HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Zhou Liu Fu Jewellery / Equity Capital Markets

<ul>
<li>Zhou Liu Fu's fundamentals would not significantly improve due to the surge in gold prices, but would deteriorate instead due to rising raw material costs and reduced customer demand.</li>
<li>The franchise model and declining profit margins have always been the issues. Zhou Liu Fu also has faced dual competition from traditional jewelry companies and emerging jewelry brands.</li>
<li>We are not optimistic about Zhou Liu Fu’s performance outlook. Valuation of Zhou Liu Fu could be lower than peers and the industry average.</li>
</ul>


Zhou Liu Fu's fundamentals would not significantly improve due to the surge in gold prices, but would deteriorate instead due to rising raw material costs and reduced customer demand.
The franchise model and declining profit margins have always been the issues. Zhou Liu Fu also has faced dual competition from traditional jewelry companies and emerging jewelry brands.
We are not optimistic about Zhou Liu Fu’s performance outlook. Valuation of Zhou Liu Fu could be lower than peers and the industry average.


Pre-IPO Zhou Liu Fu Jewellery - It Is Hard to Capitalise on the Soaring Gold Price

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

Equity Bottom-Up

Lao Feng Xiang Co Ltd B / Equity Bottom-Up

<ul><li>LFX is a heritage jewelry retailer with almost 180 years of history, traded on the Shanghai Stock Exchange</li><li>A shares trade at around 14-15x TTM earnings with a 3% yield, while B shares trade at a significant discount of 5x TTM earnings and a 7% yield</li><li>Opportunity for investors to own stake in a growing business with strong returns on capital and conservative management at a discounted price, due to lack of attention to the B share class.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

LFX is a heritage jewelry retailer with almost 180 years of history, traded on the Shanghai Stock ExchangeA shares trade at around 14-15x TTM earnings with a 3% yield, while B shares trade at a significant discount of 5x TTM earnings and a 7% yieldOpportunity for investors to own stake in a growing business with strong returns on capital and conservative management at a discounted price, due to lack of attention to the B share class.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Lao Feng Xiang (900905) - Friday, Jun 28, 2024

China

Lao Feng Xiang Co., Ltd. processes and sells gold and jewelry products.  Through its subsidiaries, the Company manufactures and sells wooden, mechanical and cosmetic pencils, as well as manufactures and sells pencil making machinery and paints, and general trading.

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Lao Feng Xiang Co Ltd B (900905 CH)

Pre-IPO Zhou Liu Fu Jewellery - It Is Hard to Capitalise on the Soaring Gold Price

Zhou Liu Fu's fundamentals could deteriorate despite a surge in gold prices due to rising costs and reduced demand. Competition/declining profit...

Xinyao (Criss) Wang

Lao Feng Xiang (900905) - Friday, Jun 28, 2024

A shares trade at around 14-15x TTM earnings with a 3% yield, while B shares trade at a significant discount of 5x TTM earnings and a 7% yield

Value Investors Club (VIC)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Zhou Liu Fu Jewellery - It Is Hard to Capitalise on the Soaring Gold Price

​Zhou Liu Fu's fundamentals could deteriorate despite a surge in gold prices due to rising costs and reduced demand. Competition/declining profit...

Xinyao (Criss) Wang

Lao Feng Xiang (900905) - Friday, Jun 28, 2024

A shares trade at around 14-15x TTM earnings with a 3% yield, while B shares trade at a significant discount of 5x TTM earnings and a 7% yield

Value Investors Club (VIC)

Zhou Liu Fu's fundamentals could deteriorate despite a surge in gold prices due to rising costs and reduced demand. Competition/declining profit...