HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Jenscare Scientific / Equity Capital Markets

<p>Cardiovascular medical device market has always been one of the largest segments in the global medical device industry. Among them, the interventional therapies of structural heart diseases, represented by transcatheter valvular therapeutics, are booming and have become a highlight in the field of cardiovascular diseases, bringing another revolution in interventional cardiology. On June 21, <a href="https://www.smartkarma.com/entities/jenscare-scientific-co-ltd" target="_blank" data-smartkarma-citation="entities:33525:1" rel="noopener">Jenscare Scientific (JCS HK)</a>, a globally influential medical device company dedicated to the development of innovative products for the treatment of structural heart diseases, submitted the prospectus to HKEX and officially started the IPO process. This insights mainly analyzed the industry characteristics, the business, the financial position and the related challenges.</p>

Cardiovascular medical device market has always been one of the largest segments in the global medical device industry. Among them, the interventional therapies of structural heart diseases, represented by transcatheter valvular therapeutics, are booming and have become a highlight in the field of cardiovascular diseases, bringing another revolution in interventional cardiology. On June 21, Jenscare Scientific (JCS HK), a globally influential medical device company dedicated to the development of innovative products for the treatment of structural heart diseases, submitted the prospectus to HKEX and officially started the IPO process. This insights mainly analyzed the industry characteristics, the business, the financial position and the related challenges.

Pre-IPO Jenscare Scientific - The Industry Characteristics, the Business and the Challenges

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.

Zylox-Tonbridge Medical Technology / Equity Capital Markets

Zylox-Tonbridge Medical Technology (2190 HK)

<div>
<p><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 (2190 HK)</a> is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). </p>
<p>Zylox-Tonbridge will commence trading on Monday, 5 July. Zylox-Tonbridge priced its IPO at HK$42.70 and <a href="https://inews.hket.com/article/2996563/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E6%AD%B8%E5%89%B5%E9%80%9A%E6%A9%8B2190%E6%9A%97%E7%9B%A4%E6%94%B6%E5%8D%8730-%E3%80%80%E4%B8%80%E6%89%8B%E5%B8%B3%E9%9D%A2%E8%B3%BA6575%E5%85%83?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">closed 31% up at HK$55.85</a> in the Futu securities grey market. </p>
</div><div><p>In <a href="https://www.smartkarma.com/insights/zylox-tonbridge-ipo-living-on" target="_blank" data-smartkarma-citation="insights:53469" rel="noopener">Zylox-Tonbridge IPO: Living On</a>, we opined that Zylox-Tonbridge is on the cusp of delivering on a sizeable addressable market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. We concluded that Zylox-Tonbridge’s product portfolio is attractive. In <a href="https://www.smartkarma.com/insights/zylox-tonbridge-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:53517" rel="noopener">Zylox-Tonbridge IPO: Valuation Insights</a>, we noted that the IPO price range is attractive.</p></div><div><div><div class="content-highlight"><p>Updating for the final IPO net raise, our base-case DCF derived price target of HK$48.89 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that we would take profits at the grey market price.</p></div></div></div>


Zylox-Tonbridge Medical Technology (2190 HK) is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). 
Zylox-Tonbridge will commence trading on Monday, 5 July. Zylox-Tonbridge priced its IPO at HK$42.70 and closed 31% up at HK$55.85 in the Futu securities grey market. 
In Zylox-Tonbridge IPO: Living On, we opined that Zylox-Tonbridge is on the cusp of delivering on a sizeable addressable market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. We concluded that Zylox-Tonbridge’s product portfolio is attractive. In Zylox-Tonbridge IPO: Valuation Insights, we noted that the IPO price range is attractive.Updating for the final IPO net raise, our base-case DCF derived price target of HK$48.89 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that we would take profits at the grey market price.

<div>
<p><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 (2190 HK)</a> is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). </p>
<p>Zylox-Tonbridge has launched an HKEx IPO to raise net proceeds of $300 million at the mid-point of the IPO price range of HK$39.80-42.70 per share. Twelve cornerstone investors will subscribe for $145 million worth of the offer shares (45.47% of the offer shares at the mid-point). Pricing will be finalised on 25 June and the shares will list on 5 July.</p>
</div><div>
<p>In <a href="https://www.smartkarma.com/insights/zylox-tonbridge-ipo-living-on" target="_blank" data-smartkarma-citation="insights:53469" rel="noopener">Zylox-Tonbridge IPO: Living On</a>, we opined that Zylox-Tonbridge is on the cusp of delivering on a sizeable addressable market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. We concluded that Zylox-Tonbridge’s product portfolio is attractive.</p>
<div class="content-highlight"><p>Our base-case DCF valuation is HK$48.56 per share, which is an 18% upside to the mid-point of the IPO price range of HK$39.80-42.70 per share. Consequently, we would participate in the IPO. </p></div>
</div><div><p></p></div>


Zylox-Tonbridge Medical Technology (2190 HK) is a China-based neuro- and peripheral-vascular interventional medical device manufacturer. The product portfolio consists of a total of eight approved products in China and overseas. Its two core products which are launched in China are Thrombite Clot Retriever Device (Thrombite CRD) and Ultrafree Drug Coated PTA Balloon Catheter (Ultrafree DCB). 
Zylox-Tonbridge has launched an HKEx IPO to raise net proceeds of $300 million at the mid-point of the IPO price range of HK$39.80-42.70 per share. Twelve cornerstone investors will subscribe for $145 million worth of the offer shares (45.47% of the offer shares at the mid-point). Pricing will be finalised on 25 June and the shares will list on 5 July.

In Zylox-Tonbridge IPO: Living On, we opined that Zylox-Tonbridge is on the cusp of delivering on a sizeable addressable market opportunity as its two core products (Thrombite CRD and Ultrafree DCB) were only recently commercialised in China. While Thrombite CRD and Ultrafree DCB will account for most of the revenue over the short term, Zylox-Tonbridge has a strong near-term commercialisation pipeline, which further de-risks the story. We concluded that Zylox-Tonbridge’s product portfolio is attractive.
Our base-case DCF valuation is HK$48.56 per share, which is an 18% upside to the mid-point of the IPO price range of HK$39.80-42.70 per share. Consequently, we would participate in the IPO. 


Shanghai Hanyu Medical Technology / Equity Capital Markets

Shanghai Hanyu Medical Technology (SHM HK)

<p>On April 14, 2021, <a href="https://www.smartkarma.com/entities/shanghai-hanyu-medical-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:33016:1" rel="noopener">Shanghai Hanyu Medical Technology (SHM HK)</a> submitted its listing application to the main board of the Hong Kong Stock Exchange. According to the data of TianYanCha, the Series D financing was completed in 2020, and in March 2021, Hanyu completed the Series D+ financing, led by Yunfeng Capital. Shortly after about a month, Hanyu officially launch its IPO plan. So how about the company? This insight mainly analyzed the market potential and the product candidates of Hanyu.</p>

On April 14, 2021, Shanghai Hanyu Medical Technology (SHM HK) submitted its listing application to the main board of the Hong Kong Stock Exchange. According to the data of TianYanCha, the Series D financing was completed in 2020, and in March 2021, Hanyu completed the Series D+ financing, led by Yunfeng Capital. Shortly after about a month, Hanyu officially launch its IPO plan. So how about the company? This insight mainly analyzed the market potential and the product candidates of Hanyu.

Pre-IPO Shanghai Hanyu Medical Technology - Insights on the Industry and the Products

Equity Bottom-Up

<p><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> is an innovation-driven medical device platform with a diversified product portfolio covering cardiovascular, orthopedics, cardiac rhythm management (“CRM”), endovascular, neurovascular, heart valve, surgical robot and other business. The Company’s high valuation mainly comes from the outlook and embrace of new technologies and new fields. In order to ensure the sustainability of R&amp;D investment, retain talent and maintain growth momentum, subsidiaries were spun-off and then listed one by one when they became mature. Finally, the scope of MicroPort is also expanded, and then the focus can be put on incubating new companies. However, this “unique” pattern of development has also raised questions, especially when compared with <a href="https://www.smartkarma.com/entities/shenzhen-mindray-bio-medic-a" target="_blank" data-smartkarma-citation="entities:28017:1" rel="noopener">Shenzhen Mindray Bio-Medical Electronics (300760 CH)</a>, together with the poor financial performance in 2020, perhaps it is a good time to see some concerns of MicroPort.</p>

Microport Scientific (853 HK) is an innovation-driven medical device platform with a diversified product portfolio covering cardiovascular, orthopedics, cardiac rhythm management (“CRM”), endovascular, neurovascular, heart valve, surgical robot and other business. The Company’s high valuation mainly comes from the outlook and embrace of new technologies and new fields. In order to ensure the sustainability of R&amp;D investment, retain talent and maintain growth momentum, subsidiaries were spun-off and then listed one by one when they became mature. Finally, the scope of MicroPort is also expanded, and then the focus can be put on incubating new companies. However, this “unique” pattern of development has also raised questions, especially when compared with Shenzhen Mindray Bio-Medical Electronics (300760 CH), together with the poor financial performance in 2020, perhaps it is a good time to see some concerns of MicroPort.

Microport Scientific (853.HK) - It Is a Good Time to See Some Concerns

China

Venus Medtech is a leading medical device company specializing in transcatheter structural heart valvular therapies. It develops and commercializes innovative solutions for all four heart valves (TAVR, TPVR, TMVR, TTVR) and interventional hypertension treatment. The company was founded in 2009 and is headquartered in Hangzhou, China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Venus Medtech (Hangzhou) (2500 HK)

Pre-IPO Jenscare Scientific - The Industry Characteristics, the Business and the Challenges

The article mainly analyzed Jenscare in terms of the industry characteristics of China interventional therapies of structural heart disease,the...

Xinyao (Criss) Wang

Zylox-Tonbridge IPO: Trading Debut

Zylox-Tonbridge priced its IPO at HK$42.70 and closed 31% up at HK$55.85 in the Futu securities grey market. Our DCF sensitivity analysis shows...

Arun George

Zylox-Tonbridge IPO: Valuation Insights

Our base-case DCF valuation is HK$48.56 per share, which is an 18% upside to the mid-point of the IPO price range of HK$39.80-42.70 per share....

Arun George

Pre-IPO Shanghai Hanyu Medical Technology - Insights on the Industry and the Products

This insight mainly analyzed the industry characteristics and market potential of the mitral valve market, the products of both Hanyu and its...

Xinyao (Criss) Wang

Microport Scientific (853.HK) - It Is a Good Time to See Some Concerns

This article analyzed Microport's core businesses after its worst financial performance in 2020, the policy impact, the potential risks, the...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)