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 analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jan 28 based on HKEx daily reports.</li>
<li>In the past 7 days, the top 3 companies that repurchased the most shares from the market were 3Sbio Inc. (1530 HK), China Gas (384 HK), Hygeia Healthcare (6078 HK).</li>
<li>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Wuxi Biologics (2269 HK), 3Sbio (1530 HK).</li>
</ul>


We analyze statistics on top repurchases over one week, one month, one quarter and one year periods ended on Jan 28 based on HKEx daily reports.
In the past 7 days, the top 3 companies that repurchased the most shares from the market were 3Sbio Inc. (1530 HK), China Gas (384 HK), Hygeia Healthcare (6078 HK).
In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent (700 HK), Wuxi Biologics (2269 HK), 3Sbio (1530 HK).


Hong Kong Buybacks: 3SBio, China Gas, Hygeia

<p>In our weekly HK Connect Flow series, we aim to highlight key stocks and sectors which the mainland investors traded via the southbound Hong Kong Connect, as analyzed by our proprietary data engine.</p><p>Since the opening of Hong Kong Connect scheme in 2014, southbound Chinese money started to play an increasingly important role in the Hong Kong stock market. In 2020, Southbound trading accounted for 22% of the equity market ADT. </p><p>We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.</p><p>In this insight, we will highlight inflows into Tencent Holdings Limited (700 HK), Meituan (3690 HK), Cnooc Limited (883 HK), China Resources Power Holdings Company Limited (836 HK), Hygeia Healthcare Holdings Co., Limited (6078 HK).</p>

In our weekly HK Connect Flow series, we aim to highlight key stocks and sectors which the mainland investors traded via the southbound Hong Kong Connect, as analyzed by our proprietary data engine.Since the opening of Hong Kong Connect scheme in 2014, southbound Chinese money started to play an increasingly important role in the Hong Kong stock market. In 2020, Southbound trading accounted for 22% of the equity market ADT. We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight inflows into Tencent Holdings Limited (700 HK), Meituan (3690 HK), Cnooc Limited (883 HK), China Resources Power Holdings Company Limited (836 HK), Hygeia Healthcare Holdings Co., Limited (6078 HK).

Hong Kong Connect Flows: What Did Chinese Buy Before National Day

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<p>Recently, <a href="https://www.smartkarma.com/entities/hygeia-healthcare-group" target="_blank" data-smartkarma-citation="entities:28875:1" rel="noopener">Hygeia Healthcare Group (6078 HK)</a> released its 2021/1H financial report. The revenue increased by 47.4% to RMB931.7 million, and the net profit increased by 8,450.0% to RMB205.2 million. The non-IFRS adjusted net profit increased by 53.1% to RMB205.2 million. It can be seen that, as the number of patient visits and the average spending per outpatient and inpatient visit continued to increase, Hygeia maintained its strong growth momentum. This insight mainly analyzed the business, doctor resources and outlook of the Company.</p>

Recently, Hygeia Healthcare Group (6078 HK) released its 2021/1H financial report. The revenue increased by 47.4% to RMB931.7 million, and the net profit increased by 8,450.0% to RMB205.2 million. The non-IFRS adjusted net profit increased by 53.1% to RMB205.2 million. It can be seen that, as the number of patient visits and the average spending per outpatient and inpatient visit continued to increase, Hygeia maintained its strong growth momentum. This insight mainly analyzed the business, doctor resources and outlook of the Company.

Hygeia Healthcare (6078.HK) 2021H1 - Efficient Expansion and Management Support the Positive Outlook

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<p><a href="https://www.cmlviz.com/stocks/LDOC" target="_blank" rel="noopener">LinkDoc Technology</a> plans to offer 10.8 million ADS shares priced at between $17.50 And $19.50 per ADS. If the underwriters exercise their option, there will be 12.45 million shares of ADS. At the high end of the IPO price range, the company will raise $243 million, which is lower than the $500 million that was expected to be raised as mentioned in the media in the past several weeks. This is a reflection of the volatile Chinese IPO environment in 2021.</p><p><a href="https://www.cmlviz.com/stocks/LDOC/news/b/2021/07/01/linkdoc-technology-ltd-sees-u-s-ipo-of-10-8-mln-adss-expected-to-be-priced-between-17-50-and-19-50-per-ads---filing" target="_blank" rel="noopener">Alibaba Health</a>, Lake Bleu Prime Healthcare Master Fund, and UBS Asset Management have indicated to buy about $25 million each of ADS in this IPO at the IPO price. </p><div class="content-highlight">
<p>Our base case valuation of LinkDoc Technology suggests an implied market cap of $2.0 billion or $22.3 per share. At the mid point of the IPO price range ($18.5), our base case valuation suggests a 20% upside. Given the moderate upside, we have a Positive rating on this IPO.</p>
<p>Our base case valuation is based on 7.0x EV/S using our estimated sales of 1,827 million RMB. Our base case valuation multiple of 7.0x EV/S is based on a 20% discount to the comps' average EV/S multiple in 2022. We used a 20% discount to the comps' average valuation multiple mainly due to lower expected sales and lower operating margins for LinkDoc versus the comps.</p>
</div>

LinkDoc Technology plans to offer 10.8 million ADS shares priced at between $17.50 And $19.50 per ADS. If the underwriters exercise their option, there will be 12.45 million shares of ADS. At the high end of the IPO price range, the company will raise $243 million, which is lower than the $500 million that was expected to be raised as mentioned in the media in the past several weeks. This is a reflection of the volatile Chinese IPO environment in 2021.Alibaba Health, Lake Bleu Prime Healthcare Master Fund, and UBS Asset Management have indicated to buy about $25 million each of ADS in this IPO at the IPO price. 
Our base case valuation of LinkDoc Technology suggests an implied market cap of $2.0 billion or $22.3 per share. At the mid point of the IPO price range ($18.5), our base case valuation suggests a 20% upside. Given the moderate upside, we have a Positive rating on this IPO.
Our base case valuation is based on 7.0x EV/S using our estimated sales of 1,827 million RMB. Our base case valuation multiple of 7.0x EV/S is based on a 20% discount to the comps' average EV/S multiple in 2022. We used a 20% discount to the comps' average valuation multiple mainly due to lower expected sales and lower operating margins for LinkDoc versus the comps.


LinkDoc Technology IPO Valuation Analysis

APAC IPOs & Placements

Zhen Zhou, Toh

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.

<div>
<div><div><div class="content-highlight">
<h2>Error Corrigendum</h2>
<p><em>A previous version of this insight, titled "LinkDoc (零氪科技) IPO - Reasonably Priced for the Long Haul", contained serious error assuming a much smaller market cap based on the wrong number of outstanding shares/ADS for LinkDoc. It led us to believe that the IPO was priced cheaply.</em></p>
<p><em>In this note, it will be updated with the correct figures which will change our view from our previous note.</em></p>
<p><em>Our sincere apologies for the error. Do feel free to reach out to us for any clarifications.</em></p>
</div></div></div>
<p><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 looking to raise up to US$211m in its U.S. IPO.</p>
</div><div><p>LinkDoc is a data-driven and AI-enabled healthcare technology company. The company operates data-driven digital infrastructures to serve different stakeholders in the healthcare ecosystem. The company has a focus on oncology with its patient care centres providing oncology patients with continuous care.</p></div><div><p>In this note, we will look at deal dynamics, assumptions, and share our final thoughts on valuation.</p></div><div><p>We have previously covered the IPO in: </p></div><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/linkdoc-pre-ipo-intricately-embedded-in-the-oncology-industry" target="_blank" data-smartkarma-citation="insights:53324" rel="noopener">LinkDoc (零氪科技) Pre-IPO - Intricately Embedded in the Oncology Industry</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/linkdoc-pre-ipo-peer-comparison-a-niche-that-doesn-t-give-a-clear-advantage" target="_blank" data-smartkarma-citation="insights:53723" rel="noopener">LinkDoc (零氪科技) Pre-IPO - Peer Comparison - A Niche that Doesn’t Give a Clear Advantage</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/linkdoc-pre-ipo-thoughts-on-valuation" target="_blank" data-smartkarma-citation="insights:53787" rel="noopener">LinkDoc (零氪科技) Pre-IPO - Thoughts on Valuation</a> </li>
</ul></div>



Error Corrigendum
A previous version of this insight, titled "LinkDoc (零氪科技) IPO - Reasonably Priced for the Long Haul", contained serious error assuming a much smaller market cap based on the wrong number of outstanding shares/ADS for LinkDoc. It led us to believe that the IPO was priced cheaply.
In this note, it will be updated with the correct figures which will change our view from our previous note.
Our sincere apologies for the error. Do feel free to reach out to us for any clarifications.

LinkDoc (LDOC US) is looking to raise up to US$211m in its U.S. IPO.
LinkDoc is a data-driven and AI-enabled healthcare technology company. The company operates data-driven digital infrastructures to serve different stakeholders in the healthcare ecosystem. The company has a focus on oncology with its patient care centres providing oncology patients with continuous care.In this note, we will look at deal dynamics, assumptions, and share our final thoughts on valuation.We have previously covered the IPO in: 

LinkDoc (零氪科技) Pre-IPO - Intricately Embedded in the Oncology Industry 

LinkDoc (零氪科技) Pre-IPO - Peer Comparison - A Niche that Doesn’t Give a Clear Advantage 

LinkDoc (零氪科技) Pre-IPO - Thoughts on Valuation 


LinkDoc (零氪科技) IPO - Revised Thoughts on Valuation

China

Hygeia Healthcare is a prominent oncology healthcare group in China, dedicated to enhancing the accessibility and affordability of cancer treatment services. The company operates a network of oncology hospitals, providing comprehensive services from screening and diagnosis to various treatment modalities like chemotherapy, immunotherapy, and radiotherapy. It also offers radiotherapy consulting and equipment licensing. Hygeia Healthcare was founded in 2009 and is headquartered in Shanghai, China.

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Hygeia Healthcare (6078 HK)

Hong Kong Buybacks: 3SBio, China Gas, Hygeia

We highlight the top 3 companies that repurchased the most shares in HK last week were 3Sbio Inc. (1530 HK), China Gas (384 HK), Hygeia Healthcare...

Ke Yan, CFA, FRM

Hong Kong Connect Flows: What Did Chinese Buy Before National Day

We will highlight weekly Southbound Connect inflows into Tencent, Meituan, Cnooc, China Resources Power, Hygeia Healthcare.

Ke Yan, CFA, FRM