IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

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.

Event-Driven

Acotec Scientific Holdings / Event-Driven

<ul>
<li>A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.</li>
<li>ECM developments - <a href="https://www.smartkarma.com/entities/vinfast" target="_blank" data-smartkarma-citation="entities:36550:1" rel="noopener">VinFast (1905332D VN)</a> pre-markets a US$1bn IPO and <a href="https://www.smartkarma.com/entities/weilong-delicious-global-holdings-ltd" target="_blank" data-smartkarma-citation="entities:33378:1" rel="noopener">Weilong Delicious Global (9985 HK)</a> has a poor debut.</li>
<li>Event-Driven developments - <a href="https://www.smartkarma.com/entities/genesis-minerals-ltd" target="_blank" data-smartkarma-citation="entities:4650:1" rel="noopener">Genesis Minerals (GMD AU)</a>/<a href="https://www.smartkarma.com/entities/st-barbara-ltd" target="_blank" data-smartkarma-citation="entities:3764:1" rel="noopener">St Barbara Ltd (SBM AU)</a>, <a href="https://www.smartkarma.com/entities/norwest-energy-nl" target="_blank" data-smartkarma-citation="entities:1433:1" rel="noopener">Norwest Energy Nl (NWE AU)</a>, <a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a>, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a>, <a href="https://www.smartkarma.com/entities/toyo-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:1176:1" rel="noopener">Toyo Construction (1890 JP)</a>, O2Micro.</li>
</ul>


A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
ECM developments - VinFast (1905332D VN) pre-markets a US$1bn IPO and Weilong Delicious Global (9985 HK) has a poor debut.
Event-Driven developments - Genesis Minerals (GMD AU)/St Barbara Ltd (SBM AU), Norwest Energy Nl (NWE AU), Acotec Scientific Holdings (6669 HK), Toshiba Corp (6502 JP), Toyo Construction (1890 JP), O2Micro.


Weekly Deals Digest (18 Dec) - Acotec, Yashili, Toshiba, Toyo, Genesis, Norwest, O2Micro, VinFast

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>National Health Commission reiterated that the number of ICU beds in designated hospitals should reach 10% of total beds, but we think the expansion/construction of ICU should be treated rationally. </li>
<li>The medical demand in 2020-2022 was very abnormal. If demand returns to normal in 2023H2, the overall growth of the healthcare industry would return to natural growth.</li>
<li>Among the 53 companies listed under Chapter 18A, there’re less than 15 companies that are really seriously developing drugs/devices, which could be the fundamental reason for big differentiation of valuation.</li>
</ul>


National Health Commission reiterated that the number of ICU beds in designated hospitals should reach 10% of total beds, but we think the expansion/construction of ICU should be treated rationally. 
The medical demand in 2020-2022 was very abnormal. If demand returns to normal in 2023H2, the overall growth of the healthcare industry would return to natural growth.
Among the 53 companies listed under Chapter 18A, there’re less than 15 companies that are really seriously developing drugs/devices, which could be the fundamental reason for big differentiation of valuation.


China Healthcare Weekly (Dec.16) - ICU Expansion, Abnormal Medical Demand, Dying Chapter 18A of HKEX

Equity Bottom-Up

Acotec Scientific Holdings / Equity Bottom-Up

<ul>
<li>Boston Scientific angles for majority stake with US$523 million for <a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669HK)</a>, which is the largest acquisition of a Chinese medical device company by a MNC since 2014.</li>
<li>Completion of the Partial Offer would further strengthen Boston Scientific’s presence in China and create the potential for commercialization of Acotec products globally. It's a win-win deal for both sides.</li>
<li>Companies listed in HKEX don’t have to seek valuation within HKEX system. If they can find “new anchor points”, they’ll have higher valuation.Chapter 18A companies’ future stock prices would diverge.</li>
</ul>


Boston Scientific angles for majority stake with US$523 million for Acotec Scientific Holdings (6669HK), which is the largest acquisition of a Chinese medical device company by a MNC since 2014.
Completion of the Partial Offer would further strengthen Boston Scientific’s presence in China and create the potential for commercialization of Acotec products globally. It's a win-win deal for both sides.
Companies listed in HKEX don’t have to seek valuation within HKEX system. If they can find “new anchor points”, they’ll have higher valuation.Chapter 18A companies’ future stock prices would diverge.


Acotec Scientific Holdings (6669.HK) - Logic Behind Boston Scientific’s Partial Offer and the Impact

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a>, a Chinese medical technology company, has <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2022/1212/2022121200003.pdf" target="_blank" rel="noopener">announced</a> a Partial Offer from <a href="https://www.smartkarma.com/entities/boston-scientific-corp" target="_blank" data-smartkarma-citation="entities:11115:1" rel="noopener">Boston Scientific (BSX US)</a>.</li>
<li>The Offer Price for up to 65% of shares out is HK20/share, a 31.6% premium to last close, but below last year's IPO price of HK$23.80/share. </li>
<li>Irrevocables who intend to tender a total of up to 60.14% of shares out. This includes the CEO and the key pre-IPO investor. </li>
</ul>



Acotec Scientific Holdings (6669 HK), a Chinese medical technology company, has announced a Partial Offer from Boston Scientific (BSX US).
The Offer Price for up to 65% of shares out is HK20/share, a 31.6% premium to last close, but below last year's IPO price of HK$23.80/share. 
Irrevocables who intend to tender a total of up to 60.14% of shares out. This includes the CEO and the key pre-IPO investor. 


Acotec Scientific Holdings: Boston Scientific's Partial Offer

<ul>
<li>The peripheral vascular interventional device market in China is mainly dominated by foreign companies, but leading domestic company such as Acotec is the one to break the current market pattern.</li>
<li>With more products getting CE/FDA approval in the future, <a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a> is able to enter more overseas markets. Acotec’s globalization process will diversify the revenue stream. </li>
<li>Acotec has turned loss into profit by relying on product revenue. The Company has entered a new stage of innovation and harvest. We think Acotec has solid long term logic. </li>
</ul>


The peripheral vascular interventional device market in China is mainly dominated by foreign companies, but leading domestic company such as Acotec is the one to break the current market pattern.
With more products getting CE/FDA approval in the future, Acotec Scientific Holdings (6669 HK) is able to enter more overseas markets. Acotec’s globalization process will diversify the revenue stream. 
Acotec has turned loss into profit by relying on product revenue. The Company has entered a new stage of innovation and harvest. We think Acotec has solid long term logic. 


Acotec Scientific Holdings (6669.HK) - A Game Changer with Solid Long-Term Logic

China

Acotec Scientific Holdings Limited develops medical equipment. The Company develops, manufactures and markets thrombus aspiration catheter, drug-coated ballon, and other products. Acotec Scientific Holdings markets its products throughout China.

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Acotec Scientific Holdings (6669 HK)

Weekly Deals Digest (18 Dec) - Acotec, Yashili, Toshiba, Toyo, Genesis, Norwest, O2Micro, VinFast

Last week, notable developments occurred in Event-Driven (Elmo, Genesis/St Barbara, Nitro, Norwest, Tyro, Acotec, Yashili, Toshiba, Toyo, DTAC...

Arun George

China Healthcare Weekly (Dec.16) - ICU Expansion, Abnormal Medical Demand, Dying Chapter 18A of HKEX

Investor should treat ICU expansion rationally due to staff shortage. Demand during COVID was abnormal, which may have natural growth in 23H2. IPO...

Xinyao (Criss) Wang