HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>Due to the centralized procurement in PRC market and decreasing volume of operations in overseas markets during pandemic, <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>’s 2021 performance missed expectations. </li>
<li>Even if Microport could finally digest the negative impact of centralized procurement, its “unique” development mode would still put pressure and uncertainties on future performance/outlook, leading to lower-than-expected results.</li>
<li>Our earnings estimate of Microport in 2022 could be about HK$-1.7, and revenue estimate could be about HK$7.3 billion. It’s quite possible that the Company will not end up profitable.</li>
</ul>


Due to the centralized procurement in PRC market and decreasing volume of operations in overseas markets during pandemic, Microport Scientific (853 HK)’s 2021 performance missed expectations. 
Even if Microport could finally digest the negative impact of centralized procurement, its “unique” development mode would still put pressure and uncertainties on future performance/outlook, leading to lower-than-expected results.
Our earnings estimate of Microport in 2022 could be about HK$-1.7, and revenue estimate could be about HK$7.3 billion. It’s quite possible that the Company will not end up profitable.


Microport Scientific (853.HK)-The “unique” Development Mode Leads to Lower-Than-Expected Performance

Equity Capital Markets

MicroPort NeuroScientific / Equity Capital Markets

<ul>
<li>The advantages of NeuroTech are mainly reflected in the comprehensive product portfolio and stable product performance, with higher gross margin, stronger cost control ability and first-mover advantage than its peers.</li>
<li>The major concerns here are the domestic shrinking market size due to the centralized procurement, the fierce market competition and the pain points on its sales model.</li>
<li>In terms of valuation, our view is that NeuroTech’s valuation could be higher than that of the peers such as Zylox-Tonbridge, HeartCare Medical, Peijia Medical and Sino Medical.</li>
</ul>


The advantages of NeuroTech are mainly reflected in the comprehensive product portfolio and stable product performance, with higher gross margin, stronger cost control ability and first-mover advantage than its peers.
The major concerns here are the domestic shrinking market size due to the centralized procurement, the fierce market competition and the pain points on its sales model.
In terms of valuation, our view is that NeuroTech’s valuation could be higher than that of the peers such as Zylox-Tonbridge, HeartCare Medical, Peijia Medical and Sino Medical.


Pre-IPO MicroPort NeuroTech - The Industry, the Business and the Concern

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>MicroPort is the largest Chinese neuro-interventional medical device company and has filed for an IPO on the Hong Kong Stock Exchange. Its Portfolio consists of 30 commercialised products and candidates.</li>
<li>Although struggling with margins, the company has an impressive product portfolio with a majority of them having strong competitive advantages.</li>
<li>As most of the products are poised for growth, we are largely positive on the company.  </li>
</ul>


MicroPort is the largest Chinese neuro-interventional medical device company and has filed for an IPO on the Hong Kong Stock Exchange. Its Portfolio consists of 30 commercialised products and candidates.
Although struggling with margins, the company has an impressive product portfolio with a majority of them having strong competitive advantages.
As most of the products are poised for growth, we are largely positive on the company.  


MicroPort NeuroTech IPO: Impressive Product Portfolio Offsets Profitability Concerns

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.

LG Energy Solution / Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> made a strong debut, while <a href="https://www.smartkarma.com/entities/hyundai-engineering-co-ltd" target="_blank" data-smartkarma-citation="entities:33008:1" rel="noopener">Hyundai Engineering Co Ltd (HEC KS)</a> cancelled its listing plans.</li>
<li>There were no major placements this week given the market volatility and upcoming CNY holidays.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

LG Energy Solution (373220 KS) made a strong debut, while Hyundai Engineering Co Ltd (HEC KS) cancelled its listing plans.
There were no major placements this week given the market volatility and upcoming CNY holidays.


ECM Weekly (29th Jan 2022) - LG Energy, AInnovation, Citicore REIT, Adani Wilmar, Airpower, HK SPAC

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.

<ul>
<li>Microport NeuroTech is a leading neuro-interventional device company in China. The company is looking to raise up to USD 300m via a Hong Kong listing.</li>
<li>We look at the company's key segments and products. We like the company's comprehensive coverage of neuro-interventional devices.</li>
<li>Its management team has decent experience as it is a spin-off from Microport. We also highlight the risk of the stock.</li>
</ul>


Microport NeuroTech is a leading neuro-interventional device company in China. The company is looking to raise up to USD 300m via a Hong Kong listing.
We look at the company's key segments and products. We like the company's comprehensive coverage of neuro-interventional devices.
Its management team has decent experience as it is a spin-off from Microport. We also highlight the risk of the stock.


Microport NeuroTech (微创脑科学) Pre-IPO: Decent Name for Neuro-Interventional Devices

China

MicroPort NeuroScientific is engaged in the research, development, and manufacturing of neuro-interventional medical devices. The company's products address three key areas of cerebrovascular disease: hemorrhagic stroke, cerebral atherosclerotic stenosis, and acute ischemic stroke. Key products include the NUMEN coil, Tubridge flow-diverting stent, and APOLLO intracranial stent. Headquartered in Shanghai, China, the company was founded in 2012.

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MicroPort NeuroScientific (2172 HK)

Microport Scientific (853.HK)-The “unique” Development Mode Leads to Lower-Than-Expected Performance

Microport’s 2021 performance missed expectations due to VBP and pandemic. Its “unique” development mode will lead to lower-than...

Xinyao (Criss) Wang

Pre-IPO MicroPort NeuroTech - The Industry, the Business and the Concern

NeuroTech's advantages include comprehensive product portfolio with stronger margin/cost control and first-mover advantage.But concerns are on...

Xinyao (Criss) Wang

MicroPort NeuroTech IPO: Impressive Product Portfolio Offsets Profitability Concerns

Although Microport's margins have come under pressure, the company has an impressive product portfolio with a majority of them having strong...

Shifara Samsudeen, FCMA, CGMA

ECM Weekly (29th Jan 2022) - LG Energy, AInnovation, Citicore REIT, Adani Wilmar, Airpower, HK SPAC

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Microport NeuroTech (微创脑科学) Pre-IPO: Decent Name for Neuro-Interventional Devices

Microport NeuroTech is a leading neuro-interventional device player in China with proven track record of R&D and commercialization. The company is...

Ke Yan, CFA, FRM

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