New stock research report | Too Beautiful Medical Technology (02576) is now accepting public subscriptions, focusing on digital solutions for the pharmaceutical and medical device industry.

Taimei Medical Technology (02576) is a digital solutions provider focused on the pharmaceutical and medical device industry in China, designing and providing industry-specific software and digital services to aid in research and marketing of pharmaceuticals and medical devices. IPO Date: September 27 to October 3 Listing Date: October 8 Joint Sponsors: Morgan Stanley, CICC Receiving Banks: CMB Wing Lung Bank, BOC HONG KONG 2.2416 million H shares to be issued, approximately 90% allocated, approximately 10% offered to the public, with an additional 15% over-allotment option and adjustment of the amount of shares offered If the public offering is oversubscribed by at least 15 times up to 50 times, the public offering portion will increase from 10% to 30%, and if oversubscribed by at least 50 times up to 100 times, it will increase to 40%. If oversubscribed by 100 times or more, it will be increased to 50%. However, if the allocation is not fully subscribed but the public offering is fully subscribed, or if both the allocation and public offering are fully subscribed but the public offering subscription is less than 15 times, the public offering proportion can be increased to a maximum of 20%, subject to a lower limit price. The offer price per share is HKD 10 to HKD 13, raising approximately HKD 291 million, accounting for approximately 4% of the total market value, with IPO expenses of approximately HKD 72.1 million. Based on a board lot of 200 shares, the subscription fee is HKD 2,626.22. At the maximum price of HKD 13, the market value is approximately HKD 7.285 billion as of the end of March 24. The average net asset value as of the end of March 24 was approximately RMB 1.01 billion. The company's software is cloud-based, allowing users to access it anytime from various devices over the internet without the need for installation or maintenance. This cloud-based software covers key scenarios in the research and marketing of innovative drugs and medical devices. For example, the software helps in planning, tracking, and monitoring on-site and trial-related activities, simplifying the management and storage of clinical research documents. The software can also be used for patient recruitment and follow-up, data collection and analysis, and sales relationship management to help clients conduct research and marketing activities more efficiently and rapidly. In addition to software, the company also offers a range of digital services to assist clients in independent evaluation of medical images, efficient resource allocation and execution of Site Management Organization (SMO), provision of drug warning services, and other services to support client research and marketing activities. These services typically integrate the functions of corresponding cloud-based software and platforms, provided by the company's service personnel. By choosing digital services, clients can utilize software-proficient service personnel to meet their needs with stable quality without incurring additional personnel expenses. During the historical period, 35.2% of the company's revenue in 23 was derived from cloud-based software sales, while 64.5% of revenue during the same period came from providing digital services. The company's customers primarily include pharmaceutical and medical device companies, as well as Contract Research Organizations (CROs) and clinical research institutions. The number of customers increased from 908 in 21 to 1,033 in 22, and further to 1,107 in 23. In 23, sales from the top five customers accounted for approximately 19.3% of total revenue. The proceeds of the fundraising will be used for optimizing and upgrading the TrialOS platform and PharmaOS platform and their respective cloud-based software and digital services; enhancing core technology and research and development capabilities; strengthening sales and marketing capabilities; expanding existing product and service categories, customer base, and strategic investments and acquisitions to enhance technological capabilities; and using for working capital and general corporate purposes. Before the IPO, the company conducted multiple rounds of financing from December 2015 to September 2020, with a discount of approximately 99.69% to 49.88% off the median price, and set up a 12-month lock-up period, with early investors including Tencent (00700), Sequoia Capital, IDG Capital, Northern Light Venture Capital, Matrix Partners China, Softbank China Capital, Sequoia Capital, Yunfeng Fund, etc. Post-IPO, the shareholding structure consists of Chairman Zhao Lu and parties acting in concert holding 32.02% of the shares, early investors holding 63.98%, and other public shareholders holding 4%. Taimei Medical Technology is a digital solutions provider focused on the pharmaceutical and medical device industry in China, designing and providing industry-specific software and digital services to aid in research and marketing. At the maximum price of HKD 13, the market value is approximately HKD 72.85 billion, but due to the company's significant investment in research and administrative expenses, the business is still operating at a loss. This article was contributed by "Sinolink Securities," authored by Sinolink Securities analyst Chen Bohao; GMTEight editor: Chen Wenfang.