HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

LXJ International Holdings / Equity Capital Markets

<ul>
<li>LXJ’s revenue/net profit showed an upward trend from 2022 to 24Q1-Q3, but growth momentum was decreasing. The same store sales growth dropped significantly. Profit margin is also lower than peers. </li>
<li>There’re significant differences in dietary habits and tastes across China, making it difficult for LXJ to expand nationwide. So, the future growth potential may not be as good as expected.</li>
<li>In December 2021, valuation of LXJ had reached RMB18 billion. Since LXJ’s revenue growth/profit margin are inferior to Xiaocaiyuan, we think the valuation of LXJ should be lower than Xiaocaiyuan.</li>
</ul>


LXJ’s revenue/net profit showed an upward trend from 2022 to 24Q1-Q3, but growth momentum was decreasing. The same store sales growth dropped significantly. Profit margin is also lower than peers. 
There’re significant differences in dietary habits and tastes across China, making it difficult for LXJ to expand nationwide. So, the future growth potential may not be as good as expected.
In December 2021, valuation of LXJ had reached RMB18 billion. Since LXJ’s revenue growth/profit margin are inferior to Xiaocaiyuan, we think the valuation of LXJ should be lower than Xiaocaiyuan.


Pre-IPO LXJ International Holdings - The Pain Points and the Outlook

APAC IPOs & Placements, Aequitas Research

Troy Wong

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.

<ul>
<li>LXJ International Holdings Limited (LXJIH) is looking to raise at least US$100m in its upcoming Hong Kong IPO.</li>
<li>As a market leader in the Chinese-style QSR market in China, LXJIH was focused on its self-operated restaurant model for expansion but has recently ramped up its franchise business.</li>
<li>Post-COVID, LXJIH’s margins have bounced but if LXJIH continues to expand its franchise business while converting self-operated restaurants, there might be pressure on revenue growth and margins going forward.</li>
</ul>


LXJ International Holdings Limited (LXJIH) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
As a market leader in the Chinese-style QSR market in China, LXJIH was focused on its self-operated restaurant model for expansion but has recently ramped up its franchise business.
Post-COVID, LXJIH’s margins have bounced but if LXJIH continues to expand its franchise business while converting self-operated restaurants, there might be pressure on revenue growth and margins going forward.


LXJ International Holdings Pre-IPO - Further Revenue & Margin Pressures Ahead

Akshat Shah

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lxj-international-holdings" target="_blank" data-smartkarma-citation="entities:44213:1" rel="noopener">LXJ International Holdings (LXJ HK)</a> is looking to raise atleast US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC and Haitong.</li>
<li>LXJ International Holdings Limited (LXJIH) is a Chinese-style QSR brand having a chain of fast food restaurants in China.</li>
<li>It was ranked first in the Chinese-style QSR industry in China by GMV in 2023, according to CIC, making it the largest Chinese-style QSR brand in China.</li>
</ul>



LXJ International Holdings (LXJ HK) is looking to raise atleast US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC and Haitong.
LXJ International Holdings Limited (LXJIH) is a Chinese-style QSR brand having a chain of fast food restaurants in China.
It was ranked first in the Chinese-style QSR industry in China by GMV in 2023, according to CIC, making it the largest Chinese-style QSR brand in China.


LXJ International Holdings Pre-IPO Tearsheet

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>LXJ International Holdings (LXJ HK) (knowns as Lao Xiang Ji or Home Original Chicken) is getting ready to complete its IPO in Hong Kong in 1H 2025. </li>
<li>Founded in 1982 by Shu Congxuan, LXJ International specializes in traditional Chinese style chicken dishes. The company is one of the major local players in China's fast food industry.</li>
<li>LXJ's solid growth in sales and profits in the past several years despite weak Chinese economy is a strong reflection of the company's loyal customers in China. </li>
</ul>


LXJ International Holdings (LXJ HK) (knowns as Lao Xiang Ji or Home Original Chicken) is getting ready to complete its IPO in Hong Kong in 1H 2025. 
Founded in 1982 by Shu Congxuan, LXJ International specializes in traditional Chinese style chicken dishes. The company is one of the major local players in China's fast food industry.
LXJ's solid growth in sales and profits in the past several years despite weak Chinese economy is a strong reflection of the company's loyal customers in China. 


Guangzhou Xiao Noodles Catering Management / Equity Capital Markets

Guangzhou Xiao Noodles Catering Management

<ul>
<li>Although the revenue is growing, net profit margin is low, which is due to Xiao Noodles’ operational model, high costs, products and brand positioning. Key performance indicators declined in 2024.</li>
<li>If competition becomes increasingly fierce and Xiao Noodles’ price reduction strategy continues, the investment return period would be longer, which will affect the Company's future expansion plans and performance growth.</li>
<li>Based on our forecast, pre-IPO valuation of RMB3 billion is expensive. If Xiao Noodles is unable to reverse the trend of declining performance, it will face valuation discounts after IPO.</li>
</ul>


Although the revenue is growing, net profit margin is low, which is due to Xiao Noodles’ operational model, high costs, products and brand positioning. Key performance indicators declined in 2024.
If competition becomes increasingly fierce and Xiao Noodles’ price reduction strategy continues, the investment return period would be longer, which will affect the Company's future expansion plans and performance growth.
Based on our forecast, pre-IPO valuation of RMB3 billion is expensive. If Xiao Noodles is unable to reverse the trend of declining performance, it will face valuation discounts after IPO.


Pre-IPO Guangzhou Xiao Noodles Catering Management - Pain Points in Operation Mode and Profit Margin

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

LXJ International Holdings (LXJ HK)

Pre-IPO LXJ International Holdings - The Pain Points and the Outlook

LXJ's revenue and profit are on the rise but growth is slowing, facing challenges in expanding nationwide due to regional dietary differences....

Xinyao (Criss) Wang

LXJ International Holdings Pre-IPO - Further Revenue & Margin Pressures Ahead

LXJ International Holdings plans to raise $100m in Hong Kong IPO, shifting focus to franchise business from self-operated restaurants may cause...

Troy Wong

LXJ International Holdings Pre-IPO Tearsheet

LXJ International Holdings Limited is looking to raise atleast US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC and Haitong.

Akshat Shah

LXJ International IPO Preview

LXJ International Holdings is getting ready to complete its IPO in Hong Kong in 1H 2025. LXJ specializes in traditional Chinese style chicken dishes.

Douglas Kim

Pre-IPO Guangzhou Xiao Noodles Catering Management - Pain Points in Operation Mode and Profit Margin

Xiao Noodles faces challenges with low profit margins, declining performance, and potential valuation discounts post-IPO if trends continue....

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO LXJ International Holdings - The Pain Points and the Outlook

​LXJ's revenue and profit are on the rise but growth is slowing, facing challenges in expanding nationwide due to regional dietary differences....

Xinyao (Criss) Wang

LXJ International Holdings Pre-IPO - Further Revenue & Margin Pressures Ahead

​LXJ International Holdings plans to raise $100m in Hong Kong IPO, shifting focus to franchise business from self-operated restaurants may cause...

Troy Wong

LXJ International Holdings Pre-IPO Tearsheet

LXJ International Holdings Limited is looking to raise atleast US$100m in its upcoming Hong Kong IPO. The deal will be run by CICC and Haitong.

Akshat Shah

LXJ International IPO Preview

LXJ International Holdings is getting ready to complete its IPO in Hong Kong in 1H 2025. LXJ specializes in traditional Chinese style chicken dishes.

Douglas Kim

Pre-IPO Guangzhou Xiao Noodles Catering Management - Pain Points in Operation Mode and Profit Margin

​Xiao Noodles faces challenges with low profit margins, declining performance, and potential valuation discounts post-IPO if trends continue....

Xinyao (Criss) Wang

LXJ's revenue and profit are on the rise but growth is slowing, facing challenges in expanding nationwide due to regional dietary differences....

LXJ International Holdings plans to raise $100m in Hong Kong IPO, shifting focus to franchise business from self-operated restaurants may cause...

Xiao Noodles faces challenges with low profit margins, declining performance, and potential valuation discounts post-IPO if trends continue....