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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/genetron-holdings-ltd" target="_blank" data-smartkarma-citation="entities:28435:1" rel="noopener">Genetron Holdings Ltd (GTH US)</a> shareholders will vote on the consortium’s US$4.08 per ADS offer on 21 February. The offer is light in comparison to historical trading ranges.</li>
<li>Completion is conditional on shareholder approval, dissenting shareholders representing less than 15% of outstanding shares and regulatory approvals (NDRC, MoC and SAFE). </li>
<li>Despite the light offer, the completion conditions should be met. At the last close price and end of March completion, the gross and annualised spread is 7.7% and 45.5%, respectively.</li>
</ul>



Genetron Holdings Ltd (GTH US) shareholders will vote on the consortium’s US$4.08 per ADS offer on 21 February. The offer is light in comparison to historical trading ranges.
Completion is conditional on shareholder approval, dissenting shareholders representing less than 15% of outstanding shares and regulatory approvals (NDRC, MoC and SAFE). 
Despite the light offer, the completion conditions should be met. At the last close price and end of March completion, the gross and annualised spread is 7.7% and 45.5%, respectively.


Genetron (GTH US): Wide Spread Ahead of the 21 February Vote

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.

Equity Bottom-Up

<ul>
<li>New Horizon Health announced a positive profit alert yesterday after market close and held a conference call.</li>
<li>We participated in the call and spoke with the management to understand the recent developments.</li>
<li>The company upgraded '23 revenue guidance and provided revenue guidance for '24.</li>
</ul>


New Horizon Health announced a positive profit alert yesterday after market close and held a conference call.
We participated in the call and spoke with the management to understand the recent developments.
The company upgraded '23 revenue guidance and provided revenue guidance for '24.


New Horizon Health: Positive Alert, Upgrades '23 Revenue Guidance

<ul>
<li>New Horizon reported a strong 1H2023 results. Company has upgraded its '23 sales guidance.</li>
<li>The company will continue to deliver strong sales growth despite recent anti-corruption movement in China.</li>
<li>We believe that the evidence presented by the recent short-selling report is not sound. We believe the impact is over. </li>
</ul>


New Horizon reported a strong 1H2023 results. Company has upgraded its '23 sales guidance.
The company will continue to deliver strong sales growth despite recent anti-corruption movement in China.
We believe that the evidence presented by the recent short-selling report is not sound. We believe the impact is over. 


2024 High Conviction - New Horizon Health - Overhangs Are Over, Upgraded '23 Guidance

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ec-healthcare" target="_blank" data-smartkarma-citation="entities:22630:1" rel="noopener">EC Healthcare (2138 HK)</a> reported record high revenue of HK$3.9B in FY23 and started FY24 on a strong note, with Q1FY24 revenue increasing 23% YoY, driven by medical services segment.</li>
<li>Cost pressure is negatively impacting the bottom line. The company is reporting decelerating EBITDA and net profit margins since FY20. ROE deteriorated to 4.5% in FY23 from 33% in FY19.</li>
<li>The company is well-positioned to see turnaround in profitability with the resumption of Mainland China visitors in Hong Kong providing impetus to high margin earning aesthetic business and cost optimization.</li>
</ul>



EC Healthcare (2138 HK) reported record high revenue of HK$3.9B in FY23 and started FY24 on a strong note, with Q1FY24 revenue increasing 23% YoY, driven by medical services segment.
Cost pressure is negatively impacting the bottom line. The company is reporting decelerating EBITDA and net profit margins since FY20. ROE deteriorated to 4.5% in FY23 from 33% in FY19.
The company is well-positioned to see turnaround in profitability with the resumption of Mainland China visitors in Hong Kong providing impetus to high margin earning aesthetic business and cost optimization.


EC Healthcare (2138 HK): Surging Revenue; Poised for Profitability Improvement; Future Looks Bright

Quantitative Analysis

<ul>
<li>We analyze the monthly Hong Kong Connect flows with our data engine.</li>
<li>We tabulate the top stocks by inflows, outflows, and holding by mainland investors.</li>
<li>We highlight inflows into Meituan, CCB, China Mobile, CNOOC, HKEX.</li>
</ul>


We analyze the monthly Hong Kong Connect flows with our data engine.
We tabulate the top stocks by inflows, outflows, and holding by mainland investors.
We highlight inflows into Meituan, CCB, China Mobile, CNOOC, HKEX.


Hong Kong Connect Flows (August): $8.8bn Outflows

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)

Genetron (GTH US): Wide Spread Ahead of the 21 February Vote

Shareholders overwhelmingly approve the privatisation proposal. Turnout was at 75.4% of outstanding shares. Among these shareholders, 99.9% voted...

Arun George

New Horizon Health: Positive Alert, Upgrades '23 Revenue Guidance

New Horizon Health reports positive profit alert, upgrades revenue guidance for 2023 and provides guidance for 2024. We participate the call and...

Ke Yan, CFA, FRM

2024 High Conviction - New Horizon Health - Overhangs Are Over, Upgraded '23 Guidance

We take a close look at the recent development of New Horizon Health. We believe that the worst is over and highlight significant milestones ahead...

Ke Yan, CFA, FRM

EC Healthcare (2138 HK): Surging Revenue; Poised for Profitability Improvement; Future Looks Bright

Despite consistent revenue growth, EC Healthcare is seeing declining profitability due to cost pressure. Turnaround is expected with the return of...

Tina Banerjee

Hong Kong Connect Flows (August): $8.8bn Outflows

We analyzed the Hong Kong Connect Scheme for the month of August and highlight flows for Meituan, CCB, China Mobile, CNOOC, HKEX.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Genetron (GTH US): Wide Spread Ahead of the 21 February Vote

Shareholders overwhelmingly approve the privatisation proposal. Turnout was at 75.4% of outstanding shares. Among these shareholders, 99.9% voted...

Arun George

New Horizon Health: Positive Alert, Upgrades '23 Revenue Guidance

​New Horizon Health reports positive profit alert, upgrades revenue guidance for 2023 and provides guidance for 2024. We participate the call and...

Ke Yan, CFA, FRM

2024 High Conviction - New Horizon Health - Overhangs Are Over, Upgraded '23 Guidance

We take a close look at the recent development of New Horizon Health. We believe that the worst is over and highlight significant milestones ahead...

Ke Yan, CFA, FRM

EC Healthcare (2138 HK): Surging Revenue; Poised for Profitability Improvement; Future Looks Bright

Despite consistent revenue growth, ​EC Healthcare is seeing declining profitability due to cost pressure. Turnaround is expected with the return of...

Tina Banerjee

Hong Kong Connect Flows (August): $8.8bn Outflows

We analyzed the Hong Kong Connect Scheme for the month of August and highlight flows for Meituan, CCB, China Mobile, CNOOC, HKEX.

Ke Yan, CFA, FRM

New Horizon Health reports positive profit alert, upgrades revenue guidance for 2023 and provides guidance for 2024. We participate the call and...

Despite consistent revenue growth, EC Healthcare is seeing declining profitability due to cost pressure. Turnaround is expected with the return of...