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 Shenzhen LDRobot - The IPO Pricing Is Reasonable

Pre-IPO Lung Fung Group (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Liuliumei Co., Ltd. (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Zhejiang Shimai Pharmaceutical - It Might Never Be Possible to Make Money

Pre-IPO Shenzhen Mindray Bio-Medical Electronics (A/H Listing) - The Headwinds Still Exist

Pre-IPO Sirius Therapeutics - The Pipeline and the Concerns Behind

Equity Capital Markets

Junlebao Dairy Group / Equity Capital Markets

<ul>
<li>Junlebao deliberately avoided the red sea market dominated by peers. This category-based offensive approach enabled Junlebao to achieve victories in segmented markets. However, the biggest risks lie in cost end. </li>
<li>The core contradiction in valuation is how much premium the market would pay for its "high-growth potential" and " leadership in specific segments" to offset the discount caused by risks.</li>
<li>If Yili and Mengniu launch more aggressive price or resource competition in low-temperature market segment, it will directly squeeze Junlebao's profit margin. Valuation of Junlebao could be lower than peers.  </li>
</ul>


Junlebao deliberately avoided the red sea market dominated by peers. This category-based offensive approach enabled Junlebao to achieve victories in segmented markets. However, the biggest risks lie in cost end. 
The core contradiction in valuation is how much premium the market would pay for its "high-growth potential" and " leadership in specific segments" to offset the discount caused by risks.
If Yili and Mengniu launch more aggressive price or resource competition in low-temperature market segment, it will directly squeeze Junlebao's profit margin. Valuation of Junlebao could be lower than peers.  


Inner Mongolia Yili Industrial Group (A) (600887 CH)

Pre-IPO Junlebao Dairy Group - The Strength and the Concerns