The potential for iTrack in China is favourable. 1. It is...

The potential for iTrack in China is favourable.
1. It is currently the only approved MIGS in China
2. It has been investing in China
(see one of last year conference https://v.qq.com/x/page/a05527iudis.html)
3. China's ambition to become leaders in key industries, from technology, semi conductor to aerospace to medical.
4. US-China trade tension means it's difficult for China to acquire from or collaborate technology with US firms. MIGS's biggest player Glaukos is a US-based firm.
5. Opportunity for Ellex to prove its effectiveness and gain reputation in the second largest economy

The current Price to Sales is about 1.43.
P/S ratio in the Medical Equipment & Supplies Industry(US) averaged about 3 - 4.
This implies Ellex share price should be between $1.66 to 2.21 per share

The current discount could suggest the market expects its laser business to be losing money and iTrack to fail.
Well,
1. Core laser business revenue has grown by about 10% with stronger profit margin (>$1.4  per share)
2. iTrack has showed growth. (>$0.3 per share)
3. 2RT could prove to be another star. (>$0.03 per share at current revenue but likely to be multiple, if it becomes industry-standard)  (not valued at all by the market?)

So, does the market know something really bad that I don't know? Maybe.
But if Ellex continues to grow its laser division at the current rate and execute iTrack and 2RT, Ellex is undervalued.
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From last year announcement (Adelaide, Australia, 6 June 2017):
Chinese government confirms regulatory approval for iTrack™ until 23 May 2022
– the only MIGS device to treat glaucoma approved in this market
– Ellex Medical Lasers Limited (ASX:ELX), a global leader in medical devices for the diagnosis and treatment of eye disease, today announced an extension of regulatory approval in China for its minimally invasive glaucoma surgery (MIGS) device, Ellex iTrack™.
On 2 June 2017, Ellex received advice from the Chinese government that the Ellex iTrack™ device’s approval for sale in China has been extended until 23 May 2022. Ellex iTrack™ is the only MIGS device approved for sale in China.
China is a key market segment for Ellex iTrack™ and the Company is working with its distributor to train doctors in the iTrack™ surgery technique and build sales in the country.