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 X.J. Electrics (Hu Bei) - ODM/OEM Model Is Hard to Deliver High Margins and Growth Prospects

Gushengtang (2273.HK) - The Development Momentum Is Good, but There Are Also Challenges

China TCM (570.HK) Update - The Real Reason For the Deal Break and the Valuation Outlook

China Healthcare Weekly (Oct.20)-A Big Lesson from China TCM's Deal Break, “Must Option” of Biotech

Equity Capital Markets

<ul>
<li>TCMTech’s business model is directly targeted at industry pain points.The innovation point lies in using AI technology and offline clinics to break the time/space limitations of traditional TCM business model. </li>
<li>The current revenue scale is small. We have already seen a sharp decline of YoY revenue growth in 24Q1-Q3, thus raising questions about the sustainability of future growth momentum.</li>
<li>Considering Gushengtang's scale, business model, and the control of core renowned physician resources have been validated by the market, we think that TCMTech’s reasonable valuation should be lower than Gushengtang.</li>
</ul>


TCMTech’s business model is directly targeted at industry pain points.The innovation point lies in using AI technology and offline clinics to break the time/space limitations of traditional TCM business model. 
The current revenue scale is small. We have already seen a sharp decline of YoY revenue growth in 24Q1-Q3, thus raising questions about the sustainability of future growth momentum.
Considering Gushengtang's scale, business model, and the control of core renowned physician resources have been validated by the market, we think that TCMTech’s reasonable valuation should be lower than Gushengtang.


Pre-IPO TCMTech - The Business Model and the Outlook