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.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/cochlear-ltd" target="_blank" data-smartkarma-citation="entities:918:1" rel="noopener">Cochlear Ltd (COH AU)</a> plans to raise up to US$475m (A$800m) to part fund its legal costs and shore up its balance sheet.Apart from the COVID-19 hurricane, the company has faced a few other speed bumps recently, which has led to analysts taking a scalpel to its earnings.The placement should lift some of the pressure on the balance sheet and liquidity. The company's long term track record remains stellar.

Cochlear Ltd (COH AU) plans to raise up to US$475m (A$800m) to part fund its legal costs and shore up its balance sheet.Apart from the COVID-19 hurricane, the company has faced a few other speed bumps recently, which has led to analysts taking a scalpel to its earnings.The placement should lift some of the pressure on the balance sheet and liquidity. The company's long term track record remains stellar.

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.

Ramsay Health Care / Equity Capital Markets

Ramsay Health Care's largest shareholder, Paul Ramsay Foundation, is selling AUD 1.3 billion block after market close today. In this insight, we would like to discuss our thoughts on the deal. The company is a decent blue-chip healthcare stock operating the largest private hospital chains in Australia, France and Scandinavian. It offers undemanding valuation compared to other Australia listed healthcare peers with a track record of growing its dividend payout. Hence we believe the deal will attract long-only participation. Despite an average positive one month return, the recent deal did not do well and the deal scores slightly negative in our ECM Framework. We would bid the deal at the low end.

Ramsay Health Care's largest shareholder, Paul Ramsay Foundation, is selling AUD 1.3 billion block after market close today. In this insight, we would like to discuss our thoughts on the deal. The company is a decent blue-chip healthcare stock operating the largest private hospital chains in Australia, France and Scandinavian. It offers undemanding valuation compared to other Australia listed healthcare peers with a track record of growing its dividend payout. Hence we believe the deal will attract long-only participation. Despite an average positive one month return, the recent deal did not do well and the deal scores slightly negative in our ECM Framework. We would bid the deal at the low end.

Ramsay Health Care A$1.3bn Placement - A Decent Stock but Past Performance Weighs

Australian Equity Long Short, JCP Investment Partners

Jai Mirchandani

Australian Equity Long Short

Combining the art and science of investing

JCP Investment Partners

JCP is a research-driven, fundamental Australian Equities investment manager. We were founded in 1998 and are 100% owned by our employees, directors and associates. With almost 20 years of organisational experience we have a proven performance record in both bull and bear markets. Our alignment policy is based on the principles of employee ownership and co-investment.

We recognise the value in retaining an experienced and stable team, together with operating within a theoretically robust and proven investment framework. At the heart of our investment process is our commitment to maintaining a large ‘in-house’ research team, which is supplemented by proprietary external research. 

Our competitive advantage lies in our ability to combine the art and science of investing, providing an edge that is difficult for other investors to replicate.  

Our business strategy is to deliver long-term excess returns to our clients and maximise returns to our shareholders, within an entrepreneurial culture that allows our employees to achieve their full potential.
JCP’s proprietary investment platform allows for efficient processing of our research insights, and more efficient idea generation through our smart optimisation platform.  We then combine this with a sensible qualitative overlay through the experience and ‘gut feel’ of our Portfolio Construction team. 

We believe the sophistication of our process is a source of enduring competitive advantage, enabling us to continue to generate long-term excess returns for our clients. The flexibility and scalability of our resources, provide us with the tools to have meaningful conversations with our clients about their needs and how we can create solutions to better meet these needs.

JCP holds Australian Financial Services Licence No. 247132.

Equity Bottom-Up

Cochlear announced their first half 2018 result on 13th February 2018.<ul><li>Cochlear implant units decreased 2%</li><li>Sales revenue increased 7% in constant currency (cc)</li><li>Earnings before interest and tax (EBIT) increased 4% cc</li><li>Net profit increased 1% cc</li><li>Maintained FY18 NPAT guidance of $240-250m, a 7-12% increase on FY17</li></ul>

Cochlear announced their first half 2018 result on 13th February 2018.Cochlear implant units decreased 2%Sales revenue increased 7% in constant currency (cc)Earnings before interest and tax (EBIT) increased 4% ccNet profit increased 1% ccMaintained FY18 NPAT guidance of $240-250m, a 7-12% increase on FY17

Cochlear 1H18 Result. Weak First Half, but Thesis Still in Place

With <a href="https://www.smartkarma.com/entities/918" target="_blank" data-smartkarma-citation="entities:918:1">Cochlear Ltd (COH AU)</a> having such a high share of the cochlear implant market (~60% share in a 3 player market), the obvious question is when we might see increased competition and a rebasing of market share to an equal level. See <a href="https://www.smartkarma.com/insights/expensive-quality-but-worth-being-there" target="_blank" data-smartkarma-citation="insights:13437">Expensive Quality, but Worth Being There</a> for more detail on cochlear implant market and share.All major manufacturers have released new products or features in the last 12 months. But feedback from audiology professionals suggests that market share for new patients shouldn’t be driven by sound processor features due to lack of sufficient differentiation. However, new sound processor launches may drive existing implant recipients to upgrade their sound processor, driving revenue and profit growth for the manufacturers. The increased choice in products and features may also drive higher levels of market growth by appealing to more patients in what is an under-penetrated market.In FY17 <a href="https://www.smartkarma.com/entities/918" target="_blank" data-smartkarma-citation="entities:918:1">Cochlear Ltd (COH AU)</a> released 3 sound processors: Kanso, Baha 5 and Nucleus 7 (from September 2017) and a cochlear implant, the CI532. We will focus on Kanso, Nucleus 7 and CI532 in this report.

With Cochlear Ltd (COH AU) having such a high share of the cochlear implant market (~60% share in a 3 player market), the obvious question is when we might see increased competition and a rebasing of market share to an equal level. See Expensive Quality, but Worth Being There for more detail on cochlear implant market and share.All major manufacturers have released new products or features in the last 12 months. But feedback from audiology professionals suggests that market share for new patients shouldn’t be driven by sound processor features due to lack of sufficient differentiation. However, new sound processor launches may drive existing implant recipients to upgrade their sound processor, driving revenue and profit growth for the manufacturers. The increased choice in products and features may also drive higher levels of market growth by appealing to more patients in what is an under-penetrated market.In FY17 Cochlear Ltd (COH AU) released 3 sound processors: Kanso, Baha 5 and Nucleus 7 (from September 2017) and a cochlear implant, the CI532. We will focus on Kanso, Nucleus 7 and CI532 in this report.

At over 35x PE multiple, the stock looks extremely expensive with a lot of belief baked into the stock price. The question that needs to be asked is whether the company can deliver on growth and beat the high expectation over a multi-year period.Company and product facts<ul><li>The company is the market leader in cochlear implants and commands ~60% market share globally.</li><li>Cochlear implants are usually required when hearing loss is so severe and hearing aids no longer work.</li><li>The two major competitors are Medel and Advanced Bionics (a division of Sonova), and they collectively have 30-35% share. Other players including Neurelec (William Demant) and Nurotron have the remaining 5-10% share (Analyst estimates).</li><li>Cochlear implants require surgery and therefore is a complex and technical product.</li><li>Revenues are split between Cochlear implant sales and Services sales. Services sales include processor upgrades and accessories such as batteries and are considered to be more consumer products. Furthermore there is no compatibility between brands and therefore if you are a cochlear implant recipient from a certain manufacturer, you are beholden to their service offering ie it is a razor/razor blade model with a very captive audience.</li></ul>

At over 35x PE multiple, the stock looks extremely expensive with a lot of belief baked into the stock price. The question that needs to be asked is whether the company can deliver on growth and beat the high expectation over a multi-year period.Company and product factsThe company is the market leader in cochlear implants and commands ~60% market share globally.Cochlear implants are usually required when hearing loss is so severe and hearing aids no longer work.The two major competitors are Medel and Advanced Bionics (a division of Sonova), and they collectively have 30-35% share. Other players including Neurelec (William Demant) and Nurotron have the remaining 5-10% share (Analyst estimates).Cochlear implants require surgery and therefore is a complex and technical product.Revenues are split between Cochlear implant sales and Services sales. Services sales include processor upgrades and accessories such as batteries and are considered to be more consumer products. Furthermore there is no compatibility between brands and therefore if you are a cochlear implant recipient from a certain manufacturer, you are beholden to their service offering ie it is a razor/razor blade model with a very captive audience.

Australia

Cochlear Limited researches, develops and markets cochlear implant systems for hearing impaired individuals.  The Company's hearing implant systems include Nucleus and Baha and are sold both domestically and internationally.

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Cochlear Ltd (COH AU)

Cochlear Placement - Deserves a Hearing

Cochlear Ltd (COH AU) plans to raise up to US$475m (A$800m) to part fund its legal costs and shore up its balance sheet.Apart from the COVID-19...

Sumeet Singh

Ramsay Health Care A$1.3bn Placement - A Decent Stock but Past Performance Weighs

Ramsay Health Care's largest shareholder, Paul Ramsay Foundation, is selling AUD 1.3 billion block after market close today. In this insight, we...

Ke Yan, CFA, FRM

Cochlear 1H18 Result. Weak First Half, but Thesis Still in Place

Cochlear announced their first half 2018 result on 13th February 2018. Cochlear implant units decreased 2% Sales revenue increased 7% in constant...

JCP Investment Partners

COH's New Product Launches

With Cochlear Ltd (COH AU) having such a high share of the cochlear implant market (~60% share in a 3 player market), the obvious question is when...

JCP Investment Partners

Expensive Quality, but Worth Being There

At over 35x PE multiple, the stock looks extremely expensive with a lot of belief baked into the stock price. The question that needs to be asked...

JCP Investment Partners

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