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 Shenzhen SDMC Technology (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Sirius Therapeutics - The Pipeline and the Concerns Behind

Pre-IPO TOP TOY International Group - The Industry, the Business and the Valuation Outlook

Pre-IPO Fujian Wanchen Biotechnology Group - The Business Model, Peer Comparison, and the Outlook

Equity Capital Markets

Yuen Kee Food Group / Equity Capital Markets

<ul>
<li>YUEN KEE FOOD's revenue mainly comes from selling standardized ingredients/materials. This makes its profits closely tied to the depth of franchisees' purchases, similar to a B2B food supply chain enterprise.</li>
<li>YUEN KEE FOOD's growth narrative heavily relies on the single path of "opening more franchise stores".The key to rapid expansion is a highly standardized/ replicable "supply chain + franchise" system. </li>
<li>Considering risks of franchise model/low margin, a discount would be considered (e.g. 18-20x P/E).If the market recognizes its supply chain efficiency/growth story, a premium may be given (e.g. 22-25x P/E)</li>
</ul>


YUEN KEE FOOD's revenue mainly comes from selling standardized ingredients/materials. This makes its profits closely tied to the depth of franchisees' purchases, similar to a B2B food supply chain enterprise.
YUEN KEE FOOD's growth narrative heavily relies on the single path of "opening more franchise stores".The key to rapid expansion is a highly standardized/ replicable "supply chain + franchise" system. 
Considering risks of franchise model/low margin, a discount would be considered (e.g. 18-20x P/E).If the market recognizes its supply chain efficiency/growth story, a premium may be given (e.g. 22-25x P/E)


Pre-IPO Yuen Kee Food Group - The Business Model, the Concerns and the Outlook