Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/acotec-scientific-holdings-limited" target="_blank" data-smartkarma-citation="entities:32176:1" rel="noopener">Acotec Scientific Holdings (6669 HK)</a> is an early-mover in peripheral drug coated balloon market in China and holds a dominant 85%+ market share.  </li>
<li>On November 7, Acotec received its first FDA approval for Vericor, a peripheral support catheter designed to enhance access to peripheral vessels.</li>
<li>Acotec started 2022 on a strong note, with revenue increasing 25% y/y in H1 2022 due to increasing adoption of the company’s product in Chinese hospitals.</li>
</ul>



Acotec Scientific Holdings (6669 HK) is an early-mover in peripheral drug coated balloon market in China and holds a dominant 85%+ market share.  
On November 7, Acotec received its first FDA approval for Vericor, a peripheral support catheter designed to enhance access to peripheral vessels.
Acotec started 2022 on a strong note, with revenue increasing 25% y/y in H1 2022 due to increasing adoption of the company’s product in Chinese hospitals.


Acotec Scientific Holdings (6669 HK): Base Business, Geography Expansion, New Launch to Drive Growth

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.

Equity Capital Markets

Jenscare Scientific / Equity Capital Markets

<ul>
<li>Jenscare, a China based structural heart disease focused medical device company, plans to raise up to USD 30m via a Hong Kong listing.</li>
<li>In our previous insight, we discussed that there have been many TAVR companies listed in Hong Kong but we think Jenscare has a differentiated portfolio.</li>
<li>In this note, we will look at updates in its latest filing and highlight massive delays in its product candidates. We also provide a quick thought on its valuation.</li>
</ul>


Jenscare, a China based structural heart disease focused medical device company, plans to raise up to USD 30m via a Hong Kong listing.
In our previous insight, we discussed that there have been many TAVR companies listed in Hong Kong but we think Jenscare has a differentiated portfolio.
In this note, we will look at updates in its latest filing and highlight massive delays in its product candidates. We also provide a quick thought on its valuation.


Jenscare (宁波健世科技) Pre-IPO:  Massive Delays After Missing the Boat

<ul>
<li>
<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> is developing interventional products for the treatment of structural heart diseases. Its core product LuX-Valve is expected to become the first commercialized TTVR product in China.</li>
<li>With its comprehensive portfolio and early mover advantage, Jenscare is well-positioned to capitalize on large and underpenetrated China’s structural heart diseases treatment market worth of RMB20.3 billion in 2030.</li>
<li>Jenscare Scientific plans to raise $30 million (HKD234 million) in its third application for a Hong Kong IPO, with CICC and Citigroup being the joint sponsors.</li>
</ul>



Jenscare Scientific (JCS HK) is developing interventional products for the treatment of structural heart diseases. Its core product LuX-Valve is expected to become the first commercialized TTVR product in China.
With its comprehensive portfolio and early mover advantage, Jenscare is well-positioned to capitalize on large and underpenetrated China’s structural heart diseases treatment market worth of RMB20.3 billion in 2030.
Jenscare Scientific plans to raise $30 million (HKD234 million) in its third application for a Hong Kong IPO, with CICC and Citigroup being the joint sponsors.


Jenscare Scientific (JCS HK) Pre-IPO: Product Differentiation Is the Key Reason to Subscribe

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The main bottleneck in this market in China is the severe shortage of doctors and limited qualified hospitals to carry out such surgery, leading to lower-than-expected market penetration/sales performance.</li>
<li>
<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>’s products have to face fierce competition, without obvious advantage of development progress, or the progress has already lagged behind the competitors. </li>
<li>Overall, good valuation cannot be supported without promising commercialization outlook. We are not sure whether Jenscare can finally achieve the ideal return in the case of unfriendly external environment.</li>
</ul>


The main bottleneck in this market in China is the severe shortage of doctors and limited qualified hospitals to carry out such surgery, leading to lower-than-expected market penetration/sales performance.

Jenscare Scientific (JCS HK)’s products have to face fierce competition, without obvious advantage of development progress, or the progress has already lagged behind the competitors. 
Overall, good valuation cannot be supported without promising commercialization outlook. We are not sure whether Jenscare can finally achieve the ideal return in the case of unfriendly external environment.


Pre-IPO Jenscare Scientific - Difficult to Achieve Expected Commercialization Results

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Venus Medtech (Hangzhou) / Equity Bottom-Up

<div><div><div><div><ul><li>Venus Medtech reported 1H22 revenue of RMB210.0mn, down by 12.2% YoY due to the decreasing volume of TAVR surgeries amid COVID.</li><li>Gross profit margin was 78.2%, basically flat compared with the same period of last year while gross profit decreased by 12.7% YoY to RMB188.1mn because of the decreasing revenue size.</li><li>Given a sharp increase in R&amp;D expense after the acquisition of Cardiovalve, attributable net loss was RMB199.9mn, increasing 76.8% YoY.</li></ul></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Venus Medtech reported 1H22 revenue of RMB210.0mn, down by 12.2% YoY due to the decreasing volume of TAVR surgeries amid COVID.Gross profit margin was 78.2%, basically flat compared with the same period of last year while gross profit decreased by 12.7% YoY to RMB188.1mn because of the decreasing revenue size.Given a sharp increase in R&amp;D expense after the acquisition of Cardiovalve, attributable net loss was RMB199.9mn, increasing 76.8% YoY.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Venus Medtech (2500 HK) – Shifted to Profit Oriented Strategy

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.

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Venus Medtech (Hangzhou) (2500 HK)

Acotec Scientific Holdings (6669 HK): Base Business, Geography Expansion, New Launch to Drive Growth

Although recent price rally seems to be overdone, Acotec’s strong base business enhances conviction on its growth potential. Normalization of China...

Tina Banerjee

Jenscare (宁波健世科技) Pre-IPO: Massive Delays After Missing the Boat

We look at updates in Jenscare's latest filing and highlight massive delays in its product candidates as it is pre-marketing the listing. We also...

Ke Yan, CFA, FRM

Pre-IPO Jenscare Scientific - Difficult to Achieve Expected Commercialization Results

Jenscare’s products have to face fierce competition, with slow development progress. The severe shortage of doctors and limited qualified hospitals...

Xinyao (Criss) Wang

Venus Medtech (2500 HK) – Shifted to Profit Oriented Strategy

Venus Medtech reported 1H22 revenue of RMB210.0mn, down by 12.2% YoY due to the decreasing volume of TAVR surgeries amid COVID.

CMB International

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Acotec Scientific Holdings (6669 HK): Base Business, Geography Expansion, New Launch to Drive Growth

Although recent price rally seems to be overdone, Acotec’s strong base business enhances conviction on its growth potential. Normalization of China...

Tina Banerjee

Jenscare (宁波健世科技) Pre-IPO: Massive Delays After Missing the Boat

We look at updates in Jenscare's latest filing and highlight massive delays in its product candidates as it is pre-marketing the listing. We also...

Ke Yan, CFA, FRM

Jenscare Scientific (JCS HK) Pre-IPO: Product Differentiation Is the Key Reason to Subscribe

Jenscare Scientific, a China-based medical device company, is looking to raise $30 million through HK IPO. The company has filed application for...

Tina Banerjee

Pre-IPO Jenscare Scientific - Difficult to Achieve Expected Commercialization Results

Jenscare’s products have to face fierce competition, with slow development progress. The severe shortage of doctors and limited qualified hospitals...

Xinyao (Criss) Wang

Venus Medtech (2500 HK) – Shifted to Profit Oriented Strategy

Venus Medtech reported 1H22 revenue of RMB210.0mn, down by 12.2% YoY due to the decreasing volume of TAVR surgeries amid COVID.

CMB International