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.

China Healthcare Weekly (May.4)-HK Stock Is About to Soar, Mindray's Trouble,Views on Akeso's Plunge

Pre-IPO Kayou - The Strength of Business Model and the Potential Risks Behind

Pre-IPO Green Tea Group (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Green Tea Group - Lack of an Attractive "Growth Story"

Pre-IPO MIXUE Group - The Snow King Opens up a Lot More Room for Imagination than Expected

Pre-IPO Xiaocaiyuan International Holding (PHIP Updates) - Some Points Worth the Attention

Pre-IPO S.F. Holding (6936 HK) - Thoughts on Valuation and the Outlook

Ping An Healthcare and Technology (1833 HK) - Privatization Ahead?

Equity Capital Markets

LXJ International Holdings / Equity Capital Markets

<ul>
<li>LXJ’s revenue/net profit showed an upward trend from 2022 to 24Q1-Q3, but growth momentum was decreasing. The same store sales growth dropped significantly. Profit margin is also lower than peers. </li>
<li>There’re significant differences in dietary habits and tastes across China, making it difficult for LXJ to expand nationwide. So, the future growth potential may not be as good as expected.</li>
<li>In December 2021, valuation of LXJ had reached RMB18 billion. Since LXJ’s revenue growth/profit margin are inferior to Xiaocaiyuan, we think the valuation of LXJ should be lower than Xiaocaiyuan.</li>
</ul>


LXJ’s revenue/net profit showed an upward trend from 2022 to 24Q1-Q3, but growth momentum was decreasing. The same store sales growth dropped significantly. Profit margin is also lower than peers. 
There’re significant differences in dietary habits and tastes across China, making it difficult for LXJ to expand nationwide. So, the future growth potential may not be as good as expected.
In December 2021, valuation of LXJ had reached RMB18 billion. Since LXJ’s revenue growth/profit margin are inferior to Xiaocaiyuan, we think the valuation of LXJ should be lower than Xiaocaiyuan.


Xiaocaiyuan International Holding (XCY HK)

Pre-IPO LXJ International Holdings - The Pain Points and the Outlook