APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bionote-inc" target="_blank" data-smartkarma-citation="entities:36446:1" rel="noopener">Bionote (377740 KS)</a> raised US$72.2m in its Korean IPO. The IPO had consisted of both a primary and secondary selldown.</li>
<li>Bionote is an integrated producer of diagnostics test products and biocontent products. </li>
<li>In this note, we will talk about the demand for the deal and other trading dynamics.</li>
</ul>



Bionote (377740 KS) raised US$72.2m in its Korean IPO. The IPO had consisted of both a primary and secondary selldown.
Bionote is an integrated producer of diagnostics test products and biocontent products. 
In this note, we will talk about the demand for the deal and other trading dynamics.


Bionote IPO Trading - Weakest Demand Even After Cutting Price and Size

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bionote-inc" target="_blank" data-smartkarma-citation="entities:36446:1" rel="noopener">Bionote (377740 KS)</a> is looking to raise approximately US$200m in its Korean IPO. The IPO would consist of both a primary and secondary selldown.</li>
<li>Bionote is an integrated producer of diagnostics test products and biocontent products. Based on its unique recombinant antigen and antibody manufacturing technology, the firm researches and develops diagnostic reagent products. </li>
<li>In this note, we look at peers and undertake a peer comparison.</li>
</ul>



Bionote (377740 KS) is looking to raise approximately US$200m in its Korean IPO. The IPO would consist of both a primary and secondary selldown.
Bionote is an integrated producer of diagnostics test products and biocontent products. Based on its unique recombinant antigen and antibody manufacturing technology, the firm researches and develops diagnostic reagent products. 
In this note, we look at peers and undertake a peer comparison.


Bionote Pre-IPO Peer Comp - Larger Segment Leads in Margins, but Trend Could Be Reversing

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/align-technology-inc" target="_blank" data-smartkarma-citation="entities:2817:1" rel="noopener">Align Technology (ALGN US)</a> is better investment idea than its Chinese competitor <a href="https://www.smartkarma.com/entities/angelalign-technology-inc" target="_blank" data-smartkarma-citation="entities:31480:1" rel="noopener">Angelalign Technology (6699 HK),</a> due to its larger global scale of operation, early mover advantage, and cheaper valuation.    </li>
<li>Align Technology is well-positioned for 20%+ revenue and earnings growth through 2024, driven by large and underpenetrated TAM of 19 million annual ortho starts.</li>
<li>Align Technology shares are trading at a steep discount to Angelalign Technology shares. Price erosion due to the increasing competition remains the key risks for both the companies.</li>
</ul>



Align Technology (ALGN US) is better investment idea than its Chinese competitor Angelalign Technology (6699 HK), due to its larger global scale of operation, early mover advantage, and cheaper valuation.    
Align Technology is well-positioned for 20%+ revenue and earnings growth through 2024, driven by large and underpenetrated TAM of 19 million annual ortho starts.
Align Technology shares are trading at a steep discount to Angelalign Technology shares. Price erosion due to the increasing competition remains the key risks for both the companies.


Align Technology (ALGN US) Vs. Angelalign Technology (6699 HK): Which One Is Better Investment

<p>Idexx Laboratories is a leading global veterinary diagnostic company, offering fully integrated multi-modality diagnostic and software solutions. With a CAGR of 9% during 2015–2020, diagnostics is the fastest growing segment of animal healthcare, which reported a CAGR of 7% during the same period. The company estimates its total addressable companion animal global diagnostics revenue (TAM) opportunity at $37 billion, driven by increasing diagnostic innovation and utilization, and strengthening pet-parent bond. Thus far, Idexx has served less than 15% of its global TAM. Companion animal diagnostics is an attractive, resilient sector, with even greater potential coming out of COVID period. In 2020, 17.8% of the U.S. clinical visits included bloodwork, up from just 11% in 2010. Idexx has a huge installed base of around 95K chemistry, hematology, and urine analyzers. The company further sees 200K additional instrument placement opportunity amid low penetration, especially in the international markets (~155K additional placement opportunity). This leads to incremental and multi-year highly profitable consumables revenue stream for the company. Management is upbeat on the company’s growth potential and raised 2021 guidance twice. In the next five years, Idexx is well-positioned for 10%+ revenue CAGR, driven by sustained high and durable companion animal diagnostic recurring revenue gains (expected revenue CAGR of 11–14%). With diagnostic recurring revenue being highly profitable, the company aims to deliver 50–100 basis points operating margin expansion, 15–20% annual EPS growth, and high ROIC in next five years.  </p>

Idexx Laboratories is a leading global veterinary diagnostic company, offering fully integrated multi-modality diagnostic and software solutions. With a CAGR of 9% during 2015–2020, diagnostics is the fastest growing segment of animal healthcare, which reported a CAGR of 7% during the same period. The company estimates its total addressable companion animal global diagnostics revenue (TAM) opportunity at $37 billion, driven by increasing diagnostic innovation and utilization, and strengthening pet-parent bond. Thus far, Idexx has served less than 15% of its global TAM. Companion animal diagnostics is an attractive, resilient sector, with even greater potential coming out of COVID period. In 2020, 17.8% of the U.S. clinical visits included bloodwork, up from just 11% in 2010. Idexx has a huge installed base of around 95K chemistry, hematology, and urine analyzers. The company further sees 200K additional instrument placement opportunity amid low penetration, especially in the international markets (~155K additional placement opportunity). This leads to incremental and multi-year highly profitable consumables revenue stream for the company. Management is upbeat on the company’s growth potential and raised 2021 guidance twice. In the next five years, Idexx is well-positioned for 10%+ revenue CAGR, driven by sustained high and durable companion animal diagnostic recurring revenue gains (expected revenue CAGR of 11–14%). With diagnostic recurring revenue being highly profitable, the company aims to deliver 50–100 basis points operating margin expansion, 15–20% annual EPS growth, and high ROIC in next five years.  

Idexx Laboratories (IDXX US): Multi-Year Visibility Through Razor and Blades Business Model

<p>Shares of <a href="https://www.smartkarma.com/entities/intuitive-surgical-inc" target="_blank" data-smartkarma-citation="entities:15853:1" rel="noopener">Intuitive Surgical (ISRG US)</a> corrected ~10% from its 52-week high price of $362 achieved in early September. We believe the correction reflects investors’ fear on the pace of recovery of the elective surgeries globally, especially in the U.S. Amidst this backdrop, the company’s Q3 results announcement on October 19 will be a closely watched event. During their Q2 results announcement, management raised 2021 procedure growth (a key performance parameter) guidance to 27–30% y/y from 22–26% y/y announced during Q1 results announcement. So, outlook on procedure growth guidance for the remainder of the year and early trend into Q4 will the major catalysts for the shares.  Shares of Intuitive Surgical have historically been trading at a high multiple, at par with other high growth ideas such as <a href="https://www.smartkarma.com/entities/abiomed-inc" target="_blank" data-smartkarma-citation="entities:7767:1" rel="noopener">Abiomed Inc (ABMD US)</a>, <a href="https://www.smartkarma.com/entities/align-technology-inc" target="_blank" data-smartkarma-citation="entities:2817:1" rel="noopener">Align Technology (ALGN US)</a>, <a href="https://www.smartkarma.com/entities/idexx-laboratories-inc" target="_blank" data-smartkarma-citation="entities:14856:1" rel="noopener">IDEXX Laboratories (IDXX US)</a>, and <a href="https://www.smartkarma.com/entities/illumina-inc" target="_blank" data-smartkarma-citation="entities:8015:1" rel="noopener">Illumina Inc (ILMN US)</a>. Intuitive’s large market opportunity, especially in the international market, less than 10% penetration of its TAM, near monopolistic market positioning, and high switching cost justify its premium valuation. However, the valuation is always questioned amidst the upcoming competition. As Intuitive’s patent expired, big players including <a href="https://www.smartkarma.com/entities/medtronic-plc" target="_blank" data-smartkarma-citation="entities:14982:1" rel="noopener">Medtronic Plc (MDT US)</a> and <a href="https://www.smartkarma.com/entities/johnson-johnson" target="_blank" data-smartkarma-citation="entities:1132:1" rel="noopener">Johnson &amp; Johnson (JNJ US)</a> are vying to take some share through acquisitions of surgical robot start-up entities. This insight analyzes multiple upcoming competition in the soft tissue surgical robotic market and how Intuitive Surgical is expected to maintain its global leadership amid the competition.</p>

Shares of Intuitive Surgical (ISRG US) corrected ~10% from its 52-week high price of $362 achieved in early September. We believe the correction reflects investors’ fear on the pace of recovery of the elective surgeries globally, especially in the U.S. Amidst this backdrop, the company’s Q3 results announcement on October 19 will be a closely watched event. During their Q2 results announcement, management raised 2021 procedure growth (a key performance parameter) guidance to 27–30% y/y from 22–26% y/y announced during Q1 results announcement. So, outlook on procedure growth guidance for the remainder of the year and early trend into Q4 will the major catalysts for the shares.  Shares of Intuitive Surgical have historically been trading at a high multiple, at par with other high growth ideas such as Abiomed Inc (ABMD US), Align Technology (ALGN US), IDEXX Laboratories (IDXX US), and Illumina Inc (ILMN US). Intuitive’s large market opportunity, especially in the international market, less than 10% penetration of its TAM, near monopolistic market positioning, and high switching cost justify its premium valuation. However, the valuation is always questioned amidst the upcoming competition. As Intuitive’s patent expired, big players including Medtronic Plc (MDT US) and Johnson &amp; Johnson (JNJ US) are vying to take some share through acquisitions of surgical robot start-up entities. This insight analyzes multiple upcoming competition in the soft tissue surgical robotic market and how Intuitive Surgical is expected to maintain its global leadership amid the competition.

Intuitive Surgical (ISRG US): Global Leadership to Continue Amid Upcoming Competition

United States

IDEXX Laboratories, Inc. provides diagnostic, detection, and information systems for veterinary, food, and water testing applications. The Company also operates an international network of veterinary reference laboratories. IDEXX offers its products to customers worldwide.

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IDEXX Laboratories (IDXX US)

Bionote IPO Trading - Weakest Demand Even After Cutting Price and Size

Bionote (377740 KS) raised US$72.2m in its Korean IPO. In this note, we will talk about the demand for the deal and other trading dynamics.

Clarence Chu

Bionote Pre-IPO Peer Comp - Larger Segment Leads in Margins, but Trend Could Be Reversing

Bionote is looking to raise approximately US$200m in its Korean IPO. The IPO would consist of both a primary and secondary selldown. In this note,...

Clarence Chu

Align Technology (ALGN US) Vs. Angelalign Technology (6699 HK): Which One Is Better Investment

This insight has analyzed why Align Technology is a better investment idea than Angelalign Technology and thrown light on former’s fundamental...

Tina Banerjee