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 BioRay Biopharmaceutical - The Core Business Is Facing Challenges

Pre-IPO SKG Health Technologies - The Industry, the Business and the Concerns

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

Equity Capital Markets

Suzhou Calmcar Electronics Technology / Equity Capital Markets

Suzhou Calmcar Electronics Technology (CALMCAR HK)

<ul>
<li>Calmcar’s profit model is based on a light-asset, software-centric business model. It stabilizes performance through high-margin L2 production business, and supports the scale expansion of the high-growth L4 business.</li>
<li>Calmcar’s financial data exposes problems that the market is generally concerned about: continuous losses, negative operating cash flow, and the opposite trend of gross margin when the L4 business expands.</li>
<li>As a leading company, <a href="https://www.smartkarma.com/entities/horizon-robotics-class-b" target="_blank" data-smartkarma-citation="entities:35637:1" rel="noopener">Horizon Robotics </a>has a better profit and cash flow situation than Calmcar, and therefore deserves a higher premium. So, Calmcar’s valuation would be lower than peer.</li>
</ul>


Calmcar’s profit model is based on a light-asset, software-centric business model. It stabilizes performance through high-margin L2 production business, and supports the scale expansion of the high-growth L4 business.
Calmcar’s financial data exposes problems that the market is generally concerned about: continuous losses, negative operating cash flow, and the opposite trend of gross margin when the L4 business expands.
As a leading company, Horizon Robotics has a better profit and cash flow situation than Calmcar, and therefore deserves a higher premium. So, Calmcar’s valuation would be lower than peer.


Pre-IPO Suzhou Calmcar Electronics Technology - High Valuation Is Not Convincing