HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

X.J. Electrics (Hu Bei) / Equity Capital Markets

<ul>
<li>X.J. ELECTRICS not only relies on export revenue, but also on ODM/OEM models, with a relatively low proportion of independent brands. Such business model would not bring high profit margin.</li>
<li>X.J. ELECTRICS’ equity is concentrated in PAN YUN/GUANGSHE PAN, but they have plans to reduce holdings.This makes us feel that actual controllers are more inclined to cash out through IPO.</li>
<li>Valuation of X.J. ELECTRICS should be lower than Carote, as Carote has established branded business and its revenue proportion in different regions is also "healthier" than that of X.J. ELECTRICS.</li>
</ul>


X.J. ELECTRICS not only relies on export revenue, but also on ODM/OEM models, with a relatively low proportion of independent brands. Such business model would not bring high profit margin.
X.J. ELECTRICS’ equity is concentrated in PAN YUN/GUANGSHE PAN, but they have plans to reduce holdings.This makes us feel that actual controllers are more inclined to cash out through IPO.
Valuation of X.J. ELECTRICS should be lower than Carote, as Carote has established branded business and its revenue proportion in different regions is also "healthier" than that of X.J. ELECTRICS.


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

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

X.J. Electrics (Hu Bei) (XJE HK)

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

X.J. ELECTRICS heavily relies on ODM/OEM model, thus with low profit margin. Valuation should be lower than Carote due to lack of OBM business....

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

​X.J. ELECTRICS heavily relies on ODM/OEM model, thus with low profit margin. Valuation should be lower than Carote due to lack of OBM business....

Xinyao (Criss) Wang

X.J. ELECTRICS heavily relies on ODM/OEM model, thus with low profit margin. Valuation should be lower than Carote due to lack of OBM business....