Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Bayzed Health Group / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bayzed-health-group" target="_blank" data-smartkarma-citation="entities:42191:1" rel="noopener">Bayzed Health Group (BHG HK)</a> launched its Hongkong IPO aiming to raise up to HK$ 900 million. The company plans to sell 133 million shares at HK$4.22–6.75 per share.</li>
<li>The company plans to utilize the IPO proceeds to continuously strengthening the full-cycle oncology healthcare services primarily through purchasing medical equipment and recruiting medical professionals.</li>
<li>Bayzed Health is an oncology healthcare group which posted revenue of RMB 1,189 million in 2024, up by 11% YoY. Gross margins improve; net losses narrow too.</li>
</ul>



Bayzed Health Group (BHG HK) launched its Hongkong IPO aiming to raise up to HK$ 900 million. The company plans to sell 133 million shares at HK$4.22–6.75 per share.
The company plans to utilize the IPO proceeds to continuously strengthening the full-cycle oncology healthcare services primarily through purchasing medical equipment and recruiting medical professionals.
Bayzed Health is an oncology healthcare group which posted revenue of RMB 1,189 million in 2024, up by 11% YoY. Gross margins improve; net losses narrow too.


Bayzed Health Group IPO: Shows Flare; Still a Tough Road Ahead; Can Avoid The Issue

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The positioning of Bayzed is just “a supplement to public hospitals system”, with limited scale and competitiveness, which is a point that investors may need to be aware of.</li>
<li>A big problem in the operation of Bayzed is the loss status/weak profitability. At current gross margin level, it would be difficult for Bayzed to deliver good returns for investors.</li>
<li>Valuation of Bayzed should be lower than Inkon Life Technology and Hygeia. The Pre-IPO valuation is not cheap, and the valuation upside potential may be limited considering weak profitability.  </li>
</ul>


The positioning of Bayzed is just “a supplement to public hospitals system”, with limited scale and competitiveness, which is a point that investors may need to be aware of.
A big problem in the operation of Bayzed is the loss status/weak profitability. At current gross margin level, it would be difficult for Bayzed to deliver good returns for investors.
Valuation of Bayzed should be lower than Inkon Life Technology and Hygeia. The Pre-IPO valuation is not cheap, and the valuation upside potential may be limited considering weak profitability.  


Pre-IPO Bayzed Health Group (PHIP Updates) - Some Points Worth the Attention

<ul>
<li>The expansion space of BenQ is severely limited as the market has been saturated in Jiangsu Province. Due to DRG, future revenue/net profit growth would continue to be under pressure. </li>
<li>Low profit margin of general hospitals is a common problem in this industry due to pain points of business model.It’s difficult to achieve improvement.Investors need to be aware of this.</li>
<li>BenQ’s valuation should be lower than Hygeia due to weaker profitability, smaller revenue scale, lower growth outlook.Post-money valuation before IPO of US$375 million (or about RMB2.7 billion) is already expensive</li>
</ul>


The expansion space of BenQ is severely limited as the market has been saturated in Jiangsu Province. Due to DRG, future revenue/net profit growth would continue to be under pressure. 
Low profit margin of general hospitals is a common problem in this industry due to pain points of business model.It’s difficult to achieve improvement.Investors need to be aware of this.
BenQ’s valuation should be lower than Hygeia due to weaker profitability, smaller revenue scale, lower growth outlook.Post-money valuation before IPO of US$375 million (or about RMB2.7 billion) is already expensive


Pre-IPO BenQ BM Holding (PHIP Updates) - Some Points Worth the Attention

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hygeia-healthcare-group" target="_blank" data-smartkarma-citation="entities:28875:1" rel="noopener">Hygeia Healthcare Group (6078 HK)</a> reported revenue growth of 9% YoY to RMB4,446 million, mainly driven by a 11% YoY growth in hospital business.</li>
<li>Hygeia’s gross profit margin contracted 170bps YoY to 29.9%. Net profit decreased 13% on higher finance cost despite of income tax expenses being lower.</li>
<li>Accelerated organic growth and strengthening of margins are crucial to boost valuation.</li>
</ul>



Hygeia Healthcare Group (6078 HK) reported revenue growth of 9% YoY to RMB4,446 million, mainly driven by a 11% YoY growth in hospital business.
Hygeia’s gross profit margin contracted 170bps YoY to 29.9%. Net profit decreased 13% on higher finance cost despite of income tax expenses being lower.
Accelerated organic growth and strengthening of margins are crucial to boost valuation.


Hygeia Healthcare Group (6078 HK): Slower Revenue Growth and Margin Deterioration Are Worrisome

<ul>
<li>Given new policy recommendations, it is only a matter of time before HPV vaccination is included in the national immunization program, which is detrimental to HPV vaccine companies.</li>
<li>MNCs have seen a inflection point in performance growth in 2024 in China. Although VBP/NRDL negotiation are negative factors, is it also due to any consideration to withdraw from China?</li>
<li>Fosun Pharma has agreed to sell its entire stake in United Family Healthcare to Calcite Gem Investments Group for US$124.1 million. We shared our views about the deal.</li>
</ul>


Given new policy recommendations, it is only a matter of time before HPV vaccination is included in the national immunization program, which is detrimental to HPV vaccine companies.
MNCs have seen a inflection point in performance growth in 2024 in China. Although VBP/NRDL negotiation are negative factors, is it also due to any consideration to withdraw from China?
Fosun Pharma has agreed to sell its entire stake in United Family Healthcare to Calcite Gem Investments Group for US$124.1 million. We shared our views about the deal.


China Healthcare Weekly (Mar.23)-Fosun Pharma Sells United Family Healthcare, MNC's Inflection Point

China

Hygeia Healthcare is a prominent oncology healthcare group in China, dedicated to enhancing the accessibility and affordability of cancer treatment services. The company operates a network of oncology hospitals, providing comprehensive services from screening and diagnosis to various treatment modalities like chemotherapy, immunotherapy, and radiotherapy. It also offers radiotherapy consulting and equipment licensing. Hygeia Healthcare was founded in 2009 and is headquartered in Shanghai, China.

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Hygeia Healthcare (6078 HK)

Bayzed Health Group IPO: Shows Flare; Still a Tough Road Ahead; Can Avoid The Issue

Bayzed Health Group launches Hong Kong IPO to raise up to HK$900M for strengthening oncology healthcare services primarily through purchasing...

Tina Banerjee

Pre-IPO Bayzed Health Group (PHIP Updates) - Some Points Worth the Attention

The positioning of Bayzed is just “a supplement to public hospital system”, with limited competitiveness.Due to weak profitability, it's hard to...

Xinyao (Criss) Wang

Pre-IPO BenQ BM Holding (PHIP Updates) - Some Points Worth the Attention

BenQ faces limited growth in Jiangsu Province due to market saturation. Low profit margin/ pain points of business model pose challenges.Valuation...

Xinyao (Criss) Wang

Hygeia Healthcare Group (6078 HK): Slower Revenue Growth and Margin Deterioration Are Worrisome

In 2024, Hygeia Healthcare sees 9% revenue growth, lowest since 2018. Gross profit margin contracted and net profit decreased. Accelerated growth...

Tina Banerjee

China Healthcare Weekly (Mar.23)-Fosun Pharma Sells United Family Healthcare, MNC's Inflection Point

National immunization program likely to include HPV vaccination. MNCs in China see an inflection point, potential withdrawal. Fosun Pharma sells...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Bayzed Health Group IPO: Shows Flare; Still a Tough Road Ahead; Can Avoid The Issue

​Bayzed Health Group launches Hong Kong IPO to raise up to HK$900M for strengthening oncology healthcare services primarily through purchasing...

Tina Banerjee

Pre-IPO Bayzed Health Group (PHIP Updates) - Some Points Worth the Attention

The positioning of Bayzed is just “a supplement to public hospital system”, with limited competitiveness.Due to weak profitability, it's hard to...

Xinyao (Criss) Wang

Pre-IPO BenQ BM Holding (PHIP Updates) - Some Points Worth the Attention

​BenQ faces limited growth in Jiangsu Province due to market saturation. Low profit margin/ pain points of business model pose challenges.Valuation...

Xinyao (Criss) Wang

Hygeia Healthcare Group (6078 HK): Slower Revenue Growth and Margin Deterioration Are Worrisome

​In 2024, Hygeia Healthcare sees 9% revenue growth, lowest since 2018. Gross profit margin contracted and net profit decreased. Accelerated growth...

Tina Banerjee

China Healthcare Weekly (Mar.23)-Fosun Pharma Sells United Family Healthcare, MNC's Inflection Point

​National immunization program likely to include HPV vaccination. MNCs in China see an inflection point, potential withdrawal. Fosun Pharma sells...

Xinyao (Criss) Wang

Bayzed Health Group launches Hong Kong IPO to raise up to HK$900M for strengthening oncology healthcare services primarily through purchasing...

BenQ faces limited growth in Jiangsu Province due to market saturation. Low profit margin/ pain points of business model pose challenges.Valuation...

In 2024, Hygeia Healthcare sees 9% revenue growth, lowest since 2018. Gross profit margin contracted and net profit decreased. Accelerated growth...

National immunization program likely to include HPV vaccination. MNCs in China see an inflection point, potential withdrawal. Fosun Pharma sells...