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 Guangdong True Health Medical Technology (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Shenzhen Longsys Electronics (A/H Listing) - Sustainability of the Upward Trend Is Uncertain

Pre-IPO SHEIN Global Holdings (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Proya Cosmetics (A/H Listing)- The Downward Trend in Performance May Be Difficult to Reverse

Pre-IPO Shenzhen Mindray Bio-Medical Electronics (A/H Listing) - The Headwinds Still Exist

Pre-IPO CSPC Innovation Pharmaceutical (A/H Listing) - The Outlook Is Not Optimistic

Equity Capital Markets

Grandpa’s Farm International / Equity Capital Markets

<ul>
<li>The business model of GRANDPA’S FARM is: establishing high-end image through brand positioning of "organic products for infants/children", conducting light-asset production through OEM model, and driving growth with high-intensity marketing.</li>
<li>Due to population pressure in infant/child market, future growth would decrease.The "marketing for growth" model is unlikely to undergo fundamental transformation, leading to limited room for improvement in profit margin.</li>
<li>Due to higher growth/net profit margin, valuation of GRANDPA’S FARM would be higher than peers. For companies in their growth phase, comfortable valuation range could be a P/E of 15-25x.</li>
</ul>


The business model of GRANDPA’S FARM is: establishing high-end image through brand positioning of "organic products for infants/children", conducting light-asset production through OEM model, and driving growth with high-intensity marketing.
Due to population pressure in infant/child market, future growth would decrease.The "marketing for growth" model is unlikely to undergo fundamental transformation, leading to limited room for improvement in profit margin.
Due to higher growth/net profit margin, valuation of GRANDPA’S FARM would be higher than peers. For companies in their growth phase, comfortable valuation range could be a P/E of 15-25x.


Pre-IPO Grandpa’s Farm International - The Business Model, the Concerns and the Outlook