HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Fujian Wanchen Biotechnology Group / Equity Capital Markets

<ul>
<li>The core of WANCHEN’s business model is to build a virtuous cycle system based on economies of scale. However, the pain point is large scale but low profit margin.</li>
<li>WANCHEN would maintain high-speed growth throughout 2025, but the growth rate will gradually slow down. Our forecast is revenue YoY growth from 2025 to 2027 is 80%, 40%, 25%, respectively.</li>
<li>WANCHEN’s peer is BUSY MING, but they have different investment logic and growth story. Which company has a higher valuation largely depends on which narrative logic the capital market favors.  </li>
</ul>


The core of WANCHEN’s business model is to build a virtuous cycle system based on economies of scale. However, the pain point is large scale but low profit margin.
WANCHEN would maintain high-speed growth throughout 2025, but the growth rate will gradually slow down. Our forecast is revenue YoY growth from 2025 to 2027 is 80%, 40%, 25%, respectively.
WANCHEN’s peer is BUSY MING, but they have different investment logic and growth story. Which company has a higher valuation largely depends on which narrative logic the capital market favors.  


Pre-IPO Fujian Wanchen Biotechnology Group - The Business Model, Peer Comparison, and the Outlook

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Busy Ming Group, a founder-led food and beverage chain retailer in China with strong presence in third- and lower-tier cities, filed the updated Application Proof in October.</li>
<li>In the six months ended Jun-25, the company’s revenue was ~RMB28,124m, representing a year-over-year growth of ~87%. LTM net profit was ~RMB2,025m.</li>
<li>Busy Ming Group enjoys superior growth profile coupled with improving gross profit margins. The company ended Aug-25 with RMB3,393m net cash on the balance sheet.  </li>
</ul>


Busy Ming Group, a founder-led food and beverage chain retailer in China with strong presence in third- and lower-tier cities, filed the updated Application Proof in October.
In the six months ended Jun-25, the company’s revenue was ~RMB28,124m, representing a year-over-year growth of ~87%. LTM net profit was ~RMB2,025m.
Busy Ming Group enjoys superior growth profile coupled with improving gross profit margins. The company ended Aug-25 with RMB3,393m net cash on the balance sheet.  


Busy Ming IPO Update: Cash-Generating Machine With Improving Gross Margins, IPO Is on the Horizon

China

Fujian Wanchen Biotechnology Group Co.,Ltd. operates edible fungus cultivation businesses. The Company provides edible fungi factory cultivation, research and development, packaging, sales, deep processing, and other services. Fujian Wanchen Biotech nology also conducts leisure agriculture tourism businesses.

Fujian Wanchen Biotechnology Group (FWBG HK)

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Fujian Wanchen Biotechnology Group (FWBG HK)

Pre-IPO Fujian Wanchen Biotechnology Group - The Business Model, Peer Comparison, and the Outlook

WANCHEN's business model relies on economies of scale but faces low profit margin and decreasing growth rate. Valuation compared to BUSY MING...

Xinyao (Criss) Wang

Busy Ming IPO Update: Cash-Generating Machine With Improving Gross Margins, IPO Is on the Horizon

Busy Ming Group is expected to IPO in Hong Kong soon. In my insight, I discuss in-depth analysis of business and operating metrics, IPO valuation...

Andrei Zakharov

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Fujian Wanchen Biotechnology Group - The Business Model, Peer Comparison, and the Outlook

​WANCHEN's business model relies on economies of scale but faces low profit margin and decreasing growth rate. Valuation compared to BUSY MING...

Xinyao (Criss) Wang

Busy Ming IPO Update: Cash-Generating Machine With Improving Gross Margins, IPO Is on the Horizon

Busy Ming Group is expected to IPO in Hong Kong soon. In my insight, I discuss in-depth analysis of business and operating metrics, IPO valuation...

Andrei Zakharov

WANCHEN's business model relies on economies of scale but faces low profit margin and decreasing growth rate. Valuation compared to BUSY MING...