IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Kindstar Globalgene IPO: Valuation Insights

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Kindstar Globalgene Technology / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/kindstar-globalgene-technology-inc" target="_blank" data-smartkarma-citation="entities:32175:1" rel="noopener">Kindstar Globalgene Technology (1868874D HK)</a> is a leading independent esoteric clinical testing service provider in China. Kindstar provides full-spectrum testing services primarily to hospitals in various speciality areas, including hematology, genetic diseases and rare diseases, infectious diseases, oncology, neurology and maternity-related diseases. In 2020, Kindstar had a 4.1% revenue market share of the total esoteric testing market in China, according to Frost &amp; Sullivan. </p><p>Kindstar is set to launch an HKEx IPO to raise around $300 million, according to press reports. Kindstar’s shareholders include Morningside, Investcorp, KPCB, Mayo Clinic and CPE.</p><p>ICLs (independent clinical laboratory) such as Kindstar provide hospitals with a wide range of testing services that they are not capable of conducting in-house. China’s ICL market consists of routine and esoteric testing. The size of China’s esoteric testing market is forecasted to increase from RMB20,057.6 million in 2020 to RMB27,860.1 million in 2025, representing a CAGR of 6.8% from 2020 to 2025, according to Frost &amp; Sullivan. </p><div class="content-highlight"><p>Kindstar is well-paced to benefit from this market opportunity as it has the largest esoteric testing portfolio among all the independent esoteric testing providers in China. The business has successfully overcome the negative impact of the COVID-19 pandemic, with most of its segments displaying either a return to growth or lower revenue declines in 4Q20 in comparison to 9M20. In combination, with solid operating leverage and cash generation, we think that the Kindstar IPO is worth a look. </p></div>

Kindstar Globalgene Technology (1868874D HK) is a leading independent esoteric clinical testing service provider in China. Kindstar provides full-spectrum testing services primarily to hospitals in various speciality areas, including hematology, genetic diseases and rare diseases, infectious diseases, oncology, neurology and maternity-related diseases. In 2020, Kindstar had a 4.1% revenue market share of the total esoteric testing market in China, according to Frost &amp; Sullivan. Kindstar is set to launch an HKEx IPO to raise around $300 million, according to press reports. Kindstar’s shareholders include Morningside, Investcorp, KPCB, Mayo Clinic and CPE.ICLs (independent clinical laboratory) such as Kindstar provide hospitals with a wide range of testing services that they are not capable of conducting in-house. China’s ICL market consists of routine and esoteric testing. The size of China’s esoteric testing market is forecasted to increase from RMB20,057.6 million in 2020 to RMB27,860.1 million in 2025, representing a CAGR of 6.8% from 2020 to 2025, according to Frost &amp; Sullivan. Kindstar is well-paced to benefit from this market opportunity as it has the largest esoteric testing portfolio among all the independent esoteric testing providers in China. The business has successfully overcome the negative impact of the COVID-19 pandemic, with most of its segments displaying either a return to growth or lower revenue declines in 4Q20 in comparison to 9M20. In combination, with solid operating leverage and cash generation, we think that the Kindstar IPO is worth a look. 

Guangdong Hybribio Biotech Co (300639 CH)

Guangzhou Kingmed Diagnostics (603882 CH)

Kindstar Globalgene IPO Initiation: Testing, Testing