HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>When we discovered that JD Health's growth could face a downturn crisis, we hope to find a suitable substitute. ClouDr has such potential due to its good performance/reasonable business model.</li>
<li>The current anti-corruption campaign could bring new opportunities to ClouDr, who can rely on “hospital first” strategy to take the upper hand, but it should be based on some prerequisites.</li>
<li>ClouDr’s business is expected to keep strong growth momentum in 2023. The Company is expected to achieve breakeven in 2024. Investors could see good stock price performance at that time.</li>
</ul>


When we discovered that JD Health's growth could face a downturn crisis, we hope to find a suitable substitute. ClouDr has such potential due to its good performance/reasonable business model.
The current anti-corruption campaign could bring new opportunities to ClouDr, who can rely on “hospital first” strategy to take the upper hand, but it should be based on some prerequisites.
ClouDr’s business is expected to keep strong growth momentum in 2023. The Company is expected to achieve breakeven in 2024. Investors could see good stock price performance at that time.


ClouDr Group (9955.HK) 23H1 - Turning Losses into Profits Is Within Reach

Equity Capital Markets

<ul>
<li>HealthyWay cannot rely on drug/product sales to achieve rapid expansion of revenue scale because it hasn't huge user base accumulated on e-commerce platforms like Taobao/JD.com, leading to different business model.</li>
<li>Relying on Baidu's search engine to guide traffic could be worthless, because B-end users would not pay for the traffic that cannot provide added value.HealthyWay hasn't a strong cornerstone business. </li>
<li>HealthyWay’s valuation should be lower than that of ClouDr. Due to the lack of imagination space in business model, it would to some extent suppress the valuation growth of HealthyWay.</li>
</ul>


HealthyWay cannot rely on drug/product sales to achieve rapid expansion of revenue scale because it hasn't huge user base accumulated on e-commerce platforms like Taobao/JD.com, leading to different business model.
Relying on Baidu's search engine to guide traffic could be worthless, because B-end users would not pay for the traffic that cannot provide added value.HealthyWay hasn't a strong cornerstone business. 
HealthyWay’s valuation should be lower than that of ClouDr. Due to the lack of imagination space in business model, it would to some extent suppress the valuation growth of HealthyWay.


Pre-IPO HealthyWay - The Business Model Lacks Core Competitiveness

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>XPEV: Xpeng and Volkswagen cooperation updates, per the analyst call with IR team (/)</li>
<li>3690.HK: NDRC adds guidelines for restoring consumption of catering and tourism (+)</li>
<li>241HK/ 6618HK：Central Discipline Committee launched crackdown on healthcare corruption (-)</li>
</ul>


XPEV: Xpeng and Volkswagen cooperation updates, per the analyst call with IR team (/)
3690.HK: NDRC adds guidelines for restoring consumption of catering and tourism (+)
241HK/ 6618HK：Central Discipline Committee launched crackdown on healthcare corruption (-)


China TMT Update-XPEV/3690HK/241HK/6618HK-Volkswagen Cooperation;Crackdown on Healthcare Corruption

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/111-inc" target="_blank" data-smartkarma-citation="entities:27412:1" rel="noopener">111 Inc (YI US)</a>, China's largest virtual pharmacy network, <a href="https://app.quotemedia.com/data/downloadFiling?webmasterId=101533&amp;ref=317622517&amp;type=PDF&amp;symbol=YI&amp;cdn=576c7a62e80e529bffa675d5bed28708&amp;companyName=111+Inc.&amp;formType=SC+13D%2FA&amp;dateFiled=2023-07-17" target="_blank" rel="noopener">amended an SC 13D filing</a> on 13 July, which belatedly updated the consortium’s privatisation offer of US$3.66 per ADS. </li>
<li>The consortium has been revamped such that the lead investors (Dr Gang Yu, Dr Junling Liu and Shanghai Guosheng Capital Management) are joined with 13 additional investors.</li>
<li>The development facilitates the signing of a definite agreement. The consortium represents 95.27% of the voting power, which ensures a successful vote. At last close, the gross spread is 9.6%.</li>
</ul>



111 Inc (YI US), China's largest virtual pharmacy network, amended an SC 13D filing on 13 July, which belatedly updated the consortium’s privatisation offer of US$3.66 per ADS. 
The consortium has been revamped such that the lead investors (Dr Gang Yu, Dr Junling Liu and Shanghai Guosheng Capital Management) are joined with 13 additional investors.
The development facilitates the signing of a definite agreement. The consortium represents 95.27% of the voting power, which ensures a successful vote. At last close, the gross spread is 9.6%.


111 (YI US): The Privatisation Offer Gets a Reboot

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 30th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups. </li>
<li>We estimate that the outflows were USD 20 million and highlight flows for ICBC.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of June 30th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups. 
We estimate that the outflows were USD 20 million and highlight flows for ICBC.


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)

ClouDr Group (9955.HK) 23H1 - Turning Losses into Profits Is Within Reach

ClouDr has the potential to beat JD Health due to reasonable business model/logic. Unlike other companies, ClouDr could even benefit from...

Xinyao (Criss) Wang

Pre-IPO HealthyWay - The Business Model Lacks Core Competitiveness

HealthyWay's model is essentially an intermediary business.The seemingly abundant resources may not necessarily transform into substantial revenue...

Xinyao (Criss) Wang

China TMT Update-XPEV/3690HK/241HK/6618HK-Volkswagen Cooperation;Crackdown on Healthcare Corruption

XPEV: Xpeng and Volkswagen cooperation updates(/);3690.HK: NDRC adds guidelines for restoring consumption(+);241HK/6618HK：Central Discipline...

Blue Lotus Research Institute

111 (YI US): The Privatisation Offer Gets a Reboot

The revamped consortium facilitates the signing of a definite agreement. The consortium represents 95.27% of the voting power, which ensures a...

Arun George

Hong Kong Connect Flows (Jun 30th): ICBC

We analyzed southbound Hong Kong connect flows in the past week. We estimate the outflows to be USD 20 million and highlight flows for ICBC.

Ke Yan, CFA, FRM

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