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 China Resources Beverage - Due to the Pain Points, High Valuation Is Not Justified

Pre-IPO Beijing Biostar Pharmaceuticals (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Zhejiang Taimei Medical Technology (PHIP Updates) - Some Points Worth the Attention

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

Pre-IPO Carote Ltd (PHIP Updates) - High Performance Growth May Not Be Sustainable

Greatview Aseptic Packaging (468.HK) - The Story Behind The “Hostile Offer”

Equity Capital Markets

China Resources Beverage / Equity Capital Markets

<ul>
<li>Nongfu Spring is able to take a price war to grab market share,but the strategy of CR Beverage forced to cut prices may not work,making its profit margin further decline.</li>
<li>CR Beverage’s business model is “single business + scale expansion”, worse than “multi-category structure + new product incubation”.Future performance growth may inevitably slow down if without the second growth curve.</li>
<li>Whether in terms of product/revenue structure, profitability, or sustainability of growth momentum, CR Beverage isn’t as good as Nongfu Spring. Valuation of CR Beverage should be lower than Nongfu Spring.</li>
</ul>


Nongfu Spring is able to take a price war to grab market share,but the strategy of CR Beverage forced to cut prices may not work,making its profit margin further decline.
CR Beverage’s business model is “single business + scale expansion”, worse than “multi-category structure + new product incubation”.Future performance growth may inevitably slow down if without the second growth curve.
Whether in terms of product/revenue structure, profitability, or sustainability of growth momentum, CR Beverage isn’t as good as Nongfu Spring. Valuation of CR Beverage should be lower than Nongfu Spring.


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