Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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

HeMo Bioengineering / Equity Capital Markets

<p>HeMo Bioengineering, a China-based interventional medical device company, plans to raise up to USD 300m via a Hong Kong listing.</p><p>The company's main products are catheters for the aspiration thrombectomy for acute ischemic stroke. The thrombectomy market is experiencing rapid growth and the company targets a less competitive thrombectomy segment but effectively it is facing intense competition with stent retrievers. We are of the view that the company's product is not competitive and innovative enough to acquire large market share from other players despite the penetration rate of the aspiration thrombectomy in China is much lower than that in the US. </p><p>The company's management does have a track record in developing medical devices in the past but we think its current product line does indicate few inventions.</p>

HeMo Bioengineering, a China-based interventional medical device company, plans to raise up to USD 300m via a Hong Kong listing.The company's main products are catheters for the aspiration thrombectomy for acute ischemic stroke. The thrombectomy market is experiencing rapid growth and the company targets a less competitive thrombectomy segment but effectively it is facing intense competition with stent retrievers. We are of the view that the company's product is not competitive and innovative enough to acquire large market share from other players despite the penetration rate of the aspiration thrombectomy in China is much lower than that in the US. The company's management does have a track record in developing medical devices in the past but we think its current product line does indicate few inventions.

HeMo Bioengineering (禾木生物工程) Pre-IPO: Signs of Lacking Innovation

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.

Shanghai MicroPort MedBot Group / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/shanghai-microport-medbot-group-co-ltd" target="_blank" data-smartkarma-citation="entities:33485:1" rel="noopener">Shanghai MicroPort MedBot Group (MMG HK)</a> is a global surgical robot company and a subsidiary of <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK)</a>, a 54.61% shareholder. MicroPort MedBot has developed a portfolio with one approved product (DFVision) and eight product candidates at various stages of development, including two candidates (Toumai and Honghu) in the NMPA registration application stage. The core product is the Toumai laparoscopic surgical robot. </p></div><div><p>MicroPort MedBot has launched an HKEx IPO to raise net proceeds of HK$1,332.3 ($171 million) at the mid-point of the IPO price range of HK$36.00-43.20 per share. The IPO raise is materially below the rumoured target of up to $1 billion. </p></div><div><p>Seven cornerstone investors have agreed to invest about $95 million in the IPO (51.6% of the offer shares at the mid-point of the IPO price range). The cornerstones are Aspex Management, Hillhouse, LAV, Snow Lake Capital, Yorkool, CloudAlpha Capital and Artisan Partners.</p></div><div><div>
<p>In <a href="https://www.smartkarma.com/insights/microport-medbot-ipo-initiation-helping-mechanical-hands" target="_blank" data-smartkarma-citation="insights:58411" rel="noopener">MicroPort MedBot IPO Initiation: Helping Mechanical Hands</a>, we stated that MicroPort MedBot’s three flagship products (Toumai, Honghui and DFVision) have been admitted to the Green Path, an elite program under which the NMPA grants priority review and accelerated approval. Crucially, the three flagship products are either approved (DFVision commercial launch in 4Q21) or at the registration approval stage, which provides near-term market visibility. We concluded that MicroPort MedBot is worth a closer look.</p>
<div class="content-highlight"><p>However, our valuation analysis suggests that the IPO price range is full and we would remain on the sidelines awaiting a better entry opportunity. </p></div>
</div></div>

Shanghai MicroPort MedBot Group (MMG HK) is a global surgical robot company and a subsidiary of Microport Scientific (853 HK), a 54.61% shareholder. MicroPort MedBot has developed a portfolio with one approved product (DFVision) and eight product candidates at various stages of development, including two candidates (Toumai and Honghu) in the NMPA registration application stage. The core product is the Toumai laparoscopic surgical robot. MicroPort MedBot has launched an HKEx IPO to raise net proceeds of HK$1,332.3 ($171 million) at the mid-point of the IPO price range of HK$36.00-43.20 per share. The IPO raise is materially below the rumoured target of up to $1 billion. Seven cornerstone investors have agreed to invest about $95 million in the IPO (51.6% of the offer shares at the mid-point of the IPO price range). The cornerstones are Aspex Management, Hillhouse, LAV, Snow Lake Capital, Yorkool, CloudAlpha Capital and Artisan Partners.
In MicroPort MedBot IPO Initiation: Helping Mechanical Hands, we stated that MicroPort MedBot’s three flagship products (Toumai, Honghui and DFVision) have been admitted to the Green Path, an elite program under which the NMPA grants priority review and accelerated approval. Crucially, the three flagship products are either approved (DFVision commercial launch in 4Q21) or at the registration approval stage, which provides near-term market visibility. We concluded that MicroPort MedBot is worth a closer look.
However, our valuation analysis suggests that the IPO price range is full and we would remain on the sidelines awaiting a better entry opportunity. 


Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<p>Shanghai MicroPort MedBot Group (MM), a surgical robot company, aims to raise up to US$200m in its Hong Kong IPO.</p><p>MicroPort MedBot (MM) is a surgical robot company which designs, develops and commercializes surgical robots to assist surgeons in performing complex surgical procedures. It is the only company with a product portfolio covering the five major and fast-growing surgical specialties of laparoscopic, orthopedic, panvascular, natural orifice and percutaneous surgical procedures, as per Frost &amp; Sullivan (F&amp;S).</p><p>We have looked at the company’s background and products in our earlier notes:</p><ul>
<li><a href="https://www.smartkarma.com/insights/microport-medbot-pre-ipo-robodoc-pre-revenue-has-a-large-competitor-but-a-large-market-as-well" target="_blank" rel="noopener">MicroPort MedBot Pre-IPO - RoboDoc - pre-revenue, has a large competitor but a large market as well</a></li>
<li><a href="https://www.smartkarma.com/insights/microport-medbot-pre-ipo-robodoc-phip-updates-and-a-look-at-its-largest-competitor" target="_blank" rel="noopener">MicroPort MedBot Pre-IPO - RoboDoc - PHIP Updates and a Look at Its Largest Competitor, and</a></li>
<li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/microport-medbot-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">MicroPort MedBot Pre-IPO - Thoughts on valuation</a></li>
</ul><p>In this note, we will run the deal through our ECM framework and comment on valuations.</p>

Shanghai MicroPort MedBot Group (MM), a surgical robot company, aims to raise up to US$200m in its Hong Kong IPO.MicroPort MedBot (MM) is a surgical robot company which designs, develops and commercializes surgical robots to assist surgeons in performing complex surgical procedures. It is the only company with a product portfolio covering the five major and fast-growing surgical specialties of laparoscopic, orthopedic, panvascular, natural orifice and percutaneous surgical procedures, as per Frost &amp; Sullivan (F&amp;S).We have looked at the company’s background and products in our earlier notes:
MicroPort MedBot Pre-IPO - RoboDoc - pre-revenue, has a large competitor but a large market as well
MicroPort MedBot Pre-IPO - RoboDoc - PHIP Updates and a Look at Its Largest Competitor, and
MicroPort MedBot Pre-IPO - Thoughts on valuation
In this note, we will run the deal through our ECM framework and comment on valuations.

MicroPort MedBot Pre-IPO - Valuation Appears Reasonable but Sentiment Will Weigh

<p><a href="https://www.smartkarma.com/entities/shanghai-microport-medbot-group-co-ltd" target="_blank" data-smartkarma-citation="entities:33485:1" rel="noopener">Shanghai MicroPort MedBot Group (MMG HK)</a> is a global surgical robot company and a subsidiary of <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK)</a>, a 54.61% shareholder. MicroPort MedBot is pre-marketing an HKEx IPO to raise up to $1 billion, according to press reports.</p><p>The potential spin-off and listing is Microport's second spin-off of a subsidiary this year. In February 2021, Microport listed <a href="https://www.smartkarma.com/entities/microport-cardioflow" target="_blank" data-smartkarma-citation="entities:31084:1" rel="noopener">CardioFlow-B (2160 HK)</a> at HK$12.20 per share to raise net proceeds of HK$2,356.0 million ($303 million) at the peak of the market. Unsurprisingly, with the regulatory-driven market selloff, MicroPort CardioFlow is trading around 50% below its IPO price. </p><p>MicroPort MedBot has developed a portfolio with one approved product (DFVision) and eight product candidates at various stages of development, including two candidates (Toumai and Honghu) in the NMPA registration application stage. The core product is the Toumai laparoscopic surgical robot. </p><p>MicroPort MedBot has a credible management team with relevant surgical robot development experience. For example, Dr He Chao, the president and founder, is one of the leading experts in the Chinese surgical robot industry. In addition to MicroPort, MicroPort MedBot’s shareholders include Zhuhai Gao Ling, CPE, Grand Flight, Creedfont Capital and Biolink Investment. </p><div class="content-highlight"><p>MicroPort MedBot’s three flagship products (Toumai, Honghui and DFVision) have been admitted to the Green Path, an elite program under which the NMPA grants priority review and accelerated approval. Crucially, the three flagship products are either approved (DFVision commercial launch in 4Q21) or at the registration approval stage, which provides near-term market visibility. Overall, we believe that MicroPort MedBot is worth a closer look. </p></div>

Shanghai MicroPort MedBot Group (MMG HK) is a global surgical robot company and a subsidiary of Microport Scientific (853 HK), a 54.61% shareholder. MicroPort MedBot is pre-marketing an HKEx IPO to raise up to $1 billion, according to press reports.The potential spin-off and listing is Microport's second spin-off of a subsidiary this year. In February 2021, Microport listed CardioFlow-B (2160 HK) at HK$12.20 per share to raise net proceeds of HK$2,356.0 million ($303 million) at the peak of the market. Unsurprisingly, with the regulatory-driven market selloff, MicroPort CardioFlow is trading around 50% below its IPO price. MicroPort MedBot has developed a portfolio with one approved product (DFVision) and eight product candidates at various stages of development, including two candidates (Toumai and Honghu) in the NMPA registration application stage. The core product is the Toumai laparoscopic surgical robot. MicroPort MedBot has a credible management team with relevant surgical robot development experience. For example, Dr He Chao, the president and founder, is one of the leading experts in the Chinese surgical robot industry. In addition to MicroPort, MicroPort MedBot’s shareholders include Zhuhai Gao Ling, CPE, Grand Flight, Creedfont Capital and Biolink Investment. MicroPort MedBot’s three flagship products (Toumai, Honghui and DFVision) have been admitted to the Green Path, an elite program under which the NMPA grants priority review and accelerated approval. Crucially, the three flagship products are either approved (DFVision commercial launch in 4Q21) or at the registration approval stage, which provides near-term market visibility. Overall, we believe that MicroPort MedBot is worth a closer look. 

MicroPort MedBot IPO Initiation: Helping Mechanical Hands

Shanghai NewMed Medical / Equity Capital Markets

<p>Shanghai NewMed, a China-based heart valve medical device company, plans to raise up to USD 200m via a Hong Kong listing.</p><p>The company's core TAVR (transcatheter aortic valve replacement) product Prizvalve is a few years behind its competitors, despite its unique balloon expandable design. The selling point for the company is that in the international market such design is better than the self-expandable design which is mainstream in China. On the other hand, the company is leading the TMVR (transcatheter mitral valve replacement) development which is potentially a bigger market than the TAVR. </p><p>The company has quality institutional investors alongside individual investors, as well as an experienced management team. We think investors should follow the IPO.</p>

Shanghai NewMed, a China-based heart valve medical device company, plans to raise up to USD 200m via a Hong Kong listing.The company's core TAVR (transcatheter aortic valve replacement) product Prizvalve is a few years behind its competitors, despite its unique balloon expandable design. The selling point for the company is that in the international market such design is better than the self-expandable design which is mainstream in China. On the other hand, the company is leading the TMVR (transcatheter mitral valve replacement) development which is potentially a bigger market than the TAVR. The company has quality institutional investors alongside individual investors, as well as an experienced management team. We think investors should follow the IPO.

NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR

China

Microport Cardioflow Medtech Corporation develops and sells medical devices. The Company manufactures and sells vitaflow aortic valve system, alwide balloon catheter, and other products. Microport Cardioflow Medtech markets its products throughout China.

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Microport Cardioflow Medtech (2160 HK)

HeMo Bioengineering (禾木生物工程) Pre-IPO: Signs of Lacking Innovation

We look at HeMo Bioengineering's main products. We are not convinced that its aspiration catheter products are innovative and competitive.

Ke Yan, CFA, FRM

MicroPort MedBot IPO: Valuation Insights

Our valuation analysis suggests that the IPO price range is full and we would remain on the sidelines awaiting a better entry opportunity.

Arun George

MicroPort MedBot Pre-IPO - Valuation Appears Reasonable but Sentiment Will Weigh

Shanghai MicroPort MedBot Group (MM), a surgical robot company, aims to raise up to US$200m in its Hong Kong IPO. Valuation appears reasonable but...

Sumeet Singh

MicroPort MedBot IPO Initiation: Helping Mechanical Hands

MicroPort MedBot is seeking to raise up to $1 bn. Crucially, the three flagship products are either approved or at the approval stage, which...

Arun George

NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR

NewMed plans to raise at least USD 200m via a Hong Kong listing. We take a look at its Prizvalve, replacement valve for the aortic valve, and Mi...

Ke Yan, CFA, FRM

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