Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/burning-rock-biotech-ltd" target="_blank" data-smartkarma-citation="entities:28970:1" rel="noopener">Burning Rock Biotech (BNR US) </a>is China’s leading NGS-based therapy selection testing company for late-stage cancer patients. Thus far, the company has completed more than 300,000 tissue and liquid-based tests.</li>
<li>The company is in a structural transition towards in-hospital business model, which is negatively impacting the blended ASP and profitability. Due to upcoming new product launch in next year and ongoing clinical studies, opex is now accounting for more than 230% of revenue, which is expected to continue.</li>
<li>Amid the recent spread of delta variant in China, this insight has analyzed near-term growth prospect of Burning Rock ahead of its Q3 results announcement on November 16.  </li>
</ul>



Burning Rock Biotech (BNR US) is China’s leading NGS-based therapy selection testing company for late-stage cancer patients. Thus far, the company has completed more than 300,000 tissue and liquid-based tests.
The company is in a structural transition towards in-hospital business model, which is negatively impacting the blended ASP and profitability. Due to upcoming new product launch in next year and ongoing clinical studies, opex is now accounting for more than 230% of revenue, which is expected to continue.
Amid the recent spread of delta variant in China, this insight has analyzed near-term growth prospect of Burning Rock ahead of its Q3 results announcement on November 16.  


Burning Rock Biotech (BNR US): Muted Near-Term Outlook on Resurgence of COVID-19 in China

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

<div><p><a href="https://www.smartkarma.com/entities/kindstar-globalgene-technology-inc" target="_blank" data-smartkarma-citation="entities:32175:1" rel="noopener">Kindstar Globalgene Technology (9960 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. </p></div><div><p>At the proposed IPO price range of HK$8.60-9.78 per share, Kindstar will have a market cap of HK$7,788.3-8,857.0 ($1.0-1.1 billion). At the mid-point of the IPO price range, the total net proceeds are HK$1,931.1 million ($250 million). </p></div><div><p>Seven cornerstone investors will subscribe for $140 million of the offer shares (52.2% of the offer shares at the mid-point of the IPO price). The cornerstone investors include BlackRock, CPE, Snow Lake Capital, Carmignac Funds, Natixis Investment Managers, Athos Capital and IvyRock Asset Management.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/kindstar-globalgene-ipo-initiation-testing-testing" target="_blank" data-smartkarma-citation="insights:53731" rel="noopener">Kindstar Globalgene IPO Initiation: Testing, Testing</a>, we stated that 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. Overall, we would participate in the IPO due to an attractive IPO price range.</p></div></div></div>

Kindstar Globalgene Technology (9960 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. At the proposed IPO price range of HK$8.60-9.78 per share, Kindstar will have a market cap of HK$7,788.3-8,857.0 ($1.0-1.1 billion). At the mid-point of the IPO price range, the total net proceeds are HK$1,931.1 million ($250 million). Seven cornerstone investors will subscribe for $140 million of the offer shares (52.2% of the offer shares at the mid-point of the IPO price). The cornerstone investors include BlackRock, CPE, Snow Lake Capital, Carmignac Funds, Natixis Investment Managers, Athos Capital and IvyRock Asset Management.In Kindstar Globalgene IPO Initiation: Testing, Testing, we stated that 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. Overall, we would participate in the IPO due to an attractive IPO price range.

Kindstar Globalgene IPO: Valuation Insights

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

New Horizon Health / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/new-horizon-health-limited" target="_blank" data-smartkarma-citation="entities:31039:1" rel="noopener">New Horizon Health (NHH HK)</a> has announced terms of its US$263MM IPO with a pre-money valuation of US$960 million to US$1.17 billion. The updated filings show a strong recovery in volumes from COVID-19 disruptions. We think the valuation is reasonable using undemanding assumptions and would participate in the offering. </p>

New Horizon Health (NHH HK) has announced terms of its US$263MM IPO with a pre-money valuation of US$960 million to US$1.17 billion. The updated filings show a strong recovery in volumes from COVID-19 disruptions. We think the valuation is reasonable using undemanding assumptions and would participate in the offering. 

New Horizon IPO: Only Undemanding Assumptions Needed

<p>New Horizon Health is a China-based cancer diagnostics company that has filed an Application Proof to list on the HKEX. The company has innovative screening technologies for colorectal, gastric, and potentially cervical cancer. The management team is accomplished and the pre-IPO investors are experienced healthcare funds. We view the company favorably and will provide a definitive view in a future Insight closer to the actual offering.</p>

New Horizon Health is a China-based cancer diagnostics company that has filed an Application Proof to list on the HKEX. The company has innovative screening technologies for colorectal, gastric, and potentially cervical cancer. The management team is accomplished and the pre-IPO investors are experienced healthcare funds. We view the company favorably and will provide a definitive view in a future Insight closer to the actual offering.

<p>Healthcare’s presence in Asian capital markets has increased substantially over the last four years on the heels of substantial investments in private markets (VC/PE). Policy reforms and changes in listing rules, most notably in China, have led to an explosion of market cap creation for the sector as the universe of companies has expanded to include innovative companies, most notably pre-revenue biopharmaceutical companies. At the same time, substantial investments in digital healthcare, fueled by the COVID-19 pandemic, adds a new source of listed companies. This Insight focuses on leading unlisted healthcare companies in China, India, and ASEAN that have raised substantial amounts of capital and appear to be candidates for listing.   </p>

Healthcare’s presence in Asian capital markets has increased substantially over the last four years on the heels of substantial investments in private markets (VC/PE). Policy reforms and changes in listing rules, most notably in China, have led to an explosion of market cap creation for the sector as the universe of companies has expanded to include innovative companies, most notably pre-revenue biopharmaceutical companies. At the same time, substantial investments in digital healthcare, fueled by the COVID-19 pandemic, adds a new source of listed companies. This Insight focuses on leading unlisted healthcare companies in China, India, and ASEAN that have raised substantial amounts of capital and appear to be candidates for listing.   

China

Genetron Holdings Limited operates as a biology company. The Company develops treatment for cancer. Genetron Holdings serves customers in China.

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Genetron Holdings Ltd (GTH US)

Burning Rock Biotech (BNR US): Muted Near-Term Outlook on Resurgence of COVID-19 in China

Burning Rock shares have recovered 20% from lows. This insight has analyzed near-term growth prospect of Burning Rock ahead of its Q3 results...

Tina Banerjee

Kindstar Globalgene IPO: Valuation Insights

At the mid-point of the IPO price range, the total net proceeds are HK$1,931.1 million ($250 million). Overall, we would participate in the IPO due...

Arun George

New Horizon IPO: Only Undemanding Assumptions Needed

We think the proposed valuation of New Horizon Health's (NHH HK) IPO is reasonable using undemanding assumptions and would participate in the...

Kemp Dolliver, CFA

New Horizon IPO: Leaning Positive

New Horizon Health is a cancer diagnostics company that plans to list on the HKEX. The company has innovative tests for CRC, gastric, and...

Kemp Dolliver, CFA

Asian Healthcare - Coming of Age

This Smartkarma Originals Insight highlights 20 leading unlisted healthcare companies in Asia, mainly in digital healthcare and biopharma, that are...

Kemp Dolliver, CFA

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