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.

Goldlion Holdings (533 HK) Privatization - About the Deal Break and the Valuation Outlook

Pre-IPO Mirxes Holding (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Foshan Haitian Flavouring & Food Company (PHIP Updates) - Some Points Worth the Attention

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

Pre-IPO Green Tea Group - Lack of an Attractive "Growth Story"

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

Pre-IPO Xuanzhu Biopharmaceutical- Outdated Pipelines Are Difficult to Bring Good Investment Returns

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

Equity Capital Markets

<ul>
<li>The HK$7.19/share IPO pricing is attractive. The valuation safety margin reserved for the IPO of Green Tea may be mainly due to the management's consideration of attracting long-term funds.</li>
<li>If the market sentiment is positive, combined with conservative IPO pricing, Green Tea would still perform well after listing. For example, valuation has the potential to recover to 15x P/E.</li>
<li>However, when scale expansion fails to bring efficiency improvement,“cracks” appear in the core logic of the capital story.So, taking profits when Green Tea's valuation exceeds Xiaocaiyuan is a good option.  </li>
</ul>


The HK$7.19/share IPO pricing is attractive. The valuation safety margin reserved for the IPO of Green Tea may be mainly due to the management's consideration of attracting long-term funds.
If the market sentiment is positive, combined with conservative IPO pricing, Green Tea would still perform well after listing. For example, valuation has the potential to recover to 15x P/E.
However, when scale expansion fails to bring efficiency improvement,“cracks” appear in the core logic of the capital story.So, taking profits when Green Tea's valuation exceeds Xiaocaiyuan is a good option.  


Xiaocaiyuan International Holding (XCY HK)

Pre-IPO Green Tea Group - Thoughts on IPO Pricing and Valuation Outlook