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

JD Health International  / Equity Capital Markets

JD Health International, 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 and plans to raise around US$3bn through the IPO. In our previous insight on the company’s IPO, we examined the company’s business model, segments, financials and outlook. Refer the following extract from our previous insight:<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>In this insight, we would be comparing JD Health against its peers Alibaba Health Information Technology and Ping An Healthcare Technology.

JD Health International, 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 and plans to raise around US$3bn through the IPO. In our previous insight on the company’s IPO, we examined the company’s business model, segments, financials and outlook. Refer the following extract from our previous insight: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.In this insight, we would be comparing JD Health against its peers Alibaba Health Information Technology and Ping An Healthcare Technology.

JD Health Pre-IPO: Peer Comparison Reveals JD Health’s Financials Are Stronger than Competition

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

1. Industry viewpoints: 
<ul>
<li>The IVD industry in China is a great place to invest in terms of market size, industry prosperity and growth potential.</li>
<li>With the rapid aging of the population, there is an increasing need for high-quality medical and nursing care for the elderly.</li>
<li>With the gradual homogenization of China's biotechnology industry, how to seek differentiated development has become the key.</li>
</ul>
2. Company news:
News from CStone Pharmaceuticals, Reistone Biopharma, Sino Biopharm and Fosun Pharma on new licensing deals and progress on innovative drugs. 
3. Market review:
Last week, stock price for healthcare sector in A share rose 2.79%, while CSI 300 decreased 0.49% over the same period of time.   
4. Risk Disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk

1. Industry viewpoints: 

The IVD industry in China is a great place to invest in terms of market size, industry prosperity and growth potential.
With the rapid aging of the population, there is an increasing need for high-quality medical and nursing care for the elderly.
With the gradual homogenization of China's biotechnology industry, how to seek differentiated development has become the key.

2. Company news:
News from CStone Pharmaceuticals, Reistone Biopharma, Sino Biopharm and Fosun Pharma on new licensing deals and progress on innovative drugs. 
3. Market review:
Last week, stock price for healthcare sector in A share rose 2.79%, while CSI 300 decreased 0.49% over the same period of time.   
4. Risk Disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

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.

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.

GDS Holdings (ADR) / Equity Capital Markets

It was reported by several news media outlets over the past few weeks that the leading developer and operator of high-performance data centres in China, GDS Holdings is in the process of securing a secondary listing on the Hong Kong Stock Exchange.The demand for high-performance data centres in China and elsewhere has been growing substantially driven by big data, AI and other IoT initiatives. The Covid-19 outbreak has further accelerated this growth as more people opt to work from home coupled with an increase in online learning activities.While we remain positive about GDS’ top line growth and the demand for data centres, we have been unimpressed with the trend in the company’s margins. Both the GPM and OPM have not improved much over the past 4-5 quarters despite the company continuing to add new capacity.We conducted a quantamental study on the company’s margins to examine if it has more room for growth.

It was reported by several news media outlets over the past few weeks that the leading developer and operator of high-performance data centres in China, GDS Holdings is in the process of securing a secondary listing on the Hong Kong Stock Exchange.The demand for high-performance data centres in China and elsewhere has been growing substantially driven by big data, AI and other IoT initiatives. The Covid-19 outbreak has further accelerated this growth as more people opt to work from home coupled with an increase in online learning activities.While we remain positive about GDS’ top line growth and the demand for data centres, we have been unimpressed with the trend in the company’s margins. Both the GPM and OPM have not improved much over the past 4-5 quarters despite the company continuing to add new capacity.We conducted a quantamental study on the company’s margins to examine if it has more room for growth.

GDS Secondary: Quantamental Analysis Reveals Limited Room for Margin Expansion

According to Analysys, the market size of China's online healthcare business was RMB133.7 billion in 2019, up 35.6% YoY. Due to the epidemic, the market size is expected to reach RMB200 billion in 2020, with a growth rate of 49.6%, which is the highest growth rate since 2015. With huge growth potential of the online healthcare business, <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> filed its IPO prospectus with the Hong Kong Stock Exchange on September 27. The Company is planning to raise at least $3 billion in the IPO.

According to Analysys, the market size of China's online healthcare business was RMB133.7 billion in 2019, up 35.6% YoY. Due to the epidemic, the market size is expected to reach RMB200 billion in 2020, with a growth rate of 49.6%, which is the highest growth rate since 2015. With huge growth potential of the online healthcare business, JD Health (JDH HK) filed its IPO prospectus with the Hong Kong Stock Exchange on September 27. The Company is planning to raise at least $3 billion in the IPO. 

Pre-IPO JD Health (JDH.HK) - A Better Candidate of Online Healthcare Business In China?

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)

JD Health Pre-IPO: Peer Comparison Reveals JD Health’s Financials Are Stronger than Competition

This insight compares and contrasts the business models of JD Health vs its competitors Ping An Health and Ali Health. Our analysis reveals that JD...

Shifara Samsudeen, ACMA, CGMA

China Healthcare Weekly (Oct.30)

This article summarized major industry viewpoints, companies news and capital market review in healthcare industry in China during the week of Oct.30.

Xinyao (Criss) Wang

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

GDS Secondary: Quantamental Analysis Reveals Limited Room for Margin Expansion

In this insight we conduct a quantamental analysis on GDS' margins to examine if there is further potential for margins to improve.

Shifara Samsudeen, ACMA, CGMA

Pre-IPO JD Health (JDH.HK) - A Better Candidate of Online Healthcare Business In China?

In this article, not only the business model of JD Health are analyzed, but also include the insightful industry data about China's pharmaceutical...

Xinyao (Criss) Wang

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