HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Shanghai Hanyu Medical Technology / Equity Capital Markets

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.

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

<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.

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

Thematic (Sector/Industry)

Industry viewpoints:
<ul>
<li>Recently, the NMPA issued a new version of the regulations on the supervision and administration of medical devices.</li>
<li>In the primary market, the appetite for small CRO/CDMO investments continues to grow.</li>
<li>The market size of China's traditional Chinese medicine (TCM) devices is not large. However, under the promotion of favorable policies and demand growth , it is growing steadily.</li>
</ul>
Company news:
News about the updated progress of new drug and medical device from <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>, <a href="https://www.smartkarma.com/entities/harbour-biomed-holdings-limited" target="_blank" data-smartkarma-citation="entities:29717:1" rel="noopener">Harbour Biomed Holdings Limited (2142 HK)</a>, and <a href="https://www.smartkarma.com/entities/venus-medtech-hangzhou-inc" target="_blank" data-smartkarma-citation="entities:28257:1" rel="noopener">Venus MedTech (2500 HK).</a>
Market review:
Last week, stock price for healthcare sector in A share increased 3.25%, while CSI 300 increased 0.62% over the same period of time. 
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:

Recently, the NMPA issued a new version of the regulations on the supervision and administration of medical devices.
In the primary market, the appetite for small CRO/CDMO investments continues to grow.
The market size of China's traditional Chinese medicine (TCM) devices is not large. However, under the promotion of favorable policies and demand growth , it is growing steadily.

Company news:
News about the updated progress of new drug and medical device from Everest Medicines (1952 HK), Harbour Biomed Holdings Limited (2142 HK), and Venus MedTech (2500 HK).
Market review:
Last week, stock price for healthcare sector in A share increased 3.25%, while CSI 300 increased 0.62% over the same period of time. 
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

In the beginning of 2021, the listing of <a href="https://www.smartkarma.com/entities/microport-cardioflow-medtech-corporation" target="_blank" data-smartkarma-citation="entities:31084:1" rel="noopener">MicroPort CardioFlow Medtech Corporation (1844972D HK) </a>attracted the attention of most investors. The market's expectation for MicroPort CardioFlow is relatively high. On March 19, 2021, the market value of MicroPort CardioFlow was about RMB36 billion, while the market value of <a href="https://www.smartkarma.com/entities/venus-medtech-hangzhou-inc" target="_blank" data-smartkarma-citation="entities:28257:1" rel="noopener">Venus MedTech (2500 HK)</a> was just about RMB27 billion, with the difference of nearly RMB10 billion. In the domestic TAVR market, MicroPort CardioFlow and Venus Medtech, as the two most popular players, obviously have their own unique advantages and core competitiveness. At its current market value, Venus Medtech is well worth watching.

In the beginning of 2021, the listing of MicroPort CardioFlow Medtech Corporation (1844972D HK) attracted the attention of most investors. The market's expectation for MicroPort CardioFlow is relatively high. On March 19, 2021, the market value of MicroPort CardioFlow was about RMB36 billion, while the market value of Venus MedTech (2500 HK) was just about RMB27 billion, with the difference of nearly RMB10 billion. In the domestic TAVR market, MicroPort CardioFlow and Venus Medtech, as the two most popular players, obviously have their own unique advantages and core competitiveness. At its current market value, Venus Medtech is well worth watching.

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

China

Venus MedTech (HangZhou) Inc. develops and sells cardiovascular devices. The Company offers products including aorta, compression loading and conveying systems, and pulmonary artery. Venus MedTech (HangZhou) markets its products throughout China.

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Venus MedTech (2500 HK)

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

China Healthcare Weekly (Mar.26)

The article analyzed healthcare industry viewpoints include a new version of regulations on medical devices, the CRO/CDMO industry, China TCM...

Xinyao (Criss) Wang

Venus MedTech Vs MicroPort CardioFlow

This article analyzed the difference between MicroPort CardioFlow and Venus Medtech in terms of sales performance, product progress, industry...

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

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