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 (Sep.14) - Trump to Put Restrictions on Chinese Drugs, Sihuan Is Undervalued

Pre-IPO Butong Group (PHIP Updates) - Some Points Worth the Attention

Pre-IPO GenFleet Therapeutics (PHIP Updates) - Some Points Worth the Attention

Chongqing Taiji Industry (Group) (600129 CH) - Investors Are Betting on the Merger with China TCM

Pre-IPO Jiangxi Institute of Biological Products-Concerns Behind the Strong Growth and Profitability

Pre-IPO Eastenova (Chengdu) Biotechnology- The Commercialization of XH301 May Be Lower than Expected

Equity Capital Markets

<ul>
<li>AUX mainly relies on low-price strategy to compete in the industry and has maintained robust growth in revenue/net profit.However, there's already a significant gap in scale compared with leading peers</li>
<li>Due to higher growth, AUX’s valuation could be higher than that of Midea and Gree. However, due to risks such as high debt and weak R&amp;D, valuation premium is limited.</li>
<li>A high valuation (e.g. P/E &gt;15x) can be justified only if the transition to a technology-driven value model can be completed before the cash flow of low-price model dries up.</li>
</ul>


AUX mainly relies on low-price strategy to compete in the industry and has maintained robust growth in revenue/net profit.However, there's already a significant gap in scale compared with leading peers
Due to higher growth, AUX’s valuation could be higher than that of Midea and Gree. However, due to risks such as high debt and weak R&amp;D, valuation premium is limited.
A high valuation (e.g. P/E &gt;15x) can be justified only if the transition to a technology-driven value model can be completed before the cash flow of low-price model dries up.


Pre-IPO Aux Electric Co (PHIP Updates) - Concerns About Business Model and Valuation Outlook