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

Shanghai HeartCare Medical 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

Zylox-Tonbridge Medical Technology / Equity Capital Markets

Zylox-Tonbridge Medical Technology (2190 HK)

<p><a href="https://www.smartkarma.com/entities/zylox-tonbridge-medical-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:32974:1" rel="noopener">Zylox-Tonbridge Medical Technology (2190 HK)</a> is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). </p><p>Zylox-Tonbridge has launched an HKEx IPO to raise net proceeds of HK$2,314.0 million ($300 million) at the mid-point of the IPO price range of HK$39.80-42.70 per share. Twelve cornerstone investors will subscribe for $145 million worth of the offer shares (45.47% of the offer shares at the mid-point of the IPO price range). The cornerstone investors include new investors such as Hillhouse, Fidelity International, Boyu Capital, Snow Lake Fund, Athos Capital, Sage Partners and IvyRock. </p><p>The neuro-interventional medical device market in China is expected to grow from RMB4.9 billion in 2019 to RMB37.1 billion in 2030 at a CAGR of 20.2% from 2019 to 2030, according to Frost &amp; Sullivan. The growth is underpinned by the increasing prevalence and treatment rate, the substitution of imported devices by domestic device, increasing patient affordability, improving accessibility of treatments and favourable policy support.</p><div class="content-highlight"><p>Zylox-Tonbridge is on the cusp of delivering on this market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. Overall, we believe that Zylox-Tonbridge’s product portfolio is attractive. We will discuss the valuation in the next note. </p></div>

Zylox-Tonbridge Medical Technology (2190 HK) is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). Zylox-Tonbridge has launched an HKEx IPO to raise net proceeds of HK$2,314.0 million ($300 million) at the mid-point of the IPO price range of HK$39.80-42.70 per share. Twelve cornerstone investors will subscribe for $145 million worth of the offer shares (45.47% of the offer shares at the mid-point of the IPO price range). The cornerstone investors include new investors such as Hillhouse, Fidelity International, Boyu Capital, Snow Lake Fund, Athos Capital, Sage Partners and IvyRock. The neuro-interventional medical device market in China is expected to grow from RMB4.9 billion in 2019 to RMB37.1 billion in 2030 at a CAGR of 20.2% from 2019 to 2030, according to Frost &amp; Sullivan. The growth is underpinned by the increasing prevalence and treatment rate, the substitution of imported devices by domestic device, increasing patient affordability, improving accessibility of treatments and favourable policy support.Zylox-Tonbridge is on the cusp of delivering on this market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. Overall, we believe that Zylox-Tonbridge’s product portfolio is attractive. We will discuss the valuation in the next note. 

Shanghai HeartCare Medical Technology (6609 HK)

Zylox-Tonbridge Medical Technology

Zylox-Tonbridge IPO: Living On