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 25) - Pfizer-3SBio's Record-Breaking Deal, RemeGen's HK$796Mn Placing

China Healthcare Weekly (Jun.1)-Akeso/Summit's Disappointing Ph3 Readout,Valuation Outlook of Biokin

China Healthcare Weekly (Jun.8)-Summit/Akeso, Giant Biogene's Trouble, Views on Newtrend IPO Pricing

Pre-IPO CF PharmTech - The Outlook Is Bleak Due to VBP and Fierce Competition

Pre-IPO Auntea Jenny (Shanghai) Industrial (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Jiangsu Hengrui Medicine H Share Listing (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Xuanzhu Biopharmaceutical- Outdated Pipelines Are Difficult to Bring Good Investment Returns

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

Equity Capital Markets

Xiamen Jihong Technology  Lt / Equity Capital Markets

<ul>
<li>In order to maintain revenue growth, it's necessary to continuously increase advertising investment. However, due to fierce market competition, the ROI from advertising is declining, leading to weak profitability.</li>
<li>The big concern here is once Jihong's e-commerce business loses its growth momentum, future performance will inevitably enter a downward trend. Jihong lacks a sustainable growth logic for the future.</li>
<li>Jihong's valuation could be about RMB3.2-4.3 billion, based on the valuation of cross-border social e-commerce business (P/E of 15-20x) + the valuation of traditional paper packaging business (P/E of 10-12x).  </li>
</ul>


In order to maintain revenue growth, it's necessary to continuously increase advertising investment. However, due to fierce market competition, the ROI from advertising is declining, leading to weak profitability.
The big concern here is once Jihong's e-commerce business loses its growth momentum, future performance will inevitably enter a downward trend. Jihong lacks a sustainable growth logic for the future.
Jihong's valuation could be about RMB3.2-4.3 billion, based on the valuation of cross-border social e-commerce business (P/E of 15-20x) + the valuation of traditional paper packaging business (P/E of 10-12x).  


Pre-IPO Xiamen Jihong Technology (PHIP Updates) - Lack of Sustainable Growth Logic