HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

New Ruipeng Pet Group / Equity Capital Markets

<ul>
<li>New Ruipeng’s revenue growth continued to slow down. Investors would be hardly happy with the weak profitability, which is hard to improve due to heavy asset model and industry characteristics.</li>
<li>The more New Ruipeng expands, the more losses it incurs. We call it “diseconomies of scale”.The Company is at an impasse, and even face survival problem due to limited cashflow.</li>
<li>The industry immaturity cannot support the company's rapid expansion. If the stock price doesn't perform well or even the IPO fails, capital would reconsider whether to invest in this field.</li>
</ul>


New Ruipeng’s revenue growth continued to slow down. Investors would be hardly happy with the weak profitability, which is hard to improve due to heavy asset model and industry characteristics.
The more New Ruipeng expands, the more losses it incurs. We call it “diseconomies of scale”.The Company is at an impasse, and even face survival problem due to limited cashflow.
The industry immaturity cannot support the company's rapid expansion. If the stock price doesn't perform well or even the IPO fails, capital would reconsider whether to invest in this field.


Pre-IPO New Ruipeng Pet Group (RPET.US) - The Potential Failure of Pet Healthcare and the Bleak IPO

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>On the IPO front, <a href="https://www.smartkarma.com/entities/hesai-group" target="_blank" data-smartkarma-citation="entities:36743:1" rel="noopener">Hesai Group (HSAI US)</a> provided the first Asia linked listing for the year.</li>
<li>Things were quiet on the placement front owing to the annual earnings reporting season.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, Hesai Group (HSAI US) provided the first Asia linked listing for the year.
Things were quiet on the placement front owing to the annual earnings reporting season.


ECM Weekly (12th Feb 2023) - Hesai, Oasis, Mankind, Greatpower, Ruipeng, CATL, Nissan/Renault

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

<ul>
<li>
<a href="https://www.smartkarma.com/entities/new-ruipeng-pet-group-inc" target="_blank" data-smartkarma-citation="entities:36735:1" rel="noopener">New Ruipeng Pet Group (RPET US)</a> is looking to raise at least US$100m in its upcoming US IPO.</li>
<li>New Ruipeng Pet Group (Ruipeng) is a pet services platform, primarily offering pet care services, supply chain services and local services, covering the entire lifecycle of pets. </li>
<li>In our previous notes, we have looked at the company’s past performance. In this note, we undertake a peer comparison.</li>
</ul>



New Ruipeng Pet Group (RPET US) is looking to raise at least US$100m in its upcoming US IPO.
New Ruipeng Pet Group (Ruipeng) is a pet services platform, primarily offering pet care services, supply chain services and local services, covering the entire lifecycle of pets. 
In our previous notes, we have looked at the company’s past performance. In this note, we undertake a peer comparison.


New Ruipeng Pet Group Pre-IPO Peer Comparison - Largest Domestic Player, but Smallest Margins

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>New Ruipeng is the largest pet care platform in China and second largest globally in terms of no.of hospitals and revenue from pet care services in both 2020 and 2021.</li>
<li>The company has filed for an IPO in the US and plans to raise at least US$100m through the IPO.</li>
<li>Though the company’s operations were negatively affected by Covid-19, our analysis shows that intense competition has led to the company losing its market share in the pet care services.</li>
</ul>


New Ruipeng is the largest pet care platform in China and second largest globally in terms of no.of hospitals and revenue from pet care services in both 2020 and 2021.
The company has filed for an IPO in the US and plans to raise at least US$100m through the IPO.
Though the company’s operations were negatively affected by Covid-19, our analysis shows that intense competition has led to the company losing its market share in the pet care services.


New Ruipeng Pet IPO: Covid-19 Is Not the Sole Reason for Mediocre Performance

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

<ul>
<li>New Ruipeng Pet Group, a China-based pet clinic operator and provider of pet care services, filed for a U.S. IPO. The company plans to list ADSs under the ticker "RPET."</li>
<li>The company’s most recent private round was a $500M venture round led by Boehringer Ingelheim and Tencent at a ~$4.4B valuation in September 2020. </li>
<li>We believe investors should think twice before investing in the New Ruipeng IPO as the pet hospital operator struggled to grow revenues, operating losses mounted, and labor costs increased.</li>
</ul>


New Ruipeng Pet Group, a China-based pet clinic operator and provider of pet care services, filed for a U.S. IPO. The company plans to list ADSs under the ticker "RPET."
The company’s most recent private round was a $500M venture round led by Boehringer Ingelheim and Tencent at a ~$4.4B valuation in September 2020. 
We believe investors should think twice before investing in the New Ruipeng IPO as the pet hospital operator struggled to grow revenues, operating losses mounted, and labor costs increased.


New Ruipeng Pet Group IPO: Struggling Pet Hospital Operator. Hard To Justify Premium Valuation

United States

New Ruipeng Pet Group Inc. operates as a holding company. The Company, through its subsidiaries, provides pet care service and sales of pet products. New Ruipeng Pet Group serves customers in China.

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New Ruipeng Pet Group (RPET US)

Pre-IPO New Ruipeng Pet Group (RPET.US) - The Potential Failure of Pet Healthcare and the Bleak IPO

New Ruipeng has experienced a stagnation in expansion and performance. Even if New Ruipeng barely makes an IPO, stock price could underperform due...

Xinyao (Criss) Wang

ECM Weekly (12th Feb 2023) - Hesai, Oasis, Mankind, Greatpower, Ruipeng, CATL, Nissan/Renault

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

New Ruipeng Pet Group Pre-IPO Peer Comparison - Largest Domestic Player, but Smallest Margins

New Ruipeng Pet Group (RPET US) is looking to raise at least US$100m in its upcoming US IPO. In this note, we undertake a peer comparison.

Clarence Chu

New Ruipeng Pet IPO: Covid-19 Is Not the Sole Reason for Mediocre Performance

Though Covid-19 has had a negative impact , intense competition and market share erosion are two key causes for the slowdown in pet care segment...

Shifara Samsudeen, FCMA, CGMA

New Ruipeng Pet Group IPO: Struggling Pet Hospital Operator. Hard To Justify Premium Valuation

We believe investors should think twice before investing as the company’s revenue growth deceleration, competition, and worsening fundamentals may...

Andrei Zakharov

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