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 Capital Markets

<ul>
<li>Arrail is a leading dental service provider in China. The company is looking to raise up to USD100m via a Hong Kong listing.</li>
<li>In our previous note, we looked at the company's background, its operation, its financials, and its expansion plan.</li>
<li>In this note, we compare the key metric with its peer and provide our thoughts on the valuation.</li>
</ul>


Arrail is a leading dental service provider in China. The company is looking to raise up to USD100m via a Hong Kong listing.
In our previous note, we looked at the company's background, its operation, its financials, and its expansion plan.
In this note, we compare the key metric with its peer and provide our thoughts on the valuation.


Arrail Group (瑞尔集团) Pre-IPO:  Peer Comp and Thoughts on Valuation

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Angelalign Technology  / Equity Bottom-Up

The IPO of <a href="https://www.smartkarma.com/entities/angelalign-technology-inc" target="_blank" data-smartkarma-citation="entities:31480:1" rel="noopener">Angelalign Technology (6699 HK)</a> was obviously very successful, with the share price hitting an all-time high of HK$490/share in June 2021. However, in the following months, Angelalign’s share price continued to fall and was closed at HK$318.8/share on Oct. 25, down about 35%. On the other hand, Angelalign released it 2021 interim report. The revenue in 2021/1H was RMB571 million, up 85.0% YoY, and the net profit was RMB95.7 million, up 55.8% YoY, indicating good growth momentum. This insight mainly analyzed some points about the business and the concerns that worth investors’ attention.

The IPO of Angelalign Technology (6699 HK) was obviously very successful, with the share price hitting an all-time high of HK$490/share in June 2021. However, in the following months, Angelalign’s share price continued to fall and was closed at HK$318.8/share on Oct. 25, down about 35%. On the other hand, Angelalign released it 2021 interim report. The revenue in 2021/1H was RMB571 million, up 85.0% YoY, and the net profit was RMB95.7 million, up 55.8% YoY, indicating good growth momentum. This insight mainly analyzed some points about the business and the concerns that worth investors’ attention.

Angelalign Technology (6699.HK) - Some Points Worth the Attention

Aier Eye Hospital Group / Equity Bottom-Up

In August, <a href="https://www.smartkarma.com/entities/aier-eye-hospital-group-co-ltd" target="_blank" data-smartkarma-citation="entities:1103:1" rel="noopener">Aier Eye Hospital Group (300015 CH)</a> released its 2021 interim report. The revenue was RMB7.348 billion, up 76.47% YoY. Net profit attributed to shareholders was RMB1.116 billion, up 65.03% YoY. Net profit after deducting non-recurring gains and losses was RMB1.227 billion, up 111.92% YoY. The Company maintained high growth momentum. However, Aier’s share price was closed at RMB51.88/share on September 24, which was down about 28% from its all-time high of RMB72/share in February this year. This insight mainly analyzed the performance in 2021/1H and the concerns of the Company.

In August, Aier Eye Hospital Group (300015 CH) released its 2021 interim report. The revenue was RMB7.348 billion, up 76.47% YoY. Net profit attributed to shareholders was RMB1.116 billion, up 65.03% YoY. Net profit after deducting non-recurring gains and losses was RMB1.227 billion, up 111.92% YoY. The Company maintained high growth momentum. However, Aier’s share price was closed at RMB51.88/share on September 24, which was down about 28% from its all-time high of RMB72/share in February this year. This insight mainly analyzed the performance in 2021/1H and the concerns of the Company.

Aier Eye Hospital Group (300015.CH) - The Concerns Behind the High Growth Momentum

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>The recent centralized procurement on spring coil in Hebei province could be a warning to the relevant enterprises.</li>
<li>The NHSA pointed out that it will explore feasible ways to include dental items into the payment scope of commercial insurance.</li>
<li>We expect to see AI deeply integrated into the new drug development process and revolutionize the industry in the future.</li>
</ul>Company news:News about the updated progress on new drugs and cooperation agreement of <a href="https://www.smartkarma.com/entities/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</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/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a>. Market review:Last week, stock price for healthcare sector in A share increased 3.74%, while CSI 300 decreased 0.37% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The recent centralized procurement on spring coil in Hebei province could be a warning to the relevant enterprises.
The NHSA pointed out that it will explore feasible ways to include dental items into the payment scope of commercial insurance.
We expect to see AI deeply integrated into the new drug development process and revolutionize the industry in the future.
Company news:News about the updated progress on new drugs and cooperation agreement of Akeso Biopharma Inc (9926 HK), CSPC Pharmaceutical Group (1093 HK) and Everest Medicines (1952 HK). Market review:Last week, stock price for healthcare sector in A share increased 3.74%, while CSI 300 decreased 0.37% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Sep.24) - VBP on Neuro-Intervention, Payment System Changes, AI in Drug R&D

In recent years, with the steady improvement of residents' consumption level, people's attention to dental care is also increasing, which promotes the rapid development of private dental clinics in China. On July 1, 2021, <a href="https://www.smartkarma.com/entities/arrail-group-limited" target="_blank" data-smartkarma-citation="entities:33794:1" rel="noopener">Arrail Group (ARR HK)</a>, the largest premium private dental services provider in China, formally submitted its IPO prospectus to the HKEX, aiming to list on the main board. However, if look closely, Arrail is actually facing many challenges, and its outlook may not be optimistic. This insight mainly analyzed the concerns of the Company that worth the investors’ attention.

In recent years, with the steady improvement of residents' consumption level, people's attention to dental care is also increasing, which promotes the rapid development of private dental clinics in China. On July 1, 2021, Arrail Group (ARR HK), the largest premium private dental services provider in China, formally submitted its IPO prospectus to the HKEX, aiming to list on the main board. However, if look closely, Arrail is actually facing many challenges, and its outlook may not be optimistic. This insight mainly analyzed the concerns of the Company that worth the investors’ attention. 

Pre-IPO Arrail Group - The Outlook May Not Be Optimistic

China

Topchoice Medical Investment Corporation provides dental and oral health care services.

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Topchoice Medical (600763 CH)

Arrail Group (瑞尔集团) Pre-IPO: Peer Comp and Thoughts on Valuation

We compare the key metrics of Arrail with its peer and provide our thoughts on valuation. We think the company should be valued at a discount to...

Ke Yan, CFA, FRM

Angelalign Technology (6699.HK) - Some Points Worth the Attention

This article analyzed Angelalign in terms of some points about business and concerns, such as fierce competition, product positioning,...

Xinyao (Criss) Wang

Aier Eye Hospital Group (300015.CH) - The Concerns Behind the High Growth Momentum

The article mainly analyzed Aier Eye Hospital in terms of its performance in 2021/1H and the concerns such as high acquisition premium, high...

Xinyao (Criss) Wang

China Healthcare Weekly (Sep.24) - VBP on Neuro-Intervention, Payment System Changes, AI in Drug R&D

This article analyzed the centralized procurement on spring coil in Hebei province, commercial insurance coverage for dental items, AI in new drug...

Xinyao (Criss) Wang

Pre-IPO Arrail Group - The Outlook May Not Be Optimistic

The article mainly analyzed Arrail in terms of the concerns on margins, liquidity, talent system, valuation adjustment mechanism, expansion...

Xinyao (Criss) Wang

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