Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

New Horizon Health / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/new-horizon-health-limited" target="_blank" data-smartkarma-citation="entities:31039:1" rel="noopener">New Horizon Health (NHH HK)</a> has announced terms of its US$263MM IPO with a pre-money valuation of US$960 million to US$1.17 billion. The updated filings show a strong recovery in volumes from COVID-19 disruptions. We think the valuation is reasonable using undemanding assumptions and would participate in the offering. </p>

New Horizon Health (NHH HK) has announced terms of its US$263MM IPO with a pre-money valuation of US$960 million to US$1.17 billion. The updated filings show a strong recovery in volumes from COVID-19 disruptions. We think the valuation is reasonable using undemanding assumptions and would participate in the offering. 

New Horizon IPO: Only Undemanding Assumptions Needed

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.

<p>New Horizon Health, a pioneer in the colorectal cancer screening market in China, launched book building to raise up to USD 263m to in Hong Kong.  </p><p>In our previous note (A hot medical device deal in making), we discussed that NH Health provides cancer screen kits for convenient early screening targeting populations recommended for regular cancer screening. The company's approved product ColoClear has an impressive accuracy compared with peer products for colorectal cancer. In addition to ColoClear, it also offers a more mass-market product, Pupu Tube for home-based testing. The company's products have a huge unmet market and a high barrier to entry. We believe its uniqueness as the only investable stock in the segment will make the deal interesting for investors. The company's management has good prior working experience and is backed by a strong line up of international and domestic investors. We have compared the company's product with the benchmark product, Exact Sciences' Cologuard. We think the company's ColoClear is ahead of the Cologuard with improvement in clinical reading and the technology used. We valued the company's core product, ColoClear at USD 2.6 bn and the company at USD 3.1bn on a SOTP basis. </p><p>In this note, we look at the deal term. We think there is substantial upside from the high end. The line-up of cornerstone investors is strong. We are seeing strong demand from institution side. We will participate in the deal.</p><h2>Our previous coverage on New Horizon Health</h2><ul>
<li><a href="https://www.smartkarma.com/insights/new-horizon-health-pre-ipo-a-hot-medical-device-deal-in-making" target="_blank" rel="noopener">New Horizon Health (诺辉健康) Pre-IPO: A Hot Medical Device Deal in Making</a></li>
<li><a href="https://www.smartkarma.com/insights/new-horizon-health-pre-ipo-comparison-with-exact-sciences" target="_blank" rel="noopener">New Horizon Health (诺辉健康) Pre-IPO: Comparison with Exact Sciences</a></li>
<li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/new-horizon-health-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">New Horizon Health (诺辉健康) Pre-IPO: Thoughts on valuation</a></p></li>
</ul>

New Horizon Health, a pioneer in the colorectal cancer screening market in China, launched book building to raise up to USD 263m to in Hong Kong.  In our previous note (A hot medical device deal in making), we discussed that NH Health provides cancer screen kits for convenient early screening targeting populations recommended for regular cancer screening. The company's approved product ColoClear has an impressive accuracy compared with peer products for colorectal cancer. In addition to ColoClear, it also offers a more mass-market product, Pupu Tube for home-based testing. The company's products have a huge unmet market and a high barrier to entry. We believe its uniqueness as the only investable stock in the segment will make the deal interesting for investors. The company's management has good prior working experience and is backed by a strong line up of international and domestic investors. We have compared the company's product with the benchmark product, Exact Sciences' Cologuard. We think the company's ColoClear is ahead of the Cologuard with improvement in clinical reading and the technology used. We valued the company's core product, ColoClear at USD 2.6 bn and the company at USD 3.1bn on a SOTP basis. In this note, we look at the deal term. We think there is substantial upside from the high end. The line-up of cornerstone investors is strong. We are seeing strong demand from institution side. We will participate in the deal.Our previous coverage on New Horizon Health
New Horizon Health (诺辉健康) Pre-IPO: A Hot Medical Device Deal in Making
New Horizon Health (诺辉健康) Pre-IPO: Comparison with Exact Sciences
New Horizon Health (诺辉健康) Pre-IPO: Thoughts on valuation


New Horizon Health (诺辉健康) IPO: Room to Fly

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.

<div>
<p><a href="https://www.smartkarma.com/entities/new-horizon-health-limited" target="_blank" data-smartkarma-citation="entities:31039:1" rel="noopener">New Horizon Health (NHH HK)</a> is a leading player in China’s colorectal cancer screening market. It has two self-developed cancer screening tests - Pupu Tube and ColoClear. At the proposed IPO price range of HK$22.70-26.66 per share, New Horizon will have a market cap of $1.2-1.4 billion. At the mid-point of the IPO price range, the gross proceeds are HK$1.9 billion ($244 million). </p>
<p>In <a href="https://www.smartkarma.com/insights/new-horizon-health-ipo-initiation-screening-for-cancer" target="_blank" data-smartkarma-citation="insights:46909" rel="noopener">New Horizon Health IPO Initiation: Screening for Cancer</a>, we stated that New Horizon is a play on the rapid growth of the cancer screening market in China, particularly the colorectal cancer screening market. We concluded that that New Horizon has the right ingredients to capitalise on this market opportunity.  In <a href="https://www.smartkarma.com/insights/new-horizon-health-ipo-poised-for-growth" target="_blank" data-smartkarma-citation="insights:47722" rel="noopener">New Horizon Health IPO: Poised for Growth</a>, we stated that the PHIP which disclose the 9M20 results and the all-important NMPA approval for ColoClear IVD reinforce our view that New Horizon has attractive fundamentals.</p>
</div><div><div class="content-highlight"><p>Sixteen cornerstone investors will account for up to 55.29% of the offer shares. The cornerstone investors include Invesco, GIC, Lake Bleu Capital and OrbiMed. Overall, we would participate in the IPO due to an attractive IPO price range and good cornerstone support.</p></div></div>


New Horizon Health (NHH HK) is a leading player in China’s colorectal cancer screening market. It has two self-developed cancer screening tests - Pupu Tube and ColoClear. At the proposed IPO price range of HK$22.70-26.66 per share, New Horizon will have a market cap of $1.2-1.4 billion. At the mid-point of the IPO price range, the gross proceeds are HK$1.9 billion ($244 million). 
In New Horizon Health IPO Initiation: Screening for Cancer, we stated that New Horizon is a play on the rapid growth of the cancer screening market in China, particularly the colorectal cancer screening market. We concluded that that New Horizon has the right ingredients to capitalise on this market opportunity.  In New Horizon Health IPO: Poised for Growth, we stated that the PHIP which disclose the 9M20 results and the all-important NMPA approval for ColoClear IVD reinforce our view that New Horizon has attractive fundamentals.
Sixteen cornerstone investors will account for up to 55.29% of the offer shares. The cornerstone investors include Invesco, GIC, Lake Bleu Capital and OrbiMed. Overall, we would participate in the IPO due to an attractive IPO price range and good cornerstone support.

New Horizon Health IPO: Valuation Insights

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.

<p><a href="https://www.smartkarma.com/entities/new-horizon-health-limited" target="_blank" data-smartkarma-citation="entities:31039:1" rel="noopener">New Horizon Health (NHH HK)</a>  operates in the Chinese colorectal cancer screening market. The company’s proprietary cancer screening product, ColoClear is the first and only molecular cancer screening test approved by the NMPA.</p><p>In addition to the company’s proprietary screening test, ColoClear, the company also has Pupu Tube, a non-invasive, stool-based FIT test, which is the first self-conducted FIT screening product approved by the NMPA in China.</p><p>The company has filed for an IPO to list its shares on the Hong Stock Exchange and according to the Bloomberg, the company plans to raise about US$300m.</p><p>In our previous insight on the company’s IPO, we discuss the company’s business, its product pipeline and outlook. In this follow-up insight, we have highlighted and discussed some of the key new data points from the company’s Post Hearing Information Pack (PHIP).</p>

New Horizon Health (NHH HK)  operates in the Chinese colorectal cancer screening market. The company’s proprietary cancer screening product, ColoClear is the first and only molecular cancer screening test approved by the NMPA.In addition to the company’s proprietary screening test, ColoClear, the company also has Pupu Tube, a non-invasive, stool-based FIT test, which is the first self-conducted FIT screening product approved by the NMPA in China.The company has filed for an IPO to list its shares on the Hong Stock Exchange and according to the Bloomberg, the company plans to raise about US$300m.In our previous insight on the company’s IPO, we discuss the company’s business, its product pipeline and outlook. In this follow-up insight, we have highlighted and discussed some of the key new data points from the company’s Post Hearing Information Pack (PHIP).

<p><a href="https://www.smartkarma.com/entities/new-horizon-health-limited" target="_blank" data-smartkarma-citation="entities:31039:1" rel="noopener">New Horizon Health (NHH HK)</a> is a leading player in China’s colorectal cancer screening market. It has two self-developed cancer screening tests, Pupu Tube, and ColoClear, the core component of which, ColoClear IVD, is approved by the NMPA. New Horizon is set to launch a $300 million Hong Kong IPO on Thursday, according to press reports.</p><p>In <a href="https://www.smartkarma.com/insights/new-horizon-health-ipo-initiation-screening-for-cancer" target="_blank" data-smartkarma-citation="insights:46909" rel="noopener">New Horizon Health IPO Initiation: Screening for Cancer</a>, we stated that New Horizon is a play on the rapid growth of the cancer screening market in China, particularly the colorectal cancer screening market. We concluded that that New Horizon has the right ingredients to capitalise on this market opportunity. </p><div class="content-highlight"><p>In this note, we look at the PHIP which disclose the 9M20 results and the all-important NMPA approval for ColoClear IVD. The NMPA issued the registration certificate for ColoClear IVD in November 2020 which will open multiple growth opportunities. Overall, we continue to believe that New Horizon is worth a closer look and has attractive fundamentals. </p></div>

New Horizon Health (NHH HK) is a leading player in China’s colorectal cancer screening market. It has two self-developed cancer screening tests, Pupu Tube, and ColoClear, the core component of which, ColoClear IVD, is approved by the NMPA. New Horizon is set to launch a $300 million Hong Kong IPO on Thursday, according to press reports.In New Horizon Health IPO Initiation: Screening for Cancer, we stated that New Horizon is a play on the rapid growth of the cancer screening market in China, particularly the colorectal cancer screening market. We concluded that that New Horizon has the right ingredients to capitalise on this market opportunity. In this note, we look at the PHIP which disclose the 9M20 results and the all-important NMPA approval for ColoClear IVD. The NMPA issued the registration certificate for ColoClear IVD in November 2020 which will open multiple growth opportunities. Overall, we continue to believe that New Horizon is worth a closer look and has attractive fundamentals. 

New Horizon Health IPO: Poised for Growth

China

New Horizon Health Limited is a China-based investment holding company focused on early cancer screening and in-home testing, with an emphasis on colorectal, gastric, and cervical cancers. Its key products include ColoClear and Pupu Tube. The company was founded in 2015 and is headquartered in Hangzhou, China.

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New Horizon Health (6YZ GR)

New Horizon IPO: Only Undemanding Assumptions Needed

We think the proposed valuation of New Horizon Health's (NHH HK) IPO is reasonable using undemanding assumptions and would participate in the...

Kemp Dolliver, CFA

New Horizon Health (诺辉健康) IPO: Room to Fly

We think there is substantial upside from the high end. The line-up of cornerstone investors is strong. We are seeing strong demand from...

Ke Yan, CFA, FRM

New Horizon Health IPO: Valuation Insights

New Horizon will raise gross proceeds of $244 million at the mid-point of the proposed IPO price range of HK$22.70-26.66. We would participate in...

Arun George

New Horizon Health IPO: PHIP Updates

New Horizon Health operates in the Chinese colorectal cancer screening market. The company has filed for an IPO on the HKEX and plans to raise...

Shifara Samsudeen, FCMA, CGMA

New Horizon Health IPO: Poised for Growth

New Horizon is set to launch a $300m HK IPO on Thursday. The PHIP which disclose the 9M20 results and the all-important NMPA approval for ColoClear...

Arun George

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