One Patient, One Room, One Physician - One Baby, One Nurse - but not all black and white

Harmonicare: Still Waiting on That Baby Boom

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

Harmonicare Medical / Equity Capital Markets

<p>Harmonicare Medical Holdings operates 11 private hospitals that specialize in obstetrics and gynecology services (OB/GYN.) The company is a pure-play on growing demand for high-end medical services tied to births. The growth story for the next 18 months is simple: filling existing capacity in an under-served market. The proposed valuation range of 21-24x 2016E EPS ( price range of HKD 6.80 - 7.55) is in line with Phoenix Healthcare (1515 HK) at the top of the range. Investors should fully understand the risks associated with 2017's hospital openings. We like the deal given the reasonable valuation and clean growth story through 2016.</p>

Harmonicare Medical Holdings operates 11 private hospitals that specialize in obstetrics and gynecology services (OB/GYN.) The company is a pure-play on growing demand for high-end medical services tied to births. The growth story for the next 18 months is simple: filling existing capacity in an under-served market. The proposed valuation range of 21-24x 2016E EPS ( price range of HKD 6.80 - 7.55) is in line with Phoenix Healthcare (1515 HK) at the top of the range. Investors should fully understand the risks associated with 2017's hospital openings. We like the deal given the reasonable valuation and clean growth story through 2016.

Harmonicare IPO An Attractive Play on China Women's Health