In today’s briefing:
- Huitongda IPO – Valuation
- MicroPort NeuroTech IPO: Impressive Product Portfolio Offsets Profitability Concerns
Huitongda IPO – Valuation
- With churn rates as high as 50% and wholesale customers declining by 27.7% in 9M21, we are not particularly interested in Huitongda (9878 HK) over long term.
- The valuation looks cheap compared to peers on the surface, but when compared after considering Huitongda’s 1P exposure its at a significant premium to peers.
- Given that the market takes time to pick up similar mispricing situations, we think its advisable to wait and see where Huitongda opens, before arranging a short position.
MicroPort NeuroTech IPO: Impressive Product Portfolio Offsets Profitability Concerns
- MicroPort is the largest Chinese neuro-interventional medical device company and has filed for an IPO on the Hong Kong Stock Exchange. Its Portfolio consists of 30 commercialised products and candidates.
- Although struggling with margins, the company has an impressive product portfolio with a majority of them having strong competitive advantages.
- As most of the products are poised for growth, we are largely positive on the company.
Before it’s here, it’s on Smartkarma
