Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Hangzhou Tongshifu Cultural and Creative Group / Equity Capital Markets

Hangzhou Tongshifu Cultural and Creative Group (TSF HK)

Hangzhou Tongshifu Cultural and Creative Group

<ul>
<li>Hangzhou Tongshifu launched its Hongkong IPO aiming to raise up to HK$504B. They developing copper-based cultural and creative products by integrating traditional techniques with modern design and usage scenarios.  </li>
<li>Hangzhou Tongshifu intends to use the IPO proceeds for product development, enhancing production capabilities, enhancing retail and marketing infrastructure and strengthen digital infrastructure.</li>
<li>We don’t expect any significant listing gains for the stock. Would recommend investors to stay in the sidelines for now and wait for the right dip.</li>
</ul>


Hangzhou Tongshifu launched its Hongkong IPO aiming to raise up to HK$504B. They developing copper-based cultural and creative products by integrating traditional techniques with modern design and usage scenarios.  
Hangzhou Tongshifu intends to use the IPO proceeds for product development, enhancing production capabilities, enhancing retail and marketing infrastructure and strengthen digital infrastructure.
We don’t expect any significant listing gains for the stock. Would recommend investors to stay in the sidelines for now and wait for the right dip.


Hangzhou Tongshifu IPO: Investors Can Delay to Lighten Their Coffers for This Copper Art

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The core logic of TONGSHIFU is not to sell "copper", but to address the problems of "non-standard, high price, and limited distribution channels" in traditional handicrafts through industrialization methods.</li>
<li>TONGSHIFU’s development will be constrained by the inherent boundaries of a niche market. The rising copper price due to inflation will continue to put profit margin under pressure. </li>
<li>Valuation is expected to be lower than peers. We think a P/E ratio of 10-20x would be a comfortable range, which also provides investors sufficient margin of safety.</li>
</ul>


The core logic of TONGSHIFU is not to sell "copper", but to address the problems of "non-standard, high price, and limited distribution channels" in traditional handicrafts through industrialization methods.
TONGSHIFU’s development will be constrained by the inherent boundaries of a niche market. The rising copper price due to inflation will continue to put profit margin under pressure. 
Valuation is expected to be lower than peers. We think a P/E ratio of 10-20x would be a comfortable range, which also provides investors sufficient margin of safety.


Pre-IPO Hangzhou Tongshifu Cultural and Creative Group (PHIP Update)-Some Points Worth the Attention

<ul>
<li>Despite TONGSHIFU’s leading position through vertically integrated business model, the inherent limitations of the industry are obstacles for further expansion. Performance growth is clearly constrained by the overall market capacity.</li>
<li>The "double attack" market pattern makes it more difficult for TONGSHIFU to achieve breakthrough growth within the existing market. Outside of copper-based products, TONGSHIFU hasn’t found a second growth curve.</li>
<li>TONGSHIFU’s valuation should be lower than <a href="https://www.smartkarma.com/entities/pop-mart-international-group-l" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">Pop Mart</a>/<a href="https://www.smartkarma.com/entities/laopu-gold-co-ltd" target="_blank" data-smartkarma-citation="entities:44036:1" rel="noopener">Laopu Gold</a>/Bloks due to the big gap in growth potential/profitability/cashability. However, valuation could be higher than industry average due to leading market position.  </li>
</ul>


Despite TONGSHIFU’s leading position through vertically integrated business model, the inherent limitations of the industry are obstacles for further expansion. Performance growth is clearly constrained by the overall market capacity.
The "double attack" market pattern makes it more difficult for TONGSHIFU to achieve breakthrough growth within the existing market. Outside of copper-based products, TONGSHIFU hasn’t found a second growth curve.
TONGSHIFU’s valuation should be lower than Pop Mart/Laopu Gold/Bloks due to the big gap in growth potential/profitability/cashability. However, valuation could be higher than industry average due to leading market position.  


Pre-IPO Hangzhou Tongshifu Cultural and Creative Group - Potential for Future Growth Is Questionable

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Hangzhou Tongshifu Cultural and Creative Group (TSF HK)

Hangzhou Tongshifu IPO: Investors Can Delay to Lighten Their Coffers for This Copper Art

Hangzhou Tongshifu launches Hong Kong IPO to raise funds for product development and infrastructure. No significant listing gains expected....

Tina Banerjee

Pre-IPO Hangzhou Tongshifu Cultural and Creative Group (PHIP Update)-Some Points Worth the Attention

TONGSHIFU aims to revolutionize traditional handicrafts by industrializing production methods, but faces challenges in a niche market and rising...

Xinyao (Criss) Wang

Pre-IPO Hangzhou Tongshifu Cultural and Creative Group - Potential for Future Growth Is Questionable

Despite TONGSHIFU's leading market position, market capacity constraints hinder further expansion. The lack of second growth curve makes future...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hangzhou Tongshifu IPO: Investors Can Delay to Lighten Their Coffers for This Copper Art

​Hangzhou Tongshifu launches Hong Kong IPO to raise funds for product development and infrastructure. No significant listing gains expected....

Tina Banerjee

Pre-IPO Hangzhou Tongshifu Cultural and Creative Group (PHIP Update)-Some Points Worth the Attention

​TONGSHIFU aims to revolutionize traditional handicrafts by industrializing production methods, but faces challenges in a niche market and rising...

Xinyao (Criss) Wang

Pre-IPO Hangzhou Tongshifu Cultural and Creative Group - Potential for Future Growth Is Questionable

​Despite TONGSHIFU's leading market position, market capacity constraints hinder further expansion. The lack of second growth curve makes future...

Xinyao (Criss) Wang

Hangzhou Tongshifu launches Hong Kong IPO to raise funds for product development and infrastructure. No significant listing gains expected....

TONGSHIFU aims to revolutionize traditional handicrafts by industrializing production methods, but faces challenges in a niche market and rising...

Despite TONGSHIFU's leading market position, market capacity constraints hinder further expansion. The lack of second growth curve makes future...