HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Mokingran Jewellery Group / Equity Capital Markets

<ul>
<li>MOKINGRAN’s revenue fluctuated in the past three years. Profit margin was much lower than that of peers/industry average, which may not necessarily have big improvement even with upward gold price.</li>
<li>MOKINGRAN once applied for IPO in A-share but failed. The concerns of SZSE included “unusual” gold trade-in business, large inventory balance and the risk of "false increase" in profits/revenues.</li>
<li>The gold boom should not mask the risks of MOKINGRAN. Even if MOKINGRAN successfully goes public, it still faces many challenges. Valuation of MOKINGRAN should be lower than peers. </li>
</ul>


MOKINGRAN’s revenue fluctuated in the past three years. Profit margin was much lower than that of peers/industry average, which may not necessarily have big improvement even with upward gold price.
MOKINGRAN once applied for IPO in A-share but failed. The concerns of SZSE included “unusual” gold trade-in business, large inventory balance and the risk of "false increase" in profits/revenues.
The gold boom should not mask the risks of MOKINGRAN. Even if MOKINGRAN successfully goes public, it still faces many challenges. Valuation of MOKINGRAN should be lower than peers. 


Pre-IPO Mokingran Jewellery Group - Disappointing Profit Margin and Potential Risk in Business Model

Zhou Liu Fu Jewellery Co., Ltd. / Equity Capital Markets

<ul>
<li>The franchise model of Zhou Liu Fu is the biggest performance contributor, which is also the main reason for the Company's rapid expansion and high gross profit margin.  </li>
<li>However, the CSRC questioned the rationality of franchise model and thus rejected its A-share IPO. We think the high revenue growth/profit margin may not be sustainable in the long term.</li>
<li>Pre-IPO post-investment valuation was approximately 7.407 billion yuan. Zhou Liu Fu has applied for H-Share full circulation, which may put pressure on stock price performance after the lockdown period expires.</li>
</ul>


The franchise model of Zhou Liu Fu is the biggest performance contributor, which is also the main reason for the Company's rapid expansion and high gross profit margin.  
However, the CSRC questioned the rationality of franchise model and thus rejected its A-share IPO. We think the high revenue growth/profit margin may not be sustainable in the long term.
Pre-IPO post-investment valuation was approximately 7.407 billion yuan. Zhou Liu Fu has applied for H-Share full circulation, which may put pressure on stock price performance after the lockdown period expires.


Pre-IPO Zhou Liu Fu Jewellery - The Potential Risks and Concerns Brought by the Business Model

China

Mokingran Jewellery Group Co., Ltd produces and sells jewelry products. The Company manufactures and sells rings, bracelets, necklaces, earrings, and other products. Mokingran Jewellery Group markets its products throughout China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Mokingran Jewellery Group (MJG HK)

Pre-IPO Mokingran Jewellery Group - Disappointing Profit Margin and Potential Risk in Business Model

MOKINGRAN's fluctuating revenue and low profit margin raise concerns about its IPO potential and its long-term performance in the gold market. The...

Xinyao (Criss) Wang

Pre-IPO Zhou Liu Fu Jewellery - The Potential Risks and Concerns Brought by the Business Model

Franchise model drives rapid growth, but CSRC once questioned the rationality. There're doubts about sustainability of growth/profit margin. Share...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Mokingran Jewellery Group - Disappointing Profit Margin and Potential Risk in Business Model

​MOKINGRAN's fluctuating revenue and low profit margin raise concerns about its IPO potential and its long-term performance in the gold market. The...

Xinyao (Criss) Wang

Pre-IPO Zhou Liu Fu Jewellery - The Potential Risks and Concerns Brought by the Business Model

​Franchise model drives rapid growth, but CSRC once questioned the rationality. There're doubts about sustainability of growth/profit margin. Share...

Xinyao (Criss) Wang

MOKINGRAN's fluctuating revenue and low profit margin raise concerns about its IPO potential and its long-term performance in the gold market. The...

Franchise model drives rapid growth, but CSRC once questioned the rationality. There're doubts about sustainability of growth/profit margin. Share...