ChinaDaily Briefs

China: WeDoctor Holdings, Zhaoke Ophthalmology Pharmaceutical, China Construction Bank H, YishengBio, Evergrande Real Estate Group, Shanghai Bio-Heart Biological Technology and more

In today’s briefing:

  • We Doctor Pre-IPO (微医) – Remedying Pain Points
  • Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Thoughts on Valuation
  • China Construction Bank – Net Interest Income Soars
  • YishengBio (依生生物) Pre-IPO: Need a Faithful Bet in PIKA
  • Morning Views Asia: Evergrande Real Estate Group, Tata Steel Ltd
  • Pre-IPO Shanghai Bio-Heart Biological Technology – Here Are the Strength and Concerns

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

By Zhen Zhou, Toh

WeDoctor Holdings (1737089D HK)  is looking to raise US$2bn in its upcoming Hong Kong IPO. 

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

In this note, we will take a closer look at the company’s business models, financials, operating data and share our initial thoughts on the company.


Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Thoughts on Valuation

By Ke Yan, CFA, FRM

Founded by Lee’s Pharma, Zhaoke offers a comprehensive ophthalmic product pipeline. The company is looking to raise up to USD 200m via a Hong Kong listing.

In our previous note, we looked at the company’s two products, namely CsA gel and ZKY001. We are of the view that CsA gel does provide advantage over Restasis, the top selling eye gel for the DED, but the forecast of market growth is too aggressive for the DED market. For another core product ZKY001, while there is no data on the efficacy from Phase I clinical trial, we do note that the licensing parnter’s product which uses the same technology but on a different indication, did not meet the primary end point in Phase III clinical trial according to a recent announcement, which raises our concern on the potential of the product candidate. In addition, the company also had a long list of generic referencing top selling glaucoma drugs. The company has an OK management team but strong backing of institutional investors.  

In this note, we provide a forecast on the company’s two core products CsA gel and the ZKY001. 

Our previous coverage on Zhaoke Ophthalmic


China Construction Bank – Net Interest Income Soars

By Daniel Tabbush

We are all focused on bad loans and credit costs, but we can not lose sight of core net interest income. CCB, one of the largest banks in the world, reveals accelerating and strong growth in the latest quarter.  Together with lower credit costs, this can be extra powerful to profit delta in FY21.


YishengBio (依生生物) Pre-IPO: Need a Faithful Bet in PIKA

By Ke Yan, CFA, FRM

YishengBio is a China-based biopharmaceutical company with a focus of developing PIKA based technology for vaccine and oncology. The company plans to raise up to USD 200m via a Hong Kong listing.

We look at the company’s main product, the PIKA based rabies vaccine and the rabies vaccine market. We are of the view that there is limited upsides from the rabies vaccine market given the oligopoly market structure. New comers, unless offering a much lower price, will find it challenging to acquire a market share from the incumbent players. Having said that, we do see that the company’s PIKA based rabies has advantages of less injection and few visits for patients. In addition, the company is using the PIKA technology for oncology and HBV vaccine. We think to invest in the company is to bet on the PIKA technology that has not been proven working in indications other than rabies. We also highlight past GMP non-compliance issues with the company and as a result it suspended production of rabies vaccine for 7 years.

The company’s management team is mediocre but the pre-IPO investor line up is strong. 


Morning Views Asia: Evergrande Real Estate Group, Tata Steel Ltd

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.


Pre-IPO Shanghai Bio-Heart Biological Technology – Here Are the Strength and Concerns

By Xinyao (Criss) Wang

On Feb. 26, 2021, Shanghai Bio-Heart Biological Technology (BHT HK) applied to list on the main board of the Hong Kong Stock Exchange. In China, cardiovascular medical device market is a very promising market with large growth potential. Domestic leading companies include Lepu Medical Technology A (300003 CH) and Microport Scientific (853 HK). Bio-heart’s business mainly focuses on bioresorbable scaffolds (BRS) and renal denervation (RDN). So how about Bio-heart compared with other strong players in the market? The following mainly analyzed both the strengths and the concerns of the Company.


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