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 Softcare (PHIP Updates) - Some Points Worth the Attention

China Healthcare Weekly (Nov.9)-Medical Insurance “Warning Lines”, NewCo Model, BeiGene 25Q3 Results

Pre-IPO Sichuan Biokin Pharmaceutical (PHIP Updates) - Some Points Worth the Attention

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

Pre-IPO LXJ International Holdings - The Pain Points and the Outlook

Pre-IPO 52TOYS Development - The Business Model and the Concerns Behind

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

Pre-IPO Fujian Lemo IoT Technology - The Outlook for Growth and Profit Margins Is Not Optimistic

Equity Capital Markets

Herb Standard Holdings Limited / Equity Capital Markets

Herb Standard Holdings Limited (77888239 HK)

<ul>
<li>Herb Standard adopts light-asset model, which helps to bring about high gross margin.However, gross margin showed a declining trend due to increase in promotional discounts to capture more market share</li>
<li>The total sales value of products returned was up 317% YoY in FY2025 due to unsold products after promotional events. There're concerns whether the current strong growth momentum is sustainable</li>
<li>Our forecast is revenue to increase 20%/15%/12% and net profit to increase 14% /11.7%/8.8% in FY2026/FY2027/FY2028, respectively.Due to higher growth/profit margin, valuation of Herb Standard could be higher than peer</li>
</ul>


Herb Standard adopts light-asset model, which helps to bring about high gross margin.However, gross margin showed a declining trend due to increase in promotional discounts to capture more market share
The total sales value of products returned was up 317% YoY in FY2025 due to unsold products after promotional events. There're concerns whether the current strong growth momentum is sustainable
Our forecast is revenue to increase 20%/15%/12% and net profit to increase 14% /11.7%/8.8% in FY2026/FY2027/FY2028, respectively.Due to higher growth/profit margin, valuation of Herb Standard could be higher than peer


Pre-IPO Herb Standard Holdings Limited - The Business, the Concerns and the Outlook