Daily Brief Health Care: Wuxi Biologics, Osstem Implant, Aier Eye Hospital Group and more

In today’s briefing:

Wuxi Biologics Placement – Lesser Discount than Recent Deals but Still Looks Good
Osstem Implant: Potential M&A Fight Between KCGI And Founder Choi
Aier Eye Hospital Group (300015.CH) – The Truth Behind the Mirage

Wuxi Biologics Placement – Lesser Discount than Recent Deals but Still Looks Good

Wuxi Biologics Holdings is looking to raise up to US$513m by selling about 1.3% of Wuxi Biologics (2269 HK).
This is the company’s 16th placement since it listed in June 2017.
In this note, we will discuss deal dynamics, past deal performance, and share the scores on our ECM framework.

The case involving KCGI (a local corporate activist private equity fund) and Osstem Implant (048260 KS) is one of the more interesting situations rising in the Korea’s M&A/corporate activism markets.
Osstem Implant is the number one dental implant company in Korea/Asia and the fourth largest player in this segment globally.
We believe Osstem Implant could outperform the market in 2023 due to improving fundamentals, cheap valuations, and a potential M&A fight between KCGI and Chairman Choi.

Aier launched new hospital acquisition plan. Obviously, Aier hopes to maintain high growth through M&A funds. However, considering its national market layout,Aier is in the final stages of aggressive M&As.
Based on our data, Aier’s endogenous growth is actually very weak. Once external M&As fail to drive high growth, Aier’s overall performance growth would decline significantly. Aier is grossly overvalued.
We expect decreasing birth rate after COVID-19. Due to the fundamental changes in the population structure, the valuation system of all assets would be destroyed – The long logic doesn’t exist.

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