Harmonicare: Still Waiting on That Baby Boom

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

New Century Healthcare Holding / Equity Capital Markets

<p>New Century Healthcare, a private equity-backed pediatric hospital operator in China, is a potential new listing on the HKEX. The company plans to raise US$129 million (HK$1 billion) through an initial public offer (IPO) this week. The deal is small and we have not seen a pre-deal report or management presentation. As a result, we will make some general comments with those caveats and refer you to Sumeet Singh's Insight <a href="https://www.smartkarma.com/insights/new-century-healthcare-ipo-the-founder-and-pe-seemed-to-be-more-focussed-on-the-unlisted-assets" target="_blank" data-smartkarma-citation="insights:8023">New Century Healthcare IPO - The Founder and PE Seemed to Be More Focussed on the Unlisted Assets</a> for additional comments using the IPO Analyzer.</p><p>We do not recommend taking the deal. In addition the Sumeet's points, the company is positioning as a “two-child policy” play that would benefit from a significant increase in China’s birth rate. The evidence to date is that this policy change’s impact has been muted. See out Insights on competitor <a href="https://www.smartkarma.com/entities/538" target="_blank" data-smartkarma-citation="entities:538:1">Harmonicare Medical Holdings (1509 HK)</a> for additional perspective on this subject.</p>

New Century Healthcare, a private equity-backed pediatric hospital operator in China, is a potential new listing on the HKEX. The company plans to raise US$129 million (HK$1 billion) through an initial public offer (IPO) this week. The deal is small and we have not seen a pre-deal report or management presentation. As a result, we will make some general comments with those caveats and refer you to Sumeet Singh's Insight New Century Healthcare IPO - The Founder and PE Seemed to Be More Focussed on the Unlisted Assets for additional comments using the IPO Analyzer.We do not recommend taking the deal. In addition the Sumeet's points, the company is positioning as a “two-child policy” play that would benefit from a significant increase in China’s birth rate. The evidence to date is that this policy change’s impact has been muted. See out Insights on competitor Harmonicare Medical Holdings (1509 HK) for additional perspective on this subject.

New Century Healthcare Holding

Is It a Baby Boom If I Can't Hear It?