HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>The mismatch between supply and demand in the postpartum center market has become apparent, coupled with consumption downgrades in high-end market, which has limited the growth potential of SAINT BELLA.</li>
<li>The gross margin of SAINT BELLA that focuses on high-end postpartum services is surprisingly lower than that of traditional general hospital business, indicating that the Company's profitability is disappointing.</li>
<li>SAINT BELLA attempts to attract capital through the story of "high-end services+overseas expansion",but its model has contradictions.The essence of IPO is “a last ditch effort” for capital to cash out.</li>
</ul>


The mismatch between supply and demand in the postpartum center market has become apparent, coupled with consumption downgrades in high-end market, which has limited the growth potential of SAINT BELLA.
The gross margin of SAINT BELLA that focuses on high-end postpartum services is surprisingly lower than that of traditional general hospital business, indicating that the Company's profitability is disappointing.
SAINT BELLA attempts to attract capital through the story of "high-end services+overseas expansion",but its model has contradictions.The essence of IPO is “a last ditch effort” for capital to cash out.


Pre-IPO Saint Bella (PHIP Updates) - Some Points Worth the Attention

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>We see 32 potential and close adds and 44 potential and close deletes for the Hang Seng Composite Index in March. Some of the stocks are close on market cap/liquidity.</li>
<li>We expect 29 stocks to be added to Southbound Stock Connect following the rebalance while 31 stocks could be deleted from the trading link and become Sell-only.</li>
<li>There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.</li>
</ul>


We see 32 potential and close adds and 44 potential and close deletes for the Hang Seng Composite Index in March. Some of the stocks are close on market cap/liquidity.
We expect 29 stocks to be added to Southbound Stock Connect following the rebalance while 31 stocks could be deleted from the trading link and become Sell-only.
There are stocks that have a very high percentage of holdings via Stock Connect and there could be some unwinding prior to the stocks becoming Sell-only.


HSCI Index Rebalance Preview and Stock Connect: Potential Changes in March 2025

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Saint Bella, a premium postpartum care service provider, filed to go public in Hong Kong. UBS and CITIC Securities are leading the offering.</li>
<li>Saint Bella operates ultra-premium postpartum centers in Asia, which are located at luxury hotels and detached villas. The company opened its first postpartum center in Hangzhou in 2017.</li>
<li>With strong multi-brand strategy and asset-light business model, Saint Bella is uniquely positioned in premium segment under Saint Bella, Bella Isla and Baby Bella brands.</li>
</ul>


Saint Bella, a premium postpartum care service provider, filed to go public in Hong Kong. UBS and CITIC Securities are leading the offering.
Saint Bella operates ultra-premium postpartum centers in Asia, which are located at luxury hotels and detached villas. The company opened its first postpartum center in Hangzhou in 2017.
With strong multi-brand strategy and asset-light business model, Saint Bella is uniquely positioned in premium segment under Saint Bella, Bella Isla and Baby Bella brands.


Saint Bella IPO: Growth Story Intact, A First-Mover Advantage in Postpartum Care Market in China

<ul>
<li>SAINT BELLA’s revenue growth fluctuated because the pandemic led to the delay in the pregnancy plan of many families and an increase in the rate of abortion or miscarriage. </li>
<li>The increasing contract liabilities indicate that short-term performance growth of SAINT BELLA is guaranteed, but the declining fertility rates in China will bring challenges to SAINT BELLA’s long-term growth momentum.</li>
<li>After Series B round financing in 2020, post-investment valuation was already about US$100 million. Valuation of SAINT BELLA should be higher than <a href="https://www.smartkarma.com/entities/aidigong-maternal-child-health-limited" target="_blank" data-smartkarma-citation="entities:6880:1" rel="noopener">Aidigong Maternal &amp; Child Health Limited (286 HK)</a>.</li>
</ul>


SAINT BELLA’s revenue growth fluctuated because the pandemic led to the delay in the pregnancy plan of many families and an increase in the rate of abortion or miscarriage. 
The increasing contract liabilities indicate that short-term performance growth of SAINT BELLA is guaranteed, but the declining fertility rates in China will bring challenges to SAINT BELLA’s long-term growth momentum.
After Series B round financing in 2020, post-investment valuation was already about US$100 million. Valuation of SAINT BELLA should be higher than Aidigong Maternal &amp; Child Health Limited (286 HK).


Pre-IPO Saint Bella - The Outlook for Future Performance Growth Is Highly Uncertain

Hong Kong

Aidigong Maternal & Child Health Limited provides mother and baby health care services. The Company offers confinement baby care, postpartum mother recovery, and other services. Aidigong Maternal & Child Health provides services in China.

Aidigong Maternal & Child Health Limited (286 HK)

Price Gauge
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Aidigong Maternal & Child Health Limited (286 HK)

Pre-IPO Saint Bella (PHIP Updates) - Some Points Worth the Attention

SAINT BELLA's high-end services face profitability challenges due to supply-demand mismatch and consumption downgrades. Investors need to be wary...

Xinyao (Criss) Wang

HSCI Index Rebalance Preview and Stock Connect: Potential Changes in March 2025

There could be 78 changes for the HSCI in March. That could result in 57 changes to the Southbound Stock Connect list and also have implications...

Brian Freitas

Saint Bella IPO: Growth Story Intact, A First-Mover Advantage in Postpartum Care Market in China

Premium postpartum care provider Saint Bella files for IPO in Hong Kong, led by UBS and CITIC Securities. The company is uniquely positioned to...

Andrei Zakharov

Pre-IPO Saint Bella - The Outlook for Future Performance Growth Is Highly Uncertain

Increasing contract liabilities ensure SAINT BELLA's short-term performance but declining fertility rate in China pose long-term challenge.We're...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Saint Bella (PHIP Updates) - Some Points Worth the Attention

​SAINT BELLA's high-end services face profitability challenges due to supply-demand mismatch and consumption downgrades. Investors need to be wary...

Xinyao (Criss) Wang

HSCI Index Rebalance Preview and Stock Connect: Potential Changes in March 2025

There could be 78 changes for the HSCI in March. That could result in 57 changes to the Southbound Stock Connect list and also have implications...

Brian Freitas

Saint Bella IPO: Growth Story Intact, A First-Mover Advantage in Postpartum Care Market in China

​Premium postpartum care provider Saint Bella files for IPO in Hong Kong, led by UBS and CITIC Securities. The company is uniquely positioned to...

Andrei Zakharov

Pre-IPO Saint Bella - The Outlook for Future Performance Growth Is Highly Uncertain

Increasing contract liabilities ensure ​SAINT BELLA's short-term performance but declining fertility rate in China pose long-term challenge.We're...

Xinyao (Criss) Wang

SAINT BELLA's high-end services face profitability challenges due to supply-demand mismatch and consumption downgrades. Investors need to be wary...

Premium postpartum care provider Saint Bella files for IPO in Hong Kong, led by UBS and CITIC Securities. The company is uniquely positioned to...

Increasing contract liabilities ensure SAINT BELLA's short-term performance but declining fertility rate in China pose long-term challenge.We're...