HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Neusoft Xikang Healthcare Technology Co Ltd / Equity Capital Markets

Neusoft Xikang Healthcare Technology Co Ltd

<ul>
<li>Anti-Corruption campaign has affected healthcare companies’ IPO. It’s crucial for companies to explain the compliance of selling expenses in IPO approval process. Investors need to be aware of potential risks.</li>
<li>Roche posts interim TIGIT OS data after “inadvertent disclosure”, which seems to give investors a glimmer of hope. But for now, we remain cautious about TIGIT based on our analysis.</li>
<li>We updated our views on Neusoft Xikang. We still hold a conservative view towards whether Xikang can successfully IPO this time, mainly due to some negative factors and gloomy outlook.</li>
</ul>


Anti-Corruption campaign has affected healthcare companies’ IPO. It’s crucial for companies to explain the compliance of selling expenses in IPO approval process. Investors need to be aware of potential risks.
Roche posts interim TIGIT OS data after “inadvertent disclosure”, which seems to give investors a glimmer of hope. But for now, we remain cautious about TIGIT based on our analysis.
We updated our views on Neusoft Xikang. We still hold a conservative view towards whether Xikang can successfully IPO this time, mainly due to some negative factors and gloomy outlook.


China Healthcare Weekly (Aug.25) - Anti Corruption Affects IPO, TIGIT Revives Again? Neusoft Xikang

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.

Neusoft Medical Systems / Equity Capital Markets

Neusoft Medical Systems, a leading medical imaging device provider in China, plans to raise up to USD 400m via a Hong Kong listing.The company's source of revenue came from the sales of medical devices, mostly the CT scanners, complemented by other imaging devices, as well as IVD devices (mainly ACAs) and value-add services such as service and trading, as well as computer aided diagnostics. We think the company is not attractive despite the selling point of value-add services. Only if the monetization of the data and software services became the main source of profit does the company worth a re-rating.

Neusoft Medical Systems, a leading medical imaging device provider in China, plans to raise up to USD 400m via a Hong Kong listing.The company's source of revenue came from the sales of medical devices, mostly the CT scanners, complemented by other imaging devices, as well as IVD devices (mainly ACAs) and value-add services such as service and trading, as well as computer aided diagnostics. We think the company is not attractive despite the selling point of value-add services. Only if the monetization of the data and software services became the main source of profit does the company worth a re-rating. 

Neusoft Medical Systems (东软医疗系统) Pre-IPO: Unattractive Fundamentals

On the last day of May, <a href="https://www.smartkarma.com/entities/neusoft-medical-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:33446:1" rel="noopener">Neusoft Medical Systems (NMS HK)</a> and <a href="https://www.smartkarma.com/entities/neusoft-xikang-holdings" target="_blank" data-smartkarma-citation="entities:33447:1" rel="noopener">Neusoft Xikang Holdings (NXH HK)</a> submitted their prospectuses to the HKEX at the same time. Actually, the "Neusoft faction" already has two listed companies in A-share and HKEX respectively, namely <a href="https://www.smartkarma.com/entities/neusoft-corp-a" target="_blank" data-smartkarma-citation="entities:6854:1" rel="noopener">Neusoft Corp A (600718 CH)</a> and <a href="https://www.smartkarma.com/entities/neusoft-education-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29234:1" rel="noopener">Neusoft Education Technology Co. Ltd (9616 HK)</a>, with the market value of RMB12 billion and HK$4 billion respectively by the end of July.6, 2021. If Neusoft Medical and <a href="https://www.smartkarma.com/entities/neusoft-xikang-holdings" target="_blank" data-smartkarma-citation="entities:33447:1" rel="noopener">Neusoft Xikang</a> are successfully listed, there will be four public companies in "Neusoft faction". Behind the active capital operation, how about Neusoft Xikang? This insight mainly analyzed the business model and the concerns of the Company.

On the last day of May, Neusoft Medical Systems (NMS HK) and Neusoft Xikang Holdings (NXH HK) submitted their prospectuses to the HKEX at the same time. Actually, the "Neusoft faction" already has two listed companies in A-share and HKEX respectively, namely Neusoft Corp A (600718 CH) and Neusoft Education Technology Co. Ltd (9616 HK), with the market value of RMB12 billion and HK$4 billion respectively by the end of July.6, 2021. If Neusoft Medical and Neusoft Xikang are successfully listed, there will be four public companies in "Neusoft faction". Behind the active capital operation, how about Neusoft Xikang? This insight mainly analyzed the business model and the concerns of the Company.

Pre-IPO Neusoft Xikang Holdings - The Business Model and the Concerns

On May 31, 2021, <a href="https://www.smartkarma.com/entities/neusoft-medical-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:33446:1" rel="noopener">Neusoft Medical Systems (NMS HK)</a> filed a prospectus with the Hong Kong Stock Exchange to be listed on the Main Board. This is the second time for Neusoft to submit a prospectus in a year. In June, 2020, Neusoft had applied for listing on the SSE STAR Market, but withdrew in November, 2020. For the reason of the withdrawal, the Company said that due to the outbreak of COVID-19, due diligence and other procedures for overseas subsidiaries of Neusoft cannot be carried out, and the Company also planned to prioritize potential acquisitions. So will it go well this time? This insight mainly analyzed the industry characteristics, the business, the financial position and the concerns of the Company.

On May 31, 2021, Neusoft Medical Systems (NMS HK) filed a prospectus with the Hong Kong Stock Exchange to be listed on the Main Board. This is the second time for Neusoft to submit a prospectus in a year. In June, 2020, Neusoft had applied for listing on the SSE STAR Market, but withdrew in November, 2020. For the reason of the withdrawal, the Company said that due to the outbreak of COVID-19, due diligence and other procedures for overseas subsidiaries of Neusoft cannot be carried out, and the Company also planned to prioritize potential acquisitions. So will it go well this time? This insight mainly analyzed the industry characteristics, the business, the financial position and the concerns of the Company.

Pre-IPO Neusoft Medical Systems - Promising Market but Full of Challenges

Neusoft Medical Systems (NMS HK)

China Healthcare Weekly (Aug.25) - Anti Corruption Affects IPO, TIGIT Revives Again? Neusoft Xikang

Corruption crackdown has affected companies’ IPO.Investors need to be aware of potential risk. Roche's TIGIT data bring a glimmer of hope but we...

Xinyao (Criss) Wang

Neusoft Medical Systems (东软医疗系统) Pre-IPO: Unattractive Fundamentals

Despite being a leading domestic player in the CT scanner market, fundamentals of Neusoft Medical Systems are not attractive.

Ke Yan, CFA, FRM

Pre-IPO Neusoft Xikang Holdings - The Business Model and the Concerns

This article mainly analyzed Neusoft Xikang in terms of the business model, the financial position, and the related concerns.

Xinyao (Criss) Wang

Pre-IPO Neusoft Medical Systems - Promising Market but Full of Challenges

The article mainly analyzed Neusoft Medical Systems in terms of the industry characteristics (market potential/policies), the business (comparison...

Xinyao (Criss) Wang