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

New Horizon Health IPO: Valuation Insights

New Horizon Health IPO: Poised for Growth

New Horizon Health IPO Initiation: Screening for Cancer

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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

New Horizon Health  / Equity Capital Markets

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<div><p><a href="https://www.smartkarma.com/entities/new-horizon-health-limited" target="_blank" data-smartkarma-citation="entities:31039:1" rel="noopener">New Horizon Health (6606 HK)</a> is a leading player in China’s colorectal cancer screening market. It has two self-developed cancer screening tests - Pupu Tube and ColoClear. New Horizon will commence trading on Thursday, 18 February. New Horizon priced its IPO at HK$26.66 and <a href="http://www.aastocks.com/en/stocks/news/aafn-con/NOW.1076602/ipo-news" target="_blank" rel="noopener">opened 1.2x higher</a> at HK$58.40 in the grey market and last stood at HK$79.</p></div>
<div><p>In <a href="https://www.smartkarma.com/insights/new-horizon-health-ipo-initiation-screening-for-cancer" target="_blank" data-smartkarma-citation="insights:46909" rel="noopener">New Horizon Health IPO Initiation: Screening for Cancer</a>, we stated that New Horizon is a play on the rapid growth of the cancer screening market in China, particularly the colorectal cancer screening market. We concluded that that New Horizon has the right ingredients to capitalise on this market opportunity.  In <a href="https://www.smartkarma.com/insights/new-horizon-health-ipo-poised-for-growth" target="_blank" data-smartkarma-citation="insights:47722" rel="noopener">New Horizon Health IPO: Poised for Growth</a>, we stated that the PHIP which disclose the 9M20 results and the all-important NMPA approval for ColoClear IVD reinforce our view that New Horizon has attractive fundamentals. In <a href="https://www.smartkarma.com/insights/new-horizon-health-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:47808" rel="noopener">New Horizon Health IPO: Valuation Insights</a>, we noted that the IPO price range is attractive.</p></div>
</div><div><div><div class="content-highlight"><p>Updating for the final IPO net raise, our base-case DCF derived price target of HK$28.07 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price is attractive but the grey market price is fully priced. </p></div></div></div>


New Horizon Health (6606 HK) is a leading player in China’s colorectal cancer screening market. It has two self-developed cancer screening tests - Pupu Tube and ColoClear. New Horizon will commence trading on Thursday, 18 February. New Horizon priced its IPO at HK$26.66 and opened 1.2x higher at HK$58.40 in the grey market and last stood at HK$79.
In New Horizon Health IPO Initiation: Screening for Cancer, we stated that New Horizon is a play on the rapid growth of the cancer screening market in China, particularly the colorectal cancer screening market. We concluded that that New Horizon has the right ingredients to capitalise on this market opportunity.  In New Horizon Health IPO: Poised for Growth, we stated that the PHIP which disclose the 9M20 results and the all-important NMPA approval for ColoClear IVD reinforce our view that New Horizon has attractive fundamentals. In New Horizon Health IPO: Valuation Insights, we noted that the IPO price range is attractive.
Updating for the final IPO net raise, our base-case DCF derived price target of HK$28.07 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price is attractive but the grey market price is fully priced. 

New Horizon Health

New Horizon Health IPO: Trading Debut