Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

Intco Medical (英科医疗) A+H: A-Share Sell-Down a Red Flag

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.

Equity Capital Markets

Intco Medical Technology  Lt / Equity Capital Markets

Intco Medical, a leading glove manufacturer in China, is planning to raise at least USD 1bn from a Hong Kong listing. The company is a strong player in the PVC glove market but is currently a small player in the nitrile glove segment. With the strong demand of nitrile gloves brought by the COVID-19 pandemic, the demand of nitrile gloves surged multiple times. The company has set a plan to expand its nitrile glove capacity by 6 times over the next four years. Based on its current plan, its total glove production capacity (nitrile and PVC) will rank in second place by the end of 2021E.Besides expanding its glove production plants, the company has also invested in the upstream thermal plants to reduce energy costs and nitrile latex manufacturing plants to secure supply of the key raw materials, further increasing its lead in the unit costs. We think the company's A-share valuation is not demanding and note that the stock has done well since the COVID-19 pandemic last year. Having said that, the industry has the issue of peaking ASP which justifies the undemanding valuation.

Intco Medical, a leading glove manufacturer in China, is planning to raise at least USD 1bn from a Hong Kong listing. The company is a strong player in the PVC glove market but is currently a small player in the nitrile glove segment. With the strong demand of nitrile gloves brought by the COVID-19 pandemic, the demand of nitrile gloves surged multiple times. The company has set a plan to expand its nitrile glove capacity by 6 times over the next four years. Based on its current plan, its total glove production capacity (nitrile and PVC) will rank in second place by the end of 2021E.Besides expanding its glove production plants, the company has also invested in the upstream thermal plants to reduce energy costs and nitrile latex manufacturing plants to secure supply of the key raw materials, further increasing its lead in the unit costs. We think the company's A-share valuation is not demanding and note that the stock has done well since the COVID-19 pandemic last year. Having said that, the industry has the issue of peaking ASP which justifies the undemanding valuation.

Intco Medical (英科医疗) A+H: From China No.1 to Global No. 1