HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Shanghai HeartCare Medical Technology / Equity Capital Markets

Shanghai HeartCare Medical Technology (6609 HK)

<p>On January 27<sup>th</sup>, 2021, <a href="https://www.smartkarma.com/entities/shanghai-heartcare-medical-technology-corporation-limited" target="_blank" data-smartkarma-citation="entities:32192:1" rel="noopener">Shanghai HeartCare Medical Technology (HMT HK)</a> filed its prospectus on the Hong Kong Stock Exchange. HeartCare was founded in 2016, focusing on the development and industrialization of neuro-interventional technology innovations for stroke prevention and treatment. Over the past four years or so, the Company has raised five rounds of funding, with three rounds of equity funding last year, and now it officially launches its IPO plan. HeartCare has not been established for a long time, why could it frequently obtain the capital favor?</p>

On January 27th, 2021, Shanghai HeartCare Medical Technology (HMT HK) filed its prospectus on the Hong Kong Stock Exchange. HeartCare was founded in 2016, focusing on the development and industrialization of neuro-interventional technology innovations for stroke prevention and treatment. Over the past four years or so, the Company has raised five rounds of funding, with three rounds of equity funding last year, and now it officially launches its IPO plan. HeartCare has not been established for a long time, why could it frequently obtain the capital favor?

Pre-IPO Shanghai HeartCare Medical Technology - Promising Market but Fierce Competition

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

MicroPort CardioFlow / Equity Capital Markets

<p>We think that the proposed valuation for MicroPort CardioFlow's HKEX listing is pricey based on our DCF analysis, but the business has very good momentum resulting from a favorable product cycle and adoption of a new procedure. We would take the deal.</p>

We think that the proposed valuation for MicroPort CardioFlow's HKEX listing is pricey based on our DCF analysis, but the business has very good momentum resulting from a favorable product cycle and adoption of a new procedure. We would take the deal.

MicroPort CardioFlow: What You Have to Assume

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>MicroPort Cardioflow, a leading transcatheter valve therapeutic medical device company spun off from MicroPort Group, started book building to raise up to USD 324m via a listing in Hong Kong.</p><p>In our previous note, we looked at the company's first-generation TAVR product, VitaFlow. We think it has decent clinical data in terms of efficacy and safety. It was launched two years behind the main competitor, VenusMedtech's VenusA-Valve. Having said that, its sales ramp has been strong since its launch in 2H2019. The company's management team has been working within the MicroPort Group for more than a decade. We believe that the company can leverage the sales network of MicroPort Group. In terms of pre-IPO investors, we note that they are mainly domestic funds but the quality is decent. </p><p>We think the cornerstone line up is not the best for a healthcare listing and there's also a limited upside of 10% at the high end despite a strong rally for its peer set.</p><h2>Our previous coverage on Microport Cardioflow</h2><ul>
<li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/microport-cardioflow-pre-ipo-strong-sales-ramp-up-despite-being-late-in-market" target="_blank" rel="noopener">MicroPort Cardioflow (微创心通) Pre-IPO: Strong sales ramp-up despite being late in market</a></p></li>
<li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/microport-cardioflow-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">MicroPort Cardioflow (微创心通) Pre-IPO: Thoughts on valuation</a></p></li>
</ul>

MicroPort Cardioflow, a leading transcatheter valve therapeutic medical device company spun off from MicroPort Group, started book building to raise up to USD 324m via a listing in Hong Kong.In our previous note, we looked at the company's first-generation TAVR product, VitaFlow. We think it has decent clinical data in terms of efficacy and safety. It was launched two years behind the main competitor, VenusMedtech's VenusA-Valve. Having said that, its sales ramp has been strong since its launch in 2H2019. The company's management team has been working within the MicroPort Group for more than a decade. We believe that the company can leverage the sales network of MicroPort Group. In terms of pre-IPO investors, we note that they are mainly domestic funds but the quality is decent. We think the cornerstone line up is not the best for a healthcare listing and there's also a limited upside of 10% at the high end despite a strong rally for its peer set.Our previous coverage on Microport Cardioflow
MicroPort Cardioflow (微创心通) Pre-IPO: Strong sales ramp-up despite being late in market
MicroPort Cardioflow (微创心通) Pre-IPO: Thoughts on valuation


Cardioflow (微创心通)  IPO: Limited Upside

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/microport-cardioflow-medtech-corporation" target="_blank" data-smartkarma-citation="entities:31084:1" rel="noopener">MicroPort CardioFlow (1844972D HK)</a> is a leading transcatheter heart valve medical device company in China. It started as an incubation project within <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK)</a>, the controlling shareholder. At the proposed IPO price range of HK$11.10-12.20 per share, MicroPort will have a market cap of HK$26,264.5-28,867.2 ($3.4-3.7 billion). At the mid-point of the IPO price range, the total net proceeds are HK$2,247.5 million ($290 million). </p></div><div><p>Sixteen cornerstone investors will subscribe for $125 million of the offer shares (40.5% of the offer shares at the mid-point of the IPO price range). The five largest cornerstone investors are CPE Fund, Hillhouse Capital, Lake Bleu Capital, GIC and Taikang Life. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/microport-cardioflow-ipo-initiation-to-save-a-life" target="_blank" data-smartkarma-citation="insights:47200" rel="noopener">MicroPort CardioFlow IPO Initiation: To Save a Life</a>, we stated that with a large addressable market opportunity and VitaFlow’s potentially best-in-class clinical data, we believe that MicroPort is another attractive play on the China TAVR (transcatheter aortic heart valve replacement) market. Overall, we think that the IPO price range is reasonable.</p></div></div></div>

MicroPort CardioFlow (1844972D HK) is a leading transcatheter heart valve medical device company in China. It started as an incubation project within Microport Scientific (853 HK), the controlling shareholder. At the proposed IPO price range of HK$11.10-12.20 per share, MicroPort will have a market cap of HK$26,264.5-28,867.2 ($3.4-3.7 billion). At the mid-point of the IPO price range, the total net proceeds are HK$2,247.5 million ($290 million). Sixteen cornerstone investors will subscribe for $125 million of the offer shares (40.5% of the offer shares at the mid-point of the IPO price range). The five largest cornerstone investors are CPE Fund, Hillhouse Capital, Lake Bleu Capital, GIC and Taikang Life. In MicroPort CardioFlow IPO Initiation: To Save a Life, we stated that with a large addressable market opportunity and VitaFlow’s potentially best-in-class clinical data, we believe that MicroPort is another attractive play on the China TAVR (transcatheter aortic heart valve replacement) market. Overall, we think that the IPO price range is reasonable.

MicroPort CardioFlow IPO: Valuation Insights

<p>MicroPort Cardioflow is a transcatheter valve therapeutic medical device company incubated from the MicroPort Group. The company aims to raise up to USD 300m via a Hong Kong listing.</p><p>We looked at the company's first generation TAVR product, VitaFlow (<a href="https://www.smartkarma.com/insights/microport-cardioflow-pre-ipo-strong-sales-ramp-up-despite-being-late-in-market" target="_blank" rel="noopener">link to note</a>). We think it has decent clinical data in terms of efficacy and safety. It was launched two years behind the main competitor, VenusMedtech's VenusA-Valve. Having said that, its sales ramp has been strong since its launch in 2H2019. </p><p>The company's management team has been working within the MicroPort Group for more than a decade. We believe that the company can leverage on the sales network of MicroPort Group. In terms of pre-IPO investors, we note that they are mainly domestic funds but the quality is decent. </p><p>In this note, we will take a close look at the company’s valuation. We are of the view that the company’s fair value should be around USD 3.0 billion.</p>

MicroPort Cardioflow is a transcatheter valve therapeutic medical device company incubated from the MicroPort Group. The company aims to raise up to USD 300m via a Hong Kong listing.We looked at the company's first generation TAVR product, VitaFlow (link to note). We think it has decent clinical data in terms of efficacy and safety. It was launched two years behind the main competitor, VenusMedtech's VenusA-Valve. Having said that, its sales ramp has been strong since its launch in 2H2019. The company's management team has been working within the MicroPort Group for more than a decade. We believe that the company can leverage on the sales network of MicroPort Group. In terms of pre-IPO investors, we note that they are mainly domestic funds but the quality is decent. In this note, we will take a close look at the company’s valuation. We are of the view that the company’s fair value should be around USD 3.0 billion.

MicroPort Cardioflow (微创心通) Pre-IPO: Thoughts on Valuation

China

Peijia Medical is a China-based company specializing in the research, development, and manufacturing of high-end interventional medical devices. It provides comprehensive treatment solutions for structural heart diseases, including transcatheter aortic valve replacement (TAVR) systems, and neurovascular diseases with various neurointerventional devices. The company was founded in 2012 and is headquartered in Suzhou, China.

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Peijia Medical (9996 HK)

Pre-IPO Shanghai HeartCare Medical Technology - Promising Market but Fierce Competition

This article analyzed HeartCare Medical in terms of industry characteristics in China, market potential, competitive landscape, financial position,...

Xinyao (Criss) Wang

MicroPort CardioFlow: What You Have to Assume

We think that the proposed valuation for MicroPort CardioFlow's HKEX listing is pricey, but the business has very good momentum. We would take the...

Kemp Dolliver, CFA

Cardioflow (微创心通) IPO: Limited Upside

We think the cornerstone line up is not the best for a healthcare listing and there's also a limited upside of 10% at the high end despite a strong...

Ke Yan, CFA, FRM

MicroPort CardioFlow IPO: Valuation Insights

MicroPort aims to raise total net proceeds of $290 million at the mid-point of the IPO price range of HK$11.10-12.20 per share. Overall, we think...

Arun George

MicroPort Cardioflow (微创心通) Pre-IPO: Thoughts on Valuation

We are taking a close look at the Microport Cardioflow’s valuation. We are of the view that the company’s fair value should be around USD 3.0 billion.

Ke Yan, CFA, FRM

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