HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Zylox-Tonbridge Medical Technology / Equity Capital Markets

On March 23, <a href="https://www.smartkarma.com/entities/zylox-tonbridge-medical-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:32974:1" rel="noopener">Zylox-Tonbridge Medical Technology (ZYL HK)</a> submitted its listing application to the Hong Kong Stock Exchange and plans to be listed on the main board. Zylox-Tonbridge was founded in 2012. Since its inception, the Company has adopted and executed the strategic business model of developing innovative medical devices and solutions, focusing on the neuro- and peripheral-vascular interventional medical device market in China. The following mainly included insights on industry characteristics, business analysis and financial position.

On March 23, Zylox-Tonbridge Medical Technology (ZYL HK) submitted its listing application to the Hong Kong Stock Exchange and plans to be listed on the main board. Zylox-Tonbridge was founded in 2012. Since its inception, the Company has adopted and executed the strategic business model of developing innovative medical devices and solutions, focusing on the neuro- and peripheral-vascular interventional medical device market in China. The following mainly included insights on industry characteristics, business analysis and financial position. 

Pre-IPO Zylox-Tonbridge Medical Technology - Promising Market with Challenges

Thematic (Sector/Industry)

Industry Viewpoints:<ul>
<li>The 5th national volume-based purchase (VBP) was officially launched.</li>
<li>In 2020, China's pharmaceutical and life sciences industry disclosed 928 deals worth US$43 billion, up about 73% YoY.</li>
<li>The market is quite concerned about whether the healthcare sector would enter a new round of policy regulation period, but we think it may not.</li>
</ul>Company News:News about the updated progress on drugs and medical devices of <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a> and <a href="https://www.smartkarma.com/entities/peijia-medical" target="_blank" data-smartkarma-citation="entities:28862:1" rel="noopener">Peijia Medical (9996 HK).</a>Market Review:Last week, stock price for healthcare sector in A share increased 6.29%, while CSI 300 increased 3.41% over the same period of time.Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry Viewpoints:
The 5th national volume-based purchase (VBP) was officially launched.
In 2020, China's pharmaceutical and life sciences industry disclosed 928 deals worth US$43 billion, up about 73% YoY.
The market is quite concerned about whether the healthcare sector would enter a new round of policy regulation period, but we think it may not.
Company News:News about the updated progress on drugs and medical devices of Jiangsu Hengrui Medicine (600276 CH), CSPC Pharmaceutical Group (1093 HK) and Peijia Medical (9996 HK).Market Review:Last week, stock price for healthcare sector in A share increased 6.29%, while CSI 300 increased 3.41% over the same period of time.Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Shanghai HeartCare Medical Technology / Equity Capital Markets

On January 27th, 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?

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 Medtech / Equity Capital Markets

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.

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 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.

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.<h2>Our previous coverage on Microport Cardioflow</h2><ul>
<li dir="ltr" aria-level="1"><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></li>
<li dir="ltr" aria-level="1"><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></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

China

Peijia Medical Ltd. produces and sells medical devices. The Company develops and sells heart valve disease treatment medical devices and other products. Peijia Medical Technology markets its products throughout China. 

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Peijia Medical (9996 HK)

Pre-IPO Zylox-Tonbridge Medical Technology - Promising Market with Challenges

This insights analyzed Zylox-Tonbridge Medical Technology in terms of the market potential, industry characteristics, business analysis, financial...

Xinyao (Criss) Wang

China Healthcare Weekly (Apr.23)

This article analyzed the 5th national volume-based purchase, China's pharmaceutical and life sciences deals in 2020, potential policy impact on...

Xinyao (Criss) Wang

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

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