HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

WeDoctor Holdings / Equity Capital Markets

<ul>
<li>We Doctor's business structure has undergone significant changes. Its positioning has become the AI-enabled healthcare solutions provider. The current business model of We Doctor is To G (To Government) model.</li>
<li>Whether We Doctor can replicate Tianjin model in other cities is uncertain because it may not have deep connections/resources in new cities/regions. Profit model of AI+ healthcare isn’t yet clear.</li>
<li>We Doctor's Pre-IPO valuation has reached US$6.7 billion, which is too expensive. Reasonable valuation could be just US$1-2 billion, and should be lower than Ping An Good Doctor.</li>
</ul>


We Doctor's business structure has undergone significant changes. Its positioning has become the AI-enabled healthcare solutions provider. The current business model of We Doctor is To G (To Government) model.
Whether We Doctor can replicate Tianjin model in other cities is uncertain because it may not have deep connections/resources in new cities/regions. Profit model of AI+ healthcare isn’t yet clear.
We Doctor's Pre-IPO valuation has reached US$6.7 billion, which is too expensive. Reasonable valuation could be just US$1-2 billion, and should be lower than Ping An Good Doctor.


Pre-IPO We Doctor Holdings - The Good Story of AI May Not Turn Things Around

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>According to PHIP and Crunchbase, We Doctor’s most recently reported valuation was a ~$411M Series F led by HongShan Capital and Millennium Management at a ~$6.7B post-money valuation.  </li>
<li>My ballpark estimates suggest that IPO valuation target may be below last round valuation. However, I do not expect a significant discount to Series F post-money valuation of ~$6.7B.</li>
<li>I think investors will ask what is the revenue growth trajectory ahead (FY25-FY28) and why gross profit margins can’t be higher? What is the path to positive free cash flow?</li>
</ul>


According to PHIP and Crunchbase, We Doctor’s most recently reported valuation was a ~$411M Series F led by HongShan Capital and Millennium Management at a ~$6.7B post-money valuation.  
My ballpark estimates suggest that IPO valuation target may be below last round valuation. However, I do not expect a significant discount to Series F post-money valuation of ~$6.7B.
I think investors will ask what is the revenue growth trajectory ahead (FY25-FY28) and why gross profit margins can’t be higher? What is the path to positive free cash flow?


We Doctor Holdings IPO: Some Thoughts on IPO Valuation Target Ahead of the Offering

<ul>
<li>We Doctor Holdings, a top-tier provider of AI-enabled medical services and digital platform which connects hospitals, doctors, and pharmacies, plans to go public in Hong Kong.</li>
<li>We Doctor Holdings has raised ~$1.5B to date from investors, including Tencent, 5Y Capital, Goldman Sachs, Hillhouse Capital, AIA, and Qiming Venture Partners, among others.</li>
<li>The Hangzhou-based healthtech company has delivered explosive revenue growth of 107% y/y for the six months ended Jun-24.  </li>
</ul>


We Doctor Holdings, a top-tier provider of AI-enabled medical services and digital platform which connects hospitals, doctors, and pharmacies, plans to go public in Hong Kong.
We Doctor Holdings has raised ~$1.5B to date from investors, including Tencent, 5Y Capital, Goldman Sachs, Hillhouse Capital, AIA, and Qiming Venture Partners, among others.
The Hangzhou-based healthtech company has delivered explosive revenue growth of 107% y/y for the six months ended Jun-24.  


We Doctor Holdings IPO Preview: Explosive Growth and Narrowing Losses, The Right Time for an IPO

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.

<ul>
<li>In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, starting with Hong Kong.</li>
<li>This list has been compiled on a best effort basis from tracking the company filings and through various other sources.</li>
<li>The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.</li>
</ul>


In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, starting with Hong Kong.
This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.


Aequitas 2025 Asia IPO Pipeline - Hong Kong

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/111-inc" target="_blank" data-smartkarma-citation="entities:27412:1" rel="noopener">111 Inc (YI US)</a>, China's largest virtual pharmacy network, <a href="https://app.quotemedia.com/data/downloadFiling?webmasterId=101533&amp;ref=317622517&amp;type=PDF&amp;symbol=YI&amp;cdn=576c7a62e80e529bffa675d5bed28708&amp;companyName=111+Inc.&amp;formType=SC+13D%2FA&amp;dateFiled=2023-07-17" target="_blank" rel="noopener">amended an SC 13D filing</a> on 13 July, which belatedly updated the consortium’s privatisation offer of US$3.66 per ADS. </li>
<li>The consortium has been revamped such that the lead investors (Dr Gang Yu, Dr Junling Liu and Shanghai Guosheng Capital Management) are joined with 13 additional investors.</li>
<li>The development facilitates the signing of a definite agreement. The consortium represents 95.27% of the voting power, which ensures a successful vote. At last close, the gross spread is 9.6%.</li>
</ul>



111 Inc (YI US), China's largest virtual pharmacy network, amended an SC 13D filing on 13 July, which belatedly updated the consortium’s privatisation offer of US$3.66 per ADS. 
The consortium has been revamped such that the lead investors (Dr Gang Yu, Dr Junling Liu and Shanghai Guosheng Capital Management) are joined with 13 additional investors.
The development facilitates the signing of a definite agreement. The consortium represents 95.27% of the voting power, which ensures a successful vote. At last close, the gross spread is 9.6%.


111 (YI US): The Privatisation Offer Gets a Reboot

China

Wedoctor Group operates health care software businesses. The Company provides registration, medical advice, and other services. Wedoctor Group conducts business in China. 

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WeDoctor Holdings (1737089D HK)

Pre-IPO We Doctor Holdings - The Good Story of AI May Not Turn Things Around

We Doctor shifts to AI medical solution provider with To G model, facing uncertainty in replicating Tianjin model nationwide.Pre-IPO valuation at...

Xinyao (Criss) Wang

We Doctor Holdings IPO: Some Thoughts on IPO Valuation Target Ahead of the Offering

In my insight, I discuss expectations from upcoming We Doctor Holdings IPO and provide some thoughts on IPO valuation target ahead of the offering...

Andrei Zakharov

We Doctor Holdings IPO Preview: Explosive Growth and Narrowing Losses, The Right Time for an IPO

We Doctor, a Tencent-backed online healthcare platform and provider of AI-enabled medical services in China, has refiled PHIP to proceed with up to...

Andrei Zakharov

Aequitas 2025 Asia IPO Pipeline - Hong Kong

In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, starting with Hong Kong where the number of filings have been...

Sumeet Singh

111 (YI US): The Privatisation Offer Gets a Reboot

The revamped consortium facilitates the signing of a definite agreement. The consortium represents 95.27% of the voting power, which ensures a...

Arun George

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Pre-IPO We Doctor Holdings - The Good Story of AI May Not Turn Things Around

​We Doctor shifts to AI medical solution provider with To G model, facing uncertainty in replicating Tianjin model nationwide.Pre-IPO valuation at...

Xinyao (Criss) Wang

We Doctor Holdings IPO: Some Thoughts on IPO Valuation Target Ahead of the Offering

In my insight, I discuss expectations from upcoming We Doctor Holdings IPO and provide some thoughts on IPO valuation target ahead of the offering...

Andrei Zakharov

We Doctor Holdings IPO Preview: Explosive Growth and Narrowing Losses, The Right Time for an IPO

We Doctor, a Tencent-backed online healthcare platform and provider of AI-enabled medical services in China, has refiled PHIP to proceed with up to...

Andrei Zakharov

Aequitas 2025 Asia IPO Pipeline - Hong Kong

In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, starting with Hong Kong where the number of filings have been...

Sumeet Singh

111 (YI US): The Privatisation Offer Gets a Reboot

The revamped consortium facilitates the signing of a definite agreement. The consortium represents 95.27% of the voting power, which ensures a...

Arun George

We Doctor shifts to AI medical solution provider with To G model, facing uncertainty in replicating Tianjin model nationwide.Pre-IPO valuation at...