HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>Although adopting a multi-brand strategy, <a href="https://www.smartkarma.com/entities/shanghai-chicmax-cosmetic-co-ltd" target="_blank" data-smartkarma-citation="entities:35503:1" rel="noopener">Shanghai Chicmax Cosmetic (CMC HK)</a>’s revenue mainly came from three brands, namely KANS, One Leaf and Baby Elephant, with no blockbuster brands afterwards. </li>
<li>Chicmax emphasizes marketing/promotion over R&amp;D, which has dragged down net profit margin despite solid revenues and gross profit margins. Product quality problem is also a concern.</li>
<li>We hope that Chicmax can increase R&amp;D investment and strengthen product innovation and quality control, so as to gain more consumer loyalty and trust, especially in high-end market. </li>
</ul>


Although adopting a multi-brand strategy, Shanghai Chicmax Cosmetic (CMC HK)’s revenue mainly came from three brands, namely KANS, One Leaf and Baby Elephant, with no blockbuster brands afterwards. 
Chicmax emphasizes marketing/promotion over R&amp;D, which has dragged down net profit margin despite solid revenues and gross profit margins. Product quality problem is also a concern.
We hope that Chicmax can increase R&amp;D investment and strengthen product innovation and quality control, so as to gain more consumer loyalty and trust, especially in high-end market. 


Pre-IPO Shanghai Chicmax Cosmetic - The Current Development Strategy Will Not Go Far

China

Lafang China Co., Ltd. operates as a daily consumer products producer. The Company researches, develops, manufactures, and sells chemical products, including shampoo, hair conditioner, shower gel, soap, cream, and other products.

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Lafang China Co Ltd (603630 CH)

Pre-IPO Shanghai Chicmax Cosmetic - The Current Development Strategy Will Not Go Far

Emphasizing marketing over R&D drives the current growth, but it's not enough for Chicmax to go further. Low net profit/quality issue/weak product...

Xinyao (Criss) Wang

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