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 Axbio International - Has the Potential to Be a Game Changer in Molecular Testing Market

Pre-IPO Eastroc Beverage Group - The Outlook Is Not Optimistic, with More Valuation Decline Ahead

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

Pre-IPO Jingze Biopharmaceutical (Hefei) - The Concerns and the Outlook

Equity Capital Markets

Fujian Lemo IoT Technology / Equity Capital Markets

<ul>
<li>Lemo can replicate on a large scale through offline outlets to reduce operating costs.But this model is characterized by heavy assets, with a single profit model of limited risk resistance.</li>
<li>Insufficient rigid demand is a major challenge for the industry.The declining revenue growth reflects the ineffective business expansion of Lemo, and the Company may have already encountered a growth ceiling. </li>
<li>Valuation of Lemo would be lower than peers due to the concerns of business expansion and slowing revenue. For example, 12-15x P/E may provide more safety margin for investors.</li>
</ul>


Lemo can replicate on a large scale through offline outlets to reduce operating costs.But this model is characterized by heavy assets, with a single profit model of limited risk resistance.
Insufficient rigid demand is a major challenge for the industry.The declining revenue growth reflects the ineffective business expansion of Lemo, and the Company may have already encountered a growth ceiling. 
Valuation of Lemo would be lower than peers due to the concerns of business expansion and slowing revenue. For example, 12-15x P/E may provide more safety margin for investors.


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