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 (May.4)-HK Stock Is About to Soar, Mindray's Trouble,Views on Akeso's Plunge

Pre-IPO Kayou - The Strength of Business Model and the Potential Risks Behind

Pre-IPO Jiangsu Hengrui Medicine H Share Listing (PHIP Updates) - Some Points Worth the Attention

Mixue Group (2097 HK) - Updates on Valuation Outlook and Growth Forecast Based on 2024 Results

Pre-IPO Auntea Jenny (Shanghai) Industrial - An IPO Is a Must, but Success Is Not Guaranteed

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 Chagee Holdings - Some Points Worth the Attention

Equity Capital Markets

Auntea Jenny (Shanghai) Industrial / Equity Capital Markets

Auntea Jenny (Shanghai) Industrial (2589 HK)

<ul>
<li>Like peers, we saw the performance growth slowdown of Auntea Jenny in 2024, mainly due to industry slowdown and intensified competition. Auntea Jenny does not have advantage in lower-tier markets.</li>
<li>Auntea Jenny relies on third-party suppliers, with insufficient cold chain coverage, resulting in weak cost control.It’s difficult to maintain the current profit margin level. Franchisees may be forced to quit.</li>
<li>Valuation of Auntea Jenny should be lower than Guming and MIXUE. Considering the weak fundamentals and uncertain outlook, it is already good if valuation could be similar to <a href="https://www.smartkarma.com/entities/sichuan-baicha-baidao-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:40029:1" rel="noopener">Baicha Baidao</a>.</li>
</ul>


Like peers, we saw the performance growth slowdown of Auntea Jenny in 2024, mainly due to industry slowdown and intensified competition. Auntea Jenny does not have advantage in lower-tier markets.
Auntea Jenny relies on third-party suppliers, with insufficient cold chain coverage, resulting in weak cost control.It’s difficult to maintain the current profit margin level. Franchisees may be forced to quit.
Valuation of Auntea Jenny should be lower than Guming and MIXUE. Considering the weak fundamentals and uncertain outlook, it is already good if valuation could be similar to Baicha Baidao.


Sichuan Baicha Baidao Industrial (2555 HK)

Pre-IPO Auntea Jenny (Shanghai) Industrial (PHIP Updates) - Some Points Worth the Attention