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 JD Industrials (PHIP Updates) - Business Model, Peer Comparison, Forecast and Valuation

3SBio Inc (1530 HK) Placement - The Placing Price Indicates Decent Upside Potential in Valuation

Pre-IPO Shanghai Bao Pharmaceuticals - Future Commercialization Is a Test

Pre-IPO Mandi Inc. - The Business Model, the Concerns and the Valuation

Equity Capital Markets

JINGDONG Industrials / Equity Capital Markets

<ul>
<li>Based on 2025 revenue forecast of RMB24.1bn and the IPO price range, P/S is about 1.28-1.56x, higher than ZKH but lower than <a href="https://www.smartkarma.com/entities/ww-grainger-inc" target="_blank" data-smartkarma-citation="entities:20019:1" rel="noopener">Ww Grainger</a>. This is a reasonable valuation range.</li>
<li>The median IPO price range (HK$14.1/share) is a more likely/relatively safe outcome.This not only acknowledges JD Industrials’ leading position/growth story, but also partly reflects the market's perception of its challenges.</li>
<li>The IPO pricing is the result of seeking a balance between the "premium of industry leaders" and "its shortcomings".However, future valuation depends on whether JD Industrials can solve fundamental issues.</li>
</ul>


Based on 2025 revenue forecast of RMB24.1bn and the IPO price range, P/S is about 1.28-1.56x, higher than ZKH but lower than Ww Grainger. This is a reasonable valuation range.
The median IPO price range (HK$14.1/share) is a more likely/relatively safe outcome.This not only acknowledges JD Industrials’ leading position/growth story, but also partly reflects the market's perception of its challenges.
The IPO pricing is the result of seeking a balance between the "premium of industry leaders" and "its shortcomings".However, future valuation depends on whether JD Industrials can solve fundamental issues.


Pre-IPO JD Industrials - Thoughts on Valuation, IPO Pricing, and the Outlook