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.

China Healthcare Weekly (May.26)-VBP Scope Expands, Optimistic About Glove Industry, China Resources

Pre-IPO Jiangxi Rimag Group (PHIP Updates) - Some Points Worth the Attention

Pre-IPO China Resources Beverage (PHIP Updates) - Some Points Worth the Attention

2024 Capital Market Outlook - Seize the Historic Opportunity of the Upcoming Dollar Reset

Pre-IPO MIXUE Group - The Snow King Opens up a Lot More Room for Imagination than Expected

Pre-IPO Belle Fashion Group - Performance Has Picked Up, but Not yet Reversed

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Akeso Biopharma Placement (9926.HK) - Would Investors Be Willing to Take a Gamble?

Equity Capital Markets

China Resources Beverage / Equity Capital Markets

<ul>
<li>Over 92% of CR Beverage’s revenue is from packaged drinking water products, but YoY growth this business is already below industry CAGR, raising concerns about whether future growth will stall.</li>
<li>The revenue scale/profitability of CR Beverage are far inferior to <a href="https://www.smartkarma.com/entities/nongfu-spring-co-ltd" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring</a>. In terms of cost control, operational efficiency and the strength of supply chain, CR Beverage is lagging behind.</li>
<li>For low-priced packaging water, the nationwide expansion is not a simple task, which will lead to significant cash outflow. Valuation of CR Beverage should be lower than that of peers. </li>
</ul>


Over 92% of CR Beverage’s revenue is from packaged drinking water products, but YoY growth this business is already below industry CAGR, raising concerns about whether future growth will stall.
The revenue scale/profitability of CR Beverage are far inferior to Nongfu Spring. In terms of cost control, operational efficiency and the strength of supply chain, CR Beverage is lagging behind.
For low-priced packaging water, the nationwide expansion is not a simple task, which will lead to significant cash outflow. Valuation of CR Beverage should be lower than that of peers. 


Pre-IPO China Resources Beverage - Here Are the Concerns and the Risks Behind