IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

JD Health International  / Equity Capital Markets

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<p><a href="https://www.smartkarma.com/entities/jd-health-international" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a> is the largest online healthcare platform and the largest online retail pharmacy by revenue in China in 2019, according to Frost &amp; Sullivan.</p>
<div><p>At the proposed IPO price range of HK$62.80-70.58 per share, JD Health will have a market cap of $25.3-28.5 billion. At the mid-point of the IPO price range, the total proceeds are HK$25,469 million ($3.3 billion). Six cornerstone investors will subscribe for $1.35 billion worth of the offer shares. The cornerstone investors include GIC, Hillhouse Capital and BlackRock. </p></div>
</div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/jd-health-ipo-initiation-e-ppointments" target="_blank" data-smartkarma-citation="insights:45106" rel="noopener">JD Health IPO Initiation: E-Ppointments</a>, we opined that JD Health’s fundamentals suggest that it is an attractive play on China’s online healthcare platform industry. In <a href="https://www.smartkarma.com/insights/jd-health-ipo-phip-new-data-points-and-peer-comparison" target="_blank" data-smartkarma-citation="insights:45377" rel="noopener">JD Health IPO: PHIP New Data Points and Peer Comparison</a>, we stated that the new data points disclosed in the PHIP along with our peer analysis reinforce our view that JD Health has attractive fundamentals. Overall, we would participate in the IPO due to an attractive IPO price range.</p></div></div></div>


JD Health (6618 HK) is the largest online healthcare platform and the largest online retail pharmacy by revenue in China in 2019, according to Frost &amp; Sullivan.
At the proposed IPO price range of HK$62.80-70.58 per share, JD Health will have a market cap of $25.3-28.5 billion. At the mid-point of the IPO price range, the total proceeds are HK$25,469 million ($3.3 billion). Six cornerstone investors will subscribe for $1.35 billion worth of the offer shares. The cornerstone investors include GIC, Hillhouse Capital and BlackRock. 
In JD Health IPO Initiation: E-Ppointments, we opined that JD Health’s fundamentals suggest that it is an attractive play on China’s online healthcare platform industry. In JD Health IPO: PHIP New Data Points and Peer Comparison, we stated that the new data points disclosed in the PHIP along with our peer analysis reinforce our view that JD Health has attractive fundamentals. Overall, we would participate in the IPO due to an attractive IPO price range.

<p><a href="https://www.smartkarma.com/entities/jd-health-international" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (JDH HK)</a> is the largest online healthcare platform and the largest online retail pharmacy by revenue in China in 2019, according to Frost &amp; Sullivan. JD Health is seeking to raise $4 billion at a $29 billion valuation, according to IFR. The rumoured valuation is a significant increase to the August 2020 Series B round - a raise of $914 million at a $19.2 billion valuation. </p><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/jd-health-ipo-initiation-e-ppointments" target="_blank" data-smartkarma-citation="insights:45106" rel="noopener">JD Health IPO Initiation: E-Ppointments</a>, we opined that JD Health’s fundamentals suggest that it is an attractive play on China’s online healthcare platform industry. In <a href="https://www.smartkarma.com/insights/jd-health-ipo-phip-new-data-points-and-peer-comparison" target="_blank" data-smartkarma-citation="insights:45377" rel="noopener">JD Health IPO: PHIP New Data Points and Peer Comparison</a>, we stated that the new data points disclosed in the PHIP along with our peer analysis reinforce our view that JD Health has attractive fundamentals. In this note, we take a first look at JD Health's valuation. Overall, based on valuation analysis, we think that the rumoured IPO valuation can be justified.</p></div>

JD Health (JDH HK) is the largest online healthcare platform and the largest online retail pharmacy by revenue in China in 2019, according to Frost &amp; Sullivan. JD Health is seeking to raise $4 billion at a $29 billion valuation, according to IFR. The rumoured valuation is a significant increase to the August 2020 Series B round - a raise of $914 million at a $19.2 billion valuation. In JD Health IPO Initiation: E-Ppointments, we opined that JD Health’s fundamentals suggest that it is an attractive play on China’s online healthcare platform industry. In JD Health IPO: PHIP New Data Points and Peer Comparison, we stated that the new data points disclosed in the PHIP along with our peer analysis reinforce our view that JD Health has attractive fundamentals. In this note, we take a first look at JD Health's valuation. Overall, based on valuation analysis, we think that the rumoured IPO valuation can be justified.

<p><a href="https://www.smartkarma.com/entities/jd-health-international" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (JDH HK)</a> is the largest online healthcare platform and the largest online retail pharmacy by revenue in China in 2019, according to Frost &amp; Sullivan. JD Health has filed its PHIP and kicked off pre-marketing for a Hong Kong IPO to raise around $3 billion.  </p><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/jd-health-ipo-initiation-e-ppointments" target="_blank" data-smartkarma-citation="insights:45106" rel="noopener">JD Health IPO Initiation: E-Ppointments</a>, we stated that JD Health’s fundamentals suggest that it is an attractive play on China’s online healthcare platform industry. JD Health will tend to be compared to its listed peers – <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology Company Limited (1833 HK)</a>/PAHTG, <a href="https://www.smartkarma.com/entities/alibaba-health-information-technology-ltd" target="_blank" data-smartkarma-citation="entities:453:1" rel="noopener">Alibaba Health Information Technology (241 HK)</a> and <a href="https://www.smartkarma.com/entities/111-inc" target="_blank" data-smartkarma-citation="entities:27412:1" rel="noopener">111 Inc (YI US)</a>. The new data points disclosed in the PHIP along with our peer analysis reinforce our view that JD Health has attractive fundamentals. </p></div>

JD Health (JDH HK) is the largest online healthcare platform and the largest online retail pharmacy by revenue in China in 2019, according to Frost &amp; Sullivan. JD Health has filed its PHIP and kicked off pre-marketing for a Hong Kong IPO to raise around $3 billion.  In JD Health IPO Initiation: E-Ppointments, we stated that JD Health’s fundamentals suggest that it is an attractive play on China’s online healthcare platform industry. JD Health will tend to be compared to its listed peers – Ping An Healthcare and Technology Company Limited (1833 HK)/PAHTG, Alibaba Health Information Technology (241 HK) and 111 Inc (YI US). The new data points disclosed in the PHIP along with our peer analysis reinforce our view that JD Health has attractive fundamentals. 

JD Health IPO: PHIP New Data Points and Peer Comparison

<p><a href="https://www.smartkarma.com/entities/jd-health-international" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (JDH HK)</a> is the largest online healthcare platform and the largest online retail pharmacy by revenue in China in 2019, according to Frost &amp; Sullivan. JD Health has been operating as a stand-alone business unit of <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a> since February 2014. JD Health will kick off its listing hearing this week for a Hong Kong IPO to raise around $3 billion, according to IFR. </p><p>In response to the COVID-19 outbreak, individuals are increasingly focused on personal health and wellbeing which has driven user acceptance of online healthcare platforms. The proportion of digitalisation in the Chinese health and wellness market is expected to increase rapidly from 3.3% in 2019 to 24.0% of China’s total healthcare expenditure in 2030, according to Frost and Sullivan. Consequently, the shares of <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology Company Limited (1833 HK)</a> and <a href="https://www.smartkarma.com/entities/alibaba-health-information-technology-ltd" target="_blank" data-smartkarma-citation="entities:453:1" rel="noopener">Alibaba Health Information Technology (241 HK)</a> are up 82% and 156% YTD.</p><div class="content-highlight"><p>JD Health’s IPO is well-timed to benefit from the strong investor sentiment on online healthcare platforms. Overall, we believe that JD Health’s fundamentals suggest that it is an attractive play on China’s online healthcare platform industry.</p></div>

JD Health (JDH HK) is the largest online healthcare platform and the largest online retail pharmacy by revenue in China in 2019, according to Frost &amp; Sullivan. JD Health has been operating as a stand-alone business unit of JD.com Inc (ADR) (JD US) since February 2014. JD Health will kick off its listing hearing this week for a Hong Kong IPO to raise around $3 billion, according to IFR. In response to the COVID-19 outbreak, individuals are increasingly focused on personal health and wellbeing which has driven user acceptance of online healthcare platforms. The proportion of digitalisation in the Chinese health and wellness market is expected to increase rapidly from 3.3% in 2019 to 24.0% of China’s total healthcare expenditure in 2030, according to Frost and Sullivan. Consequently, the shares of Ping An Healthcare and Technology Company Limited (1833 HK) and Alibaba Health Information Technology (241 HK) are up 82% and 156% YTD.JD Health’s IPO is well-timed to benefit from the strong investor sentiment on online healthcare platforms. Overall, we believe that JD Health’s fundamentals suggest that it is an attractive play on China’s online healthcare platform industry.

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

<p>JD Health, the online healthcare business of <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a>, has filed an Application Proof to list on the HKEX to raise up to a reported US$2 billion. The company is one of the leading players in this burgeoning market. This Insight will discuss the company's business and market opportunity; relationship with parent JD.com; competition; and valuation considerations. In addition, we include some questions that investors should ask management during (and after) the roadshow.  We will discuss valuation and our take on the offering in a future Insight.</p>

JD Health, the online healthcare business of JD.com Inc (ADR) (JD US), has filed an Application Proof to list on the HKEX to raise up to a reported US$2 billion. The company is one of the leading players in this burgeoning market. This Insight will discuss the company's business and market opportunity; relationship with parent JD.com; competition; and valuation considerations. In addition, we include some questions that investors should ask management during (and after) the roadshow.  We will discuss valuation and our take on the offering in a future Insight.

China

Beijing Honggao Creative Construction Design Co., Ltd mainly engages in engineering design, landscape design, furniture design, arts & crafts design and sale of contruction materials.

Beijing Honggao Cretv Constn Dsgn (002504 CH)

Shanghai Huahongjt Smart System Company Limited develops, integrates and sells non-contact IC card auto toll systems. The Company's main products include rail transportation automatic fare collection systems, and city card automatic fare collection systems.

Shanghai Huahong Jtng Smrt Systm (300330 CH)

Pacific Online Ltd provides Internet content in the Peoples Republic of China. The Company operates multiple portal sites that offers content that includes information technology product related content and automobile related content, personal computer games, womens lifestyle related topics, and parenting related issues.

Suzhou New Sea Union Telecom Technology Co., Ltd. develops, manufactures and markets telecommunication products. The company's products include telecommunication networking equipment and software, related electronic products, cable, security products and so on.

Suzhou New Sea Union Tlcm Tchnlgy (002089 CH)

Nanjing Sample Technology Company Limited develops and provides video security system solutions in China targeting on government authorities.  The Company's products are used in the traffic monitoring and control sector as well as the customs logistics monitoring sector.  Nanjing Sample also sells computer products.

Beijing Beida Jade Bird Universal Sci-Tech Company Limited, through its subsidiaries, researches, develops, manufactures, markets, and sells network security system, wireless fire alarm system, security ICs, smart card application system, and remote meter reading system.  The Company also trades computers and related products as well as develops properties.

Guangdong Chaohua Technology Company, Ltd. produces printed circuit board and copper clad laminate. The Company manufactures upstream products such as electrolytic copper foil, wood pulp paper for copper clad laminate, solder mask, resistant ink, and legend. Guangdong Chaohua Technology Company serves customers and clients internationally.

Sinosoft Technology Group Limited is a provider of application software products and solutions. The Company principally develops and markets export tax software and related services, carbon management solutions, e-Government solutions.

Babytree Group operates Chinese parenting website. The Company and its subsidiaries, engaged in the advertising, e-commerce, and content monetization businesses. Babytree Group provides services for worldwide customers.

Bluedon Information Safe Technology Co Ltd provides information security products, information security integration and information security services. The Company's main products include security gateway type products, security audit type products, and application security products.

Bluedon Information Security Tech (300297 CH)

Feiyu Technology International Co Ltd is a video-game developer. The Company is primarily focused on the development and operation of mobile games.

Cypress Technology Co., Ltd. is mainly engaged in the sale of personal computers and peripheral products.  Other businesses include distribution, quotation, and tendering business as an agent for relevant domestic and foreign manufacturers.

Force Mos Technology Co., Ltd. designs and manufactures semiconductor products. The Company produces analog integrated circuits, metal oxide semiconductor field effect transistors, bipolar transistors, and other products. Force Mos Technology markets its products throughout Taiwan.

YD Online Corp. provides consulting and software development services for communication and E-commerce related companies.  The Company also retails E-business related products.

Kuen Chaang Uppertech Corp. distributes semiconductor products.  The Company's products include FETs (Field Effect Transistors), LEDs (Light Emitting Diodes), ICs (Integrated Circuits), optical products, flash memories, and other related products.

SOLXYZ Co., Ltd. develops computer application software for business use.  The Company also provides system integration services as well as management and maintenance services for its clients' computer systems.

Jhen Vei Electronic Co Ltd manufactures and installs cable sockets, computer cables and lighting system.

KYOEI SANGYO CO., LTD. sells electronic equipment and components.  Through its subsidiary, the Company also researches and develops printed circuit boards. Kyoei is an affiliate of Mitsubishi Electric.

NIPPON ANTENNA CO., LTD. manufactures and sells various types of antennas for automobiles, TVs, and communication equipment.  The Company also provides installation services.

SHOWA SHINKU CO., LTD. manufactures and sells vacuum evaporation equipment for quartz crystal and optical films.  The Company also makes semiconductor equipment and flat panels displays.  Showa's products include sputtering equipment, iron plating equipment, vacuum metallurgic equipment, vacuum exhaust equipment, oil-sealed rotary vacuum pumps, and oil diffusion pumps.

111, Inc. operates as a digital and mobile healthcare platform. The Company offers pharmacy distribution, medical consultancy, e-prescription, and other services. 111 serves patients in China.

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111 Inc (YI US)

JD Health IPO: Valuation Insights

At the proposed IPO price range of HK$62.80-70.58 per share, JD Health will have a market cap of $25.3-28.5 billion. Overall, we would participate...

Arun George

JD Health IPO: Valuation First Look

JD Health is seeking to raise $4 billion at a $29 billion valuation, according to IFR. Overall, based on valuation analysis, we think that the...

Arun George

JD Health IPO: PHIP New Data Points and Peer Comparison

JD Health has kicked off pre-marketing for an HK IPO to raise around $3 billion. The new PHIP data points along with our peer analysis reinforce...

Arun George

JD Health IPO Initiation: E-Ppointments

JD Health’s IPO is well-timed to benefit from the strong investor sentiment on online healthcare platforms. Overall, JD Health’s fundamentals...

Arun George

JD Health: Looking Beyond the Obvious

This Insight provides an in-depth view of JD Health in the context of a "penetration story" with a focus on the market opportunity to inform...

Kemp Dolliver, CFA

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