Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, 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 Bottom-Up

<a href="https://www.smartkarma.com/entities/eisai-co-ltd" target="_blank" data-smartkarma-citation="entities:21001:1" rel="noopener">Eisai Co Ltd (4523 JP)</a>  is a global R&amp;D based pharmaceutical company who has positioned neurology and oncology as its therapeutic areas of focus. Since October 2017, Biogen and Eisai have collaborated on the development and commercialisation of Aducanumab (BIIB037), an investigational treatment for Alzheimer’s disease. The US FDA accepted the Biologics License Application (BLA) for Aducanumab for review in August 2020 and was granted priority review status.US FDA briefing documents (dated 04th November) states that the FDA staff have enough data to approve the treatment, which would become the first new Alzheimer’s therapy in nearly two decades. The briefing documents have been released ahead of a meeting of outside advisers who will issue a non-binding vote on whether to recommend Aducanumab’s approval. These experts are scheduled to meet on Friday, 06th November.Eisai’s shares have climbed 18% during Thursday’s trading following the release of the FDA briefing document. In this insight, we take a look at Aducanumab, the collaboration agreement between Eisai and Biogen, and the impact on the company’s fundamental and valuation if the drug is approved by the FDA.

Eisai Co Ltd (4523 JP)  is a global R&amp;D based pharmaceutical company who has positioned neurology and oncology as its therapeutic areas of focus. Since October 2017, Biogen and Eisai have collaborated on the development and commercialisation of Aducanumab (BIIB037), an investigational treatment for Alzheimer’s disease. The US FDA accepted the Biologics License Application (BLA) for Aducanumab for review in August 2020 and was granted priority review status.US FDA briefing documents (dated 04th November) states that the FDA staff have enough data to approve the treatment, which would become the first new Alzheimer’s therapy in nearly two decades. The briefing documents have been released ahead of a meeting of outside advisers who will issue a non-binding vote on whether to recommend Aducanumab’s approval. These experts are scheduled to meet on Friday, 06th November.Eisai’s shares have climbed 18% during Thursday’s trading following the release of the FDA briefing document. In this insight, we take a look at Aducanumab, the collaboration agreement between Eisai and Biogen, and the impact on the company’s fundamental and valuation if the drug is approved by the FDA.

Eisai: Shares Surge on Positive Review of Drug Candidate; Blockbuster Potential if Approved

Equity Capital Markets

JD Health International  / Equity Capital Markets

JD Health International, the largest online healthcare platform and retail pharmacy in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange and plans to raise around US$3bn through the IPO. In our previous insight on the company’s IPO, we examined the company’s business model, segments, financials and outlook. Refer the following extract from our previous insight:<div class="content-highlight">Having analysed the company’s business model and its financials, we remain positive on the company’s future growth prospects. The online retail pharmaceutical and healthcare market is undergoing structural changes in China where the market is increasingly shifting towards digitisation. The Covid-19 outbreak has further accelerated this transition towards online channels, and we believe the company’s business is sustainable beyond Covid-19. JD Health launched its telehealth platform in December 2017, and we expect the telehealth business to drive part of the company’s future growth as people have become increasingly reluctant to visit hospitals and out-patient clinics with the outburst of the pandemic.</div>In this insight, we would be comparing JD Health against its peers Alibaba Health Information Technology and Ping An Healthcare Technology.

JD Health International, the largest online healthcare platform and retail pharmacy in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange and plans to raise around US$3bn through the IPO. In our previous insight on the company’s IPO, we examined the company’s business model, segments, financials and outlook. Refer the following extract from our previous insight:Having analysed the company’s business model and its financials, we remain positive on the company’s future growth prospects. The online retail pharmaceutical and healthcare market is undergoing structural changes in China where the market is increasingly shifting towards digitisation. The Covid-19 outbreak has further accelerated this transition towards online channels, and we believe the company’s business is sustainable beyond Covid-19. JD Health launched its telehealth platform in December 2017, and we expect the telehealth business to drive part of the company’s future growth as people have become increasingly reluctant to visit hospitals and out-patient clinics with the outburst of the pandemic.In this insight, we would be comparing JD Health against its peers Alibaba Health Information Technology and Ping An Healthcare Technology.

JD Health Pre-IPO: Peer Comparison Reveals JD Health’s Financials Are Stronger than Competition

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

1. Industry viewpoints: 
<ul>
<li>The IVD industry in China is a great place to invest in terms of market size, industry prosperity and growth potential.</li>
<li>With the rapid aging of the population, there is an increasing need for high-quality medical and nursing care for the elderly.</li>
<li>With the gradual homogenization of China's biotechnology industry, how to seek differentiated development has become the key.</li>
</ul>
2. Company news:
News from CStone Pharmaceuticals, Reistone Biopharma, Sino Biopharm and Fosun Pharma on new licensing deals and progress on innovative drugs. 
3. Market review:
Last week, stock price for healthcare sector in A share rose 2.79%, while CSI 300 decreased 0.49% over the same period of time.   
4. Risk Disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk

1. Industry viewpoints: 

The IVD industry in China is a great place to invest in terms of market size, industry prosperity and growth potential.
With the rapid aging of the population, there is an increasing need for high-quality medical and nursing care for the elderly.
With the gradual homogenization of China's biotechnology industry, how to seek differentiated development has become the key.

2. Company news:
News from CStone Pharmaceuticals, Reistone Biopharma, Sino Biopharm and Fosun Pharma on new licensing deals and progress on innovative drugs. 
3. Market review:
Last week, stock price for healthcare sector in A share rose 2.79%, while CSI 300 decreased 0.49% over the same period of time.   
4. Risk Disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

JD Health, the online healthcare business of <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a>, has filed an Application Proof to list on the HKEX to raise up to a reported US$2 billion. The company is one of the leading players in this burgeoning market. This Insight will discuss the company's business and market opportunity; relationship with parent JD.com; competition; and valuation considerations. In addition, we include some questions that investors should ask management during (and after) the roadshow.  We will discuss valuation and our take on the offering in a future Insight.

JD Health, the online healthcare business of JD.com Inc (ADR) (JD US), has filed an Application Proof to list on the HKEX to raise up to a reported US$2 billion. The company is one of the leading players in this burgeoning market. This Insight will discuss the company's business and market opportunity; relationship with parent JD.com; competition; and valuation considerations. In addition, we include some questions that investors should ask management during (and after) the roadshow.  We will discuss valuation and our take on the offering in a future Insight.

GDS Holdings (ADR) / Equity Capital Markets

It was reported by several news media outlets over the past few weeks that the leading developer and operator of high-performance data centres in China, GDS Holdings is in the process of securing a secondary listing on the Hong Kong Stock Exchange.The demand for high-performance data centres in China and elsewhere has been growing substantially driven by big data, AI and other IoT initiatives. The Covid-19 outbreak has further accelerated this growth as more people opt to work from home coupled with an increase in online learning activities.While we remain positive about GDS’ top line growth and the demand for data centres, we have been unimpressed with the trend in the company’s margins. Both the GPM and OPM have not improved much over the past 4-5 quarters despite the company continuing to add new capacity.We conducted a quantamental study on the company’s margins to examine if it has more room for growth.

It was reported by several news media outlets over the past few weeks that the leading developer and operator of high-performance data centres in China, GDS Holdings is in the process of securing a secondary listing on the Hong Kong Stock Exchange.The demand for high-performance data centres in China and elsewhere has been growing substantially driven by big data, AI and other IoT initiatives. The Covid-19 outbreak has further accelerated this growth as more people opt to work from home coupled with an increase in online learning activities.While we remain positive about GDS’ top line growth and the demand for data centres, we have been unimpressed with the trend in the company’s margins. Both the GPM and OPM have not improved much over the past 4-5 quarters despite the company continuing to add new capacity.We conducted a quantamental study on the company’s margins to examine if it has more room for growth.

GDS Secondary: Quantamental Analysis Reveals Limited Room for Margin Expansion

China

JD Health International Inc. operates drug stores. The Company retails Chinese and Western medicines, nutrition products, health care products, and other products. JD Health International markets its products throughout China.

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JD Health International (6618 HK)

Eisai: Shares Surge on Positive Review of Drug Candidate; Blockbuster Potential if Approved

Biogen and Eisai have collaborated on the development and commercialisation of Aducanumab, an investigational treatment for Alzheimer’s disease....

Shifara Samsudeen, FCMA, CGMA

JD Health Pre-IPO: Peer Comparison Reveals JD Health’s Financials Are Stronger than Competition

This insight compares and contrasts the business models of JD Health vs its competitors Ping An Health and Ali Health. Our analysis reveals that JD...

Shifara Samsudeen, FCMA, CGMA

China Healthcare Weekly (Oct.30)

This article summarized major industry viewpoints, companies news and capital market review in healthcare industry in China during the week of Oct.30.

Xinyao (Criss) Wang

JD Health: Looking Beyond the Obvious

This Insight provides an in-depth view of JD Health in the context of a "penetration story" with a focus on the market opportunity to inform...

Kemp Dolliver, CFA

GDS Secondary: Quantamental Analysis Reveals Limited Room for Margin Expansion

In this insight we conduct a quantamental analysis on GDS' margins to examine if there is further potential for margins to improve.

Shifara Samsudeen, FCMA, CGMA

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