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 Shanghai Xizhi Technology (PHIP Update)-The Business, Peer Comparison, Thoughts on Valuation

Pre-IPO UISEE Technologies (PHIP Updates) - The Business, the Concerns and the Outlook

Pre-IPO Huaqin (3296 HK) - Thoughts on the IPO Pricing and the Outlook

Pre-IPO COL Global/Chineseall Digital Publishing (A/H Listing)- The Profit Model Is Facing Challenge

Pre-IPO Victory Giant Technology (A/H Listing) - The Business and the Outlook

Pre-IPO Jintan - About the Business Model, the Risks and the Peer Comparison

Equity Capital Markets

Huaqin Technology / Equity Capital Markets

<ul>
<li>Huaqin adopts "3+N+3" global large platform strategy. The core of business model lies in large-scale manufacturing and vertical integration. Due to “Buy &amp; Sell model”, profitability is a concern.</li>
<li>Despite negative operating cash flow, Huaqin still announced RMB1.216 billion dividend. The controlling shareholder has pledged shares for financing, which attracted market attention to the true adequacy of its funds.</li>
<li>Although Huaqin has big revenue scale, its profit quality, cash flow, corporate governance transparency are weaker than peers, making it difficult to enjoy the same level of valuation premium.   </li>
</ul>


Huaqin adopts "3+N+3" global large platform strategy. The core of business model lies in large-scale manufacturing and vertical integration. Due to “Buy &amp; Sell model”, profitability is a concern.
Despite negative operating cash flow, Huaqin still announced RMB1.216 billion dividend. The controlling shareholder has pledged shares for financing, which attracted market attention to the true adequacy of its funds.
Although Huaqin has big revenue scale, its profit quality, cash flow, corporate governance transparency are weaker than peers, making it difficult to enjoy the same level of valuation premium.   


Pre-IPO Huaqin (A/H Listing) - Low Profit Margin Is a Pain Point Due to Flaws in Business Model