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.

China Healthcare Weekly (Aug.10)-Trump Plans Drug Tariff, Biosimilar VBP, BeiGene's Headwind in 25Q2

China Healthcare Weekly (Aug.17) - GLP-1s Inflection Point, Novartis to Acquire Avidity Biosciences

Pop Mart (9992 HK) - Core Reasons for High Growth and Performance Forecast

What Happens to China Healthcare? - The Soaring Shares, the Turning Point, and the Top Picks

Eastroc Beverage Group - High Growth in 25H1 Continues but Concerns Begin to Emerge

WuXi AppTec (2359.HK/603259.CH) 25H1 - The Turning Point of Performance Has Been Confirmed

China TCM (570.HK) - About the 25H1 Profit Warning and the Outlook

Equity Bottom-Up

<ul>
<li>The value of Laopu lies in its innovation in business model,successfully breaking away from the low-profit attribute of the industry by following the pricing and operation methods of luxury goods.</li>
<li>However, Laopu cannot enjoy the valuation system of luxury brands because it cannot “escape” gold price cycle.So, when valuation of Laopu approaches that of luxury brands, it has overvaluation risks.</li>
<li>Current valuation has priced in overseas expansion, which however isn’t a done deal.During upward cycle of gold prices,it’s easy to optimistically linearly extrapolate Laopu’s growth potential<em>.Valuation</em> faces downward revision risk  </li>
</ul>


The value of Laopu lies in its innovation in business model,successfully breaking away from the low-profit attribute of the industry by following the pricing and operation methods of luxury goods.
However, Laopu cannot enjoy the valuation system of luxury brands because it cannot “escape” gold price cycle.So, when valuation of Laopu approaches that of luxury brands, it has overvaluation risks.
Current valuation has priced in overseas expansion, which however isn’t a done deal.During upward cycle of gold prices,it’s easy to optimistically linearly extrapolate Laopu’s growth potential.Valuation faces downward revision risk  


Laopu Gold (6181.HK) - The Business Model, the Concerns, the Valuation Outlook