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 Green Tea Group (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Jiangsu Hengrui Medicine - High Valuation Cannot Be Justified

Pre-IPO Xunfei Healthcare Technology (PHIP Updates) - Profitability Are Always the Pain Points

Pre-IPO Pu'er Lancang Ancient Tea (PHIP Updates) - Lack of Product Standardization Is the Pain Point

China Healthcare Weekly (Dec.15) - 10th VBP Results, WuXi Shares Surge, Newjf Will Be Successful

Equity Capital Markets

<ul>
<li>The most significant issue in the domestic tea industry is product standardization. This makes it difficult for tea companies to expand their market share and achieve economies of scale.</li>
<li>Bama’s revenue growth showed an upward trend, but the growth rate is declining. There're already signs of growth stagnation. High selling and marketing expenses will put pressure on profit margin.</li>
<li>Lancang and <a href="https://www.smartkarma.com/entities/tenfu-caymans-hldgs-co-ltd" target="_blank" data-smartkarma-citation="entities:5958:1" rel="noopener">Tenfu Caymans (6868 HK)</a> are comparable peers. Due to larger market share/revenue scale and higher profit margin in 24Q1-Q3, we think Bama’s valuation should be higher than peers.</li>
</ul>


The most significant issue in the domestic tea industry is product standardization. This makes it difficult for tea companies to expand their market share and achieve economies of scale.
Bama’s revenue growth showed an upward trend, but the growth rate is declining. There're already signs of growth stagnation. High selling and marketing expenses will put pressure on profit margin.
Lancang and Tenfu Caymans (6868 HK) are comparable peers. Due to larger market share/revenue scale and higher profit margin in 24Q1-Q3, we think Bama’s valuation should be higher than peers.


Pre-IPO Bama Tea - The Business Model, the Challenges and the Outlook