HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>The two core businesses is corporate and digital marketing services (2B business) and health and medical services (2C business),the synergy of which can form a virtuous cycle within the platform.</li>
<li>The key performance driver for HealthWay is 2B business, but the pain point is 2C business, which is hard to scale up. Actually, HealthyWay’s growth momentum has slowed down significantly.</li>
<li>After completing the final round of financing, HealthyWay’s valuation reached RMB4.1 billion. We think its valuation could be higher than ClouDr but lower than JD Health and Alibaba Health.</li>
</ul>


The two core businesses is corporate and digital marketing services (2B business) and health and medical services (2C business),the synergy of which can form a virtuous cycle within the platform.
The key performance driver for HealthWay is 2B business, but the pain point is 2C business, which is hard to scale up. Actually, HealthyWay’s growth momentum has slowed down significantly.
After completing the final round of financing, HealthyWay’s valuation reached RMB4.1 billion. We think its valuation could be higher than ClouDr but lower than JD Health and Alibaba Health.


Pre-IPO HealthyWay (PHIP Updates) - Some Points Worth the Attention

Xunfei Healthcare Technology / Equity Capital Markets

<ul>
<li>Medical industry characteristics are the seriousness of diagnosis/treatment and the irreversibility of the process, which are the difficulties in implementing technology. The value that AI can provide is limited. </li>
<li>Xunfei’s business model is not To C, but To G (government) model. It’s not possible for SOE customers to pay high price for Xunfei’s AI model/products, leading to questionable profitability.</li>
<li>Pre-IPO valuation has reached RMB8.4 billion. Without sustainable growth and stable profitability, valuation/liquidity of Xunfei after listing wouldn’t be good. We think Xunfei’s valuation could be similar to Yidu Tech.</li>
</ul>


Medical industry characteristics are the seriousness of diagnosis/treatment and the irreversibility of the process, which are the difficulties in implementing technology. The value that AI can provide is limited. 
Xunfei’s business model is not To C, but To G (government) model. It’s not possible for SOE customers to pay high price for Xunfei’s AI model/products, leading to questionable profitability.
Pre-IPO valuation has reached RMB8.4 billion. Without sustainable growth and stable profitability, valuation/liquidity of Xunfei after listing wouldn’t be good. We think Xunfei’s valuation could be similar to Yidu Tech.


Pre-IPO Xunfei Healthcare Technology (PHIP Updates) - Profitability Are Always the Pain Points

Herbs Generation Group Holdings / Equity Capital Markets

<ul>
<li>Performance declined sharply in 24H1 mainly due to the decrease in orders from Customer A. Herbs Generation’s business/financial performance would be easily affected if the contributions from Customer A decline.</li>
<li>Current sales model of Herbs Generation is hard to change, and the Company still has to invest heavily in offline marketing and promotional efforts, but the efficiency is not high.</li>
<li>Herbs Generation’s ability to resist risks is relatively weak, which prevents us from building optimistic expectations for sustainable growth in the future. Valuation should be lower than peers.</li>
</ul>


Performance declined sharply in 24H1 mainly due to the decrease in orders from Customer A. Herbs Generation’s business/financial performance would be easily affected if the contributions from Customer A decline.
Current sales model of Herbs Generation is hard to change, and the Company still has to invest heavily in offline marketing and promotional efforts, but the efficiency is not high.
Herbs Generation’s ability to resist risks is relatively weak, which prevents us from building optimistic expectations for sustainable growth in the future. Valuation should be lower than peers.


Pre-IPO Herbs Generation Group Holdings (PHIP Updates) - Some Points Worth the Attention

BrainAurora Medical Technology / Equity Capital Markets

<ul>
<li>Although DTx is considered a promising field, the industry is still in the early stages of trial and error development, and there is still a long distance from mature commercialization.</li>
<li>BrainAurora’s revenue YoY growth rate declined significantly. Considering the small revenue scale and slowdown in revenue growth, is it possible for BrainAurora to experience stagnant growth in the near future?</li>
<li>BrainAurora’s products haven’t been widely recognized in China’s hospitals/medical system, nor has it established a solid profit model.High valuation isn’t justified. We doubt if this field could bring good return.</li>
</ul>


Although DTx is considered a promising field, the industry is still in the early stages of trial and error development, and there is still a long distance from mature commercialization.
BrainAurora’s revenue YoY growth rate declined significantly. Considering the small revenue scale and slowdown in revenue growth, is it possible for BrainAurora to experience stagnant growth in the near future?
BrainAurora’s products haven’t been widely recognized in China’s hospitals/medical system, nor has it established a solid profit model.High valuation isn’t justified. We doubt if this field could bring good return.


Pre-IPO BrainAurora Medical Technology - Weak Growth Prospects Cannot Support High Valuation

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC IPOs & Placements

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/saint-bella" target="_blank" data-smartkarma-citation="entities:43697:1" rel="noopener">Saint Bella (SAINT HK)</a>  is looking to raise up to US$200m in its upcoming Hong Kong IPO.</li>
<li>It operates the second largest and fastest growing postpartum care and recovery service in China, as per Frost &amp; Sullivan. It operates an extensive network of 59 premium postpartum centers.</li>
<li>In this note, we look at the firm's past performance.</li>
</ul>



Saint Bella (SAINT HK)  is looking to raise up to US$200m in its upcoming Hong Kong IPO.
It operates the second largest and fastest growing postpartum care and recovery service in China, as per Frost &amp; Sullivan. It operates an extensive network of 59 premium postpartum centers.
In this note, we look at the firm's past performance.


Saint Bella Pre-IPO: Rapid Growth but Facing Birth-Rate Headwinds

New market cap creation in China healthcare

China Healthcare IPOs
New market cap creation in China healthcare

Pre-IPO HealthyWay (PHIP Updates) - Some Points Worth the Attention

The key growth driver of HealthyWay is 2B business, but the company is facing challenge in scaling up its 2C business. Pre-IPO valuation reached...

Xinyao (Criss) Wang

Pre-IPO Xunfei Healthcare Technology (PHIP Updates) - Profitability Are Always the Pain Points

Challenges in implementing AI technology in medical industry will lead to low value. Xunfei's To G model faces profitability issues. High...

Xinyao (Criss) Wang

Pre-IPO Herbs Generation Group Holdings (PHIP Updates) - Some Points Worth the Attention

Herbs Generation's performance took a hit in 24H1 due to decreased orders from Customer A, highlighting vulnerability to risk and need for...

Xinyao (Criss) Wang

Pre-IPO BrainAurora Medical Technology - Weak Growth Prospects Cannot Support High Valuation

BrainAurora’s products haven’t been widely recognized in China’s hospital market/medical system, nor has the Company established a solid profit...

Xinyao (Criss) Wang

Saint Bella Pre-IPO: Rapid Growth but Facing Birth-Rate Headwinds

Saint Bella (SB) is looking to raise up to US$200m in its upcoming Hong Kong IPO. It operates the second largest and fastest growing postpartum...

Nicholas Tan

Pre-IPO HealthyWay (PHIP Updates) - Some Points Worth the Attention

The key growth driver of HealthyWay is 2B business, but the company is facing challenge in scaling up its 2C business. Pre-IPO valuation reached...

Xinyao (Criss) Wang

Pre-IPO Xunfei Healthcare Technology (PHIP Updates) - Profitability Are Always the Pain Points

​Challenges in implementing AI technology in medical industry will lead to low value. Xunfei's To G model faces profitability issues. High...

Xinyao (Criss) Wang

Pre-IPO Herbs Generation Group Holdings (PHIP Updates) - Some Points Worth the Attention

​Herbs Generation's performance took a hit in 24H1 due to decreased orders from Customer A, highlighting vulnerability to risk and need for...

Xinyao (Criss) Wang

Pre-IPO BrainAurora Medical Technology - Weak Growth Prospects Cannot Support High Valuation

BrainAurora’s products haven’t been widely recognized in China’s hospital market/medical system, nor has the Company established a solid profit...

Xinyao (Criss) Wang

Saint Bella Pre-IPO: Rapid Growth but Facing Birth-Rate Headwinds

Saint Bella (SB) is looking to raise up to US$200m in its upcoming Hong Kong IPO. It operates the second largest and fastest growing postpartum...

Nicholas Tan

Challenges in implementing AI technology in medical industry will lead to low value. Xunfei's To G model faces profitability issues. High...

Herbs Generation's performance took a hit in 24H1 due to decreased orders from Customer A, highlighting vulnerability to risk and need for...