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 Midea Group H Share (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Midea Group H Share - Here Are 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

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.


Guangdong Xnbo Elctl Applns Hldgs (002705 CH)

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