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.

Equity Capital Markets

Zylox-Tonbridge Medical Technology / Equity Capital Markets

<div>
<p><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> is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). </p>
<p>Zylox-Tonbridge will commence trading on Monday, 5 July. Zylox-Tonbridge priced its IPO at HK$42.70 and <a href="https://inews.hket.com/article/2996563/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E6%AD%B8%E5%89%B5%E9%80%9A%E6%A9%8B2190%E6%9A%97%E7%9B%A4%E6%94%B6%E5%8D%8730-%E3%80%80%E4%B8%80%E6%89%8B%E5%B8%B3%E9%9D%A2%E8%B3%BA6575%E5%85%83?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">closed 31% up at HK$55.85</a> in the Futu securities grey market. </p>
</div><div><p>In <a href="https://www.smartkarma.com/insights/zylox-tonbridge-ipo-living-on" target="_blank" data-smartkarma-citation="insights:53469" rel="noopener">Zylox-Tonbridge IPO: Living On</a>, we opined that Zylox-Tonbridge is on the cusp of delivering on a sizeable addressable market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. We concluded that Zylox-Tonbridge’s product portfolio is attractive. In <a href="https://www.smartkarma.com/insights/zylox-tonbridge-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:53517" rel="noopener">Zylox-Tonbridge IPO: Valuation Insights</a>, we noted that the IPO price range is attractive.</p></div><div><div><div class="content-highlight"><p>Updating for the final IPO net raise, our base-case DCF derived price target of HK$48.89 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that we would take profits at the grey market price.</p></div></div></div>


Zylox-Tonbridge Medical Technology (2190 HK) is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). 
Zylox-Tonbridge will commence trading on Monday, 5 July. Zylox-Tonbridge priced its IPO at HK$42.70 and closed 31% up at HK$55.85 in the Futu securities grey market. 
In Zylox-Tonbridge IPO: Living On, we opined that Zylox-Tonbridge is on the cusp of delivering on a sizeable addressable market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. We concluded that Zylox-Tonbridge’s product portfolio is attractive. In Zylox-Tonbridge IPO: Valuation Insights, we noted that the IPO price range is attractive.Updating for the final IPO net raise, our base-case DCF derived price target of HK$48.89 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that we would take profits at the grey market price.

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.

Shanghai HeartCare Medical Technology / Equity Capital Markets

<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 (HMT HK)</a>  is a neuro-interventional medical device company in China. The company has a pipeline of 23 products of which three were launched in 2020 and have generated revenues of RMB 14.5m. The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange.</p><p>The company’s core product: Captor, has strong potential to capture the market given its favourable performance at clinical trials and its comparatively lower pricing while the other core product LAA Occluder also has showed strong success rates at clinical trials. China’s neuro-interventional medical device market is poised for growth, which would allow the company to grow through the portfolio of new products that it has planned to introduce during the next few years.</p>

Shanghai HeartCare Medical Technology (HMT HK)  is a neuro-interventional medical device company in China. The company has a pipeline of 23 products of which three were launched in 2020 and have generated revenues of RMB 14.5m. The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange.The company’s core product: Captor, has strong potential to capture the market given its favourable performance at clinical trials and its comparatively lower pricing while the other core product LAA Occluder also has showed strong success rates at clinical trials. China’s neuro-interventional medical device market is poised for growth, which would allow the company to grow through the portfolio of new products that it has planned to introduce during the next few years.

Shanghai Heartcare IPO: Strong Potential in Treating Strokes

<div>
<p><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> is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). </p>
<p>Zylox-Tonbridge has launched an HKEx IPO to raise net proceeds of $300 million at the mid-point of the IPO price range of HK$39.80-42.70 per share. Twelve cornerstone investors will subscribe for $145 million worth of the offer shares (45.47% of the offer shares at the mid-point). Pricing will be finalised on 25 June and the shares will list on 5 July.</p>
</div><div>
<p>In <a href="https://www.smartkarma.com/insights/zylox-tonbridge-ipo-living-on" target="_blank" data-smartkarma-citation="insights:53469" rel="noopener">Zylox-Tonbridge IPO: Living On</a>, we opined that Zylox-Tonbridge is on the cusp of delivering on a sizeable addressable market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. We concluded that Zylox-Tonbridge’s product portfolio is attractive.</p>
<div class="content-highlight"><p>Our base-case DCF valuation is HK$48.56 per share, which is an 18% upside to the mid-point of the IPO price range of HK$39.80-42.70 per share. Consequently, we would participate in the IPO. </p></div>
</div><div><p></p></div>


Zylox-Tonbridge Medical Technology (2190 HK) is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). 
Zylox-Tonbridge has launched an HKEx IPO to raise net proceeds of $300 million at the mid-point of the IPO price range of HK$39.80-42.70 per share. Twelve cornerstone investors will subscribe for $145 million worth of the offer shares (45.47% of the offer shares at the mid-point). Pricing will be finalised on 25 June and the shares will list on 5 July.

In Zylox-Tonbridge IPO: Living On, we opined that Zylox-Tonbridge is on the cusp of delivering on a sizeable addressable market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. We concluded that Zylox-Tonbridge’s product portfolio is attractive.
Our base-case DCF valuation is HK$48.56 per share, which is an 18% upside to the mid-point of the IPO price range of HK$39.80-42.70 per share. Consequently, we would participate in the IPO. 


<p><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> is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). </p><p>Zylox-Tonbridge has launched an HKEx IPO to raise net proceeds of HK$2,314.0 million ($300 million) at the mid-point of the IPO price range of HK$39.80-42.70 per share. Twelve cornerstone investors will subscribe for $145 million worth of the offer shares (45.47% of the offer shares at the mid-point of the IPO price range). The cornerstone investors include new investors such as Hillhouse, Fidelity International, Boyu Capital, Snow Lake Fund, Athos Capital, Sage Partners and IvyRock. </p><p>The neuro-interventional medical device market in China is expected to grow from RMB4.9 billion in 2019 to RMB37.1 billion in 2030 at a CAGR of 20.2% from 2019 to 2030, according to Frost &amp; Sullivan. The growth is underpinned by the increasing prevalence and treatment rate, the substitution of imported devices by domestic device, increasing patient affordability, improving accessibility of treatments and favourable policy support.</p><div class="content-highlight"><p>Zylox-Tonbridge is on the cusp of delivering on this market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. Overall, we believe that Zylox-Tonbridge’s product portfolio is attractive. We will discuss the valuation in the next note. </p></div>

Zylox-Tonbridge Medical Technology (2190 HK) is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). Zylox-Tonbridge has launched an HKEx IPO to raise net proceeds of HK$2,314.0 million ($300 million) at the mid-point of the IPO price range of HK$39.80-42.70 per share. Twelve cornerstone investors will subscribe for $145 million worth of the offer shares (45.47% of the offer shares at the mid-point of the IPO price range). The cornerstone investors include new investors such as Hillhouse, Fidelity International, Boyu Capital, Snow Lake Fund, Athos Capital, Sage Partners and IvyRock. The neuro-interventional medical device market in China is expected to grow from RMB4.9 billion in 2019 to RMB37.1 billion in 2030 at a CAGR of 20.2% from 2019 to 2030, according to Frost &amp; Sullivan. The growth is underpinned by the increasing prevalence and treatment rate, the substitution of imported devices by domestic device, increasing patient affordability, improving accessibility of treatments and favourable policy support.Zylox-Tonbridge is on the cusp of delivering on this market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. Overall, we believe that Zylox-Tonbridge’s product portfolio is attractive. We will discuss the valuation in the next note. 

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.

<p>Zylox-Tonbridge, a leading China-based neuro- and peripheral interventional device company, is looking to raise up to USD 400m via a Hong Kong listing.  </p><p>In this note, we look at two key products of the company, namely the Thrombite clot retriever for acute ischemic stroke treatment, and Ultrafree Drug Coated PTA Balloon Catheter for the arterial stenosis or occlusion. The Thrombite clot retriever demonstrated efficacy and safety that is in-line with the benchmark product developed by international device player, while the reading from head-to-head clinical research of Ultrafree Drug Coated PTA Ballon Catether appears to be better than its competitor product. The key challenge for the company is the competition in each of its product lines as the company does not have much early bird advantage in the field. </p><p>Both the management team and pre-IPO investors are OK but not the best you can expect in a hot medical device listing.</p>

Zylox-Tonbridge, a leading China-based neuro- and peripheral interventional device company, is looking to raise up to USD 400m via a Hong Kong listing.  In this note, we look at two key products of the company, namely the Thrombite clot retriever for acute ischemic stroke treatment, and Ultrafree Drug Coated PTA Balloon Catheter for the arterial stenosis or occlusion. The Thrombite clot retriever demonstrated efficacy and safety that is in-line with the benchmark product developed by international device player, while the reading from head-to-head clinical research of Ultrafree Drug Coated PTA Ballon Catether appears to be better than its competitor product. The key challenge for the company is the competition in each of its product lines as the company does not have much early bird advantage in the field. Both the management team and pre-IPO investors are OK but not the best you can expect in a hot medical device listing.

Zylox-Tonbridge (归创通桥) Pre-IPO: Competition Is the Key Concern

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)

Zylox-Tonbridge IPO: Trading Debut

Zylox-Tonbridge priced its IPO at HK$42.70 and closed 31% up at HK$55.85 in the Futu securities grey market. Our DCF sensitivity analysis shows...

Arun George

Shanghai Heartcare IPO: Strong Potential in Treating Strokes

Though company operates in a highly competitive market, the better performance of core products can act as growth catalysts, help capture more of...

Shifara Samsudeen, ACMA, CGMA

Zylox-Tonbridge IPO: Valuation Insights

Our base-case DCF valuation is HK$48.56 per share, which is an 18% upside to the mid-point of the IPO price range of HK$39.80-42.70 per share....

Arun George

Zylox-Tonbridge IPO: Living On

Zylox-Tonbridge has launched an HKEx IPO to raise net proceeds of $300 million at the mid-point of the IPO price range. Overall, we believe that...

Arun George

Zylox-Tonbridge (归创通桥) Pre-IPO: Competition Is the Key Concern

Zylox-Tonbridge is a leading neuro- and peripheral vascular interventional device company with a comprehensive product coverage. It has two main...

Ke Yan, CFA, FRM

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