Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<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> , the largest online healthcare platform and retail pharmacy in China started trading on the 7<sup>th</sup> of December. The company set the final IPO pricing at the upper end of the IPO price range of HK$70.58 per share and raised net proceeds of HK$26.46bn (approximately US$3.41bn).</p><p>JD Health’s shares had a bold debut at the IPO, hitting an intra-day high of HK$123.3 per share, about 75% higher than the IPO price. The company’s shares are currently trading at HK$166 per share (end of today’s trading), a 135% increase compared to the IPO price of HK$70.58 per share.</p><p>In our previous insights on the company’s IPO, we examined the company’s business model, financials, valuations and a comparison with its peers.</p><p>We highlighted that the company has a strong business model which is poised to benefit from the structural changes in the Chinese healthcare market that is currently shifting towards digitisation. Moreover, the Covid-19 outbreak has further accelerated this transition towards online channels, and we believe the company’s business is sustainable beyond Covid-19.</p>

JD Health (6618 HK) , the largest online healthcare platform and retail pharmacy in China started trading on the 7th of December. The company set the final IPO pricing at the upper end of the IPO price range of HK$70.58 per share and raised net proceeds of HK$26.46bn (approximately US$3.41bn).JD Health’s shares had a bold debut at the IPO, hitting an intra-day high of HK$123.3 per share, about 75% higher than the IPO price. The company’s shares are currently trading at HK$166 per share (end of today’s trading), a 135% increase compared to the IPO price of HK$70.58 per share.In our previous insights on the company’s IPO, we examined the company’s business model, financials, valuations and a comparison with its peers.We highlighted that the company has a strong business model which is poised to benefit from the structural changes in the Chinese healthcare market that is currently shifting towards digitisation. Moreover, the Covid-19 outbreak has further accelerated this transition towards online channels, and we believe the company’s business is sustainable beyond Covid-19.

JD Health IPO Trading Update: Be Ready to Buy if It Drops Post Index Inclusion

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

Alibaba Health Information Tec / Equity Bottom-Up

<p>This Insight summarizes the takeaways from a recent China healthcare industry conference focused on biopharmaceuticals and medical devices, and builds on our Originals Insight <a href="https://www.smartkarma.com/insights/asian-healthcare-coming-of-age" target="_blank" data-smartkarma-citation="insights:45676" rel="noopener">Asian Healthcare - Coming of Age</a>.  Topics addressed include value-based purchasing for drugs and devices; development of commercial health insurance; internet hospitals and online pharmacies; DRGs for hospitals; issues for medical device companies; and amendments to China's patent laws.</p>

This Insight summarizes the takeaways from a recent China healthcare industry conference focused on biopharmaceuticals and medical devices, and builds on our Originals Insight Asian Healthcare - Coming of Age.  Topics addressed include value-based purchasing for drugs and devices; development of commercial health insurance; internet hospitals and online pharmacies; DRGs for hospitals; issues for medical device companies; and amendments to China's patent laws.

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<p style="text-align: justify;"><a target="_blank"></a>In recent years, China digital healthcare industry has grown rapidly. The increasing cost of diseases and traditional medical treatment provides potential impetus for the long-term development of digital medicine. Especially during the epidemic, digital medical tools have helped people make full use of existing medical resources. Methods such as real-time epidemic information broadcast, Internet diagnosis and treatment platform, and remote drug purchase have all played an important role in the epidemic. Comprehensive intelligent digital healthcare treatment is gradually accepted and recognized by people, and will become the new direction of the development in the post-epidemic era (Related companies: <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>, <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/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></p>

In recent years, China digital healthcare industry has grown rapidly. The increasing cost of diseases and traditional medical treatment provides potential impetus for the long-term development of digital medicine. Especially during the epidemic, digital medical tools have helped people make full use of existing medical resources. Methods such as real-time epidemic information broadcast, Internet diagnosis and treatment platform, and remote drug purchase have all played an important role in the epidemic. Comprehensive intelligent digital healthcare treatment is gradually accepted and recognized by people, and will become the new direction of the development in the post-epidemic era (Related companies: JD Health (6618 HK), Alibaba Health Information Technology (241 HK), and Ping An Healthcare and Technology Company Limited (1833 HK)).

Industry Report - Insights on China Digital Healthcare Industry

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

Blue Moon Group Holdings / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/blue-moon-group-holdings" target="_blank" data-smartkarma-citation="entities:29179:1" rel="noopener">Blue Moon Group Holdings (6993 HK)</a> is a leading consumer household care company in China.  Blue Moon will commence trading on Wednesday, 16 December. Blue Moon priced its IPO at HK$13.16 and <a href="http://www.aastocks.com/en/stocks/news/aafn-con/NOW.1063245/ipo-news" target="_blank" rel="noopener">opened 14% higher</a> at HK$15.00 in the grey market and last stood at HK$14.90.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/blue-moon-ipo-initiation-laundry-list" target="_blank" data-smartkarma-citation="insights:41086" rel="noopener">Blue Moon IPO Initiation: Laundry List</a>, we stated that on balance we think the positives (market-leading brand, strong margin progression, solid cash generation) outweigh the negatives (declining revenue growth and short-term COVID-19 impact). In <a href="https://www.smartkarma.com/insights/blue-moon-ipo-doing-the-wash" target="_blank" data-smartkarma-citation="insights:45481" rel="noopener">Blue Moon IPO: Doing the Wash</a> we noted that the 1H20 results disclosed in the PHIP show that the Blue Moon has creditably navigated the adverse revenue decline on its core business due to the COVID-19 outbreak by improving margin and cash generation. In <a href="https://www.smartkarma.com/insights/blue-moon-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:46033" rel="noopener">Blue Moon IPO: Valuation Insights</a>, we noted that the IPO price range is attractive.</p></div><div><div><div class="content-highlight"><p>Our base-case DCF derived price target of HK$15.21 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price continues to provide good upside potential. </p></div></div></div>

Blue Moon Group Holdings (6993 HK) is a leading consumer household care company in China.  Blue Moon will commence trading on Wednesday, 16 December. Blue Moon priced its IPO at HK$13.16 and opened 14% higher at HK$15.00 in the grey market and last stood at HK$14.90.In Blue Moon IPO Initiation: Laundry List, we stated that on balance we think the positives (market-leading brand, strong margin progression, solid cash generation) outweigh the negatives (declining revenue growth and short-term COVID-19 impact). In Blue Moon IPO: Doing the Wash we noted that the 1H20 results disclosed in the PHIP show that the Blue Moon has creditably navigated the adverse revenue decline on its core business due to the COVID-19 outbreak by improving margin and cash generation. In Blue Moon IPO: Valuation Insights, we noted that the IPO price range is attractive.Our base-case DCF derived price target of HK$15.21 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price continues to provide good upside potential. 

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.

<p><a href="https://www.smartkarma.com/entities/yidu-tech-inc" target="_blank" data-smartkarma-citation="entities:29245:1" rel="noopener">Yidu Tech Inc (YID HK)</a>  is looking to raise about US$500m in its upcoming IPO. The company recently filed its post hearing information pack (PHIP) document. </p><p>Yidu is a healthcare data solution provider. It leverages big data and artificial intelligence (AI) technologies and provides solutions to key healthcare participants that include mainly hospitals, pharmaceutical, biotech and medical device companies, regulators and policy makers. </p><p>In this note, we will look at the company's business, operating data, revenue drivers, and share our thoughts on the business.</p>

Yidu Tech Inc (YID HK)  is looking to raise about US$500m in its upcoming IPO. The company recently filed its post hearing information pack (PHIP) document. Yidu is a healthcare data solution provider. It leverages big data and artificial intelligence (AI) technologies and provides solutions to key healthcare participants that include mainly hospitals, pharmaceutical, biotech and medical device companies, regulators and policy makers. In this note, we will look at the company's business, operating data, revenue drivers, and share our thoughts on the business.

Yidu Tech (医渡云) Pre-IPO - Big Buzzwords

China

JD Health International Inc. operates drug stores. The Company retails Chinese and Western medicines, nutrition products, health care products, and other products. JD Health International markets its products throughout China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

JD Health International (6618 HK)

JD Health IPO Trading Update: Be Ready to Buy if It Drops Post Index Inclusion

JD Health’s shares had a bold debut at the IPO and the shares are currently trading at HK$166 per share (end of today’s trading), a 135% increase...

Shifara Samsudeen, ACMA, CGMA

China Healthcare: Macro Themes

This Insight summarizes the takeaways from a recent China healthcare industry conference. There is much talk of pressures on the industry, but...

Kemp Dolliver, CFA

Industry Report - Insights on China Digital Healthcare Industry

The article analyzed China digital healthcare industry in terms of market potential, regional development, main business models(online...

Xinyao (Criss) Wang

Blue Moon IPO: Trading Debut

Blue Moon priced its IPO at HK$13.16 and opened 14% higher at HK$15.00 in the grey market. Our DCF sensitivity analysis shows that the IPO price...

Arun George

Yidu Tech (医渡云) Pre-IPO - Big Buzzwords

Yidu is a healthcare data solution provider. It leverages big data and artificial intelligence (AI) technologies and provides solutions to key...

Zhen Zhou, Toh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)