HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>China funeral industry has large growth potential.The total market scale would be about RMB400 billion if based on annual death toll of 10 million and per capita expenditure of RMB40,000.</li>
<li>Information asymmetry weakens the bargaining power of buyers. Administrative barriers raise the threshold of market access and weaken competition. So, related companies usually have high profitability and return on capital.</li>
<li>Changes in population structure would have a negative impact on most consumer goods, but demand of funeral industry would continue to rise. Investors would have both alpha and beta superposition.</li>
</ul>


China funeral industry has large growth potential.The total market scale would be about RMB400 billion if based on annual death toll of 10 million and per capita expenditure of RMB40,000.
Information asymmetry weakens the bargaining power of buyers. Administrative barriers raise the threshold of market access and weaken competition. So, related companies usually have high profitability and return on capital.
Changes in population structure would have a negative impact on most consumer goods, but demand of funeral industry would continue to rise. Investors would have both alpha and beta superposition.


China Funeral Industry - Investment Opportunity with Both Alpha and Beta Superposition

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Event-Driven

<p>We are following up on Crispin Francis' analysis of the Nirvana Asia privatization offer <a href="https://www.smartkarma.com/insights/nirvana-smells-like-team-spirit" target="_blank" data-smartkarma-citation="insights:4531">Nirvana - Smells like Team Spirit</a> with data on precedent M&amp;A transactions in the death services sector.  The data are predominately from North America, but appear to be comprehensive.  We obtained the information from the proxy statements for the privatization of Arbor Memorial Services in 2012, and Service Corporation International's (SCI: US) purchase of Stewart Enterprises.</p><p>The table below provides the…</p>

We are following up on Crispin Francis' analysis of the Nirvana Asia privatization offer Nirvana - Smells like Team Spirit with data on precedent M&amp;A transactions in the death services sector.  The data are predominately from North America, but appear to be comprehensive.  We obtained the information from the proxy statements for the privatization of Arbor Memorial Services in 2012, and Service Corporation International's (SCI: US) purchase of Stewart Enterprises.The table below provides the…

China

Fu Shou Yuan International Group, Ltd. is a death care service provider in China.  The Company operates cemeteries and funeral facilities.

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Fu Shou Yuan (1448 HK)

China Funeral Industry - Investment Opportunity with Both Alpha and Beta Superposition

Death is inevitable, which provides continuous demand for China funeral industry. Related companies have high return on capital. investors will...

Xinyao (Criss) Wang

Precedent Transactions Favor the Buyers

We are following up on Crispin Francis' analysis of the Nirvana Asia privatization offer Nirvana - Smells like Team Spirit with data on precedent...

Kemp Dolliver, CFA

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