In today’s briefing:
- Beauty Farm Medical and Health Industry (BFM HK) IPO: Pandemic Blemishes Near-Term Growth Prospect
- Pre-IPO Shandong Boan Biotechnology – Conservative About the Outlook
Beauty Farm Medical and Health Industry (BFM HK) IPO: Pandemic Blemishes Near-Term Growth Prospect
- Beauty Farm Medical and Health Industry (BFM HK) is the largest provider of traditional beauty services and the fourth largest non-surgical aesthetic medical service provider in China.
- The company seeks to raise $300 million from an IPO in Hong Kong market. Morgan Stanley, Haitong International, and Huatai International are the joint sponsors for the proposed IPO.
- COVID-19 has hurt recent financial performance of the company and forced it to shut many of the stores in multiple locations. Further, stretched valuation make the IPO unappealing to investors.
Pre-IPO Shandong Boan Biotechnology – Conservative About the Outlook
- Without the advantages in product efficacy, production capacity, clinical progress and speed of approval, Boan’s products have lost their pricing power in both China and overseas markets.
- Due to the lack of differentiation and frontier enough target layout, the product commercialization potential is bound to be more easily questioned, with limited value in the long term.
- Even if Boan could go public successfully, investors may not be able to achieve the expected returns because of the unfriendly market sentiment and a lack of liquidity in HKEX.
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