HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

OrbusNeich Medical Group Holdings / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/orbusneich-medical-group-holdings-limited" target="_blank" data-smartkarma-citation="entities:34918:1" rel="noopener">OrbusNeich Medical Group (NEICHZ HK)</a> has a rich pipeline with a leadership position in the PCI balloon markets.</li>
<li>Its global business layout would also help the Company “hedge” the negative domestic policy impact or regulation changes.</li>
<li>However, the fierce competition, market pattern, industry characteristics, centralized procurement and other concerns should not be neglected.</li>
</ul>



OrbusNeich Medical Group (NEICHZ HK) has a rich pipeline with a leadership position in the PCI balloon markets.
Its global business layout would also help the Company “hedge” the negative domestic policy impact or regulation changes.
However, the fierce competition, market pattern, industry characteristics, centralized procurement and other concerns should not be neglected.


Pre-IPO OrbusNeich Medical Group - The Industry, the Business and the Concerns

HeMo Bioengineering / Equity Capital Markets

<ul>
<li>It is worth rejoicing that <a href="https://www.smartkarma.com/entities/hemo-bioengineering-limited" target="_blank" data-smartkarma-citation="entities:34169:1" rel="noopener">HeMo Bioengineering (HMB HK)</a> has entered commercialization stage, but some of the key products are in-licensed from other companies, not self-developed.</li>
<li>In front of fierce competition and policy impact, how to establish its high moat in R&amp;D, innovation and commercialization capability would be the key factors to support long-term development.</li>
<li>Our view is that opportunities coexist with challenges, and investors should also pay attention to the market sentiment towards new IPOs at that time.</li>
</ul>


It is worth rejoicing that HeMo Bioengineering (HMB HK) has entered commercialization stage, but some of the key products are in-licensed from other companies, not self-developed.
In front of fierce competition and policy impact, how to establish its high moat in R&amp;D, innovation and commercialization capability would be the key factors to support long-term development.
Our view is that opportunities coexist with challenges, and investors should also pay attention to the market sentiment towards new IPOs at that time.


Pre-IPO HeMo Bioengineering - Insights on Industry, Business and Concerns

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

LG Energy Solution / Equity Capital Markets

<ul>
<li>2021 marked our sixth year covering Equity Capital Markets (ECM) in Asia Pacific. </li>
<li>Most markets were in top gear on the ECM front and we ended the year covering the highest number of IPOs and the second highest number of placements since inception.</li>
<li>For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.</li>
</ul>


2021 marked our sixth year covering Equity Capital Markets (ECM) in Asia Pacific. 
Most markets were in top gear on the ECM front and we ended the year covering the highest number of IPOs and the second highest number of placements since inception.
For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific, including China ADRs.


Aequitas 2021 IPOs and Placements Performance Review - Busiest Year on Record

Equity Bottom-Up

Shanghai MicroPort Endovascula / Equity Bottom-Up

<ul>
<li>Although Endovastec has leading position in aortic products, the growth space of this field in China is relatively limited and is not enough to support the long-term development of Endovastec.</li>
<li>The lack of revolutionary blockbuster product/candidate with global pricing power as well as the current weak international business layout are also the concerns.</li>
<li>Our view is that <a href="https://www.smartkarma.com/entities/shanghai-microport-endovas-a" target="_blank" data-smartkarma-citation="entities:30310:1" rel="noopener">Shanghai Microport Endovascular MedTech (688016 CH)</a> (Endovastec) is a good company, but it is not as attractive as <a href="https://www.smartkarma.com/entities/lifetech-scientific-corp" target="_blank" data-smartkarma-citation="entities:13181:1" rel="noopener">Lifetech Scientific (1302 HK)</a> at the current stage.</li>
</ul>


Although Endovastec has leading position in aortic products, the growth space of this field in China is relatively limited and is not enough to support the long-term development of Endovastec.
The lack of revolutionary blockbuster product/candidate with global pricing power as well as the current weak international business layout are also the concerns.
Our view is that Shanghai Microport Endovascular MedTech (688016 CH) (Endovastec) is a good company, but it is not as attractive as Lifetech Scientific (1302 HK) at the current stage.


Shanghai Microport Endovascular MedTech (688016.CH) - Not as Attractive as Lifetech

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Broncus raised HKD 1,552 million (USD 199m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, September 23rd.
In our previous note, we discussed that the company's core product, InterVapor, is a minimally invasive surgery that uses heated water vapor to treat the chronic obstructive pulmonary disease (COPD). In addition to the COPD indication, the company plans to further develop the product for the treatment of lung cancer. Another core product, RF-II uses radio frequency to treat lung cancer. Besides InterVapor and RF-II, the company also has a commercialized lung navigation system which has a leading market share in China. However, we believe the market for the lung navigation system is still in the early stage of development in China and hence the small market size.  We think the company has a strong pre-IPO investor line-up with backing from the founder of VenusMedtech and its management team is experienced. We also provided our thoughts on valuation of Broncus.
In this note, we look at the updates since our last note. We re-iterate our view that the company is fairly valued at the top end and will stay away from the company.

Broncus raised HKD 1,552 million (USD 199m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, September 23rd.
In our previous note, we discussed that the company's core product, InterVapor, is a minimally invasive surgery that uses heated water vapor to treat the chronic obstructive pulmonary disease (COPD). In addition to the COPD indication, the company plans to further develop the product for the treatment of lung cancer. Another core product, RF-II uses radio frequency to treat lung cancer. Besides InterVapor and RF-II, the company also has a commercialized lung navigation system which has a leading market share in China. However, we believe the market for the lung navigation system is still in the early stage of development in China and hence the small market size.  We think the company has a strong pre-IPO investor line-up with backing from the founder of VenusMedtech and its management team is experienced. We also provided our thoughts on valuation of Broncus.
In this note, we look at the updates since our last note. We re-iterate our view that the company is fairly valued at the top end and will stay away from the company.

Broncus (堃博医疗) IPO Trading: Chilled for a Reason but Mind the Share Concentration

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)

Pre-IPO OrbusNeich Medical Group - The Industry, the Business and the Concerns

The rich pipeline and large global business will help OrbusNeich “hedge” negative domestic policy impact. But fierce competition, slow progress in...

Xinyao (Criss) Wang

Pre-IPO HeMo Bioengineering - Insights on Industry, Business and Concerns

We analyzed the industry characteristics, the business and competitive landscape of HeMo. The centralized procurement, commercialization...

Xinyao (Criss) Wang

Aequitas 2021 IPOs and Placements Performance Review - Busiest Year on Record

2021 marked our sixth year of Asia ECM coverage. Most markets were in top gear on the ECM front and we ended the year covering the highest number...

Sumeet Singh

Shanghai Microport Endovascular MedTech (688016.CH) - Not as Attractive as Lifetech

This insight analyzed Endovastec about the industry characteristics of aortic and peripheral products, the business layout, and the concerns on...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO OrbusNeich Medical Group - The Industry, the Business and the Concerns

The rich pipeline and large global business will help OrbusNeich “hedge” negative domestic policy impact. But fierce competition, slow progress in...

Xinyao (Criss) Wang

Pre-IPO HeMo Bioengineering - Insights on Industry, Business and Concerns

We analyzed the industry characteristics, the business and competitive landscape of HeMo. The centralized procurement, commercialization...

Xinyao (Criss) Wang

Aequitas 2021 IPOs and Placements Performance Review - Busiest Year on Record

2021 marked our sixth year of Asia ECM coverage. Most markets were in top gear on the ECM front and we ended the year covering the highest number...

Sumeet Singh

Shanghai Microport Endovascular MedTech (688016.CH) - Not as Attractive as Lifetech

This insight analyzed Endovastec about the industry characteristics of aortic and peripheral products, the business layout, and the concerns on...

Xinyao (Criss) Wang

Broncus (堃博医疗) IPO Trading: Chilled for a Reason but Mind the Share Concentration

We look at the updates since our last note for Broncus IPO. We re-iterate our view that the company is fairly valued at the top end and will stay...

Ke Yan, CFA, FRM