HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>FS adopts a unique light-asset business model of "R&amp;D design + outsourcing production + direct sales platform", which leads to higher profit margin than traditional channel sales vendors.</li>
<li>FS once failed in A-Share IPO and received penalty in 2025. Internal control defects are the "Achilles heel", which makes us worry whether FS has the problem of "inflating revenue". </li>
<li>Although FS has positive performance growth, the uncertainty of Sino-US relations and exchange rate risks may put pressure on profitability. Valuation of FS could be lower than peers. </li>
</ul>


FS adopts a unique light-asset business model of "R&amp;D design + outsourcing production + direct sales platform", which leads to higher profit margin than traditional channel sales vendors.
FS once failed in A-Share IPO and received penalty in 2025. Internal control defects are the "Achilles heel", which makes us worry whether FS has the problem of "inflating revenue". 
Although FS has positive performance growth, the uncertainty of Sino-US relations and exchange rate risks may put pressure on profitability. Valuation of FS could be lower than peers. 


Pre-IPO FS.COM - The Concerns Behind the Business Model and the Outlook

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Foxconn Industrial Internet / Technical Analysis

<ul>
<li>We remain near-term bullish SPX and ACWI since 4/22/25, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.</li>
<li>We discussed in our July 31, 2025 Int'l Compass how $128, $125-$126, and $123-$123.50 were short-term supports to watch on ACWI-US, and ACWI-US found support at $128 the next day.</li>
<li>Europe (EURO STOXX 50) is the last of the major countries (from a global market cap perspective) to break out; we expect it to be next</li>
</ul>


We remain near-term bullish SPX and ACWI since 4/22/25, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.
We discussed in our July 31, 2025 Int'l Compass how $128, $125-$126, and $123-$123.50 were short-term supports to watch on ACWI-US, and ACWI-US found support at $128 the next day.
Europe (EURO STOXX 50) is the last of the major countries (from a global market cap perspective) to break out; we expect it to be next


Europe Next to Break Out?; Bullish Outlook Intact; Remain Overweight Korea, Greece, and the U.S.

China

T&S Communications Co., Ltd. manufactures optic fiber products. The Company designs, produces, and sells ceramic ferrule, connectors, separators, and other related equipment. T&S Communications serves customers throughout China.

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T&S Communications Co Ltd (300570 CH)

Pre-IPO FS.COM - The Concerns Behind the Business Model and the Outlook

FS's unique light-asset model leads to higher profit margin, but internal control defects/exchange rate risks could impact profitability and...

Xinyao (Criss) Wang

Europe Next to Break Out?; Bullish Outlook Intact; Remain Overweight Korea, Greece, and the U.S.

Europe Next to Break Out?; China and Japan Remain Attractive and a big focus since our July 3rd report titled "China and Japan Breaking Out;"...

Vermilion Research

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52-week Range

Market Cap (USDm)

P/E

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Pre-IPO FS.COM - The Concerns Behind the Business Model and the Outlook

​FS's unique light-asset model leads to higher profit margin, but internal control defects/exchange rate risks could impact profitability and...

Xinyao (Criss) Wang

Europe Next to Break Out?; Bullish Outlook Intact; Remain Overweight Korea, Greece, and the U.S.

Europe Next to Break Out?; China and Japan Remain Attractive and a big focus since our July 3rd report titled "China and Japan Breaking Out;"...

Vermilion Research

FS's unique light-asset model leads to higher profit margin, but internal control defects/exchange rate risks could impact profitability and...