HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>Since listing, PROYA's revenue has maintained double-digit growth rate. But in 2025, PROYA lost its momentum. While core brand PROYA was struggling, the multi-brand matrix failed to turn the tide.</li>
<li>The competition for traffic among major brands is becoming increasingly fierce, and the cost of acquiring customers is rising, which has led to the high and growing expenses of PROYA.</li>
<li>Considering PROYA’s current situation of slowing growth, a certain valuation discount may occur. The reasonable P/E ratio range could be 20-25x, lower than peers such as <a href="https://www.smartkarma.com/entities/mao-geping-cosmetics-co-ltd-41b64ec7-42e1-4d89-9424-b63b5ba53ea4" target="_blank" data-smartkarma-citation="entities:1521:1" rel="noopener">Mao Geping</a>, <a href="https://www.smartkarma.com/entities/shanghai-chicmax-cosmetic-co-ltd" target="_blank" data-smartkarma-citation="entities:35503:1" rel="noopener">Chicmax.</a>
</li>
</ul>


Since listing, PROYA's revenue has maintained double-digit growth rate. But in 2025, PROYA lost its momentum. While core brand PROYA was struggling, the multi-brand matrix failed to turn the tide.
The competition for traffic among major brands is becoming increasingly fierce, and the cost of acquiring customers is rising, which has led to the high and growing expenses of PROYA.
Considering PROYA’s current situation of slowing growth, a certain valuation discount may occur. The reasonable P/E ratio range could be 20-25x, lower than peers such as Mao Geping, Chicmax.



Pre-IPO Proya Cosmetics (A/H Listing)- The Downward Trend in Performance May Be Difficult to Reverse

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of January 2nd.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics, Ck Infrastructure.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of January 2nd.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics, Ck Infrastructure.


HK Connect Flows Weekly (Jan 2nd): China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics

Forest Cabin Cosmetics / Equity Capital Markets

<ul>
<li>FOREST CABIN’s been subject to administrative penalties for false advertising. The natural ingredient that consumers truly pursue holds the highest premium in essence oil, but its content/efficacy is exaggerated.</li>
<li>Pre-IPO valuation reached over RMB3.8bn. Some investors may believe that, given that FOREST CABIN's profitability has initially been proven, its valuation is attractive. However, think FOREST CABIN have some issues.</li>
<li>Valuation of FOREST CABIN should be lower than Mao Geping. A comfortable range could be P/E of 20-30x. If future growth declined/profit margin deteriorates, valuation may fall to 10-20x P/E.</li>
</ul>


FOREST CABIN’s been subject to administrative penalties for false advertising. The natural ingredient that consumers truly pursue holds the highest premium in essence oil, but its content/efficacy is exaggerated.
Pre-IPO valuation reached over RMB3.8bn. Some investors may believe that, given that FOREST CABIN's profitability has initially been proven, its valuation is attractive. However, think FOREST CABIN have some issues.
Valuation of FOREST CABIN should be lower than Mao Geping. A comfortable range could be P/E of 20-30x. If future growth declined/profit margin deteriorates, valuation may fall to 10-20x P/E.


Pre-IPO Shanghai Forest Cabin Cosmetics Group (PHIP Updates) - Some Points Worth the Attention

Chando Global Holding / Equity Capital Markets

<ul>
<li>Revenue growth is just at the industry level and the growth rate is lower than the CAGR of market size of domestic brands. So, CHANDO is not a fast-growing company.</li>
<li>Profit margin is disappointing due to high selling and marketing costs. Net profit fluctuated. This reflects that CHANDO’s profit model is not yet stable, with relatively weak risk resistance capacity</li>
<li>Due to lower performance growth and profit margin, we think valuation of CHANDO would be lower than peers such as <a href="https://www.smartkarma.com/entities/giant-biogene-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:35950:1" rel="noopener">Giant Biogene</a>, <a href="https://www.smartkarma.com/entities/mao-geping-cosmetics-co-ltd-41b64ec7-42e1-4d89-9424-b63b5ba53ea4" target="_blank" data-smartkarma-citation="entities:1521:1" rel="noopener">Mao Geping</a>, <a href="https://www.smartkarma.com/entities/shanghai-chicmax-cosmetic-co-ltd" target="_blank" data-smartkarma-citation="entities:35503:1" rel="noopener">Chicmax </a>in Hong Kong market. </li>
</ul>


Revenue growth is just at the industry level and the growth rate is lower than the CAGR of market size of domestic brands. So, CHANDO is not a fast-growing company.
Profit margin is disappointing due to high selling and marketing costs. Net profit fluctuated. This reflects that CHANDO’s profit model is not yet stable, with relatively weak risk resistance capacity
Due to lower performance growth and profit margin, we think valuation of CHANDO would be lower than peers such as Giant Biogene, Mao Geping, Chicmax in Hong Kong market. 


Pre-IPO Chando Global Holding - Low Growth and Profitability Are Pain Points

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

Shanghai Conant Optical / Index Rebalance

<ul>
<li>On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Healthcare Index for the September 2025 rebalance. That takes us to 73 constituents.</li>
<li>Team Quiddity had expected 6 ADDs+1 DEL. We got 10 ADDs and 4 DELs. Our 7 names were correct and the other three DELs were our next three choices.</li>
<li>This is a smallish index, so we see US$300+mm to trade but there are a couple of big buys in terms of ADV.</li>
</ul>


On Friday 22 August, the Hang Seng Index team announced the changes to the Hang Seng Healthcare Index for the September 2025 rebalance. That takes us to 73 constituents.
Team Quiddity had expected 6 ADDs+1 DEL. We got 10 ADDs and 4 DELs. Our 7 names were correct and the other three DELs were our next three choices.
This is a smallish index, so we see US$300+mm to trade but there are a couple of big buys in terms of ADV.


[Quiddity Index] Sep25 HS Healthcare Index Review Announced; 10 ADDs, 4 DELs, 1 More Member Net

China

Chicmax is a multi-brand cosmetics company specializing in the research, development, production, and sale of skincare, maternity, and childcare products. The company offers a wide range of cosmetics under brands such as KANS, One Leaf, and Baby Elephant. It was founded in 2002 and is headquartered in Shanghai, China.

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Chicmax (2145 HK)

Pre-IPO Proya Cosmetics (A/H Listing)- The Downward Trend in Performance May Be Difficult to Reverse

PROYA's growth slowed in 2025 due to revenue slowdown of core brand, intense competition, rising customer acquisition cost, thus leading to...

Xinyao (Criss) Wang

HK Connect Flows Weekly (Jan 2nd): China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent...

Ke Yan, CFA, FRM

Pre-IPO Shanghai Forest Cabin Cosmetics Group (PHIP Updates) - Some Points Worth the Attention

Investors may find the valuation of Forest Cabin attractive, but there're some issues. Its valuation should be lower than Mao Geping. If growth...

Xinyao (Criss) Wang

Pre-IPO Chando Global Holding - Low Growth and Profitability Are Pain Points

CHANDO's slow revenue growth and low profit margin suggest lower valuation compared to peers in the Hong Kong market. CHANDO’s profit model is not...

Xinyao (Criss) Wang

[Quiddity Index] Sep25 HS Healthcare Index Review Announced; 10 ADDs, 4 DELs, 1 More Member Net

The Hang Seng Healthcare Index Review was announced Friday post-close. We expected 6 ADDs 1 DEL but got 10 ADDs 4 DELs. Broad changes announced but...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Proya Cosmetics (A/H Listing)- The Downward Trend in Performance May Be Difficult to Reverse

​PROYA's growth slowed in 2025 due to revenue slowdown of core brand, intense competition, rising customer acquisition cost, thus leading to...

Xinyao (Criss) Wang

HK Connect Flows Weekly (Jan 2nd): China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent Biologics

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for China Mobile, CMB, Tencent, ABC, HKEx, SMIC, Innovent...

Ke Yan, CFA, FRM

Pre-IPO Shanghai Forest Cabin Cosmetics Group (PHIP Updates) - Some Points Worth the Attention

Investors may find the valuation of Forest Cabin attractive, but there're some issues. Its valuation should be lower than Mao Geping. If growth...

Xinyao (Criss) Wang

Pre-IPO Chando Global Holding - Low Growth and Profitability Are Pain Points

​CHANDO's slow revenue growth and low profit margin suggest lower valuation compared to peers in the Hong Kong market. CHANDO’s profit model is not...

Xinyao (Criss) Wang

[Quiddity Index] Sep25 HS Healthcare Index Review Announced; 10 ADDs, 4 DELs, 1 More Member Net

The Hang Seng Healthcare Index Review was announced Friday post-close. We expected 6 ADDs 1 DEL but got 10 ADDs 4 DELs. Broad changes announced but...

Travis Lundy

PROYA's growth slowed in 2025 due to revenue slowdown of core brand, intense competition, rising customer acquisition cost, thus leading to...

CHANDO's slow revenue growth and low profit margin suggest lower valuation compared to peers in the Hong Kong market. CHANDO’s profit model is not...