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.

Equity Capital Markets

MicroTech Medical (Hangzhou) / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/microtech-medical-hangzhou-co-ltd" target="_blank" data-smartkarma-citation="entities:33367:1" rel="noopener">MicroTech Medical Hangzhou (2235 HK)</a> focuses on managing diabetes by providing diabetes treatment and diabetes monitoring medical devices in China and globally. The company has filed for an IPO on the Hong Kong Stock Exchange and plans to raise gross proceeds of about HK$1.8-1.98bn (US$226-254m) at an indicative price range of HK$27.7-31.1 per share.MicroTech’s core product, a semi-disposable patch insulin pump (known as Equil) is the only patch insulin pump available in China whereas the competitor products are tube insulin pumps. The company is also moving into the CGMS (Continuous Glucose Monitoring System) market which has high margins, and the company is expected to have first-mover advantage in the Chinese diabetic market for CGMS. Equil and CGMS are yet to receive approval for child and adolescent use (currently approved for adult use only) which should expand the company’s target patient population.The monitoring, treatment and management of diabetes via patch insulin pumps and CGMS products is relatively new in China where the diabetic market in China has a variety of treatment options.In this insight, we examine the company’s business model, core products and pipeline, financials and the outlook for its products. We will discuss the company’s valuation in a follow-up insight.

MicroTech Medical Hangzhou (2235 HK) focuses on managing diabetes by providing diabetes treatment and diabetes monitoring medical devices in China and globally. The company has filed for an IPO on the Hong Kong Stock Exchange and plans to raise gross proceeds of about HK$1.8-1.98bn (US$226-254m) at an indicative price range of HK$27.7-31.1 per share.MicroTech’s core product, a semi-disposable patch insulin pump (known as Equil) is the only patch insulin pump available in China whereas the competitor products are tube insulin pumps. The company is also moving into the CGMS (Continuous Glucose Monitoring System) market which has high margins, and the company is expected to have first-mover advantage in the Chinese diabetic market for CGMS. Equil and CGMS are yet to receive approval for child and adolescent use (currently approved for adult use only) which should expand the company’s target patient population.The monitoring, treatment and management of diabetes via patch insulin pumps and CGMS products is relatively new in China where the diabetic market in China has a variety of treatment options.In this insight, we examine the company’s business model, core products and pipeline, financials and the outlook for its products. We will discuss the company’s valuation in a follow-up insight.

MicroTech IPO: Strong Product Portfolio; Small Demand Compared to Other Diabetes Treatment Options

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.

MicroTech Medical is a China-based diabetes management medical device company. The company launched book building to raise up to USD 226m via a Hong Kong listing.In our previous note, we discussed that the company's core product insulin patch pump system (Equil) has received NMPA approval in 2018 and EU's CE marking in 2017. It has design features that are more appealing than both the tubed players as well as the patch pump competitors. Having said that, we note that the insulin pump market is competitive and the company's sales data after product launch is far from being ideal. The company's pre-IPO investor is decent. The management team has relevant product development experience but is not considered a superstar team. We also provide a forecast for the company's main products and our thoughts on the pre-money valuation.In this note, we also provided an update for the book building. We will run the deal through our ECM framework and provide an update on the deal.

MicroTech Medical is a China-based diabetes management medical device company. The company launched book building to raise up to USD 226m via a Hong Kong listing.In our previous note, we discussed that the company's core product insulin patch pump system (Equil) has received NMPA approval in 2018 and EU's CE marking in 2017. It has design features that are more appealing than both the tubed players as well as the patch pump competitors. Having said that, we note that the insulin pump market is competitive and the company's sales data after product launch is far from being ideal. The company's pre-IPO investor is decent. The management team has relevant product development experience but is not considered a superstar team. We also provide a forecast for the company's main products and our thoughts on the pre-money valuation.In this note, we also provided an update for the book building. We will run the deal through our ECM framework and provide an update on the deal.

MicroTech (微泰医疗) IPO: Demanding Valuation Despite a Decent Story

MicroTech Medical, a China-based diabetes management medical device company, plans to raise up to USD 300m via a Hong Kong listing.In our previous note, we discussed that the company's core product insulin patch pump system (Equil) has received NMPA approval in 2018 and EU's CE marking in 2017. It has design features that are more appealing than both the tubed players as well as the patch pump competitors. Having said that, we note that the insulin pump market is competitive and the company's sales data after product launch is far from being ideal. The company's pre-IPO investor is decent. The management team has relevant product development experience but is not considered a superstar team.In this note, we provide a forecast for the company's main products and our thoughts on the pre-money valuation.

MicroTech Medical, a China-based diabetes management medical device company, plans to raise up to USD 300m via a Hong Kong listing.In our previous note, we discussed that the company's core product insulin patch pump system (Equil) has received NMPA approval in 2018 and EU's CE marking in 2017. It has design features that are more appealing than both the tubed players as well as the patch pump competitors. Having said that, we note that the insulin pump market is competitive and the company's sales data after product launch is far from being ideal. The company's pre-IPO investor is decent. The management team has relevant product development experience but is not considered a superstar team.In this note, we provide a forecast for the company's main products and our thoughts on the pre-money valuation.

MicroTech (微泰医疗) Pre-IPO: Thoughts on Valuation

MicroTech Medical, a China-based diabetes management medical device company, plans to raise up to USD 300m via a Hong Kong listing.The company's core product insulin patch pump system (Equil) has received NMPA approval in 2018 and EU's CE marking in 2017. It has design features that are more appealing than both the tubed players as well as the patch pump competitors. Having said that, we note that the insulin pump market is competitive and the company's sales data after product launch is far from being ideal. The company's pre-IPO investor is decent. The management team has relevant product development experience but is not considered a superstar team.

MicroTech Medical, a China-based diabetes management medical device company, plans to raise up to USD 300m via a Hong Kong listing.The company's core product insulin patch pump system (Equil) has received NMPA approval in 2018 and EU's CE marking in 2017. It has design features that are more appealing than both the tubed players as well as the patch pump competitors. Having said that, we note that the insulin pump market is competitive and the company's sales data after product launch is far from being ideal. The company's pre-IPO investor is decent. The management team has relevant product development experience but is not considered a superstar team.

MicroTech (微泰医疗) Pre-IPO: A Story of Domestic Product Replacing International Competitors

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

The number of diabetes cases in the world has been increasing every year, and it has been listed as the third most common disease in developed countries after cardiovascular disease and tumor. In recent years, due to the huge market potential, more and more listed companies are focusing on diabetes. For example, on May 14th, 2021, <a href="https://www.smartkarma.com/entities/microtech-medical-hangzhou-co-ltd" target="_blank" data-smartkarma-citation="entities:33367:1" rel="noopener">MicroTech Medical Hangzhou (MTM HK) </a>submitted its prospectus to HKEX and officially started the IPO process. In addition to listing on the HKEX, MicroTech also has plans to list on A-shares. So how about this Company? This insight mainly analyze the main products, the business and challenges.

The number of diabetes cases in the world has been increasing every year, and it has been listed as the third most common disease in developed countries after cardiovascular disease and tumor. In recent years, due to the huge market potential, more and more listed companies are focusing on diabetes. For example, on May 14th, 2021, MicroTech Medical Hangzhou (MTM HK) submitted its prospectus to HKEX and officially started the IPO process. In addition to listing on the HKEX, MicroTech also has plans to list on A-shares. So how about this Company? This insight mainly analyze the main products, the business and challenges.

Pre-IPO MicroTech Medical (Hangzhou) - The Main Products, the Business and the Challenges

China

MicroTech Medical (Hangzhou) Co., Ltd. is a Chinese company specializing in the research, development, manufacturing, and commercialization of medical devices and consumables for diabetes management. Its key products include blood glucose monitoring systems (BGMS), continuous glucose monitoring systems (CGMS), and insulin pump systems. The company was founded in 2011 and is headquartered in Hangzhou, China.

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MicroTech Medical (Hangzhou) (2235 HK)

MicroTech IPO: Strong Product Portfolio; Small Demand Compared to Other Diabetes Treatment Options

The company's core product Equil is priced at a discount to Medtronic's tube insulin pump which should eventually capture market share from...

Shifara Samsudeen, FCMA, CGMA

MicroTech (微泰医疗) IPO: Demanding Valuation Despite a Decent Story

We provided an update for the book building of MicroTech Medical which sells diabetes management products including patch insulin pump (Equil) and...

Ke Yan, CFA, FRM

MicroTech (微泰医疗) Pre-IPO: Thoughts on Valuation

In this note, we provide a financial forecast for the MicroTech's main products (Equil, BGMS, CGMS) and our thoughts on the pre-money valuation.

Ke Yan, CFA, FRM

MicroTech (微泰医疗) Pre-IPO: A Story of Domestic Product Replacing International Competitors

We look at the prospect of MicroTech Medical, an emerging diabetes treatment and management medical device player in China, which is looking to...

Ke Yan, CFA, FRM

Pre-IPO MicroTech Medical (Hangzhou) - The Main Products, the Business and the Challenges

This article mainly analyzed the main products (Equil, AiDEX G7, AiDEX X), the business, the related challenges, the financial position and the...

Xinyao (Criss) Wang

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