HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Ping An Healthcare and Technology / Equity Bottom-Up

Ping An Healthcare and Technology (1833 HK)

<ul>
<li>The “turning point” occurs as share price of innovative drug sector is pulling back. Many companies would see valuations halved - potentially more than once.The decline is far from over.</li>
<li>The current main goal of biotech is to turn losses into profits ASAP. If it fails to make a profit, it may not be recognized by the market.</li>
<li>Due to the concerns on <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Healthcare and Technology (1833 HK)'s </a>business model, peak revenue scale could be just RMB8 billion. In other words, Ping An Healthcare is overvalued.</li>
</ul>


The “turning point” occurs as share price of innovative drug sector is pulling back. Many companies would see valuations halved - potentially more than once.The decline is far from over.
The current main goal of biotech is to turn losses into profits ASAP. If it fails to make a profit, it may not be recognized by the market.
Due to the concerns on Ping An Healthcare and Technology (1833 HK)'s business model, peak revenue scale could be just RMB8 billion. In other words, Ping An Healthcare is overvalued.


China Healthcare Weekly (Oct.19)-Bubble of HK Biotech Is Bursting, Ping An Good Doctor Is Overvalued

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.

Equity Capital Markets

Sany Heavy Industry / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sany-heavy-industry-co-ltd" target="_blank" data-smartkarma-citation="entities:20183:1" rel="noopener">Sany Heavy Industry (600031 CH)</a>, aims to raise around US$1.5bn in its H-share listing.</li>
<li>Sany Heavy Industry was the world’s third largest and China’s largest construction machinery company in terms of construction machinery’s cumulative revenue from 2020 to 2024, according to Frost &amp; Sullivan.</li>
<li>We have looked at the company’s past performance in our earlier note. In this note, we talk about the updates and likely A/H premium.</li>
</ul>



Sany Heavy Industry (600031 CH), aims to raise around US$1.5bn in its H-share listing.
Sany Heavy Industry was the world’s third largest and China’s largest construction machinery company in terms of construction machinery’s cumulative revenue from 2020 to 2024, according to Frost &amp; Sullivan.
We have looked at the company’s past performance in our earlier note. In this note, we talk about the updates and likely A/H premium.


Sany Heavy Industries A/H Listing - PHIP Updates and Thoughts on A/H Premium

Shanghai MediTrust Health Technology Group / Equity Capital Markets

Shanghai MediTrust Health Technology Group (SMTHT HK)

Shanghai MediTrust Health Technology Group

<ul>
<li>The essence of MediTrust’s business model is building an ecosystem of "Internet/AI + drugs + medical services + insurance". The core competitiveness lies in the network effect of medical payments.</li>
<li>Smart Pharma Solution overly relies on pharmaceutical companies' promotion budgets and is susceptible to the impact of industry policies. Smart Insurance Solution is facing the industry dilemma of poor profitability.</li>
<li>Post-Money valuation after Series C+ financing is RMB11.68bn. Based on 2024 revenue of RMB2.035bn, P/S is 5.7x. We think valuation of MediTrust should be lower than <a href="https://www.smartkarma.com/entities/ping-an-healthcare-and-technology-company-limited" target="_blank" data-smartkarma-citation="entities:27008:1" rel="noopener">Ping An Good Doctor</a>
</li>
</ul>


The essence of MediTrust’s business model is building an ecosystem of "Internet/AI + drugs + medical services + insurance". The core competitiveness lies in the network effect of medical payments.
Smart Pharma Solution overly relies on pharmaceutical companies' promotion budgets and is susceptible to the impact of industry policies. Smart Insurance Solution is facing the industry dilemma of poor profitability.
Post-Money valuation after Series C+ financing is RMB11.68bn. Based on 2024 revenue of RMB2.035bn, P/S is 5.7x. We think valuation of MediTrust should be lower than Ping An Good Doctor



Pre-IPO Shanghai MediTrust Health Technology Group - The Business Model and the Concerns Behind

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Sep 26th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in CSPC Pharma, HSBC, Wuxi Apptec, China Mobile.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Sep 26th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in CSPC Pharma, HSBC, Wuxi Apptec, China Mobile.


HK Short Interest Weekly: CSPC Pharma, HSBC, Wuxi Apptec, China Mobile

<ul>
<li>We analyzed the latest HK SFC report for aggregate short position as of Sep 19th.</li>
<li>Top short increases and decreases were tabulated for one week and four week period.</li>
<li>We highlight short changes in Pop Mart Intl, CSPC Pharma, Hua Hong Semiconductor.</li>
</ul>


We analyzed the latest HK SFC report for aggregate short position as of Sep 19th.
Top short increases and decreases were tabulated for one week and four week period.
We highlight short changes in Pop Mart Intl, CSPC Pharma, Hua Hong Semiconductor.


HK Short Interest Weekly: Pop Mart Intl, CSPC Pharma, Hua Hong Semiconductor

Hong Kong

Alibaba Health is the flagship healthcare platform of Alibaba Group, providing digital health services and resources. It operates pharmaceutical direct sales, an e-commerce platform for medications and health products, and offers healthcare and digital services including telemedicine consultations. The company is headquartered in Beijing, China, and was founded in 1998.

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

Alibaba Health (241 HK)

China Healthcare Weekly (Oct.19)-Bubble of HK Biotech Is Bursting, Ping An Good Doctor Is Overvalued

Innovative drug sector facing share price decline, companies at risk of halved valuations multiple times.The main goal of biotech is to turn...

Xinyao (Criss) Wang

Sany Heavy Industries A/H Listing - PHIP Updates and Thoughts on A/H Premium

Sany Heavy Industry (600031 CH), aims to raise around US$1.5bn in its H-share listing. In this note, we talk about its recent updates and likely A...

Sumeet Singh

Pre-IPO Shanghai MediTrust Health Technology Group - The Business Model and the Concerns Behind

MediTrust's business model focuses on building an ecosystem with core competitiveness in the network effect of medical payments.But the business...

Xinyao (Criss) Wang

HK Short Interest Weekly: CSPC Pharma, HSBC, Wuxi Apptec, China Mobile

We analyzed the latest HK SFC report for aggregate short position as of Sep 26th and highlight short interest changes in CSPC Pharma, HSBC, Wuxi...

Ke Yan, CFA, FRM

HK Short Interest Weekly: Pop Mart Intl, CSPC Pharma, Hua Hong Semiconductor

We analyzed the latest HK SFC report for aggregate short position as of Sep 19th and highlight short interest changes in Pop Mart Intl, CSPC...

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China Healthcare Weekly (Oct.19)-Bubble of HK Biotech Is Bursting, Ping An Good Doctor Is Overvalued

​Innovative drug sector facing share price decline, companies at risk of halved valuations multiple times.The main goal of biotech is to turn...

Xinyao (Criss) Wang

Sany Heavy Industries A/H Listing - PHIP Updates and Thoughts on A/H Premium

Sany Heavy Industry (600031 CH), aims to raise around US$1.5bn in its H-share listing. In this note, we talk about its recent updates and likely A...

Sumeet Singh

Pre-IPO Shanghai MediTrust Health Technology Group - The Business Model and the Concerns Behind

​MediTrust's business model focuses on building an ecosystem with core competitiveness in the network effect of medical payments.But the business...

Xinyao (Criss) Wang

HK Short Interest Weekly: CSPC Pharma, HSBC, Wuxi Apptec, China Mobile

We analyzed the latest HK SFC report for aggregate short position as of Sep 26th and highlight short interest changes in CSPC Pharma, HSBC, Wuxi...

Ke Yan, CFA, FRM

HK Short Interest Weekly: Pop Mart Intl, CSPC Pharma, Hua Hong Semiconductor

We analyzed the latest HK SFC report for aggregate short position as of Sep 19th and highlight short interest changes in Pop Mart Intl, CSPC...

Ke Yan, CFA, FRM

Innovative drug sector facing share price decline, companies at risk of halved valuations multiple times.The main goal of biotech is to turn...

MediTrust's business model focuses on building an ecosystem with core competitiveness in the network effect of medical payments.But the business...