HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Ridge Outdoor International / Equity Capital Markets

<ul>
<li>The OEM/ODM model is facing challenges and cannot bring sustainable growth. This business model will lead to a lack of flexibility/innovation ability for Ridge in the face of market changes.</li>
<li>Transition from OEM/ODM to OBM requires high investment of resources in brand incubation/channel restructuring, which will lead to cash flow pressure.We cannot understand the logic behind Ridge's large dividend payout.</li>
<li>Valuation of Ridge could be higher than <a href="https://www.smartkarma.com/entities/yue-yuen-industrial-holdings-limited" target="_blank" data-smartkarma-citation="entities:12281:1" rel="noopener">Yue Yuen </a>but lower than <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic </a>and <a href="https://www.smartkarma.com/entities/comefly-outdoor-co-ltd" target="_blank" data-smartkarma-citation="entities:30268:1" rel="noopener">Comefly</a>. If the Company’s transformation to OBM business is stagnated, then high valuation is not justified  </li>
</ul>


The OEM/ODM model is facing challenges and cannot bring sustainable growth. This business model will lead to a lack of flexibility/innovation ability for Ridge in the face of market changes.
Transition from OEM/ODM to OBM requires high investment of resources in brand incubation/channel restructuring, which will lead to cash flow pressure.We cannot understand the logic behind Ridge's large dividend payout.
Valuation of Ridge could be higher than Yue Yuen but lower than Techtronic and Comefly. If the Company’s transformation to OBM business is stagnated, then high valuation is not justified  


Pre-IPO Ridge Outdoor International - The OEM/ODM Model Has Become a Burden

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Ridge Outdoor International (ROI HK)

Pre-IPO Ridge Outdoor International - The OEM/ODM Model Has Become a Burden

Transitioning from OEM/ODM to OBM is challenging due to cashflow pressure.If transformation stalls, high valuation is not justified.We don't...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Ridge Outdoor International - The OEM/ODM Model Has Become a Burden

​Transitioning from OEM/ODM to OBM is challenging due to cashflow pressure.If transformation stalls, high valuation is not justified.We don't...

Xinyao (Criss) Wang

Transitioning from OEM/ODM to OBM is challenging due to cashflow pressure.If transformation stalls, high valuation is not justified.We don't...