast..its Risky and Expensive


NSE
National Stock Exchange Pre-IPO Review - Bigger, Better, Stronger but a Little Too Fast for Some


LIC

Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO 


Penna Cem

Penna Cement - Aggressive Expansion Plans Even Though Past Performance Has Been Tepid 


PNB Met
PNB Metlife Pre-IPO Quick Take - Doesn't Stack up Well Versus Its Larger Peers


Samhi Hotels

Samhi Hotels Pre-IPO - Assets and Borrowings Are Growing, but Earnings Haven’t Kept Pace 


Sona Comstar

Sona Comstar Pre-IPO - Inconsistent Growth, Patchy Disclosures 

Malaysia

QSR
QSR Brands Pre-IPO - As Healthy as Fast Food

The U.S.

Hello Inc

Hello Inc (哈罗出行) Pre-IPO - Nowhere near Being Sustainable 



ECM Weekly (2nd May 2021) - JD Logistics, Powergrid InvIT, Shanghai Hanyu, Monde Nissin, Hello Inc

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Shanghai Hanyu is a leading domestic player in the mitral valve devices market. The company plans to raise up to USD 500 million via a Hong Kong listing.The company's core mitral valve edge-to-edge repair product ValveClamp is developed by the Zhongshan Hospital in Shanghai and is currently undergoing a confirmatory trial. Unlike the clip structure used in benchmark products, ValveClamp has an upper arm and lower arm that reduces the operational complexity of capturing mitral valves. It also takes a transapical path that reduces the scanning requirement. Having said that, the company is also developing transfemoral based edge-to-edge product ValveClasp to cater to a wider range of patients that do not like the transapical path. The commercial launch of the ValveClamp will be in early 2023.  Both the company's management experience and pre-IPO investor line-up are mediocre. Given the strong listing performance of aortic valve replacement peers, we think the deal will likely be hot.

Shanghai Hanyu is a leading domestic player in the mitral valve devices market. The company plans to raise up to USD 500 million via a Hong Kong listing.The company's core mitral valve edge-to-edge repair product ValveClamp is developed by the Zhongshan Hospital in Shanghai and is currently undergoing a confirmatory trial. Unlike the clip structure used in benchmark products, ValveClamp has an upper arm and lower arm that reduces the operational complexity of capturing mitral valves. It also takes a transapical path that reduces the scanning requirement. Having said that, the company is also developing transfemoral based edge-to-edge product ValveClasp to cater to a wider range of patients that do not like the transapical path. The commercial launch of the ValveClamp will be in early 2023.  Both the company's management experience and pre-IPO investor line-up are mediocre. Given the strong listing performance of aortic valve replacement peers, we think the deal will likely be hot.

Shanghai Hanyu (捍宇医疗) Pre-IPO: Not a Straight-A but Listing at Right Time

China

Shanghai Hanyu Medical Technology (SHM HK)

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Shanghai Hanyu Medical Technology (SHM HK)

Pre-IPO Shanghai Hanyu Medical Technology - Insights on the Industry and the Products

This insight mainly analyzed the industry characteristics and market potential of the mitral valve market, the products of both Hanyu and its...

Xinyao (Criss) Wang

ECM Weekly (2nd May 2021) - JD Logistics, Powergrid InvIT, Shanghai Hanyu, Monde Nissin, Hello Inc

Aequitas Research puts out a weekly update on the deals that have been covered by the team recently along with updates for upcoming IPOs.

Zhen Zhou, Toh

Shanghai Hanyu (捍宇医疗) Pre-IPO: Not a Straight-A but Listing at Right Time

Shanghai Hanyu's mitral valve repair product has a strong value proposition as a replacement of imported reference products. But we think its...

Ke Yan, CFA, FRM

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