Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

New Horizon IPO: Only Undemanding Assumptions Needed

ECM Weekly (7 February 2021) - Kuaishou, New Horizon, SciClone, Cloopen

ECM Weekly (14 February 2021) - Youran Dairy, Bairong, Joinn Lab, Bilibili HK,

New Horizon Health (诺辉健康) Pre-IPO:  Thoughts on Valuation

New Horizon Health (诺辉健康) Pre-IPO: Comparison with Exact Sciences

New Horizon Health (诺辉健康) Pre-IPO: A Hot Medical Device Deal in Making

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

New Horizon Health  / Equity Capital Markets

<p>New Horizon Health, a pioneer in the colorectal cancer screening market in China, launched book building to raise up to USD 263m to in Hong Kong.  </p><p>In our previous note (A hot medical device deal in making), we discussed that NH Health provides cancer screen kits for convenient early screening targeting populations recommended for regular cancer screening. The company's approved product ColoClear has an impressive accuracy compared with peer products for colorectal cancer. In addition to ColoClear, it also offers a more mass-market product, Pupu Tube for home-based testing. The company's products have a huge unmet market and a high barrier to entry. We believe its uniqueness as the only investable stock in the segment will make the deal interesting for investors. The company's management has good prior working experience and is backed by a strong line up of international and domestic investors. We have compared the company's product with the benchmark product, Exact Sciences' Cologuard. We think the company's ColoClear is ahead of the Cologuard with improvement in clinical reading and the technology used. We valued the company's core product, ColoClear at USD 2.6 bn and the company at USD 3.1bn on a SOTP basis. </p><p>In this note, we look at the deal term. We think there is substantial upside from the high end. The line-up of cornerstone investors is strong. We are seeing strong demand from institution side. We will participate in the deal.</p><h2>Our previous coverage on New Horizon Health</h2><ul>
<li><a href="https://www.smartkarma.com/insights/new-horizon-health-pre-ipo-a-hot-medical-device-deal-in-making" target="_blank" rel="noopener">New Horizon Health (诺辉健康) Pre-IPO: A Hot Medical Device Deal in Making</a></li>
<li><a href="https://www.smartkarma.com/insights/new-horizon-health-pre-ipo-comparison-with-exact-sciences" target="_blank" rel="noopener">New Horizon Health (诺辉健康) Pre-IPO: Comparison with Exact Sciences</a></li>
<li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/new-horizon-health-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">New Horizon Health (诺辉健康) Pre-IPO: Thoughts on valuation</a></p></li>
</ul>

New Horizon Health, a pioneer in the colorectal cancer screening market in China, launched book building to raise up to USD 263m to in Hong Kong.  In our previous note (A hot medical device deal in making), we discussed that NH Health provides cancer screen kits for convenient early screening targeting populations recommended for regular cancer screening. The company's approved product ColoClear has an impressive accuracy compared with peer products for colorectal cancer. In addition to ColoClear, it also offers a more mass-market product, Pupu Tube for home-based testing. The company's products have a huge unmet market and a high barrier to entry. We believe its uniqueness as the only investable stock in the segment will make the deal interesting for investors. The company's management has good prior working experience and is backed by a strong line up of international and domestic investors. We have compared the company's product with the benchmark product, Exact Sciences' Cologuard. We think the company's ColoClear is ahead of the Cologuard with improvement in clinical reading and the technology used. We valued the company's core product, ColoClear at USD 2.6 bn and the company at USD 3.1bn on a SOTP basis. In this note, we look at the deal term. We think there is substantial upside from the high end. The line-up of cornerstone investors is strong. We are seeing strong demand from institution side. We will participate in the deal.Our previous coverage on New Horizon Health
New Horizon Health (诺辉健康) Pre-IPO: A Hot Medical Device Deal in Making
New Horizon Health (诺辉健康) Pre-IPO: Comparison with Exact Sciences
New Horizon Health (诺辉健康) Pre-IPO: Thoughts on valuation


New Horizon Health (诺辉健康) IPO: Room to Fly