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 Soft International Group - Whether Performance Growth Can Be Sustained Is a Question Mark

Pre-IPO Bayzed Health Group - Here Are the Concerns and Potential Risks

Pre-IPO Mao Geping Cosmetics - Potential Risks Behind High Gross Margins

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

Equity Capital Markets

Beijing Tong Ren Tang Healthcare Investment / Equity Capital Markets

Beijing Tong Ren Tang Healthcare Investment (TRT HK)

Beijing Tong Ren Tang Healthcare Investment

<ul>
<li>Tong Ren Tang’s performance growth is mainly driven by M&amp;As. Its organic growth and operation management capability are not strong, leading to the concerns on the sustainability of future growth.</li>
<li>Profit margin is disappointing.If Tong Ren Tang fails to balance the interests of different parties and control costs/expenses,low profit margins will be the norm despite the growth of revenue scale.</li>
<li>From the perspectives of revenue scale, profitability, operational efficiency, business model, there’s still a gap between Tong Ren Tang and Gushengtang. Tong Ren Tang’s valuation should be lower than Gushengtang.</li>
</ul>


Tong Ren Tang’s performance growth is mainly driven by M&amp;As. Its organic growth and operation management capability are not strong, leading to the concerns on the sustainability of future growth.
Profit margin is disappointing.If Tong Ren Tang fails to balance the interests of different parties and control costs/expenses,low profit margins will be the norm despite the growth of revenue scale.
From the perspectives of revenue scale, profitability, operational efficiency, business model, there’s still a gap between Tong Ren Tang and Gushengtang. Tong Ren Tang’s valuation should be lower than Gushengtang.


Pre-IPO Tong Ren Tang Healthcare Investment - Profitability and Growth Sustainability Are Worrying