HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Beauty Farm Medical and Health Industry / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beauty-farm-medical-and-health-industry-inc" target="_blank" data-smartkarma-citation="entities:35923:1" rel="noopener">Beauty Farm Medical and Health Industry (BFM HK)</a>’s solid growth has indicated that its business model works. But the industry tightening regulation and potential policy risk are our concerns.</li>
<li>As a downstream company in this industry, we are conservative about Beauty Farm’s profitability. Its profit space could be limited. The Company has weak bargaining power in the whole industrial chain.</li>
<li>Beauty Farm's performance could continue to be under pressure due to weak recovery of domestic demand after three years of the pandemic, especially those non-rigid consumption demand. </li>
</ul>



Beauty Farm Medical and Health Industry (BFM HK)’s solid growth has indicated that its business model works. But the industry tightening regulation and potential policy risk are our concerns.
As a downstream company in this industry, we are conservative about Beauty Farm’s profitability. Its profit space could be limited. The Company has weak bargaining power in the whole industrial chain.
Beauty Farm's performance could continue to be under pressure due to weak recovery of domestic demand after three years of the pandemic, especially those non-rigid consumption demand. 


Pre-IPO Beauty Farm Medical and Health Industry - Hard to Make Money Due to Industry Characteristics

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beauty-farm-medical-and-health-industry-inc" target="_blank" data-smartkarma-citation="entities:35923:1" rel="noopener">Beauty Farm Medical and Health Industry (BFM HK)</a> is the largest provider of traditional beauty services and the fourth largest non-surgical aesthetic medical service provider in China.</li>
<li>The company seeks to raise $300 million from an IPO in Hong Kong market. Morgan Stanley, Haitong International, and Huatai International are the joint sponsors for the proposed IPO.</li>
<li>COVID-19 has hurt recent financial performance of the company and forced it to shut many of the stores in multiple locations. Further, stretched valuation make the IPO unappealing to investors.</li>
</ul>



Beauty Farm Medical and Health Industry (BFM HK) is the largest provider of traditional beauty services and the fourth largest non-surgical aesthetic medical service provider in China.
The company seeks to raise $300 million from an IPO in Hong Kong market. Morgan Stanley, Haitong International, and Huatai International are the joint sponsors for the proposed IPO.
COVID-19 has hurt recent financial performance of the company and forced it to shut many of the stores in multiple locations. Further, stretched valuation make the IPO unappealing to investors.


Beauty Farm Medical and Health Industry (BFM HK) IPO: Pandemic Blemishes Near-Term Growth Prospect

Beijing Evercare Medical Technology Group / Equity Capital Markets

Beijing Evercare Medical Technology Group

With the innovation of medical beauty technology and consumers' higher standard for their own image, the market demand for aesthetic medical services is increasing. After <a href="https://www.smartkarma.com/entities/imeik-technology-development-co-ltd" target="_blank" data-smartkarma-citation="entities:32170:1" rel="noopener">Imeik Technology Development (300896 CH)</a> submitted its prospectus to HKEX, another company in medical beauty industry, <a href="https://www.smartkarma.com/entities/beijing-evercare-medical-technology-group-co-ltd" target="_blank" data-smartkarma-citation="entities:34189:1" rel="noopener">Beijing Evercare Medical Technology Group (EMT HK)</a>, also officially started its IPO process. Evercare is a leading private aesthetic medical institution group in China. However, if look closely, Evercare is actually facing many challenges, and its outlook may not be optimistic. This insight mainly analyzed the concerns of the Company that worth the investors’ attention.

With the innovation of medical beauty technology and consumers' higher standard for their own image, the market demand for aesthetic medical services is increasing. After Imeik Technology Development (300896 CH) submitted its prospectus to HKEX, another company in medical beauty industry, Beijing Evercare Medical Technology Group (EMT HK), also officially started its IPO process. Evercare is a leading private aesthetic medical institution group in China. However, if look closely, Evercare is actually facing many challenges, and its outlook may not be optimistic. This insight mainly analyzed the concerns of the Company that worth the investors’ attention.

Pre-IPO Beijing Evercare Medical Technology Group - The Outlook May Not Be Optimistic

Thematic (Sector/Industry)

With the development of the times, people have a higher standard for their own image. More and more young people seek to improve their appearance, so as to gain certain advantages in social contact, life, job hunting and work. Such trend is stimulating consumer demand for beauty. Under this background, it directly promotes the rapid growth of the medical beauty industry in China.

With the development of the times, people have a higher standard for their own image. More and more young people seek to improve their appearance, so as to gain certain advantages in social contact, life, job hunting and work. Such trend is stimulating consumer demand for beauty. Under this background, it directly promotes the rapid growth of the medical beauty industry in China.

Industry Report - Insights on China Medical Beauty Industry

Raily Aesthetic Medicine International Holdings Limited / Equity Capital Markets

Raily Aesthetic Medicine International Holdings Limited

On December 15th, <a href="https://www.smartkarma.com/entities/raily-aesthetic-medicine-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:31100:1" rel="noopener">Raily Aesthetic Medicine (2135 HK)</a> began to raise capital by floating shares. The Company planned to issue 342.5 million shares at an issue price of HK$0.3-0.4 per share, with a corresponding market value of HK$617 million - HK$822 million. Raily is expected to go public on December 28th. Whether the Company could develop smoothly after going public is worth the attention of the capital market.

On December 15th, Raily Aesthetic Medicine (2135 HK) began to raise capital by floating shares. The Company planned to issue 342.5 million shares at an issue price of HK$0.3-0.4 per share, with a corresponding market value of HK$617 million - HK$822 million. Raily is expected to go public on December 28th. Whether the Company could develop smoothly after going public is worth the attention of the capital market. 

Pre-IPO Raily Aesthetic Medicine (2135.HK) - Here Are the Concerns

China

Raily Aesthetic Medicine International Holdings Limited offers aesthetic medical services. The Company provides aesthetic surgery services, minimally invasive aesthetic services, aesthetic dermatology services, and other services. Raily Aesthetic Medicine International Holdings provides its services throughout China.

Raily Aesthetic Medicine International Holdings Limited (2135 HK)

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Raily Aesthetic Medicine International Holdings Limited (2135 HK)

Pre-IPO Beauty Farm Medical and Health Industry - Hard to Make Money Due to Industry Characteristics

As a downstream company, Beauty Farm has weak bargaining power in the whole industrial chain.We are conservative about its profitability. The...

Xinyao (Criss) Wang

Beauty Farm Medical and Health Industry (BFM HK) IPO: Pandemic Blemishes Near-Term Growth Prospect

The company aims to raise ~$300M by listing on the HKEX. However, the pandemic has took a toll on the company’s recent financial performance in...

Tina Banerjee

Pre-IPO Beijing Evercare Medical Technology Group - The Outlook May Not Be Optimistic

The article analyzed Evercare Medical in terms of the concerns that worth the attention such as the business expansion, the profitability, lack of...

Xinyao (Criss) Wang

Industry Report - Insights on China Medical Beauty Industry

The article analyzed China medical beauty industry in terms of market potential,non-surgical medical beauty items, the industry chain/pain...

Xinyao (Criss) Wang

Pre-IPO Raily Aesthetic Medicine (2135.HK) - Here Are the Concerns

The article analyzed the major concerns of Raily Aesthetic Medicine in terms of financial position, high-quality talents, domestic regulations and...

Xinyao (Criss) Wang

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