HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Tinavi Medical Technologies / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/tinavi-medical-technologies-co-ltd" target="_blank" data-smartkarma-citation="entities:33453:1" rel="noopener">Tinavi Medical Technologies (688277 CH)</a>, currently the only and first public domestic surgical robot company, was listed on the SSE STAR Market in July 2020. After the IPO, the stock price was as high as RMB141.6/share, but now it has fallen to RMB41/share on June 8, 2021, down over 245%. In fact, the operating performance shed some light. From 2017 to 2020, Tinavi sold 16, 20, 41 and 30 robots respectively, with total sales of 107 robots in four years, and achieved revenue of RMB73 million, RMB127 million, RMB230 million and RMB136 million, and corresponding net profit/loss of RMB21 million, RMB-366,000, RMB-34 million and RMB-54 million, respectively from 2017 to 2020. This article mainly analyzed the potential reasons for poor performance, the concerns on business model and the comparison with peers.

Tinavi Medical Technologies (688277 CH), currently the only and first public domestic surgical robot company, was listed on the SSE STAR Market in July 2020. After the IPO, the stock price was as high as RMB141.6/share, but now it has fallen to RMB41/share on June 8, 2021, down over 245%. In fact, the operating performance shed some light. From 2017 to 2020, Tinavi sold 16, 20, 41 and 30 robots respectively, with total sales of 107 robots in four years, and achieved revenue of RMB73 million, RMB127 million, RMB230 million and RMB136 million, and corresponding net profit/loss of RMB21 million, RMB-366,000, RMB-34 million and RMB-54 million, respectively from 2017 to 2020. This article mainly analyzed the potential reasons for poor performance, the concerns on business model and the comparison with peers.

Tinavi Medical Technologies (688277.CH) - Time Is Running Out for Tinavi

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

Shanghai HeartCare Medical Technology / Equity Capital Markets

<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 China-based neuro-interventional medical device manufacturer with a product portfolio that spans the treatment and prevention of ischemic stroke to the treatment of haemorrhagic stroke. HeartCare’s product portfolio consists of a total of 23 commercialised products and product candidates, including four ischemic stroke treatment devices with NMPA approval.HearCare’s shareholders include <a href="https://www.smartkarma.com/entities/shanghai-fosun-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:8045:1" rel="noopener">Shanghai Fosun Pharmaceutical (Group) (2196 HK)</a>, Temasek, Lake Bleu Capital, <a href="https://www.smartkarma.com/entities/china-international-capital-corporation-ltd" target="_blank" data-smartkarma-citation="entities:1071:1" rel="noopener">China International Capital Corporation (3908 HK)</a> and Canada Pension Plan Investment Board (through a special purpose vehicle). HeartCare is set to pre-market an HKEx IPO to raise $300 million this quarter, according to press reports. <div class="content-highlight">HeartCare only started to generate revenue in 1Q20 through the commercialisation of two products (SupSelek and ExtraFlex). Captor thrombectomy device, a core product, was commercialised in December 2020 and Fullblock balloon guiding catheter received NMPA approval in December 2020. HeartCare aims to commercialise nine currently late-stage product candidates in 2021 and ten currently earlier-stage product candidates between 2022 and 2025. With a strong near-term commercialisation pipeline, HeartCare has shifted from a concept to a revenue-generating stock. Overall, we believe that HeartCare’s product portfolio is attractive. </div>

Shanghai HeartCare Medical Technology (HMT HK) is a China-based neuro-interventional medical device manufacturer with a product portfolio that spans the treatment and prevention of ischemic stroke to the treatment of haemorrhagic stroke. HeartCare’s product portfolio consists of a total of 23 commercialised products and product candidates, including four ischemic stroke treatment devices with NMPA approval.HearCare’s shareholders include Shanghai Fosun Pharmaceutical (Group) (2196 HK), Temasek, Lake Bleu Capital, China International Capital Corporation (3908 HK) and Canada Pension Plan Investment Board (through a special purpose vehicle). HeartCare is set to pre-market an HKEx IPO to raise $300 million this quarter, according to press reports. HeartCare only started to generate revenue in 1Q20 through the commercialisation of two products (SupSelek and ExtraFlex). Captor thrombectomy device, a core product, was commercialised in December 2020 and Fullblock balloon guiding catheter received NMPA approval in December 2020. HeartCare aims to commercialise nine currently late-stage product candidates in 2021 and ten currently earlier-stage product candidates between 2022 and 2025. With a strong near-term commercialisation pipeline, HeartCare has shifted from a concept to a revenue-generating stock. Overall, we believe that HeartCare’s product portfolio is attractive. 

Shanghai HeartCare Medical IPO Initiation: Surviving Strokes

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

This is the largest healthcare sector M&amp;A Deal announced so far in 2020. Earlier this year, in March, <a href="https://www.smartkarma.com/entities/thermo-fisher-scientific-inc" target="_blank" data-smartkarma-citation="entities:7375:1" rel="noopener">Thermo Fisher Scientific Inc (TMO US)</a> agreed to acquire <a href="https://www.smartkarma.com/entities/qiagen-nv" target="_blank" data-smartkarma-citation="entities:26865:1" rel="noopener">QIAGEN NV (QIA GY)</a> in a deal that originally valued the company at an EV of ~US$11bn. Last month, the Offer <a href="https://corporate.qiagen.com/newsroom/press-releases/2020/20200716_amended_offer" target="_blank" rel="noopener">was bumped</a> from the original offer price of €39.00 to €43.00 and the minimum acceptance threshold was reduced from 75% to 66.67%. Although the COVID-19 pandemic resulted in a slowdown in Deals in the early part of the year, M&amp;A activity in the medical devices space seems to be picking up again.More recently, on 2nd August 2020, Germany-based medtech company <a href="https://www.smartkarma.com/entities/siemens-healthineers-ag" target="_blank" data-smartkarma-citation="entities:29221:1" rel="noopener">Siemens Healthineers AG (SHL GR)</a> announced they would acquire US-based medical-devices maker <a href="https://www.smartkarma.com/entities/varian-medical-systems-inc" target="_blank" data-smartkarma-citation="entities:7308:1" rel="noopener">Varian Medical Systems (VAR US)</a> in an all-cash deal that valued the company at ~US$16.4bn. The Deal is conditional on the receipt of Varian shareholder approval and regulatory approvals. The Offer Price is $177.50 per share and the transaction is expected to close in the first half of calendar year 2021. As always, there is more below the fold.

This is the largest healthcare sector M&amp;A Deal announced so far in 2020. Earlier this year, in March, Thermo Fisher Scientific Inc (TMO US) agreed to acquire QIAGEN NV (QIA GY) in a deal that originally valued the company at an EV of ~US$11bn. Last month, the Offer was bumped from the original offer price of €39.00 to €43.00 and the minimum acceptance threshold was reduced from 75% to 66.67%. Although the COVID-19 pandemic resulted in a slowdown in Deals in the early part of the year, M&amp;A activity in the medical devices space seems to be picking up again.More recently, on 2nd August 2020, Germany-based medtech company Siemens Healthineers AG (SHL GR) announced they would acquire US-based medical-devices maker Varian Medical Systems (VAR US) in an all-cash deal that valued the company at ~US$16.4bn. The Deal is conditional on the receipt of Varian shareholder approval and regulatory approvals. The Offer Price is $177.50 per share and the transaction is expected to close in the first half of calendar year 2021. As always, there is more below the fold. 

Varian-Siemens Deal: DAX Promotion on the Cards for the Acquirer

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Zinus is the #1 player in the online mattress sales in the U.S.  On 11 March, it was reported that GIC acquired 0.72 million of Zinus shares, raising its stake to 5.1% of total shares outstanding. The biggest reason why GIC is likely to have purchased Zinus is that despite the horrible business conditions caused by the COVID-19 pandemic, they probably believe that this is a solid investment.As for Zinus, this is where its investment merits could come into play as more consumers in the U.S. purchase their mattresses and beds online rather than physically going to retail stores to purchase them. This trend was originally in place prior to the outbreak of COVID-19 and this trend has certainly accelerated in the past several weeks. As we go through the various media accounts of COVID-19 there have been numerous accounts of the potential BED SHORTAGE in the hospitals that could occur in the U.S. in the next few months due to the coronavirus. We provide a list of the top 10 companies in the U.S. hospital beds market. Many of these top 10 players are private companies or are diversified health care companies.

Zinus is the #1 player in the online mattress sales in the U.S.  On 11 March, it was reported that GIC acquired 0.72 million of Zinus shares, raising its stake to 5.1% of total shares outstanding. The biggest reason why GIC is likely to have purchased Zinus is that despite the horrible business conditions caused by the COVID-19 pandemic, they probably believe that this is a solid investment.As for Zinus, this is where its investment merits could come into play as more consumers in the U.S. purchase their mattresses and beds online rather than physically going to retail stores to purchase them. This trend was originally in place prior to the outbreak of COVID-19 and this trend has certainly accelerated in the past several weeks. As we go through the various media accounts of COVID-19 there have been numerous accounts of the potential BED SHORTAGE in the hospitals that could occur in the U.S. in the next few months due to the coronavirus. We provide a list of the top 10 companies in the U.S. hospital beds market. Many of these top 10 players are private companies or are diversified health care companies. 

The Potential Bed Shortage in the U.S. Hospitals & Why Did GIC Buy a Big Stake in Zinus?

Healthcare Specialist

Winnie Wong

<a href="https://www.smartkarma.com/entities/16961" target="_blank" data-smartkarma-citation="entities:16961:1">DorsaVi Ltd (DVL AU)</a> has today hosted a conference call and released a business update and cash flow report for the period ended 30  June 2018.  DVL has underperformed recently but it is expected that the launch of its new product, the growth of its annuity revenue towards a SaaS model, new sales initiatives and capabilities as well as the relocation of its CEO to its key market in the United States, will provide catalysts for future earnings growth.Revenue for FY18 was $3.43 million, which was…

DorsaVi Ltd (DVL AU) has today hosted a conference call and released a business update and cash flow report for the period ended 30  June 2018.  DVL has underperformed recently but it is expected that the launch of its new product, the growth of its annuity revenue towards a SaaS model, new sales initiatives and capabilities as well as the relocation of its CEO to its key market in the United States, will provide catalysts for future earnings growth.Revenue for FY18 was $3.43 million, which was…

Weaker 4Q, FY18 Sales Impacted by Delay in Product Launch

United States

Stryker Corporation develops, manufactures, and markets specialty surgical and medical products. The Company's products include implants, biologics, surgical, neurologic, ear, nose and throat and interventional pain equipment, endoscopic, surgical navigation, communications and digital imaging systems, as well as patient handling and emergency medical equipment.

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Stryker (SYK UN)

Tinavi Medical Technologies (688277.CH) - Time Is Running Out for Tinavi

Before the upcoming pre-IPO MicroPort MedBot, let's discuss the business model of the only and first public domestic surgical robot...

Xinyao (Criss) Wang

Shanghai HeartCare Medical IPO Initiation: Surviving Strokes

HeartCare is set to pre-market an HKEx IPO to raise $300 million this quarter, according to press reports. Overall, we believe that HeartCare’s...

Arun George

Varian-Siemens Deal: DAX Promotion on the Cards for the Acquirer

This is the largest healthcare sector M&A Deal announced so far in 2020. Earlier this year, in March, Thermo Fisher Scientific Inc (TMO US)...

Janaghan Jeyakumar, CFA

The Potential Bed Shortage in the U.S. Hospitals & Why Did GIC Buy a Big Stake in Zinus?

Zinus is the #1 player in the online mattress sales in the U.S. On 11 March, it was reported that GIC acquired 0.72 million of Zinus shares,...

Douglas Kim

Weaker 4Q, FY18 Sales Impacted by Delay in Product Launch

DorsaVi Ltd (DVL AU) has today hosted a conference call and released a business update and cash flow report for the period ended 30 June 2018. ...

Winnie Wong

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