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 Bama Tea - The Business Model, the Challenges and the Outlook

Pre-IPO Dermavon Holdings- Weak R&D and the Lack of Synergy in Pipelines Lead to Unfavorable Outlook

Pre-IPO Liuliu Orchard - Hard to Achieve High Growth Due to the Lack of Product Competitiveness

Ping An Healthcare and Technology (1833 HK) 25Q1 Results - Concerns Behind and the Valuation Outlook

Equity Capital Markets

Yangtuo Technology Inc. / Equity Capital Markets

<ul>
<li>Yangtuo’s business model is B2B2C, targeting lower-tier market, but the consumption upgrade in lower-tier market lags behind, which will affect the sales of high-margin products and require more marketing/promotion investment.</li>
<li>Yangtuo decides to shift from digital marketplace business to self-operated business, but such strategic adjustments may force Yangtuo to abandon the light-asset model and turn to heavy-asset model.</li>
<li>Overall performance and key operating metrics have shown a downward trend. Continuous decline in profit margins is expected. Valuation of Yangtuo should be lower than <a href="https://www.smartkarma.com/entities/kidswant-children-products-co" target="_blank" data-smartkarma-citation="entities:34640:1" rel="noopener">Kidswant Children Products (301078 CH)</a>.</li>
</ul>


Yangtuo’s business model is B2B2C, targeting lower-tier market, but the consumption upgrade in lower-tier market lags behind, which will affect the sales of high-margin products and require more marketing/promotion investment.
Yangtuo decides to shift from digital marketplace business to self-operated business, but such strategic adjustments may force Yangtuo to abandon the light-asset model and turn to heavy-asset model.
Overall performance and key operating metrics have shown a downward trend. Continuous decline in profit margins is expected. Valuation of Yangtuo should be lower than Kidswant Children Products (301078 CH).


Pre-IPO Yangtuo Technology - The Business Model And Strategic Adjustments Will Not Work