Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

<ul>
<li>BenQ BM launched its Hongkong IPO aiming to raise up to HK$783M. The company plans to sell 67M shares at a price band of HK$ 9.34-HK$ 11.68 per share.</li>
<li>Proceeds to be used for expansion and upgradation of existing hospitals, for mergers and acquisitions opportunities and for general corporate purposes and working capital needs.</li>
<li>Amid sluggish sales and margin pressure, we think that the BenQ BM issue is overvalued and investors can comfortably avoid subscribing to the offer.</li>
</ul>


BenQ BM launched its Hongkong IPO aiming to raise up to HK$783M. The company plans to sell 67M shares at a price band of HK$ 9.34-HK$ 11.68 per share.
Proceeds to be used for expansion and upgradation of existing hospitals, for mergers and acquisitions opportunities and for general corporate purposes and working capital needs.
Amid sluggish sales and margin pressure, we think that the BenQ BM issue is overvalued and investors can comfortably avoid subscribing to the offer.


BenQ BM IPO: Competition Driven Sluggishness, Margin Pressure Make the Issue Unattractive

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Puxiang Healthcare Holding / Equity Capital Markets

<ul>
<li>Hospital operation is an asset-heavy industry with large balance of fixed assets and intangible assets. So, there is a situation of expense “front-loading” and profit “back-loading” in Puxiang.</li>
<li>Puxiang’s single-digit net profit margin is unsatisfactory. Net profit CAGR is much lower than revenue CAGR. Considering VBP and DRGs/DIP, Puxiang’s future net profit performance is unsettling.</li>
<li>Due to concerns on profitability and future growth outlook, we think valuation of Puxiang should be lower than Topchoice, Aier, Hygeia, <a href="https://www.smartkarma.com/entities/jinxin-fertility-group-ltd" target="_blank" data-smartkarma-citation="entities:28003:1" rel="noopener">Jinxin</a>, but could be higher than <a href="https://www.smartkarma.com/entities/china-resources-medical-holdings" target="_blank" data-smartkarma-citation="entities:357:1" rel="noopener">China Resources Medical</a>
</li>
</ul>


Hospital operation is an asset-heavy industry with large balance of fixed assets and intangible assets. So, there is a situation of expense “front-loading” and profit “back-loading” in Puxiang.
Puxiang’s single-digit net profit margin is unsatisfactory. Net profit CAGR is much lower than revenue CAGR. Considering VBP and DRGs/DIP, Puxiang’s future net profit performance is unsettling.
Due to concerns on profitability and future growth outlook, we think valuation of Puxiang should be lower than Topchoice, Aier, Hygeia, Jinxin, but could be higher than China Resources Medical



Pre-IPO Puxiang Healthcare Holding - Weak Profitability Is the Major Concern

Beijing Tong Ren Tang Healthcare Investment / Equity Capital Markets

Beijing Tong Ren Tang Healthcare Investment (TRT HK)

Beijing Tong Ren Tang Healthcare Investment

<ul>
<li>Tong Ren Tang’s performance growth is mainly driven by M&amp;As, or “purchase revenue externally” to expand scale. As the pace of acquisition/integration slows down, overall growth will also decline accordingly.</li>
<li>Although Tong Ren Tang has turned losses into profits, the Company is still in expansion period and profits are unstable.So, we think it’s more appropriate to use P/S for valuation.</li>
<li>Tong Ren Tang is inferior to Gushengtang in terms of profitability and capital operation model for expansion. So, Tong Ren Tang’s valuation should be lower than Gushengtang and industry average.</li>
</ul>


Tong Ren Tang’s performance growth is mainly driven by M&amp;As, or “purchase revenue externally” to expand scale. As the pace of acquisition/integration slows down, overall growth will also decline accordingly.
Although Tong Ren Tang has turned losses into profits, the Company is still in expansion period and profits are unstable.So, we think it’s more appropriate to use P/S for valuation.
Tong Ren Tang is inferior to Gushengtang in terms of profitability and capital operation model for expansion. So, Tong Ren Tang’s valuation should be lower than Gushengtang and industry average.


Pre-IPO Tong Ren Tang Healthcare Investment (PHIP Updates) - Some Points Worth the Attention

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 15th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Xiaomi, Kuaishou, Wuxi Biologics, Alibaba, BYD Electronic, Anta, China Mobile, China Life, Zai Lab.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 15th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Xiaomi, Kuaishou, Wuxi Biologics, Alibaba, BYD Electronic, Anta, China Mobile, China Life, Zai Lab.


HK Connect Flows Weekly (Aug 15th): Xiaomi, Kuaishou, Wuxi Biologics, Alibaba, BYD Electronic, Anta

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 8th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Tencent, Kuaishou, Alibaba, Meituan, Li Auto, China Mobile.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of August 8th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Tencent, Kuaishou, Alibaba, Meituan, Li Auto, China Mobile.


HK Connect Flows Weekly (Aug 8th): Tencent, Kuaishou, Alibaba, Meituan, Li Auto, China Mobile

China

China Resources Medical Holdings provides comprehensive healthcare services, hospital management, and group purchasing organization businesses in Mainland China. It operates a network of medical institutions, offering outpatient and inpatient services, as well as supply chain and operational management services to affiliated hospitals. The company is headquartered in Beijing, China, and was founded in 2013.

China Resources Medical Holdings (1515 HK)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

China Resources Medical Holdings (1515 HK)

BenQ BM IPO: Competition Driven Sluggishness, Margin Pressure Make the Issue Unattractive

BenQ BM launches Hong Kong IPO to raise up to HK$783M, but amid sales and margin concerns, investors may want to steer clear of the overvalued offer.

Tina Banerjee

Pre-IPO Puxiang Healthcare Holding - Weak Profitability Is the Major Concern

Hospital operation is asset-heavy industry.Puxiang's net profit CAGR is lower than revenue CAGR,with unsatisfactory net profit margin and...

Xinyao (Criss) Wang

Pre-IPO Tong Ren Tang Healthcare Investment (PHIP Updates) - Some Points Worth the Attention

Tong Ren Tang's growth driven by M&A. As acquisitions slow, growth will decline.Profits unstable, P/S valuation more appropriate.Valuation should...

Xinyao (Criss) Wang

HK Connect Flows Weekly (Aug 15th): Xiaomi, Kuaishou, Wuxi Biologics, Alibaba, BYD Electronic, Anta

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Xiaomi, Kuaishou, Wuxi Biologics, Alibaba, BYD...

Ke Yan, CFA, FRM

HK Connect Flows Weekly (Aug 8th): Tencent, Kuaishou, Alibaba, Meituan, Li Auto, China Mobile

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent, Kuaishou, Alibaba, Meituan, Li Auto, China Mobile.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

BenQ BM IPO: Competition Driven Sluggishness, Margin Pressure Make the Issue Unattractive

​BenQ BM launches Hong Kong IPO to raise up to HK$783M, but amid sales and margin concerns, investors may want to steer clear of the overvalued offer.

Tina Banerjee

Pre-IPO Puxiang Healthcare Holding - Weak Profitability Is the Major Concern

Hospital operation is asset-heavy industry.Puxiang's net profit CAGR is lower than revenue CAGR,with unsatisfactory net profit margin and...

Xinyao (Criss) Wang

Pre-IPO Tong Ren Tang Healthcare Investment (PHIP Updates) - Some Points Worth the Attention

​Tong Ren Tang's growth driven by M&A. As acquisitions slow, growth will decline.Profits unstable, P/S valuation more appropriate.Valuation should...

Xinyao (Criss) Wang

HK Connect Flows Weekly (Aug 15th): Xiaomi, Kuaishou, Wuxi Biologics, Alibaba, BYD Electronic, Anta

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Xiaomi, Kuaishou, Wuxi Biologics, Alibaba, BYD...

Ke Yan, CFA, FRM

HK Connect Flows Weekly (Aug 8th): Tencent, Kuaishou, Alibaba, Meituan, Li Auto, China Mobile

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Tencent, Kuaishou, Alibaba, Meituan, Li Auto, China Mobile.

Ke Yan, CFA, FRM

BenQ BM launches Hong Kong IPO to raise up to HK$783M, but amid sales and margin concerns, investors may want to steer clear of the overvalued offer.

Tong Ren Tang's growth driven by M&A. As acquisitions slow, growth will decline.Profits unstable, P/S valuation more appropriate.Valuation should...