Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

Jiangxi Rimag Group / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jiangxi-rimag-group-co-ltd" target="_blank" data-smartkarma-citation="entities:39800:1" rel="noopener">Jiangxi Rimag Group (JIR HK)</a>, a China-based medical imaging center operator and provider of Rimag cloud services, filed for a Hong Kong IPO.</li>
<li>
<a href="https://www.smartkarma.com/entities/jiangxi-rimag-group-co-ltd" target="_blank" data-smartkarma-citation="entities:39800:1" rel="noopener">Jiangxi Rimag Group (JIR HK)</a> was backed by Goldman Sachs, leading VC firms in Asia, Baidu Inc., JD Health, and American healthcare investment firm OrbiMed. </li>
<li>China's medical imaging industry is experiencing a remarkable transformation, driven by rapid technological advancements, evolving healthcare needs, and supportive government policies.</li>
</ul>



Jiangxi Rimag Group (JIR HK), a China-based medical imaging center operator and provider of Rimag cloud services, filed for a Hong Kong IPO.

Jiangxi Rimag Group (JIR HK) was backed by Goldman Sachs, leading VC firms in Asia, Baidu Inc., JD Health, and American healthcare investment firm OrbiMed. 
China's medical imaging industry is experiencing a remarkable transformation, driven by rapid technological advancements, evolving healthcare needs, and supportive government policies.


Jiangxi Rimag IPO Preview: Empowering The Future of Medical Imaging Services in China

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>The review period for the June rebalance ends 28 April. We expect the changes to be announced 26 May with the implementation taking place after the close on 9 June.</li>
<li>Using a 12-month minimum listing history results in no index changes. Using a 6-month minimum listing history results in two changes - we think this is what will be used.</li>
<li>The potential adds have outperformed the potential deletes but both sets of stocks have underperformed the <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR50 (STAR50 INDEX)</a> and the <a href="https://www.smartkarma.com/entities/csi-smallcap-500-index-shanghai" target="_blank" data-smartkarma-citation="entities:35347:1" rel="noopener">CSI Smallcap 500 Index - Shanghai (SH000905 INDEX)</a>. </li>
</ul>


The review period for the June rebalance ends 28 April. We expect the changes to be announced 26 May with the implementation taking place after the close on 9 June.
Using a 12-month minimum listing history results in no index changes. Using a 6-month minimum listing history results in two changes - we think this is what will be used.
The potential adds have outperformed the potential deletes but both sets of stocks have underperformed the SSE STAR50 (STAR50 INDEX) and the CSI Smallcap 500 Index - Shanghai (SH000905 INDEX). 


STAR50 Index Rebalance Preview: Changes Depend on Minimum Listing History

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The National Health Commission issued a new document, aiming to relax the approval of large medical equipment configuration, which would be a significant benefit for the industry.</li>
<li>Whether the "Me-Better" strategy of pharmaceutical enterprises is reasonable or not depends on the understanding level of disease/molecule of the followers and the basis for early clinical project establishment.</li>
<li>Unlike overseas markets, the core asset of China pharmaceutical industry isn’t innovative drugs but TCM considering policy environment.We recommend investors leave a place in portfolio to invest in TCM companies.</li>
</ul>


The National Health Commission issued a new document, aiming to relax the approval of large medical equipment configuration, which would be a significant benefit for the industry.
Whether the "Me-Better" strategy of pharmaceutical enterprises is reasonable or not depends on the understanding level of disease/molecule of the followers and the basis for early clinical project establishment.
Unlike overseas markets, the core asset of China pharmaceutical industry isn’t innovative drugs but TCM considering policy environment.We recommend investors leave a place in portfolio to invest in TCM companies.


China Healthcare Weekly (Mar24)-Medical Device New Policy,Reassess Me-Too Strategy,TCM Is Core Asset

Jiangsu Cnano Technology  Lt / Event-Driven

<ul>
<li>The review period for the June rebalance ends 30 April. We expect the changes to be announced 26 May with the implementation taking place after the close on 9 June.</li>
<li>We expect the index committee to continue using a 6-month minimum listing history resulting in two changes to the index.</li>
<li>One way turnover is estimated at 1.6% resulting in a one-way trade of CNY 1,442m. The impact on the deletions will be larger than that on the inclusions.</li>
</ul>


The review period for the June rebalance ends 30 April. We expect the changes to be announced 26 May with the implementation taking place after the close on 9 June.
We expect the index committee to continue using a 6-month minimum listing history resulting in two changes to the index.
One way turnover is estimated at 1.6% resulting in a one-way trade of CNY 1,442m. The impact on the deletions will be larger than that on the inclusions.


STAR50 Index Rebalance Preview: Two Changes in June (Possibly)

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

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.

Lu Daopei Medical Group / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lu-daopei-medical-group" target="_blank" data-smartkarma-citation="entities:36716:1" rel="noopener">Lu Daopei Medical Group (1816743D CH)</a><a href="https://www.smartkarma.com/entities/lu-daopei-medical-group-holding-limited" target="_blank" data-smartkarma-citation="entities:36709:1" rel="noopener"> </a>is looking to raise around US$400m in its upcoming Hong Kong IPO. </li>
<li>Lu DaoPei Medical Group (LDPM) is a hospital operator focusing on hematology healthcare services. As per F&amp;S, it was the largest hematology healthcare services provider in China by 2021 revenue.</li>
<li>LDPM has supported its growth through its flagship hospital. However, it is unclear whether the firm will be able to sustainably maintain profitability in the long term. </li>
</ul>



Lu Daopei Medical Group (1816743D CH) is looking to raise around US$400m in its upcoming Hong Kong IPO. 
Lu DaoPei Medical Group (LDPM) is a hospital operator focusing on hematology healthcare services. As per F&amp;S, it was the largest hematology healthcare services provider in China by 2021 revenue.
LDPM has supported its growth through its flagship hospital. However, it is unclear whether the firm will be able to sustainably maintain profitability in the long term. 


Lu DaoPei Medical Group Pre-IPO - Ramp up in Progress but Looks Promising

China

Shanghai United Imaging Healthcare Co., Ltd. develops, manufactures, and distributes medical imaging systems and equipment. The Company produces computed tomography scanners, mobile medical devices, molecular imaging instruments, magnetic resonance equipment, and others. Shanghai United Imaging Healthcare also offers equipment leasing services.

Shanghai United Imaging Health (688271 CH)

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Shanghai United Imaging Health (688271 CH)

Jiangxi Rimag IPO Preview: Empowering The Future of Medical Imaging Services in China

Jiangxi Rimag, a pioneer in the PRC third-party medical imaging industry, filed for an IPO in Hong Kong. I believe the offering will get intense...

Andrei Zakharov

STAR50 Index Rebalance Preview: Changes Depend on Minimum Listing History

There could be 2 index changes if a 6-month minimum listing history is used. The potential adds have outperformed the potential deletes. But both...

Brian Freitas

China Healthcare Weekly (Mar24)-Medical Device New Policy,Reassess Me-Too Strategy,TCM Is Core Asset

New policy to relax the approval of large medical equipment configuration is released, which brings opportunities. It's time to reassess "Me-Too"...

Xinyao (Criss) Wang

STAR50 Index Rebalance Preview: Two Changes in June (Possibly)

There could be 2 changes to the index in June with a higher impact on the deletes than on the adds. The potential adds have started to o/p the...

Brian Freitas

Lu DaoPei Medical Group Pre-IPO - Ramp up in Progress but Looks Promising

Lu Daopei Medical Group (1816743D CH) is looking to raise around US$400m in its upcoming Hong Kong IPO. LDPM has supported its growth through its...

Ethan Aw

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