IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Medlive Technology / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/medlive-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:32985:1" rel="noopener">Medlive Technology (2192 HK)</a> is the largest online professional physician platform in China as measured by the number of registered physician users as of 31 December 2020, according to Frost &amp; Sullivan. Medlive derives most of its revenue from providing solutions that facilitate healthcare marketing to physicians. Medlive ranked first among physician platform-based digital healthcare marketing service providers in China as measured by revenue in 2020, with a 21.4% market share, according to Frost &amp; Sullivan. Medlive is a JV between <a href="https://www.smartkarma.com/entities/m3-inc" target="_blank" data-smartkarma-citation="entities:13316:1" rel="noopener">M3 Inc (2413 JP)</a> and Tiantian, each with 50% stakes.</p></div><div><p>At the proposed IPO price range of HK$24.10-27.20 per share, Medlive will have a market cap of HK$16,633.2-18,772.8 ($2.1-2.4 billion). At the mid-point of the IPO price range, the total net proceeds are HK$3,770.8 million ($486 million). </p></div><div><p>Seven cornerstone investors will subscribe for $220 million of the offer shares (42.93% of the offer shares at the mid-point of the IPO price). The cornerstone investors include Fidelity Management &amp; Research, FIL Investment Management, <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, GIC, Matthews Funds, Qiming Venture Partners and OrbiMed Funds.</p></div><div><div>
<p>In <a href="https://www.smartkarma.com/insights/medlive-technology-ipo-initiation-what-s-up-doc" target="_blank" data-smartkarma-citation="insights:53683" rel="noopener">Medlive Technology IPO Initiation: What's Up, Doc?</a>, we stated that Medlive believes that it can compete with several players for a slice of healthcare companies’ marketing budgets due to its large and engaged physician user base, which enables it to reach a wider group of physicians more efficiently and achieve a better return on marketing spending. Medlive has strong fundamentals due to fast-paced revenue growth, rising margin and strong cash generation. We concluded that the Medlive IPO is worth a look. </p>
<div class="content-highlight">
<p>Arguably, the closest peer is Doximity (DOCS US), which listed on 24 June 2021. Doximity had a stonking debut with its shares trading currently 1.2x its IPO price, suggesting strong investor sentiment on the niche physician "social-networking" market monetised primarily through advertising.</p>
<p>Our base-case DCF valuation is HK$31.80 per share, which is 17% above the high-point of the IPO price range. Overall, we would participate in the IPO due to an attractive IPO price range and strong blue-chip cornerstone support.</p>
</div>
</div></div>

Medlive Technology (2192 HK) is the largest online professional physician platform in China as measured by the number of registered physician users as of 31 December 2020, according to Frost &amp; Sullivan. Medlive derives most of its revenue from providing solutions that facilitate healthcare marketing to physicians. Medlive ranked first among physician platform-based digital healthcare marketing service providers in China as measured by revenue in 2020, with a 21.4% market share, according to Frost &amp; Sullivan. Medlive is a JV between M3 Inc (2413 JP) and Tiantian, each with 50% stakes.At the proposed IPO price range of HK$24.10-27.20 per share, Medlive will have a market cap of HK$16,633.2-18,772.8 ($2.1-2.4 billion). At the mid-point of the IPO price range, the total net proceeds are HK$3,770.8 million ($486 million). Seven cornerstone investors will subscribe for $220 million of the offer shares (42.93% of the offer shares at the mid-point of the IPO price). The cornerstone investors include Fidelity Management &amp; Research, FIL Investment Management, Tencent (700 HK), GIC, Matthews Funds, Qiming Venture Partners and OrbiMed Funds.
In Medlive Technology IPO Initiation: What's Up, Doc?, we stated that Medlive believes that it can compete with several players for a slice of healthcare companies’ marketing budgets due to its large and engaged physician user base, which enables it to reach a wider group of physicians more efficiently and achieve a better return on marketing spending. Medlive has strong fundamentals due to fast-paced revenue growth, rising margin and strong cash generation. We concluded that the Medlive IPO is worth a look. 

Arguably, the closest peer is Doximity (DOCS US), which listed on 24 June 2021. Doximity had a stonking debut with its shares trading currently 1.2x its IPO price, suggesting strong investor sentiment on the niche physician "social-networking" market monetised primarily through advertising.
Our base-case DCF valuation is HK$31.80 per share, which is 17% above the high-point of the IPO price range. Overall, we would participate in the IPO due to an attractive IPO price range and strong blue-chip cornerstone support.



Medlive Technology IPO: Valuation Insights

<p><a href="https://www.smartkarma.com/entities/medlive-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:32985:1" rel="noopener">Medlive Technology (MLT HK)</a> is the largest online professional physician platform in China as measured by the number of registered physician users as of 31 December 2020, according to Frost &amp; Sullivan. Medlive derives most of its revenue from providing solutions that facilitate healthcare marketing to physicians. Medlive ranked first among physician platform-based digital healthcare marketing service providers in China as measured by revenue in 2020, with a 21.4% market share, according to Frost &amp; Sullivan. Medlive is pre-marketing an HKEx IPO to raise around $500 million, according to press reports.</p><p>Medlive is a JV between <a href="https://www.smartkarma.com/entities/m3-inc" target="_blank" data-smartkarma-citation="entities:13316:1" rel="noopener">M3 Inc (2413 JP)</a> and Tiantian, each with 50% stakes. Medlive has been a consolidated subsidiary of M3, with M3 holding the right to nominate the majority of Medlive directors, but M3 will forego this right upon Medlive's listing. Also, upon listing, M3 will be deconsolidated (equity-method affiliate) from M3 financials. </p><p>Digital healthcare marketing service providers focus on various aspects of the digital healthcare marketing market and have competitive advantages in different areas. For example, internet hospitals and pharmaceutical e-commerce platforms, such as <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 Company Limited (1833 HK)</a> and <a href="https://www.smartkarma.com/entities/jd-health-international-inc" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a>, have large consumer user bases for advertising and selling non-prescription drugs. Medlive believes that it can compete with these players for a slice of healthcare companies’ marketing budgets due to its large and engaged physician user base, which enables it to reach a wider group of physicians more efficiently and achieve a better return on marketing spending. </p><div class="content-highlight"><p>Medlive has strong fundamentals due to fast-paced revenue growth, rising margin and strong cash generation. Overall, we believe that the Medlive IPO is worth a look. </p></div><p><strong><em>For readers interested in IPOs of upcoming healthtech companies, we highlight:</em></strong> </p><p><a href="https://www.smartkarma.com/insights/linkdoc-technology-ipo-initiation-building-with-big-data" target="_blank" data-smartkarma-citation="insights:53384" rel="noopener">LinkDoc Technology IPO Initiation: Building with Big Data</a> </p><p><a href="https://www.smartkarma.com/insights/we-doctor-ipo-initiation-patient-revolution" target="_blank" data-smartkarma-citation="insights:50009" rel="noopener">We Doctor IPO Initiation: Patient Revolution</a> </p>

Medlive Technology (MLT HK) is the largest online professional physician platform in China as measured by the number of registered physician users as of 31 December 2020, according to Frost &amp; Sullivan. Medlive derives most of its revenue from providing solutions that facilitate healthcare marketing to physicians. Medlive ranked first among physician platform-based digital healthcare marketing service providers in China as measured by revenue in 2020, with a 21.4% market share, according to Frost &amp; Sullivan. Medlive is pre-marketing an HKEx IPO to raise around $500 million, according to press reports.Medlive is a JV between M3 Inc (2413 JP) and Tiantian, each with 50% stakes. Medlive has been a consolidated subsidiary of M3, with M3 holding the right to nominate the majority of Medlive directors, but M3 will forego this right upon Medlive's listing. Also, upon listing, M3 will be deconsolidated (equity-method affiliate) from M3 financials. Digital healthcare marketing service providers focus on various aspects of the digital healthcare marketing market and have competitive advantages in different areas. For example, internet hospitals and pharmaceutical e-commerce platforms, such as Ping An Healthcare and Technology Company Limited (1833 HK) and JD Health (6618 HK), have large consumer user bases for advertising and selling non-prescription drugs. Medlive believes that it can compete with these players for a slice of healthcare companies’ marketing budgets due to its large and engaged physician user base, which enables it to reach a wider group of physicians more efficiently and achieve a better return on marketing spending. Medlive has strong fundamentals due to fast-paced revenue growth, rising margin and strong cash generation. Overall, we believe that the Medlive IPO is worth a look. For readers interested in IPOs of upcoming healthtech companies, we highlight: LinkDoc Technology IPO Initiation: Building with Big Data We Doctor IPO Initiation: Patient Revolution 

Medlive Technology IPO Initiation: What's Up, Doc?

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.

WeDoctor Holdings / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/wedoctor-holdings" target="_blank" data-smartkarma-citation="entities:28931:1" rel="noopener">WeDoctor Holdings (1737089D HK)</a> is looking to raise US$2bn in its upcoming Hong Kong IPO. </p></div><div><p>We Doctor Holdings (WDH) is a digital medical service platform. As per Frost &amp; Sullivan (F&amp;S), WDH is the largest platform in China in terms of the number of Internet hospitals, as of December 31, 2020, and the volume of digital medical consultations provided in 2019. </p></div><div><p>Prior to the filing, we had looked at the background of the company, did an app walkthrough, and brief comparison with other online medical providers like JD Health and Ping An Good Doctor</p></div><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/wedoctor-pre-ipo-a-more-focused-online-medical-service-provider-than-ping-an-good-doctor" target="_blank" rel="noopener">WeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor </a></li>
<li><a href="https://www.smartkarma.com/insights/wedoctor-pre-ipo-background-and-app-walk-through-the-online-medical-directory-and-more" target="_blank" rel="noopener">WeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More</a></li>
<li>
<a href="https://www.smartkarma.com/insights/we-doctor-pre-ipo-remedying-pain-points" target="_blank" data-smartkarma-citation="insights:50020" rel="noopener">We Doctor Pre-IPO (微医) - Remedying Pain Points</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/we-doctor-pre-ipo-peer-comparison-picking-its-battles-wisely" target="_blank" data-smartkarma-citation="insights:50315" rel="noopener">We Doctor (微医) Pre-IPO - Peer Comparison - Picking Its Battles Wisely</a> </li>
</ul></div><div><p>In this note, we will walk through our forecast and assumptions and share our thoughts on where WDH should be trading compared to peers.</p></div>

WeDoctor Holdings (1737089D HK) is looking to raise US$2bn in its upcoming Hong Kong IPO. We Doctor Holdings (WDH) is a digital medical service platform. As per Frost &amp; Sullivan (F&amp;S), WDH is the largest platform in China in terms of the number of Internet hospitals, as of December 31, 2020, and the volume of digital medical consultations provided in 2019. Prior to the filing, we had looked at the background of the company, did an app walkthrough, and brief comparison with other online medical providers like JD Health and Ping An Good Doctor
WeDoctor (微医) Pre-IPO - A More Focused Online Medical Svc Provider than Ping An Good Doctor 
WeDoctor (微医) Pre-IPO -App Walk Through - The Online Medical Directory and More

We Doctor Pre-IPO (微医) - Remedying Pain Points 

We Doctor (微医) Pre-IPO - Peer Comparison - Picking Its Battles Wisely 
In this note, we will walk through our forecast and assumptions and share our thoughts on where WDH should be trading compared to peers.

We Doctor (微医) Pre-IPO - Forecasts, Early Thoughts on Valuation, and Acquisition Gripes

JD Health International  / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/jd-health-international" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a> is the largest online healthcare platform and the largest online retail pharmacy by revenue in China in 2019, according to Frost &amp; Sullivan. JD Health will commence trading on Tuesday, 8 December. JD Health priced its IPO at HK$70.58 and <a href="http://www.aastocks.com/en/stocks/news/aafn-con/NOW.1061472/ipo-news" target="_blank" rel="noopener">opened 19% higher</a> at HK$84.00 in the grey market and last stood at $89.05, up 26%.</p></div><div>
<p>In <a href="https://www.smartkarma.com/insights/jd-health-ipo-initiation-e-ppointments" target="_blank" data-smartkarma-citation="insights:45106" rel="noopener">JD Health IPO Initiation: E-Ppointments</a>, we opined that JD Health’s fundamentals suggest that it is an attractive play on China’s online healthcare platform industry. In <a href="https://www.smartkarma.com/insights/jd-health-ipo-phip-new-data-points-and-peer-comparison" target="_blank" data-smartkarma-citation="insights:45377" rel="noopener">JD Health IPO: PHIP New Data Points and Peer Comparison</a>, we stated that the new data points disclosed in the PHIP along with our peer analysis reinforce our view that JD Health has attractive fundamentals. In <a href="https://www.smartkarma.com/insights/jd-health-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:45703" rel="noopener">JD Health IPO: Valuation Insights</a>, we noted that IPO price range is attractive.</p>
<div class="content-highlight"><p>Our base-case DCF derived price target of HK$78.79 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price continues to provide good upside potential. </p></div>
</div>

JD Health (6618 HK) is the largest online healthcare platform and the largest online retail pharmacy by revenue in China in 2019, according to Frost &amp; Sullivan. JD Health will commence trading on Tuesday, 8 December. JD Health priced its IPO at HK$70.58 and opened 19% higher at HK$84.00 in the grey market and last stood at $89.05, up 26%.
In JD Health IPO Initiation: E-Ppointments, we opined that JD Health’s fundamentals suggest that it is an attractive play on China’s online healthcare platform industry. In JD Health IPO: PHIP New Data Points and Peer Comparison, we stated that the new data points disclosed in the PHIP along with our peer analysis reinforce our view that JD Health has attractive fundamentals. In JD Health IPO: Valuation Insights, we noted that IPO price range is attractive.
Our base-case DCF derived price target of HK$78.79 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price continues to provide good upside potential. 


<p><a href="https://www.smartkarma.com/entities/jd-health-international" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a> raised US$3.5bn in its Hong Kong IPO, priced at HK$70.58 per share, at the top-end of its price range.</p>
<p>JDH’s retail pharmacy and online healthcare services form a strong, closed loop, end-to-end healthcare ecosystem that is well-positioned to benefit from the digitalization of China’s healthcare system. It has an extensive network of online and offline pharmacies which is expanding into offering more online healthcare services. </p>
<p>In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.</p>
<p>We have previously covered the IPO extensively:</p>
<ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/jd-health-pre-ipo-well-positioned-to-ride-china-s-healthcare-digitalization" target="_blank" data-smartkarma-citation="insights:43711" rel="noopener">JD Health (京东健康) Pre-IPO - Well-Positioned to Ride China’s Healthcare Digitalization</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/jd-health-pre-ipo-peer-comparison-it-s-a-close-fight-and-competition-is-intensifying" target="_blank" data-smartkarma-citation="insights:45062" rel="noopener">JD Health (京东健康) Pre-IPO - Peer Comparison - It's a Close Fight and Competition Is Intensifying</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/jd-health-pre-ipo-assumptions-and-valuations" target="_blank" data-smartkarma-citation="insights:45266" rel="noopener">JD Health (京东健康) Pre-IPO - Assumptions and Valuations</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/jd-health-pre-ipo-updates-from-phip-fine-tuning-forecasts" target="_blank" data-smartkarma-citation="insights:45368" rel="noopener">JD Health (京东健康) Pre-IPO - Updates from PHIP - Fine-Tuning Forecasts</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/jd-health-ipo-paying-to-ride-the-early-innings-of-healthcare-transformation" target="_blank" data-smartkarma-citation="insights:45695" rel="noopener">JD Health (京东健康) IPO - Paying to Ride the Early Innings of Healthcare Transformation</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/jd-health-ipo-ali-health-1h-results-read-through-and-index-inclusions" target="_blank" data-smartkarma-citation="insights:45773" rel="noopener">JD Health (京东健康) IPO - Ali Health 1H Results Read Through and Index Inclusions</a> </li>
</ul>

JD Health (6618 HK) raised US$3.5bn in its Hong Kong IPO, priced at HK$70.58 per share, at the top-end of its price range.
JDH’s retail pharmacy and online healthcare services form a strong, closed loop, end-to-end healthcare ecosystem that is well-positioned to benefit from the digitalization of China’s healthcare system. It has an extensive network of online and offline pharmacies which is expanding into offering more online healthcare services. 
In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.
We have previously covered the IPO extensively:


JD Health (京东健康) Pre-IPO - Well-Positioned to Ride China’s Healthcare Digitalization 

JD Health (京东健康) Pre-IPO - Peer Comparison - It's a Close Fight and Competition Is Intensifying 

JD Health (京东健康) Pre-IPO - Assumptions and Valuations 

JD Health (京东健康) Pre-IPO - Updates from PHIP - Fine-Tuning Forecasts 

JD Health (京东健康) IPO - Paying to Ride the Early Innings of Healthcare Transformation 

JD Health (京东健康) IPO - Ali Health 1H Results Read Through and Index Inclusions 


JD Health (京东健康) IPO Trading - Looking to Be a Solid Debut

United States

Teladoc Health, Inc. provides healthcare services. The Company diagnoses, recommends treatment, and prescribes medication for routine medical issues through phone and video consultations. Teladoc operates in the United States.

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

Teladoc Health, Inc. (TDOC US)

Medlive Technology IPO: Valuation Insights

Our base-case DCF valuation is HK$31.80 per share. Overall, we would participate in the IPO due to an attractive price range and strong blue-chip...

Arun George

Medlive Technology IPO Initiation: What's Up, Doc?

Medlive is pre-marketing an HKEx IPO to raise around $500 million, according to press reports. The fundamentals are strong due to fast-paced...

Arun George

We Doctor (微医) Pre-IPO - Forecasts, Early Thoughts on Valuation, and Acquisition Gripes

WeDoctor Holdings (1737089D HK) is looking to raise US$2bn in its upcoming Hong Kong IPO. We Doctor Holdings (WDH) is a digital medical service...

Zhen Zhou, Toh

JD Health IPO: Trading Debut

JD Health priced its IPO at HK$70.58 and opened 19% higher at HK$84.00 in the grey market. Our DCF sensitivity analysis shows that the IPO price...

Arun George

JD Health (京东健康) IPO Trading - Looking to Be a Solid Debut

JD Health (6618 HK) raised US$3.5bn in its Hong Kong IPO, priced at HK$70.58 per share, at the top-end of its price range.

Zhen Zhou, Toh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)