HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Gemilai Holdings / Equity Capital Markets

<ul>
<li>Under the current e-commerce "price comparison" mechanism, coupled with the peak of traffic dividends, there is still uncertainty as to whether domestic coffee machine brands can maintain long-term growth.</li>
<li>Compared with fast-moving consumer goods, coffee machines, as durable goods, have a low frequency of repeat purchases by consumers. This may lead to declining performance growth of Gemilai.</li>
<li>Given the expected about 40% profit CAGR over the next three years, the market may offer a valuation higher than traditional home appliance stocks such as Midea (e.g. 20-25x P/E).</li>
</ul>


Under the current e-commerce "price comparison" mechanism, coupled with the peak of traffic dividends, there is still uncertainty as to whether domestic coffee machine brands can maintain long-term growth.
Compared with fast-moving consumer goods, coffee machines, as durable goods, have a low frequency of repeat purchases by consumers. This may lead to declining performance growth of Gemilai.
Given the expected about 40% profit CAGR over the next three years, the market may offer a valuation higher than traditional home appliance stocks such as Midea (e.g. 20-25x P/E).


Pre-IPO Gemilai Holdings - Is Coffee Machine a Good Business?

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Gemilai Holdings (GML HK)

Pre-IPO Gemilai Holdings - Is Coffee Machine a Good Business?

Uncertainty looms for coffee machine brand as low repeat purchase may hinder long-term growth despite potential high profit CAGR.Gemilai to have...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Gemilai Holdings - Is Coffee Machine a Good Business?

​Uncertainty looms for coffee machine brand as low repeat purchase may hinder long-term growth despite potential high profit CAGR.Gemilai to have...

Xinyao (Criss) Wang

Uncertainty looms for coffee machine brand as low repeat purchase may hinder long-term growth despite potential high profit CAGR.Gemilai to have...