HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

1.Industry viewpoints:<ul>
<li>Recently, the National Medical Products Administration has released a new policy (draft version) about the online drug sales.</li>
<li>Vaccine is a hot topic in 2020, so let’s talk about vaccine.</li>
<li>The upsurge in the application of AI in medical imaging in China provides a new direction for the development, which may be the most promising field for China to surpass foreign countries.</li>
</ul>2. Company news:News about the updated progress of new drugs and the marketing approval of new products from <a href="https://www.smartkarma.com/entities/betta-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:25883:1" rel="noopener">Betta Pharmaceuticals (300558 CH)</a>, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> , Kangpu Biopharmaceuticals, and <a href="https://www.smartkarma.com/entities/venus-medtech-hangzhou-inc" target="_blank" data-smartkarma-citation="entities:28257:1" rel="noopener">Venus MedTech (2500 HK).</a>3. Market review:Last week, stock price for healthcare sector in A share decreased 1.43%, while CSI 300 increased 1.78% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1.Industry viewpoints:
Recently, the National Medical Products Administration has released a new policy (draft version) about the online drug sales.
Vaccine is a hot topic in 2020, so let’s talk about vaccine.
The upsurge in the application of AI in medical imaging in China provides a new direction for the development, which may be the most promising field for China to surpass foreign countries.
2. Company news:News about the updated progress of new drugs and the marketing approval of new products from Betta Pharmaceuticals (300558 CH), BeiGene Ltd (6160 HK) , Kangpu Biopharmaceuticals, and Venus MedTech (2500 HK).3. Market review:Last week, stock price for healthcare sector in A share decreased 1.43%, while CSI 300 increased 1.78% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

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.

Equity Capital Markets

Blue Moon Group Holdings / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/guangzhou-blue-moon-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:29179:1" rel="noopener">Blue Moon Group Holdings (BMG HK)</a> , a leading consumer household care company in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange and plans to raise about US$1bn. The company offers a wide range of products under three segments fabric care, personal hygiene products and home care products and has been the first to launch several new products such as liquid detergent and liquid soap to the Chinese market and the first mover advantage has helped the company grow its revenues and market share.In our previous insight on the company’s IPO <a href="https://www.smartkarma.com/insights/blue-moon-ipo-product-innovation-and-online-channels-are-the-secrets-to-a-gentle-clean" target="_blank" data-smartkarma-citation="insights:41196" rel="noopener">Blue Moon IPO: Product Innovation and Online Channels Are the Secrets to a Gentle Clean</a> , we examined the company’s business model, segments, financials and outlook. The company released its Post Hearing Information Pack (PHIP) on the 18th and this insight on focuses on new data points from the PHIP.

Blue Moon Group Holdings (BMG HK) , a leading consumer household care company in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange and plans to raise about US$1bn. The company offers a wide range of products under three segments fabric care, personal hygiene products and home care products and has been the first to launch several new products such as liquid detergent and liquid soap to the Chinese market and the first mover advantage has helped the company grow its revenues and market share.In our previous insight on the company’s IPO Blue Moon IPO: Product Innovation and Online Channels Are the Secrets to a Gentle Clean , we examined the company’s business model, segments, financials and outlook. The company released its Post Hearing Information Pack (PHIP) on the 18th and this insight on focuses on new data points from the PHIP.

JD Health International  / Equity Capital Markets

<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> , the largest online healthcare platform and retail pharmacy in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange.In our previous two insights on the JD Health, we examined the company’s business model, financials and also compared the company’s financials against its rivals Ping An Healthcare Technology and Alibaba Health Information Technology. Find below an extract from our previous insight on the company’s IPO:<div class="content-highlight">Having analysed the company’s business model and its financials, we remain positive on the company’s future growth prospects. The online retail pharmaceutical and healthcare market is undergoing structural changes in China where the market is increasingly shifting towards digitisation. 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 launched its telehealth platform in December 2017, and we expect the telehealth business to drive part of the company’s future growth as people have become increasingly reluctant to visit hospitals and out-patient clinics with the outburst of the pandemic.</div>JD Health released its post-hearing information pack (PHIP) on Sunday (15th November) and this insight focuses on the company’s new data points from the PHIP.

JD Health (JDH HK) , the largest online healthcare platform and retail pharmacy in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange.In our previous two insights on the JD Health, we examined the company’s business model, financials and also compared the company’s financials against its rivals Ping An Healthcare Technology and Alibaba Health Information Technology. Find below an extract from our previous insight on the company’s IPO:Having analysed the company’s business model and its financials, we remain positive on the company’s future growth prospects. The online retail pharmaceutical and healthcare market is undergoing structural changes in China where the market is increasingly shifting towards digitisation. 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 launched its telehealth platform in December 2017, and we expect the telehealth business to drive part of the company’s future growth as people have become increasingly reluctant to visit hospitals and out-patient clinics with the outburst of the pandemic.JD Health released its post-hearing information pack (PHIP) on Sunday (15th November) and this insight focuses on the company’s new data points from the PHIP.

JD Health IPO: PHIP Data Re-Affirms Our Positive View on the Company

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

This Insight discusses the assumptions required to justify JD Health's reportedly target valuation of US$20 billion. Our analysis indicates that the online pharmacy business could be worth US$10 billion assuming some degree of margin improvement. Further, the online healthcare services business will have to penetrate roughly 2% of healthcare services spending to justify the balance (US$10 billion) valuation, which we think is achievable.

This Insight discusses the assumptions required to justify JD Health's reportedly target valuation of US$20 billion. Our analysis indicates that the online pharmacy business could be worth US$10 billion assuming some degree of margin improvement. Further, the online healthcare services business will have to penetrate roughly 2% of healthcare services spending to justify the balance (US$10 billion) valuation, which we think is achievable.  

JD Health: Framing the Valuation Discussion

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.

<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.  <div class="content-highlight">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. </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

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.

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JD Health International (6618 HK)

China Healthcare Weekly (Nov. 20)

The article summarized the new healthcare policy released, major industry viewpoints, company news and capital market review in China healthcare...

Xinyao (Criss) Wang

Blue Moon IPO: Home Clean Home

Blue Moon, a leading consumer household care company in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange and plans to...

Shifara Samsudeen, ACMA, CGMA

JD Health IPO: PHIP Data Re-Affirms Our Positive View on the Company

JD Health released its post-hearing information pack (PHIP) on Sunday (15th November) and this insight focuses on the company’s new data points...

Shifara Samsudeen, ACMA, CGMA

JD Health: Framing the Valuation Discussion

This Insight discusses the assumptions required to justify JD Health's reportedly target valuation of US$20 billion with a buildup by each business...

Kemp Dolliver, CFA

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

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