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

Kindstar Globalgene (康圣环球) Pre-IPO: Financial and Valuation Update

Kindstar Globalgene (康圣环球) IPO: Fairly Valued for a Questionable Moat

Kindstar (康圣环球) IPO Trading: Pattern of Demand Divergence

Kindstar (康圣环球) Pre-IPO: Issues with Scalability

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

Kindstar Globalgene Technology / Equity Capital Markets

<p>Kindstar is a leading esoteric test service provider in China. The company has a dominant market in the independent hematological test segment and is looking to raise up to USD 200m in  H-share listing in Hong Kong. </p><p>In our previous note, we discussed Kindstar's business segment. The company has a strong footprint in the hematology test segment with the majority of its revenue is derived from the hematological tests, particularly for lymphoma and myeloma related diseases. The company is relatively weak in other areas such as oncology and maternity related businesses. We think the company can continue to grow the existing pie of hematological tests for which the public hospitals do not want to invest in the test equipment and processes but it will be challenging for the company to expand the business into the area where public hospitals are willing to invest in. We think the company has a decent line-up of investors but there is still a lack of international healthcare investors. The management's experience is also decent.</p><p>In this note, we compare the company's key financial metrics with other leading listed ICL. We also discuss the company's pre-IPO valuation in the context of its growth potential and concerns we raised in our previous note.</p><h2>Our previous coverage on Kindstar</h2><ul><li><a href="https://www.smartkarma.com/insights/kindstar-pre-ipo-issues-with-scalability" target="_blank" rel="noopener">Kindstar (康圣环球) Pre-IPO: Issues with Scalability</a></li></ul>

Kindstar is a leading esoteric test service provider in China. The company has a dominant market in the independent hematological test segment and is looking to raise up to USD 200m in  H-share listing in Hong Kong. In our previous note, we discussed Kindstar's business segment. The company has a strong footprint in the hematology test segment with the majority of its revenue is derived from the hematological tests, particularly for lymphoma and myeloma related diseases. The company is relatively weak in other areas such as oncology and maternity related businesses. We think the company can continue to grow the existing pie of hematological tests for which the public hospitals do not want to invest in the test equipment and processes but it will be challenging for the company to expand the business into the area where public hospitals are willing to invest in. We think the company has a decent line-up of investors but there is still a lack of international healthcare investors. The management's experience is also decent.In this note, we compare the company's key financial metrics with other leading listed ICL. We also discuss the company's pre-IPO valuation in the context of its growth potential and concerns we raised in our previous note.Our previous coverage on KindstarKindstar (康圣环球) Pre-IPO: Issues with Scalability