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.

Equity Capital Markets

Kindstar Globalgene Technology / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/kindstar-globalgene-technology-inc" target="_blank" data-smartkarma-citation="entities:32175:1" rel="noopener">Kindstar Globalgene Technology (1868874D HK)</a> is a leading independent esoteric clinical testing service provider in China. Kindstar provides full-spectrum testing services primarily to hospitals in various speciality areas, including hematology, genetic diseases and rare diseases, infectious diseases, oncology, neurology and maternity-related diseases. In 2020, Kindstar had a 4.1% revenue market share of the total esoteric testing market in China, according to Frost &amp; Sullivan. Kindstar is set to launch an HKEx IPO to raise around $300 million, according to press reports. Kindstar’s shareholders include Morningside, Investcorp, KPCB, Mayo Clinic and CPE.ICLs (independent clinical laboratory) such as Kindstar provide hospitals with a wide range of testing services that they are not capable of conducting in-house. China’s ICL market consists of routine and esoteric testing. The size of China’s esoteric testing market is forecasted to increase from RMB20,057.6 million in 2020 to RMB27,860.1 million in 2025, representing a CAGR of 6.8% from 2020 to 2025, according to Frost &amp; Sullivan. <div class="content-highlight">Kindstar is well-paced to benefit from this market opportunity as it has the largest esoteric testing portfolio among all the independent esoteric testing providers in China. The business has successfully overcome the negative impact of the COVID-19 pandemic, with most of its segments displaying either a return to growth or lower revenue declines in 4Q20 in comparison to 9M20. In combination, with solid operating leverage and cash generation, we think that the Kindstar IPO is worth a look. </div>

Kindstar Globalgene Technology (1868874D HK) is a leading independent esoteric clinical testing service provider in China. Kindstar provides full-spectrum testing services primarily to hospitals in various speciality areas, including hematology, genetic diseases and rare diseases, infectious diseases, oncology, neurology and maternity-related diseases. In 2020, Kindstar had a 4.1% revenue market share of the total esoteric testing market in China, according to Frost &amp; Sullivan. Kindstar is set to launch an HKEx IPO to raise around $300 million, according to press reports. Kindstar’s shareholders include Morningside, Investcorp, KPCB, Mayo Clinic and CPE.ICLs (independent clinical laboratory) such as Kindstar provide hospitals with a wide range of testing services that they are not capable of conducting in-house. China’s ICL market consists of routine and esoteric testing. The size of China’s esoteric testing market is forecasted to increase from RMB20,057.6 million in 2020 to RMB27,860.1 million in 2025, representing a CAGR of 6.8% from 2020 to 2025, according to Frost &amp; Sullivan. Kindstar is well-paced to benefit from this market opportunity as it has the largest esoteric testing portfolio among all the independent esoteric testing providers in China. The business has successfully overcome the negative impact of the COVID-19 pandemic, with most of its segments displaying either a return to growth or lower revenue declines in 4Q20 in comparison to 9M20. In combination, with solid operating leverage and cash generation, we think that the Kindstar IPO is worth a look. 

Kindstar Globalgene IPO Initiation: Testing, Testing

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

In this edition of the Smartkarma North Asia Weekly, it summarizes some of the top insights on Smartkarma in the past week covering Japan, HK/China, and the Korean stock markets. The top topics are below:1) POTUS Executive Order: Updated List of Chinese Stocks to Be Deleted by Major Indices2) Kanzhun IPO3) Angelalign IPO 4) China: Allows Families to Have Three Children5) HYBE Rights Offering6) China Infrastructure REITs7) Aihuishou IPO8) Full Truck Alliance IPO9) Enjin IPO10) Xpeng: Positive Momentum Back11) Tesla China Losing Market Share12) CStone Pharma (2616.HK) - Time for a Revaluation13) JD Health Lock-Up Expiration14) Passive Money Tracking KOSPI15) SK IE Tech KOSPI 200 Fast-Entry16) DL Holdings with Recent Tender’s Increased Shares: Index Treatment 17) WH Group (288 HK)

In this edition of the Smartkarma North Asia Weekly, it summarizes some of the top insights on Smartkarma in the past week covering Japan, HK/China, and the Korean stock markets. The top topics are below:1) POTUS Executive Order: Updated List of Chinese Stocks to Be Deleted by Major Indices2) Kanzhun IPO3) Angelalign IPO 4) China: Allows Families to Have Three Children5) HYBE Rights Offering6) China Infrastructure REITs7) Aihuishou IPO8) Full Truck Alliance IPO9) Enjin IPO10) Xpeng: Positive Momentum Back11) Tesla China Losing Market Share12) CStone Pharma (2616.HK) - Time for a Revaluation13) JD Health Lock-Up Expiration14) Passive Money Tracking KOSPI15) SK IE Tech KOSPI 200 Fast-Entry16) DL Holdings with Recent Tender’s Increased Shares: Index Treatment 17) WH Group (288 HK)

Smartkarma North Asia Weekly: POTUS Order, Kanzhun, Angelalign, & 3 Children Policy in China

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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Equity Bottom-Up

Jinxin Fertility Group  / Equity Bottom-Up

China's Politburo hosted a meeting on May 31st to review the population policy (关于优化生育政策促进人口长期均衡发展的决定, hereafter Decision). The meeting pointed out that allowing couples to have third child will improve the demographic structure of China to counter the aging population. The meeting also mentioned that the government will start to implement policies to encourage the third child, with social and economic support. In this note, I take a brief look at the China's past child birth policy changes and three beneficiaries of the new birth policy. I am of the view that the benefit of the new policy will be marginal but the direction is plausible.

China's Politburo hosted a meeting on May 31st to review the population policy (关于优化生育政策促进人口长期均衡发展的决定, hereafter Decision). The meeting pointed out that allowing couples to have third child will improve the demographic structure of China to counter the aging population. The meeting also mentioned that the government will start to implement policies to encourage the third child, with social and economic support. In this note, I take a brief look at the China's past child birth policy changes and three beneficiaries of the new birth policy. I am of the view that the benefit of the new policy will be marginal but the direction is plausible. 

China: 3rd Child Policy and 3 Beneficiaries

Basecare Medical Device / Equity Capital Markets

<div><a href="https://www.smartkarma.com/entities/basecare-medical-device-co-l" target="_blank" data-smartkarma-citation="entities:31086:1" rel="noopener">Basecare Medical Device (2170 HK)</a> has developed a portfolio of genetic test kits that cover all key stages of the reproductive cycle. The initial focus of the product portfolio was on helping couples address infertility problems and increase their chances of having a healthy baby through IVF (in vitro fertilization) procedures. Basecare will commence trading on Monday, 08 February. Basecare priced its IPO at HK$27.36 and <a href="http://www.aastocks.com/en/stocks/news/aafn-con/NOW.1074764/ipo-news" target="_blank" rel="noopener">closed 14% up at HK$31.20</a> in the grey market.</div><div>In <a href="https://www.smartkarma.com/insights/suzhou-basecare-medical-ipo-initiation-improving-ivf" target="_blank" data-smartkarma-citation="insights:47352" rel="noopener">Suzhou Basecare Medical IPO Initiation: Improving IVF</a>, we stated that with a large addressable market opportunity and Basecare’s early mover advantage, we believe that Basecare’s fundamentals are attractive. In <a href="https://www.smartkarma.com/insights/suzhou-basecare-medical-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:47473" rel="noopener">Suzhou Basecare Medical IPO: Valuation Insights</a>, we noted that the IPO price range is attractive.</div><div><div><div class="content-highlight">Updating for the final IPO net raise, our base-case DCF derived price target of HK$33.07 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.</div></div></div>

Basecare Medical Device (2170 HK) has developed a portfolio of genetic test kits that cover all key stages of the reproductive cycle. The initial focus of the product portfolio was on helping couples address infertility problems and increase their chances of having a healthy baby through IVF (in vitro fertilization) procedures. Basecare will commence trading on Monday, 08 February. Basecare priced its IPO at HK$27.36 and closed 14% up at HK$31.20 in the grey market.In Suzhou Basecare Medical IPO Initiation: Improving IVF, we stated that with a large addressable market opportunity and Basecare’s early mover advantage, we believe that Basecare’s fundamentals are attractive. In Suzhou Basecare Medical 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$33.07 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.

Suzhou Basecare Medical IPO: Trading Debut

APAC IPOs & Placements

Zhen Zhou, Toh

<div>
<a href="https://www.smartkarma.com/entities/basecare-medical-device-co-l" target="_blank" data-smartkarma-citation="entities:31086:1" rel="noopener">Basecare Medical Device Co L (2170 HK)</a> raised about US$235m at HK$27.36 per share, the top-end of its IPO price range. 
Basecare Medical (Basecare) is a genetic testing solutions provider for assisted reproduction in China. The company’s current core product, PGT-A kit, is the first and only third-generation IVF genetic test kit approved by the National Medical Products Administration (NMPA) in February 2020.
Our previous coverage of the IPO:
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<a href="https://www.smartkarma.com/insights/basecare-medical-pre-ipo-genetic-testing-leader-in-china" target="_blank" data-smartkarma-citation="insights:47361" rel="noopener">Basecare Medical (贝康医疗) Pre-IPO - Genetic Testing Leader in China</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/basecare-medical-ipo-a-leader-in-the-making" target="_blank" data-smartkarma-citation="insights:47427" rel="noopener">Basecare Medical (贝康医疗) IPO - A Leader in the Making</a> </li>
</ul>
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Basecare Medical Device Co L (2170 HK) raised about US$235m at HK$27.36 per share, the top-end of its IPO price range. 
Basecare Medical (Basecare) is a genetic testing solutions provider for assisted reproduction in China. The company’s current core product, PGT-A kit, is the first and only third-generation IVF genetic test kit approved by the National Medical Products Administration (NMPA) in February 2020.
Our previous coverage of the IPO:




Basecare Medical (贝康医疗) Pre-IPO - Genetic Testing Leader in China 

Basecare Medical (贝康医疗) IPO - A Leader in the Making 



Basecare Medical (贝康医疗) IPO Trading - Poised for a Strong Debut

China

Suzhou Basecare Medical Corporation Limited operates as a genetic technology researching company. The Company provides a comprehensive clinical solution for reproductive health. Suzhou Basecare Medical also develops and markets innovative medical devices.

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Basecare Medical Device (2170 HK)

Kindstar Globalgene IPO Initiation: Testing, Testing

Kindstar is set to launch an IPO to raise around $300 m. It has successfully overcome the COVID-19 pandemic. In combination, with operating...

Arun George

Smartkarma North Asia Weekly: POTUS Order, Kanzhun, Angelalign, & 3 Children Policy in China

In this edition of the Smartkarma North Asia Weekly, it summarizes some of the top insights on Smartkarma in the past week covering Japan, HK...

Douglas Kim

China: 3rd Child Policy and 3 Beneficiaries

I take a brief look at the China's past child birth policy changes and three beneficiaries of the exposure to the new birth policy.

Ke Yan, CFA, FRM

Suzhou Basecare Medical IPO: Trading Debut

Basecare priced its IPO at HK$27.36 and closed 14% up at HK$31.20 in the grey market. Our DCF sensitivity analysis shows that the IPO price is...

Arun George

Basecare Medical (贝康医疗) IPO Trading - Poised for a Strong Debut

Basecare Medical (2170 HK) raised about US$235m at HK$27.36 per share, the top-end of its IPO price range. The company is a genetic testing...

Zhen Zhou, Toh

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