HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

After <a href="https://www.smartkarma.com/entities/yidu-tech-inc" target="_blank" data-smartkarma-citation="entities:29245:1" rel="noopener">Yidu Tech Inc (2158 HK)</a>  was successfully listed on the HKEX in January this year, another healthcare big data company, <a href="https://www.smartkarma.com/entities/linkdoc-technology-limited" target="_blank" data-smartkarma-citation="entities:33499:1" rel="noopener">LinkDoc (LDOC US)</a>, has filed for an IPO in the U.S. recently. However, it should not be ignored that although the market size is growing, the China healthcare big data industry is still in its early days. Meanwhile, it is worth mentioning that the market value of Yidu Tech has dropped from over HK$60 billion at the time of listing to about HK$40 billion by the end of June 23, 2021. So, how is the prospects of LinkDoc’s IPO? This article mainly analyzed the concerns that worth the attention of investors.

After Yidu Tech Inc (2158 HK)  was successfully listed on the HKEX in January this year, another healthcare big data company, LinkDoc (LDOC US), has filed for an IPO in the U.S. recently. However, it should not be ignored that although the market size is growing, the China healthcare big data industry is still in its early days. Meanwhile, it is worth mentioning that the market value of Yidu Tech has dropped from over HK$60 billion at the time of listing to about HK$40 billion by the end of June 23, 2021. So, how is the prospects of LinkDoc’s IPO? This article mainly analyzed the concerns that worth the attention of investors.

LinkDoc Technology (LDOC.US) - Here Are the Concerns

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.

<a href="https://www.smartkarma.com/entities/linkdoc-technology-limited" target="_blank" data-smartkarma-citation="entities:33499:1" rel="noopener">LinkDoc (LDOC US)</a>  offers a data-driven and AI-enabled healthcare technology platform that offers high-quality continuous care services to patients with critical diseases and data-driven precision life sciences solutions.According to Frost &amp; Sullivan, the company has successfully built China’s first and the largest data-driven digital infrastructure for precision medicine which consists of three subsystems, LinkCare, LinkData and LinkSolutions, where these three systems interact with one another to form an innovative data-driven digital infrastructure for personalised care and precision medicine.LinkDoc is backed by <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 the company has filed for an IPO to list its shares in the US and could raise as much as US$500m through the IPO.

LinkDoc (LDOC US)  offers a data-driven and AI-enabled healthcare technology platform that offers high-quality continuous care services to patients with critical diseases and data-driven precision life sciences solutions.According to Frost &amp; Sullivan, the company has successfully built China’s first and the largest data-driven digital infrastructure for precision medicine which consists of three subsystems, LinkCare, LinkData and LinkSolutions, where these three systems interact with one another to form an innovative data-driven digital infrastructure for personalised care and precision medicine.LinkDoc is backed by Alibaba Health Information Technology (241 HK) and the company has filed for an IPO to list its shares in the US and could raise as much as US$500m through the IPO.

LinkDoc Technology IPO: Big Data for Cancer Care

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<div class="content-highlight">
Founded in 2014, <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 getting ready for an IPO in the United States in the coming days. <a href="https://www.reuters.com/technology/alibaba-health-backed-linkdoc-files-us-ipo-2021-06-14/" target="_blank" rel="noopener">LinkDoc Technology</a> is a medical data company in China backed by Alibaba Health Information Tech's subsidiary. Other major investors include Ally Bridge Group and CBC Capital.
LinkDoc provides oncology (cancer-focused) healthcare services. The company plans to use the IPO proceeds to strengthen R&amp;D, M&amp;As, and working capital. Morgan Stanley, BofA Securities and CICC are the main underwriters for the IPO.
LinkDoc is planning to raise about $500 million in this IPO. LinkDoc provides big data and AI driven healthcare services with focus on cancer-related cares. One of the company's leading competitor is <a href="https://www.smartkarma.com/entities/yidu-tech-inc" target="_blank" data-smartkarma-citation="entities:29245:1" rel="noopener">Yidu Tech Inc (2158 HK)</a> which raised $610 million in a Hong Kong IPO listing in January 2021.
</div>


Founded in 2014, LinkDoc (LDOC US) is getting ready for an IPO in the United States in the coming days. LinkDoc Technology is a medical data company in China backed by Alibaba Health Information Tech's subsidiary. Other major investors include Ally Bridge Group and CBC Capital.
LinkDoc provides oncology (cancer-focused) healthcare services. The company plans to use the IPO proceeds to strengthen R&amp;D, M&amp;As, and working capital. Morgan Stanley, BofA Securities and CICC are the main underwriters for the IPO.
LinkDoc is planning to raise about $500 million in this IPO. LinkDoc provides big data and AI driven healthcare services with focus on cancer-related cares. One of the company's leading competitor is Yidu Tech Inc (2158 HK) which raised $610 million in a Hong Kong IPO listing in January 2021.


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/linkdoc-technology-limited" target="_blank" data-smartkarma-citation="entities:33499:1" rel="noopener">LinkDoc (LDOC US)</a> is a Chinese healthtech company. LinkDoc consists of LinkCare, a digital care platform for patients with critical diseases, LinkData, an AI-enabled curation system for longitudinal medical data, and LinkSolutions, a data-driven precision life sciences solution platform that helps life sciences companies accelerate clinical research and real-world adoptionLinkDoc is backed by Temasek (11.7% of outstanding shares), NEA Partners (10.2%), China Broadband Capital (9.2%), <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> (8.4%) and MBK Partners (6.3%). LinkDoc is pre-marketing a Nasdaq IPO to raise as much as $500 million, according to press reports.LinkDoc is a play on China’s healthcare industry rising spend on IT and data services. In China, oncology has the highest growth in healthcare spend among all therapeutic areas as China has the world’s largest oncology patient pool. Big data solutions adoption has been one of the key trends of realising value from large data troves and oncology has been a major part of the healthcare big data market.<div class="content-highlight">LinkDoc focuses on oncology and has established the largest online oncology physician and patient engagement community in China. LinkDoc is benefiting from these trends by delivering solid growth and steadily reducing loss margins. Overall, we believe that LinkDoc is an attractive play on these market dynamics.</div>

LinkDoc (LDOC US) is a Chinese healthtech company. LinkDoc consists of LinkCare, a digital care platform for patients with critical diseases, LinkData, an AI-enabled curation system for longitudinal medical data, and LinkSolutions, a data-driven precision life sciences solution platform that helps life sciences companies accelerate clinical research and real-world adoptionLinkDoc is backed by Temasek (11.7% of outstanding shares), NEA Partners (10.2%), China Broadband Capital (9.2%), Alibaba Health Information Technology (241 HK) (8.4%) and MBK Partners (6.3%). LinkDoc is pre-marketing a Nasdaq IPO to raise as much as $500 million, according to press reports.LinkDoc is a play on China’s healthcare industry rising spend on IT and data services. In China, oncology has the highest growth in healthcare spend among all therapeutic areas as China has the world’s largest oncology patient pool. Big data solutions adoption has been one of the key trends of realising value from large data troves and oncology has been a major part of the healthcare big data market.LinkDoc focuses on oncology and has established the largest online oncology physician and patient engagement community in China. LinkDoc is benefiting from these trends by delivering solid growth and steadily reducing loss margins. Overall, we believe that LinkDoc is an attractive play on these market dynamics.

LinkDoc Technology IPO Initiation: Building with Big Data

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

Smoore International Holdings / Event-Driven

Hang Seng Indexes should announce the results of the September 2021 review of the Hang Seng Family of Indexes on 13 August. The constituent changes will be effective after the close of trading on 3 September.The review period for the September rebalance ends on 30 June and stocks that have at least 3 month of trading history by the review meeting date are eligible for inclusion in the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a>.With the major capping changes scheduled to be completed at the June rebalance tomorrow, there could be up to 8 inclusions at the September review while still keeping the one-way index turnover lower than 5%. The actual number of inclusions could be lower to spread the turnover over the next few reviews.We see <a href="https://www.smartkarma.com/entities/jd-health-international-inc" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a>, <a href="https://www.smartkarma.com/entities/hansoh-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:23675:1" rel="noopener">Hansoh Pharmaceutical (3692 HK)</a>, <a href="https://www.smartkarma.com/entities/smoore-international" target="_blank" data-smartkarma-citation="entities:28241:1" rel="noopener">Smoore International (6969 HK)</a>, <a href="https://www.smartkarma.com/entities/fosun-international-ltd" target="_blank" data-smartkarma-citation="entities:433:1" rel="noopener">Fosun International (656 HK)</a> and <a href="https://www.smartkarma.com/entities/evergrande-property-services" target="_blank" data-smartkarma-citation="entities:30921:1" rel="noopener">Evergrande Property Services (6666 HK)</a> as higher probability inclusions in the index, while there is a lower probability of <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a>, <a href="https://www.smartkarma.com/entities/nongfu-spring" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring (9633 HK)</a> and <a href="https://www.smartkarma.com/entities/xinyi-glass-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11940:1" rel="noopener">Xinyi Glass Holdings (868 HK)</a> being included in the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a>.<a href="https://www.smartkarma.com/entities/china-gas-holdings-ltd" target="_blank" data-smartkarma-citation="entities:14315:1" rel="noopener">China Gas Holdings (384 HK)</a> could be added to increase the coverage of Group 5 where Utilities are a part. This is less of a priority though with the market cap coverage of the group in excess of 60% as compared to the other groups that are much lower.There may not be any deletions at the current time. If the Index Committee decides to delete stocks, the two names most at risk are <a href="https://www.smartkarma.com/entities/china-life-insurance-co-ltd-9f877d22-7cf7-4b00-b525-cec71139f369" target="_blank" data-smartkarma-citation="entities:5794:1" rel="noopener">China Life Insurance Co H (2628 HK)</a> and <a href="https://www.smartkarma.com/entities/hengan-intl-group-co-ltd" target="_blank" data-smartkarma-citation="entities:29:1" rel="noopener">Hengan Intl Group (1044 HK)</a>.These changes will increase the market cap coverage of the index from 60.1% to 64.3% and the turnover coverage from 53.75% to 57.75%. One-way index turnover is estimated at 4.79% and would result in a one-way trade of HK$9.2bn.

Hang Seng Indexes should announce the results of the September 2021 review of the Hang Seng Family of Indexes on 13 August. The constituent changes will be effective after the close of trading on 3 September.The review period for the September rebalance ends on 30 June and stocks that have at least 3 month of trading history by the review meeting date are eligible for inclusion in the Hong Kong Hang Seng Index (HSI INDEX).With the major capping changes scheduled to be completed at the June rebalance tomorrow, there could be up to 8 inclusions at the September review while still keeping the one-way index turnover lower than 5%. The actual number of inclusions could be lower to spread the turnover over the next few reviews.We see JD Health (6618 HK), Hansoh Pharmaceutical (3692 HK), Smoore International (6969 HK), Fosun International (656 HK) and Evergrande Property Services (6666 HK) as higher probability inclusions in the index, while there is a lower probability of JD.com Inc. (9618 HK), Nongfu Spring (9633 HK) and Xinyi Glass Holdings (868 HK) being included in the Hong Kong Hang Seng Index (HSI INDEX).China Gas Holdings (384 HK) could be added to increase the coverage of Group 5 where Utilities are a part. This is less of a priority though with the market cap coverage of the group in excess of 60% as compared to the other groups that are much lower.There may not be any deletions at the current time. If the Index Committee decides to delete stocks, the two names most at risk are China Life Insurance Co H (2628 HK) and Hengan Intl Group (1044 HK).These changes will increase the market cap coverage of the index from 60.1% to 64.3% and the turnover coverage from 53.75% to 57.75%. One-way index turnover is estimated at 4.79% and would result in a one-way trade of HK$9.2bn.

HSI Index Rebalance Preview: Potential Inclusions in September

China

Shanghai Hi-tech Control System Co. Ltd. designs, manufactures, distributes, and provides industrial automation, electric systems, electronic and IT system integration products and services.

Daheng New Epoch Technology Inc. produces network storage products, designs virtual reality software, and provides system integration services.  The Company also designs, develops, and manufactures fine films used in the fiber-optics application, laser processed false proof packaging materials, radiotherapy equipment, and television digital network editing and broadcast system.

Daheng New Epoch Technology, Inc (600288 CH)

United Electronics Company Limited provides data centers of large and medium enterprises with system integration and related technical services. The Company's main products include system integration and technical services.

Wiscom System Co., Ltd. provides software technology, design and consulting services to power-generating enterprises. The company also researches, develops and markets information technology products for colleges and universities.

Guangdong Eastone Century Technology Company Limited provides communication network technology services and system solutions. The Company's main services include technical services such as communication network construction, maintenance and optimization, business support and IT applications related system solutions.

Beijing Trust & Far Technology Company Limited provides IT operational and maintenance services.  The Company's main products include IT infrastructure services, development and sales of IT infrastructure management software, and integration systems and services.

Beijing Transtrue Technology Inc. provides integrated multimedia video solutions. The Company offers a range of services, including consulting design, development, integration and services.

Vixtel Technologies Holdings Limited is an holding company. The Company, through its subsidiaries, are principally engaged in providing application and network performance management and monitoring solutions. Vixtel Technologies Holdings serves customers in the People's Republic of China.

Beijing Teamsun Technology Co., Ltd. develops system integration service for the telecommunication and finance industry. The Company also provides consulting services and markets its product under brand name Teamsun.

Beijing Teamsun Technology Co, Ltd. (600410 CH)

Anhui Wantong Technology Co Ltd. develops information technology software and integration system for highways and provides maintenance services.  The Company also designs, installs and repairs video monitoring network, communication system, and control system.

Comture Corp offers groupware solution and web solution which provides information sharing environments. The Company offers ERP solution services as well as provides network management services.

TDC SOFTWARE ENGINEERING Inc. provides system development services including consultation, installation, operation, and maintenance of the system.  The Company develops network software, and also business management software for such industries as manufacturing, distribution, finance, and retail.  TDC also sells packaged software and hardware products.

Hinduja Global Solutions Ltd. offers business process outsourcing and contact center services.

Cigniti Technologies Ltd. offers information technology services. The Company offers software product testing; performance testing; test automation; mobile testing; test, management and network consulting; and software for organization information, technical  evaluations, and employee management applications.

CMC Corporation manufactures computers.  The Company produces desktop and laptop computers and servers.  CMC also offers systems integration services.

SNP Schneider-Neureither & Partner AG provides software and software related services for the business landscape transformation. The Company's software is used by businesses to implement changes to their IT landscape, business processes and structures. SNP also offer consulting services.

Snp Schneider-Neureither & Partner Ag (SHF GY)

Cafe24 Corp. provides electronic commerce services. The Company offers web hosting, server hosting, e-commerce hosting, e-commerce marketing consulting, and other web services. Cafe24 provides services worldwide.

JBCC Holdings Inc. is a domestic distributor of IBM Japan's hardware and software.  The Company designs, constructs, introduces, operates, and maintains information systems for its customers.  JBCC also provides system solutions.

ZUKEN INC. plans, develops, and sells computer-aided design (CAD), computeraided manufacturing (CAM), and computer-aided engineering (CAE) system services. The Company operates an overseas production subsidiary in England and sales subsidiaries in the US, England, the Netherlands, Germany, Austria, Switzerland, France, Italy, Korea, and Singapore.

Cass Information Systems, Inc. provides freight and utility invoice payment services to Fortune 500 and major logistics companies across North America.  The Company also provides specialized banking services to privately held companies in St. Louis, Missouri, and to churches throughout the United States.

Chinese big data and AI-powered healthcare solutions provider.

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Yidu Tech Inc (2158 HK)

LinkDoc Technology (LDOC.US) - Here Are the Concerns

This article mainly analyzed concerns on LinkDoc in terms of main revenue source, profitability compared with peers, investment in R&D, barriers on...

Xinyao (Criss) Wang

LinkDoc Technology IPO: Big Data for Cancer Care

LinkDoc’s exposure into oncology market places the company at a distinctive advantage as oncology is one of the fastest growing segments of the...

Shifara Samsudeen, ACMA, CGMA

LinkDoc Technology IPO Preview

In this insight, we provide a preview of LinkDoc IPO, which provides big data and AI driven healthcare services with focus on cancer-related cares.

Douglas Kim

LinkDoc Technology IPO Initiation: Building with Big Data

LinkDoc is pre-marketing a Nasdaq IPO to raise as much as $500 million, according to press reports. Overall, we believe that LinkDoc’s fundamentals...

Arun George

HSI Index Rebalance Preview: Potential Inclusions in September

There could be 8 additions to the HSI at the September review to take the index members up to 66. Turnover will be less than 5% and there are a lot...

Brian Freitas

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