In today’s briefing:
- Pre-IPO LANTIAN Group Holdings – The Industry Is Saturated, with Weak Profitability
- Sichuan Baicha Baidao Pre-IPO – Thoughts on Valuation
Pre-IPO LANTIAN Group Holdings – The Industry Is Saturated, with Weak Profitability
- The industry in which LANTIAN operates has basically bid farewell to the era of high-speed growth. The baby diaper products market is nearing saturation, with limited future growth potential.
- The economy baby diaper products market is the last segment to bring alpha. However, it’s not easy for LANTIAN to break through considering strong international big names and local brands.
- Profit margin of LANTIAN is low. If this is the characteristic of this industry, then baby diaper products isn’t a profitable business.Investors could have other options to achieve higher returns.
Sichuan Baicha Baidao Pre-IPO – Thoughts on Valuation
- Sichuan Baicha Baidao Industrial (SBBI) is looking to raise up to US$300m in its upcoming HK IPO.
- SBBI sells new-style tea drinks through its ChaPanda stores. According to F&S, SBBI ranked third in China’s new-style tea shop market with a market share of 6.8% in FY23.
- We have looked at the company’s past performance in our earlier notes. In this note, we provide our initial thoughts on valuations.
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