External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Shanghai INT Medical Instruments / Equity Bottom-Up

<ul><li>INT Medical’s 2024 revenue grew by 13.2% YoY to RMB852mn, 13% below our estimate, mainly due to the pressure on its CDMO business from VBP and intensified competition.</li><li>The expanding provincial VBP coverage in interventional medical devices drove manufacturers to integrate upstream operations to manage costs.</li><li>Thanks to the improved gross margin, the Company’s attributable net profit in 2024 increased by 22.7% YoY to RMB192mn, with attributable net profit margin rising by 1.7 ppts.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

INT Medical’s 2024 revenue grew by 13.2% YoY to RMB852mn, 13% below our estimate, mainly due to the pressure on its CDMO business from VBP and intensified competition.The expanding provincial VBP coverage in interventional medical devices drove manufacturers to integrate upstream operations to manage costs.Thanks to the improved gross margin, the Company’s attributable net profit in 2024 increased by 22.7% YoY to RMB192mn, with attributable net profit margin rising by 1.7 ppts.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

INT Medical (1501 HK) - Solid Growth with Margin Improvement

<ul><li>INT Medical unveiled its 2023 results, with revenue up 28.5% YoY to RMB753mn, 11% below our estimate, mainly due to the expanding coverage of provincial VBP in interventional cardiovascular devices and declined surgery volumes in 2H23 due to tight industry regulations.</li><li>We estimate that VBP-related products accounted for approximately 20% of INT Medical’s total revenue.</li><li>GPM improved by 1.4 ppts to 58.2%, driven by an increasing proportion of sales from the higher-margin products. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

INT Medical unveiled its 2023 results, with revenue up 28.5% YoY to RMB753mn, 11% below our estimate, mainly due to the expanding coverage of provincial VBP in interventional cardiovascular devices and declined surgery volumes in 2H23 due to tight industry regulations.We estimate that VBP-related products accounted for approximately 20% of INT Medical’s total revenue.GPM improved by 1.4 ppts to 58.2%, driven by an increasing proportion of sales from the higher-margin products. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

INT Medical (1501 HK) - Solid Earnings Amid Challenging Business Environment

<ul><li>Kindly Medical reported 1H23 revenue growth of 50.9% YoY to RMB340mn thanks to the rapid recovery of interventional surgery demand post the COVID19 pandemic.</li><li>Blended GPM improved by 3.9 ppts to 59.0%, driven by the increasing proportion of sales from the higher-margin interventional medical devices while the GPM of the interventional medical devices improved by around 2 ppts to 65% in 1H23 (vs. 63% in 1H22).</li><li>As a result, Kindly Medical’s attributable net profit increased by 58.3% YoY to RMB81mn in 1H23.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kindly Medical reported 1H23 revenue growth of 50.9% YoY to RMB340mn thanks to the rapid recovery of interventional surgery demand post the COVID19 pandemic.Blended GPM improved by 3.9 ppts to 59.0%, driven by the increasing proportion of sales from the higher-margin interventional medical devices while the GPM of the interventional medical devices improved by around 2 ppts to 65% in 1H23 (vs. 63% in 1H22).As a result, Kindly Medical’s attributable net profit increased by 58.3% YoY to RMB81mn in 1H23.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kindly Medical (1501 HK) – Rapid Sales Recovery in 1H23

<ul><li>Kindly Medical announced FY22 earnings with revenue of RMB585.9mn (+26.1% YoY) which were 4.6% below the consensus est., mainly due to severe production constraints in 2Q22 and significantly declined number of surgeries in 4Q22 caused by COVID-19 interruptions in China.</li><li>GPM was down 2.5 ppts to 56.8% (vs. 59.3% in 2021) because of the increasing proportion of revenue from the agent business, while the GPM of interventional medical devices improved by 2.9 ppts to 65.4% in 2022 (vs. 62.5% in 2021).</li><li>Additionally, Kindly Medical expanded its team size to 1,632 employees in 2022 (vs. 1,189 in 2021), leading to a 42% YoY increase in the total cost of employees. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kindly Medical announced FY22 earnings with revenue of RMB585.9mn (+26.1% YoY) which were 4.6% below the consensus est., mainly due to severe production constraints in 2Q22 and significantly declined number of surgeries in 4Q22 caused by COVID-19 interruptions in China.GPM was down 2.5 ppts to 56.8% (vs. 59.3% in 2021) because of the increasing proportion of revenue from the agent business, while the GPM of interventional medical devices improved by 2.9 ppts to 65.4% in 2022 (vs. 62.5% in 2021).Additionally, Kindly Medical expanded its team size to 1,632 employees in 2022 (vs. 1,189 in 2021), leading to a 42% YoY increase in the total cost of employees. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kindly Medical (1501 HK) – Rich portfolios guarantee recovery in 2023E

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

Hong Kong

Shanghai INT Medical Instruments Co., Ltd. produces and sells medical instruments. The Company manufactures and sells intestinal balloon catheter, inflation device, multifunction drainage tube, and more. Shanghai INT Medical Instruments markets its products primarily throughout China with limited overseas.

Shanghai INT Medical Instruments (1501 HK)

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Shanghai INT Medical Instruments (1501 HK)

INT Medical (1501 HK) - Solid Growth with Margin Improvement

INT Medical’s 2024 revenue grew by 13.2% YoY to RMB852mn, 13% below our estimate, mainly due to the pressure on its CDMO business from VBP and...

CMB International

INT Medical (1501 HK) - Solid Earnings Amid Challenging Business Environment

INT Medical unveiled its 2023 results, with revenue up 28.5% YoY to RMB753mn, 11% below our estimate, mainly due to the expanding coverage of...

CMB International

Kindly Medical (1501 HK) – Rapid Sales Recovery in 1H23

Kindly Medical reported 1H23 revenue growth of 50.9% YoY to RMB340mn thanks to the rapid recovery of interventional surgery demand post the COVID19...

CMB International

Kindly Medical (1501 HK) – Rich portfolios guarantee recovery in 2023E

Additionally, Kindly Medical expanded its team size to 1,632 employees in 2022 (vs. 1,189 in 2021), leading to a 42% YoY increase in the total cost...

CMB International

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

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