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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yunkang-group" target="_blank" data-smartkarma-citation="entities:35631:1" rel="noopener">Yunkang Group (2325 HK)</a> is a medical operation service provider in China and offers a full suite of diagnostic testing services.</li>
<li>The company’s IPO application has been approved and plans to raise about US$139m. In this  insight, we have highlighted some of the key new data points from PHIP filing.</li>
<li>Revenue grew 8.8% YoY in 2021 excl. Cov-19 tests (vs 80.2% from Cov-19 tests) and we are yet to see major improvements excluding the positive impact on margins from COVID.</li>
</ul>



Yunkang Group (2325 HK) is a medical operation service provider in China and offers a full suite of diagnostic testing services.
The company’s IPO application has been approved and plans to raise about US$139m. In this  insight, we have highlighted some of the key new data points from PHIP filing.
Revenue grew 8.8% YoY in 2021 excl. Cov-19 tests (vs 80.2% from Cov-19 tests) and we are yet to see major improvements excluding the positive impact on margins from COVID.


Yunkang IPO (PHIP): Growth Still Largely Driven by COVID

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/yunkang-group" target="_blank" data-smartkarma-citation="entities:35631:1" rel="noopener">Yunkang Group (YK HK)</a> is looking to raise US$139m in its Hong Kong IPO.</li>
<li>Yunkang Group is a medical operation service provider in China and as per F&amp;S, had a market share of 3.7% in China’s medical operation service market as per 2020 revenue.</li>
<li>Yunkang saw its full-year FY21 performance pulled up in the later half of the year. Number of tests administered had also surged 3.45x YoY in FY21.</li>
</ul>



Yunkang Group (YK HK) is looking to raise US$139m in its Hong Kong IPO.
Yunkang Group is a medical operation service provider in China and as per F&amp;S, had a market share of 3.7% in China’s medical operation service market as per 2020 revenue.
Yunkang saw its full-year FY21 performance pulled up in the later half of the year. Number of tests administered had also surged 3.45x YoY in FY21.


Yunkang Group IPO - Has Improved Its Operating Metrics, but Still Reliant on COVID Boost

<ul>
<li>
<a href="https://www.smartkarma.com/entities/green-tea-group" target="_blank" data-smartkarma-citation="entities:34599:1" rel="noopener">Green Tea Group (GT HK)</a> is looking to raise about US$150m in its upcoming Hong Kong IPO. </li>
<li>Green Tea Group is a restaurant chain operator for fusion cuisine in China. </li>
<li>As of the latest practicable date (LPD), it had a restaurant network of 236 restaurants covering 18 provinces, four municipalities and three autonomous regions in the PRC.</li>
</ul>



Green Tea Group (GT HK) is looking to raise about US$150m in its upcoming Hong Kong IPO. 
Green Tea Group is a restaurant chain operator for fusion cuisine in China. 
As of the latest practicable date (LPD), it had a restaurant network of 236 restaurants covering 18 provinces, four municipalities and three autonomous regions in the PRC.


Green Tea Group Pre-IPO - Growing for the Sake of Growth

Jinmao Property Services / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jinmao-property-services" target="_blank" data-smartkarma-citation="entities:34170:1" rel="noopener">Jinmao Property Services (816 HK)</a> raised around US$105m in its Hong Kong IPO. </li>
<li>In our view, the firm doesn’t deserve to trade at a premium to peers given its weaker margins and slower growth in FY20. </li>
<li>In this note, we will look at the trading dynamics and current valuation.</li>
</ul>



Jinmao Property Services (816 HK) raised around US$105m in its Hong Kong IPO. 
In our view, the firm doesn’t deserve to trade at a premium to peers given its weaker margins and slower growth in FY20. 
In this note, we will look at the trading dynamics and current valuation.


Jinmao Property Services IPO Trading - Expect a Modest Debut with Low Liquidity

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>Benefiting from the opportunities brought to the healthcare industry by the COVID-19 pandemic in 2020, <a href="https://www.smartkarma.com/entities/yunkang-group" target="_blank" data-smartkarma-citation="entities:35631:1" rel="noopener">Yunkang Group (YK HK)</a> took a ride and ushered in a turning point in performance.</li>
<li>As the pandemic stabilizes and gets gradually under control, the revenue generated from COVID-19 tests may significantly decrease, which means Yunkang may return to net loss again in the future.</li>
<li>We currently haven’t seen any new growth point with high certainty. Therefore, we are conservative about Yunkang’s outlook.</li>
</ul>


Benefiting from the opportunities brought to the healthcare industry by the COVID-19 pandemic in 2020, Yunkang Group (YK HK) took a ride and ushered in a turning point in performance.
As the pandemic stabilizes and gets gradually under control, the revenue generated from COVID-19 tests may significantly decrease, which means Yunkang may return to net loss again in the future.
We currently haven’t seen any new growth point with high certainty. Therefore, we are conservative about Yunkang’s outlook.


Pre-IPO Yunkang Group - Lack of New Growth Point

China

Nanjing Pharmaceutical Co. Ltd. distributes a broad range of drugs. The Company also manufactures medicines,medical apparatus, chemical reagents, and glassware.

China Resources Medical Holdings Company Limited operates hospitals and clinics. The Company offers clinical treatment, healthcare management, public sanitary, and other medical health services. China Resources Medical Holdings also operates supply chain management, financing, real estate development, consumption, and other businesses.

Jinxin Fertility Group Limited provides assisted reproductive services. The Company offers vitro fertilization services, embryo transfer services, management services, and other services. Jinxin Fertility Group also provides ancillary medical services.

Cachet Pharmaceutical Co., Ltd manages pharmaceutical services, wholesale and retail businesses.  The Company also operates the logistics services related to pharmacy.

Shenzhen Neptunus Bioengineering Co., Ltd. develops, manufactures, and markets biochemical pharmaceuticals, biological products, traditional Chinese medicines, and healthcare products.  Through its subsidiaries, the Company also manufactures food.

Searainbow Holding Corp., produces chemical fibers and other textile products. The company, through its subsidiaries, also provides medical e-commerce and on-line games.

Guangxi Liuzhou Pharmaceutical Co. Ltd. manufactures pharmaceuticals. The Company researches, develops, produces, processes, and distributes capsules, granules, tablets, pills, plasters, and raw material medicines.

Zhejiang Zhenyuan Co., Ltd. wholesales and retails traditional Chinese medicines, Chinese medicine materials, chemical preparations, and healthcare products.  Through its subsidiaries, the Company also manufactures pharmaceuticals.

Shandong Realcan Pharmaceutical Company Limited is a pharmaceutical direct seller. The Company's main business is distributing drugs to high-end medical market, basic health care market and commercial distribution.

Shandong Realcan Pharmaceutical (002589 CH)

China Pioneer Pharma Holdings Ltd is a marketing, promotion and channel management service provider dedicated to imported pharmaceutical products and medical devices in China.

MEDNAX, Inc., through a subsidiary, provides physician management services to hospital-based neonatal, maternal-fetal, pediatric cardiology, and pediatric intensive care specialties. The Company also manages anesthesia practices.

Universal Vision Biotechnology Co., Ltd. provides laser vision correction equipment and technical services to eye clinics and medical centers.  The Company also provides consultation services, as well as sells eye drugs and glasses.

Chularat Hospital PCL owns medical centers and hospitals. The Company operates a variety of centers specializing in treatments such as hand surgery, open heart surgery, and strokes as well as providing emergency services and patient care. Chularat Hospital serves the medial industry throughout Thailand.

BML, INC. operates medical laboratories and develops software for clinical testing.  The Company conducts clinical testing in a variety of fields, including endocrine, blood and blood plasma, protein, biochemical, virus, immune systems, and bacteria.  BML conducts testing primarily  for hospitals and medical institutions.

Chabiotech Co Ltd produces optical modules and conducts biotechnological services. The Company's products in the optical division include lens modules for mobile phones and digital cameras, view finders, and other applications. Chabiotech also conducts cell therapy including cord blood, blood transfusion, tissue engineering and stem cell research.

Adaptive Biotechnologies Corporation provides life science equipment. The Company offers testing instruments for diagnose, treat, and monitor disease. Adaptive Biotechnologies serves customers in the United States.

Korian SA operates healthcare facilities, medical establishments.  The Company's facilities include retirement homes and rehabilitation centers. Korian is based in France.

Attendo AB provides publicly funded healthcare and social care services. The Company offers elderly care, as well as disabled, individual, and family care services. Attendo serves patients throughout Sweden, Norway, Denmark, and Finland.

Thonburi Healthcare Group Public Company Limited offers health care services. The Hospital provides medical treatment, diagnosis, and surgeries, as well as supply of medical equipment, residential care services, and development of software for hospital management. Thonburi Healthcare Group serves customers worldwide.

Sienna Senior Living Inc. provides long-term care services. The Company offers nursing homes, retirement homes, and independent living facilities. Sienna Senior Living serves senior citizens in the State of Ontario.

Yunkang Group Limited operates as a medical operation service provider. The Company provides diagnostic outsourcing services, diagnostic testing, and other services. Yunkang Group provides its services throughout China.

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Yunkang Group (2325 HK)

Yunkang IPO (PHIP): Growth Still Largely Driven by COVID

Yunkang’s revenue grew only 8.8% YoY in 2021 excl. Cov-19 related tests (vs 80.2% growth from Cov tests) and we are yet to see major improvements...

Shifara Samsudeen, ACMA, CGMA

Yunkang Group IPO - Has Improved Its Operating Metrics, but Still Reliant on COVID Boost

Yunkang Group (YK HK) is looking to raise US$139m in its Hong Kong IPO. Yunkang saw its full-year FY21 performance pulled up in the later half of...

Clarence Chu

Green Tea Group Pre-IPO - Growing for the Sake of Growth

Green Tea Group (GT HK) is looking to raise about US$150m in its upcoming Hong Kong IPO. Green Tea Group is a restaurant chain operator for fusion...

Clarence Chu

Jinmao Property Services IPO Trading - Expect a Modest Debut with Low Liquidity

Jinmao Property Services (816 HK) raised around US$105m in its Hong Kong IPO. In this note, we will look at the trading dynamics and current...

Clarence Chu

Pre-IPO Yunkang Group - Lack of New Growth Point

The COVID-19 business isn't enough to support Yunkang's future development. It also lacks new growth points. It is recommended to calculate its...

Xinyao (Criss) Wang

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