HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

Industry viewpoints:
<ul>
<li>This year, the underlying logic of China's economy is being restructured.</li>
<li>Whether drugs or medical devices, once they are included in the scope of centralized procurement, there could be only two strategies.</li>
<li>There are still many uncertainties in regulation approval and commercialization of AI medical imaging products in China.</li>
</ul>
Company news:
News about the updated progress on new drugs, new cooperation agreement and M&amp;A deal of <a href="https://www.smartkarma.com/entities/alphamab-oncology" target="_blank" data-smartkarma-citation="entities:28213:1" rel="noopener">Alphamab Co Ltd (9966 HK), </a><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/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH) </a>and <a href="https://www.smartkarma.com/entities/wenzhou-kangning-hospital" target="_blank" data-smartkarma-citation="entities:1100:1" rel="noopener">Wenzhou Kangning Hospital (2120 HK)</a>.
Market review:
Last week, stock price for healthcare sector in A share increased 0.61%, while CSI 300 increased 1.21% over the same period of time.
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:

This year, the underlying logic of China's economy is being restructured.
Whether drugs or medical devices, once they are included in the scope of centralized procurement, there could be only two strategies.
There are still many uncertainties in regulation approval and commercialization of AI medical imaging products in China.

Company news:
News about the updated progress on new drugs, new cooperation agreement and M&amp;A deal of Alphamab Co Ltd (9966 HK), Akeso Biopharma Inc (9926 HK), Innovent Biologics Inc (1801 HK), Jiangsu Hengrui Medicine (600276 CH) and Wenzhou Kangning Hospital (2120 HK).
Market review:
Last week, stock price for healthcare sector in A share increased 0.61%, while CSI 300 increased 1.21% over the same period of time.
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

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.

Equity Capital Markets

Jinxin Fertility Group  / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/jinxin-fertility-co" target="_blank" data-smartkarma-citation="entities:28003:1">Jinxin Fertility Co Ltd (1951 HK)</a> is a leading assisted reproductive service (ARS) provider in China and the US. It announced its IPO price range of HK$7.76-8.54 per share. At the mid-point of the IPO price range, Jinxin will raise net proceeds of HK$2.7 billion ($341 million), resulting in a market cap of HK$19.4 billion ($2.5 billion).<div class="content-highlight">In our <a href="https://www.smartkarma.com/insights/jinxin-fertility-group-ipo-preview-baby-boom-or-bust" target="_blank">IPO initiation note</a>, we cautioned that while Jinxin’s investment story has the elements of an attractive growth story, it also has negatives which need to be considered.  Overall, our valuation analysis suggests that the Jinxin IPO is attractive at the proposed IPO price range. </div>

Jinxin Fertility Co Ltd (1951 HK) is a leading assisted reproductive service (ARS) provider in China and the US. It announced its IPO price range of HK$7.76-8.54 per share. At the mid-point of the IPO price range, Jinxin will raise net proceeds of HK$2.7 billion ($341 million), resulting in a market cap of HK$19.4 billion ($2.5 billion).In our IPO initiation note, we cautioned that while Jinxin’s investment story has the elements of an attractive growth story, it also has negatives which need to be considered.  Overall, our valuation analysis suggests that the Jinxin IPO is attractive at the proposed IPO price range. 

Jinxin Fertility Group IPO: Valuation Reasonable for the Trade-Offs

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.

Jinxin Fertility, a leading privately owned assisted reproductive service provider in China and the US, refiled to list in Hong Kong. Per news reports, the company planned to raise up to USD 500 million. In this insight, we will cover the following topics:
<ul>
<li>Business lines and its hospitals</li>
<li>The assisted reproductive service industry</li>
<li>Key risks</li>
<li>Shareholders and use of proceeds</li>
<li>Our early thoughts on valuation</li>
</ul>

Jinxin Fertility, a leading privately owned assisted reproductive service provider in China and the US, refiled to list in Hong Kong. Per news reports, the company planned to raise up to USD 500 million. In this insight, we will cover the following topics:

Business lines and its hospitals
The assisted reproductive service industry
Key risks
Shareholders and use of proceeds
Our early thoughts on valuation


Jinxin Fertility (锦欣生殖) Pre-IPO: Strong Foothold in Sichuan but Weak Sentiment for Sector

Transport Sector, China and Asia-focused Research

Charles De Trenck

This is an invest-able idea at the private level  with long term benefits. Both for the body, and for other ideas as well.Ever since I turned over a new leaf vis a vis health five plus years ago, I have explored active alternative health solutions. I have a long list of things I have solved and people I have seen gain real improvements from alternative treatments.  I have seen real growth in options to treatment of severe conditions.Most interesting perhaps has been learning about the benefits…

This is an invest-able idea at the private level  with long term benefits. Both for the body, and for other ideas as well.Ever since I turned over a new leaf vis a vis health five plus years ago, I have explored active alternative health solutions. I have a long list of things I have solved and people I have seen gain real improvements from alternative treatments.  I have seen real growth in options to treatment of severe conditions.Most interesting perhaps has been learning about the benefits…

Energy Medicine. Personal Experience. Impact. Growth in Asia. Ideas

Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Guangdong Kanghua Healthcare / Equity Capital Markets

Decreasing Debt Level – Good at First Look<ul>
<li>Taking a look at GDKH balance sheet, we can see that its bank borrowings (no. 24) have decreased from a high of RMB 748 mil in FY2013 to RMB 213.4 mil at 30 April 2016. <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/015/622/original/Part3_1%20Bank%20Borrowings%20GDKH.png?1477891522" class="editor-image img-responsive" data-smartkarma-image-id="15622"></figure>Debt levels fell due to repayment by shareholders
</li>
<li>To understand how GDKH able to fund its debt repayments, we took a look at its assets and noticed there were amounts due from shareholders of RMB 1.44bil (RMB 937.8 mil + RMB 507.1 mil) in FY2014. This has subsequently dropped sharply to RMB…</li>
</ul>

Decreasing Debt Level – Good at First Look
Taking a look at GDKH balance sheet, we can see that its bank borrowings (no. 24) have decreased from a high of RMB 748 mil in FY2013 to RMB 213.4 mil at 30 April 2016.  Debt levels fell due to repayment by shareholders

To understand how GDKH able to fund its debt repayments, we took a look at its assets and noticed there were amounts due from shareholders of RMB 1.44bil (RMB 937.8 mil + RMB 507.1 mil) in FY2014. This has subsequently dropped sharply to RMB…


Guangdong Kanghua IPO: Ask About Future Loans to Related Parties

Hong Kong

Wenzhou Kangning Hospital Co., Limited is a psychiatric healthcare group. The Company operate and manage a network of healthcare facilities across various regions in China.

Wenzhou Kangning Hospital (2120 HK)

China Healthcare Weekly (Aug.27)

This article analyzed the logic of China's healthcare sector while its economy is being restructured, two strategies to deal with centralized...

Xinyao (Criss) Wang

Jinxin Fertility Group IPO: Valuation Reasonable for the Trade-Offs

Jinxin Fertility Co Ltd (1951 HK) is a leading assisted reproductive service (ARS) provider in China and the US. It announced its IPO price...

Arun George

Jinxin Fertility (锦欣生殖) Pre-IPO: Strong Foothold in Sichuan but Weak Sentiment for Sector

Jinxin Fertility, a leading privately owned assisted reproductive service provider in China and the US, refiled to list in Hong Kong. Per news...

Ke Yan, CFA, FRM

Energy Medicine. Personal Experience. Impact. Growth in Asia. Ideas

This is an invest-able idea at the private level with long term benefits. Both for the body, and for other ideas as well.Ever since I turned over...

Charles De Trenck

China Healthcare Weekly (Aug.27)

This article analyzed the logic of China's healthcare sector while its economy is being restructured, two strategies to deal with centralized...

Xinyao (Criss) Wang

Jinxin Fertility Group IPO: Valuation Reasonable for the Trade-Offs

Jinxin Fertility Co Ltd (1951 HK) is a leading assisted reproductive service (ARS) provider in China and the US. It announced its IPO price...

Arun George

Jinxin Fertility (锦欣生殖) Pre-IPO: Strong Foothold in Sichuan but Weak Sentiment for Sector

Jinxin Fertility, a leading privately owned assisted reproductive service provider in China and the US, refiled to list in Hong Kong. Per news...

Ke Yan, CFA, FRM

Energy Medicine. Personal Experience. Impact. Growth in Asia. Ideas

This is an invest-able idea at the private level with long term benefits. Both for the body, and for other ideas as well.Ever since I turned over...

Charles De Trenck

Guangdong Kanghua IPO: Ask About Future Loans to Related Parties

Decreasing Debt Level – Good at First Look Taking a look at GDKH balance sheet, we can see that its bank borrowings (no. 24) have decreased from a...

Valerie Law, CFA