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.

Equity Capital Markets

Shanghai MicroPort MedBot Group / Equity Capital Markets

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:<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>In this note, we will run the deal through our ECM framework and comment on valuations.

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

Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

While modern pharmacology has been able to produce new medicines to treat or manage most diseases, these drugs often cause unpredictable side effects, which sometimes lead to the development of secondary diseases, especially for chronic conditions. One possible alternative to the problem of sustained use of drugs is electro, radiation, and ultrasound therapy. 
In the area of electrotherapy, <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/boston-scientific-corp" target="_blank" data-smartkarma-citation="entities:11115:1" rel="noopener">Boston Scientific (BSX US)</a> are the clear leaders by far, with dominance in the number of innovations, positive mentions, and impact of their innovations. However, with the increased use of electrotherapy for pain management and physiotherapy smaller players with unique products now compete in specific silos. Three small-cap names that screen well technologically are <a href="https://www.smartkarma.com/entities/nevro-corp" target="_blank" data-smartkarma-citation="entities:2218:1" rel="noopener">Nevro Corp (NVRO US)</a>, <a href="https://www.smartkarma.com/entities/nuvasive-inc" target="_blank" data-smartkarma-citation="entities:8384:1" rel="noopener">Nuvasive Inc (NUVA US)</a>, and <a href="https://www.smartkarma.com/entities/integer-holdings-corp" target="_blank" data-smartkarma-citation="entities:18313:1" rel="noopener">Greatbatch Inc (ITGR US)</a>.
In Radiotherapy <a href="https://www.smartkarma.com/entities/siemens-healthineers-ag" target="_blank" data-smartkarma-citation="entities:29221:1" rel="noopener">Siemens Healthineers AG (SHL GR)</a>  leads the field.  Surprisingly a private company Aerin Medical which provides treatment options for chronic nasal conditions and is a play on rising allergies and sleep apnoea comes in second
In Ultrasound therapy, <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> tops the list. A small-cap company <a href="https://www.smartkarma.com/entities/butterfly-network-inc" target="_blank" data-smartkarma-citation="entities:33050:1" rel="noopener">Butterfly Network Inc (BFLY US)</a> prima facie seems to have products that could potentially change the way ultrasound scans are performed as their technologies allow for use of small portable equipment in conjunction with a smartphone or tablet to create an ultrasound machine.

While modern pharmacology has been able to produce new medicines to treat or manage most diseases, these drugs often cause unpredictable side effects, which sometimes lead to the development of secondary diseases, especially for chronic conditions. One possible alternative to the problem of sustained use of drugs is electro, radiation, and ultrasound therapy. 
In the area of electrotherapy, Medtronic Plc (MDT US) and Boston Scientific (BSX US) are the clear leaders by far, with dominance in the number of innovations, positive mentions, and impact of their innovations. However, with the increased use of electrotherapy for pain management and physiotherapy smaller players with unique products now compete in specific silos. Three small-cap names that screen well technologically are Nevro Corp (NVRO US), Nuvasive Inc (NUVA US), and Greatbatch Inc (ITGR US).
In Radiotherapy Siemens Healthineers AG (SHL GR)  leads the field.  Surprisingly a private company Aerin Medical which provides treatment options for chronic nasal conditions and is a play on rising allergies and sleep apnoea comes in second
In Ultrasound therapy, Johnson &amp; Johnson (JNJ US) tops the list. A small-cap company Butterfly Network Inc (BFLY US) prima facie seems to have products that could potentially change the way ultrasound scans are performed as their technologies allow for use of small portable equipment in conjunction with a smartphone or tablet to create an ultrasound machine.

Stock Ideas Based on Data Mined from Technical Publications - Electro, Radio, & Ultrasound Therapies

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Shenzhen Mindray Bio-Medical Electronics / Equity Bottom-Up

Since <a href="https://www.smartkarma.com/entities/shenzhen-mindray-bio-medic-a" target="_blank" data-smartkarma-citation="entities:28017:1" rel="noopener">Shenzhen Mindray Bio-Medical Electronics (300760 CH)</a>’s share price hit a record high of RMB502/share in July, the share price has fallen about 25% to close at RMB378.03/share on Oct. 15, 2021. Meanwhile, on October 18, there would be 662 million restricted shares allowed for circulation, accounting for 54.49% of the total share capital. Besides, the news about centralized procurement as well as the acquisition of Hytest Invest Oy also caught investors’ attention. This insight mainly analyzed the business, the performance in 2021/1H, the potential impact of centralized procurement, the Hytest deal and the outlook of the Mindray.

Since Shenzhen Mindray Bio-Medical Electronics (300760 CH)’s share price hit a record high of RMB502/share in July, the share price has fallen about 25% to close at RMB378.03/share on Oct. 15, 2021. Meanwhile, on October 18, there would be 662 million restricted shares allowed for circulation, accounting for 54.49% of the total share capital. Besides, the news about centralized procurement as well as the acquisition of Hytest Invest Oy also caught investors’ attention. This insight mainly analyzed the business, the performance in 2021/1H, the potential impact of centralized procurement, the Hytest deal and the outlook of the Mindray.

Shenzhen Mindray Bio-Medical Electronics (300760.CH) - The Logic Behind Optimism

After hitting a record high of HK$72.85/share in June, the share price 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>has fallen continuously in the following months, down over 45% by the end of October 8, 2021. This insight mainly analyzed the 2021/1H performance, the business, the concerns and the outlook of MicroPort, including both the favorable and the unfavorable aspects.

After hitting a record high of HK$72.85/share in June, the share price of Microport Scientific (853 HK) has fallen continuously in the following months, down over 45% by the end of October 8, 2021. This insight mainly analyzed the 2021/1H performance, the business, the concerns and the outlook of MicroPort, including both the favorable and the unfavorable aspects.

Microport Scientific (853.HK) - The Favorable and the Unfavorable Aspects

Industry viewpoints:<ul>
<li>Thoughts and concerns on domestic pharmaceutical companies.</li>
<li>Quite a few policies about the VBP on Chinese patent medicine have been launched in some provinces.</li>
<li>Foreign companies have made good preparation for the upcoming 2021 medical insurance negotiation on their PD-1/L1 products. 
</li>
</ul>Company news:News about the updated progress on M&amp;A deal and new drugs 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 href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> and <a href="https://www.smartkarma.com/entities/luye-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:488:1" rel="noopener">Luye Pharma (2186 HK)</a>.Market review:Last week, stock price for healthcare sector in A share increased 0.69%, while CSI 300 increased 1.31% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
Thoughts and concerns on domestic pharmaceutical companies.
Quite a few policies about the VBP on Chinese patent medicine have been launched in some provinces.
Foreign companies have made good preparation for the upcoming 2021 medical insurance negotiation on their PD-1/L1 products. 

Company news:News about the updated progress on M&amp;A deal and new drugs of Microport Scientific (853 HK),BeiGene Ltd (6160 HK) and Luye Pharma (2186 HK).Market review:Last week, stock price for healthcare sector in A share increased 0.69%, while CSI 300 increased 1.31% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Oct.8)-Summary of Concerns on Pharma Companies, VBP on TCM, Q4 PD-1 Bidding

China

Microport Scientific Corp. manufactures interventional and minimally invasive devices for keyhole surgery. The Company's products are used to treat vascular diseases and is developing devices to treat diabetes and orthopedic diseases.

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Microport Scientific (853 HK)

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

Stock Ideas Based on Data Mined from Technical Publications - Electro, Radio, & Ultrasound Therapies

The report identifies companies best positioned in Electro, Radiation, and Ultrasound therapeutic technologies. These therapies are a safer...

Pyari Menon

Shenzhen Mindray Bio-Medical Electronics (300760.CH) - The Logic Behind Optimism

The article analyzed Mindray in terms of the core businesses, the 2021H1 performance, the impact of centralized procurement, the Hytest deal, the...

Xinyao (Criss) Wang