Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

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Equity Bottom-Up

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<a href="https://smartkarma.com/entities/lung-fung-group">Lung Fung Group</a> is a leading pharmaceutical and beauty retailer in Hong Kong, holding the largest market share in the pharmaceutical retail sector at 5.2% in 2024.</li>
  <li>The company has demonstrated a strong growth trajectory, with significant revenue increases and a turnaround from a net loss in fiscal year 2023 to a substantial profit in fiscal year 2025.</li>
  <li>While poised for further expansion with a planned IPO, the company operates in a highly fragmented and competitive market and faces risks associated with its negative net current liabilities.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  
Lung Fung Group is a leading pharmaceutical and beauty retailer in Hong Kong, holding the largest market share in the pharmaceutical retail sector at 5.2% in 2024.
  The company has demonstrated a strong growth trajectory, with significant revenue increases and a turnaround from a net loss in fiscal year 2023 to a substantial profit in fiscal year 2025.
  While poised for further expansion with a planned IPO, the company operates in a highly fragmented and competitive market and faces risks associated with its negative net current liabilities.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Lung Fung Group (LFG HK) - Apr 2026

APAC IPOs & Placements, Aequitas Research

Akshat Shah

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

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<a href="https://www.smartkarma.com/entities/lung-fung-group" target="_blank" data-smartkarma-citation="entities:46142:1" rel="noopener">Lung Fung Group (LFG HK)</a> is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by DBS.</li>
<li>LFG is a Hong Kong-based department store chain retailing a wide variety of pharmaceutical products, health products, beauty products and other consumer goods.</li>
<li>According to Frost &amp; Sullivan in 2024, LFG was the largest pharmaceutical product retailer by retail sales value in Hong Kong, with a 5.2% market share.</li>
</ul>



Lung Fung Group (LFG HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by DBS.
LFG is a Hong Kong-based department store chain retailing a wide variety of pharmaceutical products, health products, beauty products and other consumer goods.
According to Frost &amp; Sullivan in 2024, LFG was the largest pharmaceutical product retailer by retail sales value in Hong Kong, with a 5.2% market share.


Lung Fung Group Holdings Ltd Pre-IPO Tearsheet

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The collapse of the US markets on Friday, following better-than-expected nonfarm payrolls in May, is expected to send the Asian markets into panic on Monday.</li>
<li>The IPOs in Hong Kong this year are vulnerable, especially those that performed well, like <a href="https://www.smartkarma.com/entities/knowledge-atlas-technology-joint-stock-company-limited-class-h" target="_blank" data-smartkarma-citation="entities:44500:1" rel="noopener">Knowledge Atlas Technology (2513 HK)</a> and Beijing Deepzero Technology (2723 HK).</li>
<li>
<a href="https://www.smartkarma.com/entities/giga-device-semiconductor-inc-class-h" target="_blank" data-smartkarma-citation="entities:46238:1" rel="noopener">GigaDevice Semiconductor (3986 HK)</a>, <a href="https://www.smartkarma.com/entities/montage-technology-co-ltd-class-h" target="_blank" data-smartkarma-citation="entities:46333:1" rel="noopener">Montage Technology (6809 HK)</a>, and <a href="https://www.smartkarma.com/entities/minimax-group-inc" target="_blank" data-smartkarma-citation="entities:46185:1" rel="noopener">MiniMax (100 HK)</a> are also riskier names in the current market environment. </li>
</ul>


The collapse of the US markets on Friday, following better-than-expected nonfarm payrolls in May, is expected to send the Asian markets into panic on Monday.
The IPOs in Hong Kong this year are vulnerable, especially those that performed well, like Knowledge Atlas Technology (2513 HK) and Beijing Deepzero Technology (2723 HK).

GigaDevice Semiconductor (3986 HK), Montage Technology (6809 HK), and MiniMax (100 HK) are also riskier names in the current market environment. 


HK Strategy: The Imminent Sell-Off - What IPOs Are More Vulnerable?

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<li>While <a href="https://www.smartkarma.com/entities/sa-sa-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:20143:1" rel="noopener">Sa Sa (178 HK)</a>'s share price reacted positively to its good FY26 result, trading on 2.08x P/B, this is still undemanding relative to the 5-year average.  </li>
<li>Overall turnover surged 24% in 1Q FY27, sustaining a solid momentum. Coupled with cost disciplines, there is good room to surpass market earnings forecasts in FY27.</li>
<li>Its 7.3% dividend yield for FY27 is attractive. With net cash equalling 18.3% of the share price and no outstanding debt, it can maintain a high payout. </li>
</ul>


While Sa Sa (178 HK)'s share price reacted positively to its good FY26 result, trading on 2.08x P/B, this is still undemanding relative to the 5-year average.  
Overall turnover surged 24% in 1Q FY27, sustaining a solid momentum. Coupled with cost disciplines, there is good room to surpass market earnings forecasts in FY27.
Its 7.3% dividend yield for FY27 is attractive. With net cash equalling 18.3% of the share price and no outstanding debt, it can maintain a high payout. 


Sa Sa Intl (178 HK): Sustaining Its Strengths

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<a href="https://www.smartkarma.com/entities/sa-sa-international-hldgs" target="_blank" data-smartkarma-citation="entities:20143:1" rel="noopener">Sa Sa International Hldgs (178 HK)</a> has an encouraging 4Q FY 26, supporting a massive net profit surge. We expect its 3-year EPS CAGR to be 10.1%. </li>
<li>Improved store efficiency and stronger tourist arrivals have led to a revival in sales. The strength of Rmb against the HKD is another positive factor.</li>
<li>With ROE of 16-18%, against -5.1% in the last 5 years, the stock's 1.8x P/B is very cheap relative to the historical range of 1.4-6.1x.</li>
</ul>



Sa Sa International Hldgs (178 HK) has an encouraging 4Q FY 26, supporting a massive net profit surge. We expect its 3-year EPS CAGR to be 10.1%. 
Improved store efficiency and stronger tourist arrivals have led to a revival in sales. The strength of Rmb against the HKD is another positive factor.
With ROE of 16-18%, against -5.1% in the last 5 years, the stock's 1.8x P/B is very cheap relative to the historical range of 1.4-6.1x.


Sa Sa Intl (178 HK): Seeing a Clear Revival

Hong Kong

Lung Fung Group Holdings Limited conducts cosmeceutical retail chain businesses. The Company sells pharmaceutical, health, and beauty products. Lung Fung Group Holdings markets products online and offline.

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Lung Fung Group (2290 HK)

Primer: Lung Fung Group (LFG HK) - Apr 2026

Lung Fung Group is a leading pharmaceutical and beauty retailer in Hong Kong, holding the largest market share in the pharmaceutical retail...

αSK Primers

Lung Fung Group Holdings Ltd Pre-IPO Tearsheet

Lung Fung Group Holdings Ltd (LFG) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by DBS.

Akshat Shah

HK Strategy: The Imminent Sell-Off - What IPOs Are More Vulnerable?

The US market collapse on Friday will trigger panic in Asian markets. HK IPOs like Knowledge Atlas, Beijing Deepzero, GigaDevice Semiconductor,...

Osbert Tang, CFA

Sa Sa Intl (178 HK): Sustaining Its Strengths

Sa Sa just announced an 1Q FY27 offline sales growth of 29.3% (HK and Macao +31%). Its total turnover (offline and online) surged 22.9%. It added 2...

Osbert Tang, CFA

Sa Sa Intl (178 HK): Seeing a Clear Revival

Sa Sa Intl posted FY26 earnings of HK$200.5m, at the high end of the positive profit alert range. Besides the final DPS of HK$0.034, a special DPS...

Osbert Tang, CFA

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52-week Range

Market Cap (USDm)

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Primer: Lung Fung Group (LFG HK) - Apr 2026

Lung Fung Group is a leading pharmaceutical and beauty retailer in Hong Kong, holding the largest market share in the pharmaceutical retail...

αSK Primers

Lung Fung Group Holdings Ltd Pre-IPO Tearsheet

Lung Fung Group Holdings Ltd (LFG) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by DBS.

Akshat Shah

HK Strategy: The Imminent Sell-Off - What IPOs Are More Vulnerable?

​The US market collapse on Friday will trigger panic in Asian markets. HK IPOs like Knowledge Atlas, Beijing Deepzero, GigaDevice Semiconductor,...

Osbert Tang, CFA

Sa Sa Intl (178 HK): Sustaining Its Strengths

Sa Sa just announced an 1Q FY27 offline sales growth of 29.3% (HK and Macao +31%). Its total turnover (offline and online) surged 22.9%. It added 2...

Osbert Tang, CFA

Sa Sa Intl (178 HK): Seeing a Clear Revival

Sa Sa Intl posted FY26 earnings of HK$200.5m, at the high end of the positive profit alert range. Besides the final DPS of HK$0.034, a special DPS...

Osbert Tang, CFA

The US market collapse on Friday will trigger panic in Asian markets. HK IPOs like Knowledge Atlas, Beijing Deepzero, GigaDevice Semiconductor,...