HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<p><strong>Industry Viewpoints:</strong></p><ul>
<li>Eight departments jointly issued the pilot plan for deepening the price reform of medical services.</li>
<li>New document was released to regulate the medical beauty advertisement.</li>
<li>With labels such as "whitening", "keeping healthy" and "anti-aging", related functional food has captured the "health anxiety" of young people. </li>
</ul><p><strong>Company News:</strong></p><p style="text-align: start;">News about the updated progress on new drugs of <a href="https://www.smartkarma.com/entities/jw-therapeutics" target="_blank" data-smartkarma-citation="entities:29679:1" rel="noopener">JW Therapeutics (2126 HK)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, Gloria Biosciences<em>,</em><a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK) </a>and <a href="https://www.smartkarma.com/entities/jacobio-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:29696:1" rel="noopener">Jacobio Pharmaceuticals (1167 HK)</a>. </p><p><strong>Market Review:</strong></p><p style="text-align: start;">Last week, stock price for healthcare sector in A share decreased 2.03%, while CSI 300 increased 0.33% over the same period of time.</p><p><strong>Risk Disclosure:</strong> </p><p style="text-align: start;">Policy risk, R&amp;D risk, Company risk and COVID-19 risk.</p>

Industry Viewpoints:
Eight departments jointly issued the pilot plan for deepening the price reform of medical services.
New document was released to regulate the medical beauty advertisement.
With labels such as "whitening", "keeping healthy" and "anti-aging", related functional food has captured the "health anxiety" of young people. 
Company News:News about the updated progress on new drugs of JW Therapeutics (2126 HK), Innovent Biologics Inc (1801 HK), Gloria Biosciences,BeiGene Ltd (6160 HK) and Jacobio Pharmaceuticals (1167 HK). Market Review:Last week, stock price for healthcare sector in A share decreased 2.03%, while CSI 300 increased 0.33% over the same period of time.Risk Disclosure: Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Sep.3) - Price Reform of Medical Services, Medical Beauty, Functional Food

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<p><a href="https://www.cmlviz.com/stocks/LDOC" target="_blank" rel="noopener">LinkDoc Technology</a> plans to offer 10.8 million ADS shares priced at between $17.50 And $19.50 per ADS. If the underwriters exercise their option, there will be 12.45 million shares of ADS. At the high end of the IPO price range, the company will raise $243 million, which is lower than the $500 million that was expected to be raised as mentioned in the media in the past several weeks. This is a reflection of the volatile Chinese IPO environment in 2021.</p><p><a href="https://www.cmlviz.com/stocks/LDOC/news/b/2021/07/01/linkdoc-technology-ltd-sees-u-s-ipo-of-10-8-mln-adss-expected-to-be-priced-between-17-50-and-19-50-per-ads---filing" target="_blank" rel="noopener">Alibaba Health</a>, Lake Bleu Prime Healthcare Master Fund, and UBS Asset Management have indicated to buy about $25 million each of ADS in this IPO at the IPO price. </p><div class="content-highlight">
<p>Our base case valuation of LinkDoc Technology suggests an implied market cap of $2.0 billion or $22.3 per share. At the mid point of the IPO price range ($18.5), our base case valuation suggests a 20% upside. Given the moderate upside, we have a Positive rating on this IPO.</p>
<p>Our base case valuation is based on 7.0x EV/S using our estimated sales of 1,827 million RMB. Our base case valuation multiple of 7.0x EV/S is based on a 20% discount to the comps' average EV/S multiple in 2022. We used a 20% discount to the comps' average valuation multiple mainly due to lower expected sales and lower operating margins for LinkDoc versus the comps.</p>
</div>

LinkDoc Technology plans to offer 10.8 million ADS shares priced at between $17.50 And $19.50 per ADS. If the underwriters exercise their option, there will be 12.45 million shares of ADS. At the high end of the IPO price range, the company will raise $243 million, which is lower than the $500 million that was expected to be raised as mentioned in the media in the past several weeks. This is a reflection of the volatile Chinese IPO environment in 2021.Alibaba Health, Lake Bleu Prime Healthcare Master Fund, and UBS Asset Management have indicated to buy about $25 million each of ADS in this IPO at the IPO price. 
Our base case valuation of LinkDoc Technology suggests an implied market cap of $2.0 billion or $22.3 per share. At the mid point of the IPO price range ($18.5), our base case valuation suggests a 20% upside. Given the moderate upside, we have a Positive rating on this IPO.
Our base case valuation is based on 7.0x EV/S using our estimated sales of 1,827 million RMB. Our base case valuation multiple of 7.0x EV/S is based on a 20% discount to the comps' average EV/S multiple in 2022. We used a 20% discount to the comps' average valuation multiple mainly due to lower expected sales and lower operating margins for LinkDoc versus the comps.


LinkDoc Technology IPO Valuation Analysis

APAC IPOs & Placements

Zhen Zhou, Toh

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.

<div>
<div><div><div class="content-highlight">
<h2>Error Corrigendum</h2>
<p><em>A previous version of this insight, titled "LinkDoc (零氪科技) IPO - Reasonably Priced for the Long Haul", contained serious error assuming a much smaller market cap based on the wrong number of outstanding shares/ADS for LinkDoc. It led us to believe that the IPO was priced cheaply.</em></p>
<p><em>In this note, it will be updated with the correct figures which will change our view from our previous note.</em></p>
<p><em>Our sincere apologies for the error. Do feel free to reach out to us for any clarifications.</em></p>
</div></div></div>
<p><a href="https://www.smartkarma.com/entities/linkdoc-technology-limited" target="_blank" data-smartkarma-citation="entities:33499:1" rel="noopener">LinkDoc (LDOC US)</a> is looking to raise up to US$211m in its U.S. IPO.</p>
</div><div><p>LinkDoc is a data-driven and AI-enabled healthcare technology company. The company operates data-driven digital infrastructures to serve different stakeholders in the healthcare ecosystem. The company has a focus on oncology with its patient care centres providing oncology patients with continuous care.</p></div><div><p>In this note, we will look at deal dynamics, assumptions, and share our final thoughts on valuation.</p></div><div><p>We have previously covered the IPO in: </p></div><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/linkdoc-pre-ipo-intricately-embedded-in-the-oncology-industry" target="_blank" data-smartkarma-citation="insights:53324" rel="noopener">LinkDoc (零氪科技) Pre-IPO - Intricately Embedded in the Oncology Industry</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/linkdoc-pre-ipo-peer-comparison-a-niche-that-doesn-t-give-a-clear-advantage" target="_blank" data-smartkarma-citation="insights:53723" rel="noopener">LinkDoc (零氪科技) Pre-IPO - Peer Comparison - A Niche that Doesn’t Give a Clear Advantage</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/linkdoc-pre-ipo-thoughts-on-valuation" target="_blank" data-smartkarma-citation="insights:53787" rel="noopener">LinkDoc (零氪科技) Pre-IPO - Thoughts on Valuation</a> </li>
</ul></div>



Error Corrigendum
A previous version of this insight, titled "LinkDoc (零氪科技) IPO - Reasonably Priced for the Long Haul", contained serious error assuming a much smaller market cap based on the wrong number of outstanding shares/ADS for LinkDoc. It led us to believe that the IPO was priced cheaply.
In this note, it will be updated with the correct figures which will change our view from our previous note.
Our sincere apologies for the error. Do feel free to reach out to us for any clarifications.

LinkDoc (LDOC US) is looking to raise up to US$211m in its U.S. IPO.
LinkDoc is a data-driven and AI-enabled healthcare technology company. The company operates data-driven digital infrastructures to serve different stakeholders in the healthcare ecosystem. The company has a focus on oncology with its patient care centres providing oncology patients with continuous care.In this note, we will look at deal dynamics, assumptions, and share our final thoughts on valuation.We have previously covered the IPO in: 

LinkDoc (零氪科技) Pre-IPO - Intricately Embedded in the Oncology Industry 

LinkDoc (零氪科技) Pre-IPO - Peer Comparison - A Niche that Doesn’t Give a Clear Advantage 

LinkDoc (零氪科技) Pre-IPO - Thoughts on Valuation 


LinkDoc (零氪科技) IPO - Revised Thoughts on Valuation

<div><p><a href="https://www.smartkarma.com/entities/linkdoc-technology-limited" target="_blank" data-smartkarma-citation="entities:33499:1" rel="noopener">LinkDoc (LDOC US)</a> is looking to raise about US$500m in its upcoming U.S. IPO.</p></div><div><p>LinkDoc is a data-driven and AI-enabled healthcare technology company. The company operates data-driven digital infrastructures to serve different stakeholders in the healthcare ecosystem. The company has a focus on oncology with its patient care centres providing oncology patients with continuous care.</p></div><div><p>In this note, we look at LinkDoc’s SOTP valuation. </p></div><div><p>We have previously covered the IPO in: </p></div><div><ul>
<li>
<a href="https://www.smartkarma.com/insights/linkdoc-pre-ipo-intricately-embedded-in-the-oncology-industry" target="_blank" data-smartkarma-citation="insights:53324" rel="noopener">LinkDoc (零氪科技) Pre-IPO - Intricately Embedded in the Oncology Industry</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/linkdoc-pre-ipo-peer-comparison-a-niche-that-doesn-t-give-a-clear-advantage" target="_blank" data-smartkarma-citation="insights:53723" rel="noopener">LinkDoc (零氪科技) Pre-IPO - Peer Comparison - A Niche that Doesn’t Give a Clear Advantage</a> </li>
</ul></div>

LinkDoc (LDOC US) is looking to raise about US$500m in its upcoming U.S. IPO.LinkDoc is a data-driven and AI-enabled healthcare technology company. The company operates data-driven digital infrastructures to serve different stakeholders in the healthcare ecosystem. The company has a focus on oncology with its patient care centres providing oncology patients with continuous care.In this note, we look at LinkDoc’s SOTP valuation. We have previously covered the IPO in: 

LinkDoc (零氪科技) Pre-IPO - Intricately Embedded in the Oncology Industry 

LinkDoc (零氪科技) Pre-IPO - Peer Comparison - A Niche that Doesn’t Give a Clear Advantage 


LinkDoc (零氪科技) Pre-IPO - Thoughts on Valuation

<p><a href="https://www.smartkarma.com/entities/linkdoc-technology-limited" target="_blank" data-smartkarma-citation="entities:33499:1" rel="noopener">LinkDoc (LDOC US)</a> is looking to raise about US$500m in its upcoming U.S. IPO.</p><p>LinkDoc is a data-driven and AI-enabled healthcare technology company. The company operates data-driven digital infrastructures to serve different stakeholders in the healthcare ecosystem. The company has a focus on oncology with its patient care centres providing oncology patients with continuous care.</p><p>In this note, we compare LinkDoc to other China healthcare companies.</p><p>We have previously covered the IPO in: </p><ul><li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/linkdoc-pre-ipo-intricately-embedded-in-the-oncology-industry" target="_blank" data-smartkarma-citation="insights:53324" rel="noopener">LinkDoc (零氪科技) Pre-IPO - Intricately Embedded in the Oncology Industry</a> </p></li></ul>

LinkDoc (LDOC US) is looking to raise about US$500m in its upcoming U.S. IPO.LinkDoc is a data-driven and AI-enabled healthcare technology company. The company operates data-driven digital infrastructures to serve different stakeholders in the healthcare ecosystem. The company has a focus on oncology with its patient care centres providing oncology patients with continuous care.In this note, we compare LinkDoc to other China healthcare companies.We have previously covered the IPO in: LinkDoc (零氪科技) Pre-IPO - Intricately Embedded in the Oncology Industry 

LinkDoc (零氪科技) Pre-IPO - Peer Comparison - A Niche that Doesn’t Give a Clear Advantage

China

Hygeia is a China based oncology healthcare group.

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Hygeia Healthcare Group (6078 HK)

China Healthcare Weekly (Sep.3) - Price Reform of Medical Services, Medical Beauty, Functional Food

This article mainly analyzed the pilot plan for the price reform of medical services, new regulation on medical beauty advertisement, functional...

Xinyao (Criss) Wang

LinkDoc Technology IPO Valuation Analysis

Our base case valuation of LinkDoc Technology suggests an implied market cap of $2.0 billion or $22.3 per share, which represents 20% upside from...

Douglas Kim

LinkDoc (零氪科技) IPO - Revised Thoughts on Valuation

LinkDoc (LDOC US) is looking to raise up to US$211m in its U.S. IPO. LinkDoc is a data-driven and AI-enabled healthcare technology company.

Zhen Zhou, Toh

LinkDoc (零氪科技) Pre-IPO - Thoughts on Valuation

LinkDoc is looking to raise about US$500m in its upcoming U.S. IPO.LinkDoc is a data-driven and AI-enabled healthcare technology company.

Zhen Zhou, Toh

LinkDoc (零氪科技) Pre-IPO - Peer Comparison - A Niche that Doesn’t Give a Clear Advantage

LinkDoc (LDOC US) is looking to raise about US$500m in its upcoming U.S. IPO. LinkDoc is a data-driven and AI-enabled healthcare technology company.

Zhen Zhou, Toh

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