HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Hygeia Healthcare Group / Equity Bottom-Up

<ul>
<li>Driven by the development mode of "organic growth + strategic acquisitions + cooperation with hospital partners", <a href="https://www.smartkarma.com/entities/hygeia-healthcare-group" target="_blank" data-smartkarma-citation="entities:28875:1" rel="noopener">Hygeia Healthcare Group (6078 HK)</a> could rapidly expand nationwide, with solid business logic. </li>
<li>Hygeia's delicacy management and the strength in operation help the Company to break the limits of the expansion of private hospitals, helping shorten the time it takes to break even.</li>
<li>However, the high uncertainties on policy and State’s attitude towards private hospitals cast shadow on Hygeia's long-term prospects, but investors could still trade this stock in short term.</li>
</ul>


Driven by the development mode of "organic growth + strategic acquisitions + cooperation with hospital partners", Hygeia Healthcare Group (6078 HK) could rapidly expand nationwide, with solid business logic. 
Hygeia's delicacy management and the strength in operation help the Company to break the limits of the expansion of private hospitals, helping shorten the time it takes to break even.
However, the high uncertainties on policy and State’s attitude towards private hospitals cast shadow on Hygeia's long-term prospects, but investors could still trade this stock in short term.


Hygeia Healthcare Group (6078.HK) 2021 Results - Solid Business Logic Comes with Policy Risk

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 Group raised HKD 589.9 million (USD 75m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, Mar 22nd.</li>
<li>In our previous notes, we looked at the company's background, its operation, its financials, and its expansion plan, compared its key metrics with peers and provided thoughts on valuation.</li>
<li>In this note, we look at the updates since our last note and prior to debut.</li>
</ul>


Arrail Group raised HKD 589.9 million (USD 75m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, Mar 22nd.
In our previous notes, we looked at the company's background, its operation, its financials, and its expansion plan, compared its key metrics with peers and provided thoughts on valuation.
In this note, we look at the updates since our last note and prior to debut.


Arrail Group (瑞尔集团) IPO Trading: Weak Demand, Rich Valuation

<ul>
<li>Policy risk is the biggest uncertainty for domestic medical service sector, without any overseas revenue to “hedge” such risk.</li>
<li>The market places great hope on Topchoice to become a cross-regional enterprise with high growth sustainability. Without a reliable and replicable expansion model, the high valuation is not logical.</li>
<li>Therefore, our view is that the Company's investment logic has been shaken. <a href="https://www.smartkarma.com/entities/topchoice-medical-corporation" target="_blank" data-smartkarma-citation="entities:1102:1" rel="noopener">Topchoice Medical (600763 CH)</a> could be a short-term trade, but not long-term hold.</li>
</ul>


Policy risk is the biggest uncertainty for domestic medical service sector, without any overseas revenue to “hedge” such risk.
The market places great hope on Topchoice to become a cross-regional enterprise with high growth sustainability. Without a reliable and replicable expansion model, the high valuation is not logical.
Therefore, our view is that the Company's investment logic has been shaken. Topchoice Medical (600763 CH) could be a short-term trade, but not long-term hold.


Topchoice Medical (600763.CH) - The Logic Changes

<ul>
<li>Arrail is a leading premium dental service provider in China. The company launched book building to raise up to USD 87m via a Hong Kong listing.</li>
<li>In our previous notes, we looked at the company's background, its operation, its financials, and its expansion plan, and compared its key metrics with peers and provide thoughts on valuation.</li>
<li>In this note, we provide a quick update for the book building.</li>
</ul>


Arrail is a leading premium dental service provider in China. The company launched book building to raise up to USD 87m via a Hong Kong listing.
In our previous notes, we looked at the company's background, its operation, its financials, and its expansion plan, and compared its key metrics with peers and provide thoughts on valuation.
In this note, we provide a quick update for the book building.


Arrail Group (瑞尔集团) IPO: Downsized Deal Mostly Taken by Cornerstones

<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

China

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

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Topchoice Medical (600763 CH)

Hygeia Healthcare Group (6078.HK) 2021 Results - Solid Business Logic Comes with Policy Risk

The growth prospects and endogenous growth logic are better than Topchoice. The overall development pace is also not as radical as Aier. However,...

Xinyao (Criss) Wang

Arrail Group (瑞尔集团) IPO Trading: Weak Demand, Rich Valuation

We look at the updates of Arrail Group IPO since our last note and prior to debut. The company is a leading premium dental chain in China.

Ke Yan, CFA, FRM