HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<p>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.</p>

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

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<p>We view the FY21 (Year end Mar) result of <a href="https://www.smartkarma.com/entities/china-dongxiang-group-co" target="_blank" data-smartkarma-citation="entities:1068:1" rel="noopener">China Dongxiang Group Co (3818 HK)</a> positively, despite a dividend payout ratio which is lower than expected. As we wrote in <a href="https://www.smartkarma.com/insights/china-dongxiang-3818-hk-what-can-we-expect-from-the-final-result" target="_blank" data-smartkarma-citation="insights:53174" rel="noopener">China Dongxiang (3818 HK): What Can We Expect from the Final Result?</a>, its sportswear business in China has recorded good turnaround, with gross profit soared 46.3% YoY and 27.9% HoH. Meanwhile, its investment business also registered an income of Rmb2.1bn for full-year, or Rmb759.7m for 2H21, up 88.7% YoY.</p><p>Going forward, we expect CNDX's strategy to bring about further improvement in its sportswear business in China. It has also disclosed more names of listed equity that it hold both directly and indirectly and they are all of good quality, in our view. The stock is trading on 47% discount to book value which made up of 14% of net cash, 73% of investment portfolio and 13% of other net assets. Frankly, we think such valuation is too depressed and believe there is more upside room even after a 52% rally in share price YTD.</p>

We view the FY21 (Year end Mar) result of China Dongxiang Group Co (3818 HK) positively, despite a dividend payout ratio which is lower than expected. As we wrote in China Dongxiang (3818 HK): What Can We Expect from the Final Result?, its sportswear business in China has recorded good turnaround, with gross profit soared 46.3% YoY and 27.9% HoH. Meanwhile, its investment business also registered an income of Rmb2.1bn for full-year, or Rmb759.7m for 2H21, up 88.7% YoY.Going forward, we expect CNDX's strategy to bring about further improvement in its sportswear business in China. It has also disclosed more names of listed equity that it hold both directly and indirectly and they are all of good quality, in our view. The stock is trading on 47% discount to book value which made up of 14% of net cash, 73% of investment portfolio and 13% of other net assets. Frankly, we think such valuation is too depressed and believe there is more upside room even after a 52% rally in share price YTD.

China Dongxiang (3818 HK): Lower-Than-Expected Dividends but Still A Marvelous FY21

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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.

Pharmaron Beijing   / Equity Capital Markets

<p>Joint Global coordinators aim to raise around US$125m via selling shares in Pharmaron in order to aid certain convertible bond investors to hedge their exposure.</p><p><span>Our previous coverage on Pharmaron</span></p><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/pharmaron-a-h-listing-a-leading-drug-discovery-company" target="_blank" rel="noopener">Pharmaron (康龙化成) A+H Listing: A Leading Drug Discovery Company</a></li>
<li><a href="https://www.smartkarma.com/insights/pharmaron-a-h-listing-3q2019-numbers-and-thoughts-on-valuation" target="_blank" rel="noopener">Pharmaron (康龙化成) A+H Listing: 3Q2019 Numbers and Thoughts on Valuation</a></li>
</ul></div><div>
<ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/pharmaron-a-h-decent-h-a-discount-and-cornerstone-line-up" target="_blank" rel="noopener">Pharmaron (康龙化成) A+H: Decent H/​A Discount and Cornerstone Line-Up</a></li>
<li><a href="https://www.smartkarma.com/insights/pharmaron-a-h-allocation-and-thoughts-on-trading" target="_blank" rel="noopener">Pharmaron (康龙化成) A+H: Allocation and Thoughts on Trading</a></li>
</ul>
<p>In this note, we will run the deal through our ECM framework and talk about the deal dynamics.</p>
</div>

Joint Global coordinators aim to raise around US$125m via selling shares in Pharmaron in order to aid certain convertible bond investors to hedge their exposure.Our previous coverage on Pharmaron
Pharmaron (康龙化成) A+H Listing: A Leading Drug Discovery Company
Pharmaron (康龙化成) A+H Listing: 3Q2019 Numbers and Thoughts on Valuation


Pharmaron (康龙化成) A+H: Decent H/​A Discount and Cornerstone Line-Up
Pharmaron (康龙化成) A+H: Allocation and Thoughts on Trading

In this note, we will run the deal through our ECM framework and talk about the deal dynamics.


Pharmaron Placement - Strong Track Record

<p><a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a> has released its financial reports in 2020 and 2021Q1. The revenue in 2020 was RMB16.5 billion, up 28.46% YoY, and net profit attributed to shareholders was RMB2.96 billion, up 59.6% YoY. In 2021Q1, the revenue was RMB4.95 billion, up 55.31% YoY, and net profit attributed to shareholders was RMB1.5 billion, up 394.92% YoY. The results beat market expectations. As the leading/benchmark company in China CRO/CDMO industry, WuXi AppTec has always been the focus of investors. This insight mainly analyzed the performance outlook in the future, including both the certainties and uncertainties. </p>

WuXi AppTec Co. Ltd. (2359 HK) has released its financial reports in 2020 and 2021Q1. The revenue in 2020 was RMB16.5 billion, up 28.46% YoY, and net profit attributed to shareholders was RMB2.96 billion, up 59.6% YoY. In 2021Q1, the revenue was RMB4.95 billion, up 55.31% YoY, and net profit attributed to shareholders was RMB1.5 billion, up 394.92% YoY. The results beat market expectations. As the leading/benchmark company in China CRO/CDMO industry, WuXi AppTec has always been the focus of investors. This insight mainly analyzed the performance outlook in the future, including both the certainties and uncertainties. 

WuXi AppTec (2359.HK) - The Certainties and the Uncertainties

Shanghai Haoyuan Chemexpress C / Equity Capital Markets

<p>Recently, small market capitalization and undervalued CRO companies are favored by the market. For example, the most eye-catching rebound came from the <a href="https://www.smartkarma.com/entities/viva-biotech-holdings" target="_blank" data-smartkarma-citation="entities:27850:1" rel="noopener">Viva Biotech Holdings (1873 HK)</a> (up over 60% in May) and <a href="https://www.smartkarma.com/entities/hitgen-inc" target="_blank" data-smartkarma-citation="entities:30371:1" rel="noopener">HitGen Inc (688222 CH)</a> (up over 27% in May). In fact, the investment logic in CRO industry can be divided into two aspects: One is to invest in the leading companies with higher certainty, such as <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a>, <a href="https://www.smartkarma.com/entities/hangzhou-tigermed-consulting-co-ltd-1008d609-73bd-4d76-8315-b29502a448ff" target="_blank" data-smartkarma-citation="entities:29212:1" rel="noopener">Hangzhou Tigermed Consulting (H) (3347 HK)</a>, <a href="https://www.smartkarma.com/entities/pharmaron-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:28428:1" rel="noopener">Pharmaron Beijing Co Ltd-H (3759 HK)</a> and so on; The other is to pursue flexibility and choose to invest some targets that have made certain achievements in subdivision fields, such as the <a href="https://www.smartkarma.com/entities/viva-biotech-holdings" target="_blank" data-smartkarma-citation="entities:27850:1" rel="noopener">Viva Biotech Holdings (1873 HK)</a> and <a href="https://www.smartkarma.com/entities/hitgen-inc" target="_blank" data-smartkarma-citation="entities:30371:1" rel="noopener">HitGen Inc (688222 CH)</a> mentioned above. Here comes a new CRO/CDMO company that worth the attention, <a href="https://www.smartkarma.com/entities/shanghai-haoyuan-chemexpress" target="_blank" data-smartkarma-citation="entities:33415:1" rel="noopener">Shanghai Haoyuan Chemexpress (688131 CH)</a>, which will list on the SSE STAR Market soon. The following insight mainly analyzes the industry characteristics, business, financial performance and potential risks of the Company.</p>

Recently, small market capitalization and undervalued CRO companies are favored by the market. For example, the most eye-catching rebound came from the Viva Biotech Holdings (1873 HK) (up over 60% in May) and HitGen Inc (688222 CH) (up over 27% in May). In fact, the investment logic in CRO industry can be divided into two aspects: One is to invest in the leading companies with higher certainty, such as WuXi AppTec Co. Ltd. (2359 HK), Hangzhou Tigermed Consulting (H) (3347 HK), Pharmaron Beijing Co Ltd-H (3759 HK) and so on; The other is to pursue flexibility and choose to invest some targets that have made certain achievements in subdivision fields, such as the Viva Biotech Holdings (1873 HK) and HitGen Inc (688222 CH) mentioned above. Here comes a new CRO/CDMO company that worth the attention, Shanghai Haoyuan Chemexpress (688131 CH), which will list on the SSE STAR Market soon. The following insight mainly analyzes the industry characteristics, business, financial performance and potential risks of the Company.

Pre-IPO Shanghai Haoyuan Chemexpress - A New CRO/CDMO with Continued High Growth Potential

China

WuXi AppTec Co., Ltd. manufactures medical products. The Company produces biological agents, antibodies, biological diagnostic reagents, and other products. WuXi AppTec also provides biological analysis, technical study, and other services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

WuXi AppTec (2359 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

China Dongxiang (3818 HK): Lower-Than-Expected Dividends but Still A Marvelous FY21

China Dongxiang has delivered impressive FY21 result with good recovery in sportswear and surge in investment income. At 47% discount to book...

Osbert Tang, CFA

Pharmaron Placement - Strong Track Record

Joint Global coordinators aim to raise around US$125m via selling shares in Pharmaron in order to aid certain convertible bond investors to hedge...

Sumeet Singh