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.

Baige Online Digital Technology - The Business Model and the Risks Behind

Pre-IPO Shanghai Jin Jiang International Hotels - The Pain Points and the Outlook

What Happens to China Healthcare? - The Soaring Shares, the Turning Point, and the Top Picks

China Healthcare Weekly(July20)-WuXi AppTec 25H1, Sino Biopharm Acquire LaNova, United Lab Placement

Equity Capital Markets

Ridge Outdoor International / Equity Capital Markets

<ul>
<li>The OEM/ODM model is facing challenges and cannot bring sustainable growth. This business model will lead to a lack of flexibility/innovation ability for Ridge in the face of market changes.</li>
<li>Transition from OEM/ODM to OBM requires high investment of resources in brand incubation/channel restructuring, which will lead to cash flow pressure.We cannot understand the logic behind Ridge's large dividend payout.</li>
<li>Valuation of Ridge could be higher than <a href="https://www.smartkarma.com/entities/yue-yuen-industrial-holdings-limited" target="_blank" data-smartkarma-citation="entities:12281:1" rel="noopener">Yue Yuen </a>but lower than <a href="https://www.smartkarma.com/entities/techtronic-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:4561:1" rel="noopener">Techtronic </a>and <a href="https://www.smartkarma.com/entities/comefly-outdoor-co-ltd" target="_blank" data-smartkarma-citation="entities:30268:1" rel="noopener">Comefly</a>. If the Company’s transformation to OBM business is stagnated, then high valuation is not justified  </li>
</ul>


The OEM/ODM model is facing challenges and cannot bring sustainable growth. This business model will lead to a lack of flexibility/innovation ability for Ridge in the face of market changes.
Transition from OEM/ODM to OBM requires high investment of resources in brand incubation/channel restructuring, which will lead to cash flow pressure.We cannot understand the logic behind Ridge's large dividend payout.
Valuation of Ridge could be higher than Yue Yuen but lower than Techtronic and Comefly. If the Company’s transformation to OBM business is stagnated, then high valuation is not justified  


Pre-IPO Ridge Outdoor International - The OEM/ODM Model Has Become a Burden