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.

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

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>Although Mirxes has already commercialized its products, its total revenue fluctuated greatly. When the market demand for COVID-19 testing kits sharply declined, the Company’s financial position deteriorated immediately.</li>
<li>With the highest incidence rate of gastric cancer worldwide, PRC market is important to Mirxes. How to gain recognition from doctors and enter hospital market is a challenge for GASTROClear.</li>
<li>Mirxes is facing survival problem and eager for an IPO. Before Mirxes establishes a clear/visible path to commercialization and a successful profit model in post-COVID era, we would remain cautious. </li>
</ul>


Although Mirxes has already commercialized its products, its total revenue fluctuated greatly. When the market demand for COVID-19 testing kits sharply declined, the Company’s financial position deteriorated immediately.
With the highest incidence rate of gastric cancer worldwide, PRC market is important to Mirxes. How to gain recognition from doctors and enter hospital market is a challenge for GASTROClear.
Mirxes is facing survival problem and eager for an IPO. Before Mirxes establishes a clear/visible path to commercialization and a successful profit model in post-COVID era, we would remain cautious. 


Pre-IPO Mirxes Holding Company - The Profit Model in the Post Pandemic Era Needs to Be Verified

China

New Horizon Health Limited operates cancer screening technology development business. The Company develops and sells colorectal cancer screening test products, gastric cancer screening test products, and other products. New Horizon Health markets its products throughout China.

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New Horizon Health (6606 HK)

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

Pre-IPO Mirxes Holding Company - The Profit Model in the Post Pandemic Era Needs to Be Verified

After the dividend period of COVID, the deterioration of Mirxes's financial position may not be easily reversed, with survival pressure. Challenges...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

Pre-IPO Mirxes Holding Company - The Profit Model in the Post Pandemic Era Needs to Be Verified

After the dividend period of COVID, the deterioration of Mirxes's financial position may not be easily reversed, with survival pressure. Challenges...

Xinyao (Criss) Wang

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...