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

Suzhou Basecare Medical / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/suzhou-basecare-medical-corporation-limited" target="_blank" data-smartkarma-citation="entities:31087:1" rel="noopener">Suzhou Basecare Medical (MED CH)</a>  offers an innovative platform of genetic testing solutions for assisted reproduction in China. The company’s core product, PGT-A kit (pre-implantation genetic testing) received the NMPA approval in February 2020 and is the only NMPA-approved PGT product in China.</p><p>The company plans to issue 66.67m shares at an indicative IPO price range of HK$26.36-27.36 per share, and at the midpoint of the IPO price range of HK$26.86 per share, the company will raise net proceeds of HK$1.7bn (US$217m).</p><p>In our previous insight on the company’s IPO <a href="https://www.smartkarma.com/insights/suzhou-basecare-medical-ipo-first-mover-with-the-only-nmpa-approved-pgt-product-in-china" target="_blank" data-smartkarma-citation="insights:47447" rel="noopener">Suzhou Basecare Medical IPO: First Mover with the Only NMPA-Approved PGT Product in China</a>  we discussed the company’s product pipeline, their future prospects, key drivers and the company’s financials. In this insight, we examine the company’s valuation.</p>

Suzhou Basecare Medical (MED CH)  offers an innovative platform of genetic testing solutions for assisted reproduction in China. The company’s core product, PGT-A kit (pre-implantation genetic testing) received the NMPA approval in February 2020 and is the only NMPA-approved PGT product in China.The company plans to issue 66.67m shares at an indicative IPO price range of HK$26.36-27.36 per share, and at the midpoint of the IPO price range of HK$26.86 per share, the company will raise net proceeds of HK$1.7bn (US$217m).In our previous insight on the company’s IPO Suzhou Basecare Medical IPO: First Mover with the Only NMPA-Approved PGT Product in China  we discussed the company’s product pipeline, their future prospects, key drivers and the company’s financials. In this insight, we examine the company’s valuation.

Suzhou Basecare Medical IPO Valuation: Attractive Even at the Upper End of the IPO Pricing

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.

<div>
<p><a href="https://www.smartkarma.com/entities/suzhou-basecare-medical-corporation-limited" target="_blank" data-smartkarma-citation="entities:31087:1" rel="noopener">Suzhou Basecare Medical (MED CH)</a> has developed a portfolio of genetic test kits that cover all key stages of the reproductive cycle. The initial focus of the product portfolio was on helping couples address infertility problems and increase their chances of having a healthy baby through IVF (in vitro fertilization) procedures.</p>
<p>At the proposed IPO price range of HK$26.36-27.36 per share, Basecare will have a market cap of HK$7,029.3-7,296.0 ($907-941 million). At the mid-point of the IPO price range, the total net proceeds are HK$1,684.7 million ($217 million). </p>
</div><div><p>Seven cornerstone investors will subscribe for $90 million of the offer shares (39.0% of the offer shares at the mid-point of the IPO price). The cornerstone investors include OrbiMed Funds, Lake Bleu Capital, CRF Investment, Affin Hwang Asset Management, WinTwin Capital, Foresight Funds and IvyRock Asset Management.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/suzhou-basecare-medical-ipo-initiation-improving-ivf" target="_blank" data-smartkarma-citation="insights:47352" rel="noopener">Suzhou Basecare Medical IPO Initiation: Improving IVF</a>, we stated that with a large addressable market opportunity and Basecare’s early mover advantage, we believe that Basecare’s fundamentals are attractive. Overall, we would participate in the IPO due to an attractive IPO price range.</p></div></div></div>


Suzhou Basecare Medical (MED CH) has developed a portfolio of genetic test kits that cover all key stages of the reproductive cycle. The initial focus of the product portfolio was on helping couples address infertility problems and increase their chances of having a healthy baby through IVF (in vitro fertilization) procedures.
At the proposed IPO price range of HK$26.36-27.36 per share, Basecare will have a market cap of HK$7,029.3-7,296.0 ($907-941 million). At the mid-point of the IPO price range, the total net proceeds are HK$1,684.7 million ($217 million). 
Seven cornerstone investors will subscribe for $90 million of the offer shares (39.0% of the offer shares at the mid-point of the IPO price). The cornerstone investors include OrbiMed Funds, Lake Bleu Capital, CRF Investment, Affin Hwang Asset Management, WinTwin Capital, Foresight Funds and IvyRock Asset Management.In Suzhou Basecare Medical IPO Initiation: Improving IVF, we stated that with a large addressable market opportunity and Basecare’s early mover advantage, we believe that Basecare’s fundamentals are attractive. Overall, we would participate in the IPO due to an attractive IPO price range.

Suzhou Basecare Medical IPO: Valuation Insights

<p>The Chinese genetic testing solutions provider for assisted reproduction, <a href="https://www.smartkarma.com/entities/suzhou-basecare-medical-corporation-limited" target="_blank" data-smartkarma-citation="entities:31087:1" rel="noopener">Suzhou Basecare Medical (MED CH)</a>  has filed for an IPO to list its shares on the Hong Kong Stock Exchange. The company is expected to raise approximately HK$1.82bn (approx. US$235m) at an indicative IPO price range of HK$26.36-27.36 per share.</p><p>The company’s core product, PGT-A kit (pre-implantation genetic testing) received the NMPA approval in February 2020 and is the only NMPA-approved PGT product in China. In addition to the company’s core testing kit, it also has two other PGT-testing kits that are currently under development.</p><p>Third-generation IVF is relatively new in China with lower penetration rates compared to the US. Given the large population base in China alongside growing awareness and acceptance of PGT products, the demand for PGT is forecasted to grow significantly.</p>

The Chinese genetic testing solutions provider for assisted reproduction, Suzhou Basecare Medical (MED CH)  has filed for an IPO to list its shares on the Hong Kong Stock Exchange. The company is expected to raise approximately HK$1.82bn (approx. US$235m) at an indicative IPO price range of HK$26.36-27.36 per share.The company’s core product, PGT-A kit (pre-implantation genetic testing) received the NMPA approval in February 2020 and is the only NMPA-approved PGT product in China. In addition to the company’s core testing kit, it also has two other PGT-testing kits that are currently under development.Third-generation IVF is relatively new in China with lower penetration rates compared to the US. Given the large population base in China alongside growing awareness and acceptance of PGT products, the demand for PGT is forecasted to grow significantly.

Suzhou Basecare Medical IPO: First Mover with the Only NMPA-Approved PGT Product in China

APAC IPOs & Placements

Zhen Zhou, Toh

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><a href="https://www.smartkarma.com/entities/suzhou-basecare-medical-corporation-limited" target="_blank" data-smartkarma-citation="entities:31087:1" rel="noopener">Suzhou Basecare Medical (MED CH)</a>  is looking to raise about US$250m in its upcoming Hong Kong IPO. </p><p>Basecare Medical (Basecare) is a genetic testing solutions provider assisted reproduction in China. The company’s current core product, PGT-A kit, is the first and only third-generation IVF genetic test kit to be approved by the National Medical Products Administration (NMPA) in February 2020.</p>

Suzhou Basecare Medical (MED CH)  is looking to raise about US$250m in its upcoming Hong Kong IPO. Basecare Medical (Basecare) is a genetic testing solutions provider assisted reproduction in China. The company’s current core product, PGT-A kit, is the first and only third-generation IVF genetic test kit to be approved by the National Medical Products Administration (NMPA) in February 2020.

Basecare Medical (贝康医疗) Pre-IPO - Genetic Testing Leader in China

<p><a href="https://www.smartkarma.com/entities/suzhou-basecare-medical-corporation-limited" target="_blank" data-smartkarma-citation="entities:31087:1" rel="noopener">Suzhou Basecare Medical (MED CH)</a> has developed a portfolio of genetic test kits that cover all key stages of the reproductive cycle. The initial focus of the product portfolio was on helping couples address infertility problems and increase their chances of having a healthy baby through IVF (in vitro fertilization) procedures. Basecare is pre-marketing for a Hong Kong IPO to raise $250 million, according to press reports. Basecare is backed by Hillhouse Capital and OrbiMed.</p><div class="content-highlight"><p>Basecare is an early stage of development as it sold its PGT-A kits (the core product) for limited scientific research purposes prior to NMPA approval. The commercialization of the PGT-A kits started in April 2020 after receiving NMPA approval in February 2020. As the sole NMPA-approved pre-implantation genetic testing (PGT) kit on the market, Basecare will enjoy first-mover advantages in the emerging and fast-growing PGT-A kit market. The PGT-A reagent market in China is forecasted to reach RMB6,064.9 million in 2030, according to Frost &amp; Sullivan. With a large addressable market opportunity and Basecare’s early mover advantage, we believe that Basecare’s fundamentals are attractive.</p></div>

Suzhou Basecare Medical (MED CH) has developed a portfolio of genetic test kits that cover all key stages of the reproductive cycle. The initial focus of the product portfolio was on helping couples address infertility problems and increase their chances of having a healthy baby through IVF (in vitro fertilization) procedures. Basecare is pre-marketing for a Hong Kong IPO to raise $250 million, according to press reports. Basecare is backed by Hillhouse Capital and OrbiMed.Basecare is an early stage of development as it sold its PGT-A kits (the core product) for limited scientific research purposes prior to NMPA approval. The commercialization of the PGT-A kits started in April 2020 after receiving NMPA approval in February 2020. As the sole NMPA-approved pre-implantation genetic testing (PGT) kit on the market, Basecare will enjoy first-mover advantages in the emerging and fast-growing PGT-A kit market. The PGT-A reagent market in China is forecasted to reach RMB6,064.9 million in 2030, according to Frost &amp; Sullivan. With a large addressable market opportunity and Basecare’s early mover advantage, we believe that Basecare’s fundamentals are attractive.

Suzhou Basecare Medical IPO Initiation: Improving IVF

China

Suzhou Basecare Medical Corporation Limited operates as a genetic technology researching company. The Company provides a comprehensive clinical solution for reproductive health. Suzhou Basecare Medical also develops and markets innovative medical devices.

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Suzhou Basecare Medical (1862702D CH)

Suzhou Basecare Medical IPO Valuation: Attractive Even at the Upper End of the IPO Pricing

Suzhou Basecare offers an innovative platform of genetic testing solutions for assisted reproduction in China In this insight, we examine the...

Shifara Samsudeen, ACMA, CGMA

Suzhou Basecare Medical IPO: Valuation Insights

Basecare will raise net proceeds of $217 million at the mid-point of the IPO price range of HK$26.36-27.36 per share. Overall, we would participate...

Arun George

Suzhou Basecare Medical IPO: First Mover with the Only NMPA-Approved PGT Product in China

The Chinese genetic testing solutions provider for assisted reproduction, Suzhou Basecare Medical has filed for an IPO to list its shares on the...

Shifara Samsudeen, ACMA, CGMA

Basecare Medical (贝康医疗) Pre-IPO - Genetic Testing Leader in China

Suzhou Basecare Medical (MED CH) is looking to raise about US$250m in its upcoming Hong Kong IPO. Basecare Medical (Basecare) is a genetic...

Zhen Zhou, Toh

Suzhou Basecare Medical IPO Initiation: Improving IVF

Basecare is pre-marketing for an HK IPO to raise $250 million. With a large addressable market opportunity and Basecare’s early mover advantage, we...

Arun George

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