HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

Pre-IPO Mirxes Holding (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Foshan Haitian Flavouring & Food Company (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Muyuan Foods - The Hog King in China Has Greater Potential and Resilience

Chagee Holdings - Thoughts on the IPO Debut and the Valuation Outlook

Pre-IPO Chagee Holdings - IPO Pricing Is Attractive, But Share Price May Underperform

Pre-IPO Fujian Lemo IoT Technology - The Outlook for Growth and Profit Margins Is Not Optimistic

Equity Capital Markets

<ul>
<li>The core reason for the success of Chagee lies in the Company finding an effective "shortcut" of business model – “minimalism”, but this model does not imply a high moat.</li>
<li>A likely situation is Chagee's future growth in domestic market would be limited, and the overseas expansion could be unsatisfactory.So, we recommend investors to be cautious about the valuation prospects.</li>
<li>If domestic competition intensifies or overseas expansion falls short of expectations, it is highly likely that the stock price will fall back to the range of US$25-30/share or even lower.</li>
</ul>


The core reason for the success of Chagee lies in the Company finding an effective "shortcut" of business model – “minimalism”, but this model does not imply a high moat.
A likely situation is Chagee's future growth in domestic market would be limited, and the overseas expansion could be unsatisfactory.So, we recommend investors to be cautious about the valuation prospects.
If domestic competition intensifies or overseas expansion falls short of expectations, it is highly likely that the stock price will fall back to the range of US$25-30/share or even lower.
