Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Shanghai HeartCare Medical Technology / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-heartcare-medical-technology" target="_blank" data-smartkarma-citation="entities:32192:1" rel="noopener">Shanghai HeartCare Medical Technology (6609 HK)</a> has leadership positioning in China’s neuro-intervention medical device market. The company has an attractive product portfolio with large addressable market.</li>
<li>Core product, Captor is expected to earn revenue of RMB656 million in 2030. Patent infringement lawsuit against Medtronic regarding Heartcare’s core product Captor remains a major overhang on the stock.</li>
<li>Heartcare shares plunged 24% since its listing in August. The company aims to commercialize 10 products between 2022 and 2025. Investors with high-risk appetite can take position.</li>
</ul>



Shanghai HeartCare Medical Technology (6609 HK) has leadership positioning in China’s neuro-intervention medical device market. The company has an attractive product portfolio with large addressable market.
Core product, Captor is expected to earn revenue of RMB656 million in 2030. Patent infringement lawsuit against Medtronic regarding Heartcare’s core product Captor remains a major overhang on the stock.
Heartcare shares plunged 24% since its listing in August. The company aims to commercialize 10 products between 2022 and 2025. Investors with high-risk appetite can take position.


Shanghai HeartCare Medcl(6609 HK): Comprehensive Stroke Produce Portfolio Comes with a Pinch of Salt

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>While the final results of 2021 national medical insurance negotiation have yet to be announced, here are what's circulating in the market.</li>
<li>The centralized procurement on spring coil in Hebei province would start soon, which means that the centralized procurement in the field of neuro-intervention in China has officially begun.</li>
<li>There is a phenomenon of "valuation upside down" in the primary and secondary market of healthcare investment, so we recommend investors to be more cautious and rational.</li>
</ul>


While the final results of 2021 national medical insurance negotiation have yet to be announced, here are what's circulating in the market.
The centralized procurement on spring coil in Hebei province would start soon, which means that the centralized procurement in the field of neuro-intervention in China has officially begun.
There is a phenomenon of "valuation upside down" in the primary and secondary market of healthcare investment, so we recommend investors to be more cautious and rational.


China Healthcare Weekly (Nov.12)-Medical Insurance Negotiation,Spring Coil VBP,Valuation Upside Down

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Shanghai MicroPort MedBot Group / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/shanghai-microport-medbot-group-co-ltd" target="_blank" rel="noopener">Shanghai MicroPort MedBot Group (MMG HK)</a> is a surgical robot company which designs, develops and commercialises surgical robots to assist in performing complex surgical procedures. MicroPort’s product line-up includes three flagship products Toumai (Laparoscopic Surgical Robot), DFVision (3D Electronic Laparoscope) and Honghu (orthopaedic surgical robot) and all three are admitted to the NMPA’s innovative medical device special review and approval procedure (known as Green Path). Toumai and Honghu are currently at the registration approval stage while Honghu has received the NMPA approval recently, and these three products should offer immediate revenue opportunity for the company.The company priced its IPO at HK$43.20 per share, at the upper end of the IPO price range of HK$39.60-43.20 per share and raised net proceed of approx. HK$1,457.4m at a market capitalisation of HK$41.2bn and a post-money Enterprise Value of HK$38.5bn. According to the company, both its HK offering, and international offering were significantly oversubscribed by approx. 164x and 16x respectively.In our previous two insights on the company’s IPO, we discussed the company’s core products and product portfolio, outlook, key financials and the company’s IPO valuation.

Shanghai MicroPort MedBot Group (MMG HK) is a surgical robot company which designs, develops and commercialises surgical robots to assist in performing complex surgical procedures. MicroPort’s product line-up includes three flagship products Toumai (Laparoscopic Surgical Robot), DFVision (3D Electronic Laparoscope) and Honghu (orthopaedic surgical robot) and all three are admitted to the NMPA’s innovative medical device special review and approval procedure (known as Green Path). Toumai and Honghu are currently at the registration approval stage while Honghu has received the NMPA approval recently, and these three products should offer immediate revenue opportunity for the company.The company priced its IPO at HK$43.20 per share, at the upper end of the IPO price range of HK$39.60-43.20 per share and raised net proceed of approx. HK$1,457.4m at a market capitalisation of HK$41.2bn and a post-money Enterprise Value of HK$38.5bn. According to the company, both its HK offering, and international offering were significantly oversubscribed by approx. 164x and 16x respectively.In our previous two insights on the company’s IPO, we discussed the company’s core products and product portfolio, outlook, key financials and the company’s IPO valuation.

Microport MedBot IPO:  Thoughts on First Day Trading

MicroTech Medical Hangzhou / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/microtech-medical-hangzhou-co-ltd" target="_blank" data-smartkarma-citation="entities:33367:1" rel="noopener">MicroTech Medical Hangzhou (2235 HK)</a> provides diabetes treatment and diabetes monitoring medical devices in China and globally. MicroTech’s core product, a semi-disposable patch insulin pump (known as Equil) is the only patch insulin pump available in China whereas the competitor products are tube insulin pumps. The company also has a CGMS product (Continuous Glucose Monitoring System), AiDEX G7 which is the second commercialised calibration-free real-time CGMS in the world. AiDEX G7 has received the CE Marking in the EU in September 2020 and the product has been certified by the NMPA to be eligible for Special Approval Procedures of Innovative Medical Devices promulgated by the NMPA.MicroTech has priced its IPO at HK$30.50 per share, slightly below the upper end of the indicative IPO price range of HK$27.70-31.15 per share. At the offer price of HK$30.50 per share, the company raised net proceeds of HK$1,815.1m at a market capitalisation of HK$12.9bn and a post-money enterprise value of HK$10.5bn. According to the company, its Hong Kong offering was oversubscribed by about 6.79x while the international offering was oversubscribed by about 4.9x.In our previous two insights on the company’s IPO, we discussed the company’s core products and product portfolio, market potential for its products and the company’s valuation.

MicroTech Medical Hangzhou (2235 HK) provides diabetes treatment and diabetes monitoring medical devices in China and globally. MicroTech’s core product, a semi-disposable patch insulin pump (known as Equil) is the only patch insulin pump available in China whereas the competitor products are tube insulin pumps. The company also has a CGMS product (Continuous Glucose Monitoring System), AiDEX G7 which is the second commercialised calibration-free real-time CGMS in the world. AiDEX G7 has received the CE Marking in the EU in September 2020 and the product has been certified by the NMPA to be eligible for Special Approval Procedures of Innovative Medical Devices promulgated by the NMPA.MicroTech has priced its IPO at HK$30.50 per share, slightly below the upper end of the indicative IPO price range of HK$27.70-31.15 per share. At the offer price of HK$30.50 per share, the company raised net proceeds of HK$1,815.1m at a market capitalisation of HK$12.9bn and a post-money enterprise value of HK$10.5bn. According to the company, its Hong Kong offering was oversubscribed by about 6.79x while the international offering was oversubscribed by about 4.9x.In our previous two insights on the company’s IPO, we discussed the company’s core products and product portfolio, market potential for its products and the company’s valuation.

MicroTech Medical IPO: Thoughts on First Day Trading

<a href="https://www.smartkarma.com/entities/broncus-holding-corporation" target="_blank" data-smartkarma-citation="entities:33315:1" rel="noopener">Broncus (2216 HK)</a> is a medical device company focused on the development of interventional pulmonology products. The company offers five interventional therapeutic products and product candidates for lung diseases (including its core products InterVapor and RF-II) and offers six interventional diagnostic medical consumable products including LungPoint. The company was ranked first in China’s interventional pulmonology navigation device market with a market share of 43.2% based on sales volume and ranked second with a market share of 37.5% measured by sales revenue from 2018-2020.The company has priced its IPO at HK$18.70 per share, at the upper end of the IPO price range of HK$17.2-18.7 per share. At the above price, Broncus raised net proceeds of HK$1,552.4m at a market capitalisation of HK$9.9bn and a post-money enterprise value of HK$8.0bn. According to the company, its Hong Kong offering was oversubscribed by about 11.1x while the international offering was oversubscribed by about 4.1x.In our previous two insights on the company’s IPO, we discussed the company’s core products and product portfolio, market potential for its products and the company’s valuation.

Broncus (2216 HK) is a medical device company focused on the development of interventional pulmonology products. The company offers five interventional therapeutic products and product candidates for lung diseases (including its core products InterVapor and RF-II) and offers six interventional diagnostic medical consumable products including LungPoint. The company was ranked first in China’s interventional pulmonology navigation device market with a market share of 43.2% based on sales volume and ranked second with a market share of 37.5% measured by sales revenue from 2018-2020.The company has priced its IPO at HK$18.70 per share, at the upper end of the IPO price range of HK$17.2-18.7 per share. At the above price, Broncus raised net proceeds of HK$1,552.4m at a market capitalisation of HK$9.9bn and a post-money enterprise value of HK$8.0bn. According to the company, its Hong Kong offering was oversubscribed by about 11.1x while the international offering was oversubscribed by about 4.1x.In our previous two insights on the company’s IPO, we discussed the company’s core products and product portfolio, market potential for its products and the company’s valuation.

Broncus IPO: Thoughts on First Day Trading

China

Shanghai HeartCare Medical Technology Corporation Limited develops and manufactures neuro-interventional medical devices. The Company produces ischemic stroke prevention devices, ischemic stroke thrombectomy devices, intracranial stenosis treatment devicies, vacular access devices, and more. Shanghai HeartCare Medical Technology conducts business in China.

Shanghai HeartCare Medical Technology (6609 HK)

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Shanghai HeartCare Medical Technology (6609 HK)

Shanghai HeartCare Medcl(6609 HK): Comprehensive Stroke Produce Portfolio Comes with a Pinch of Salt

Comprehensive and innovative product portfolio addressing large patient pool is the key positive for the company. However, ongoing patent...

Tina Banerjee

China Healthcare Weekly (Nov.12)-Medical Insurance Negotiation,Spring Coil VBP,Valuation Upside Down

This insight mainly analyzed some news circulating about 2021 national medical insurance negotiation results, VBP on spring coil in Hebei and...

Xinyao (Criss) Wang

Microport MedBot IPO: Thoughts on First Day Trading

Microport MedBot priced its IPO at HK$43.20 per share and we believe there is very limited upside to the company's shares as our SOTP valuation...

Shifara Samsudeen, ACMA, CGMA

MicroTech Medical IPO: Thoughts on First Day Trading

MicroTech priced its IPO at HK$30.50 per share which significantly overvalues the shares. We expect the company's shares to open poorly at its...

Shifara Samsudeen, ACMA, CGMA

Broncus IPO: Thoughts on First Day Trading

Though Broncus priced its IPO at the top-end of its price range, our reverse DCF model suggests that Broncus’ IPO is overvalued. We expect shares...

Shifara Samsudeen, ACMA, CGMA

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