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 DKE Holding Company (PHIP Updates) - How Much Real Value Does The "Leader" Actually Have?

Pre-IPO TOP TOY International Group - The Industry, the Business and the Valuation Outlook

Pre-IPO IMPACT Therapeutics - Thoughts on the Pipeline, the Concerns and Valuation Outlook

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

Equity Capital Markets

Hunan Xizi Health Group / Equity Capital Markets

<ul>
<li>Despite high revenue growth, the direct cost of relying on traffic is the squeeze on profits by the high marketing costs, thus leading to low net profit margin of Xizi. </li>
<li>After traffic dividend of e-commerce platforms fades, enterprises that overly rely on a single channel would have weak risk resistance capabilities.Adjustments in platform algorithms/intensified competition will cause fluctuations in performance.</li>
<li>Xizi has a faster growth rate and a lighter online model, and thus can be given a certain valuation premium. We think valuation of Xizi could be higher than <a href="https://www.smartkarma.com/entities/by-health-co-ltd-a" target="_blank" data-smartkarma-citation="entities:6395:1" rel="noopener">By-Health</a>.</li>
</ul>


Despite high revenue growth, the direct cost of relying on traffic is the squeeze on profits by the high marketing costs, thus leading to low net profit margin of Xizi. 
After traffic dividend of e-commerce platforms fades, enterprises that overly rely on a single channel would have weak risk resistance capabilities.Adjustments in platform algorithms/intensified competition will cause fluctuations in performance.
Xizi has a faster growth rate and a lighter online model, and thus can be given a certain valuation premium. We think valuation of Xizi could be higher than By-Health.


Pre-IPO Hunan Xizi Health Group - Weak Profitability Is a Pain Point