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

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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

Hangzhou Kangji Medical Instrument Co., Ltd. / Equity Capital Markets

Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)

Hangzhou Kangji Medical Instrument Co., Ltd.

<p>Kangji Medical is a domestic leader in minimally invasive surgery devices. It has three main product types, trocars, polymer ligation clips, and forceps.</p><p>The company experienced strong growth in the past six years during which the company's revenue tripled. We believe that its future growth will be driven by the growing minimally invasive surgery market (20-30% p.a.) and the replacement of international products by their domestic peers. The key risk is the central procurement that targets high-margin medical devices which will force companies to cut product prices in order to join the reimbursement scheme. </p><p>Unlike other medical devices listings in Hong Kong, the company's management team does not have impressive working experience prior to founding the company. We also note that the company has a strong cash flow plus a flexible setting for production capacities. Thus, it does not really have a strong need for capital raising to fund expansion.</p><p>We price the company at par to its A-share peers but at a premium to its international competitors given its high growth potential in China. Our preliminary valuation for the company is USD 1.9 bn.</p><hr><div><p>If you have not read our 2019 IPO Analytic Series, please have a look:</p></div><div><div><h2>Aequitas Research 2019 IPO Analytics</h2></div></div><div><ul>
<li><a href="https://www.smartkarma.com/insights/aequitas-2019-ipos-and-placements-performance-things-we-got-right-wrong-and-things-we-plan-to-do" target="_blank" rel="noopener">Aequitas 2019  IPOs and Placements Performance - Things we got right/wrong and things we plan to do</a></li>
<li><a href="https://www.smartkarma.com/insights/2019-hong-kong-ipo-analytics-highlight-of-brokers-and-sectors-performance" target="_blank" rel="noopener">2019 Hong Kong IPO Analytics: Highlight of Brokers’ and Sectors’ Performance</a></li>
<li><a href="https://www.smartkarma.com/insights/2019-hong-kong-ipo-analytics-how-did-insti-and-retail-coverage-impact-deal-performance" target="_blank" rel="noopener">2019 Hong Kong IPO Analytics: How Did Insti and Retail Coverage Impact Deal Performance</a></li>
</ul></div>

Kangji Medical is a domestic leader in minimally invasive surgery devices. It has three main product types, trocars, polymer ligation clips, and forceps.The company experienced strong growth in the past six years during which the company's revenue tripled. We believe that its future growth will be driven by the growing minimally invasive surgery market (20-30% p.a.) and the replacement of international products by their domestic peers. The key risk is the central procurement that targets high-margin medical devices which will force companies to cut product prices in order to join the reimbursement scheme. Unlike other medical devices listings in Hong Kong, the company's management team does not have impressive working experience prior to founding the company. We also note that the company has a strong cash flow plus a flexible setting for production capacities. Thus, it does not really have a strong need for capital raising to fund expansion.We price the company at par to its A-share peers but at a premium to its international competitors given its high growth potential in China. Our preliminary valuation for the company is USD 1.9 bn.If you have not read our 2019 IPO Analytic Series, please have a look:Aequitas Research 2019 IPO Analytics
Aequitas 2019  IPOs and Placements Performance - Things we got right/wrong and things we plan to do
2019 Hong Kong IPO Analytics: Highlight of Brokers’ and Sectors’ Performance
2019 Hong Kong IPO Analytics: How Did Insti and Retail Coverage Impact Deal Performance


강지메디칼(康基医疗) Pre-IPO: 성장은 이뤘지만 제품은 너무 집중됐다