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 Mokingran Jewellery Group (PHIP Updates) - Some Points Worth the Attention

Pre-IPO Mao Geping Cosmetics (PHIP Updates) - Some Points Worth the Attention

Shanghai Henlius Biotech Update (2696.HK) - The Story Behind Privatization

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

CPMC Holdings (906.HK) Privatization - Some New Information Worth the Attention

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

Equity Capital Markets

Zhou Liu Fu Jewellery Co., Ltd. / Equity Capital Markets

Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH)

<ul>
<li>The franchise model of Zhou Liu Fu is the biggest performance contributor, which is also the main reason for the Company's rapid expansion and high gross profit margin.  </li>
<li>However, the CSRC questioned the rationality of franchise model and thus rejected its A-share IPO. We think the high revenue growth/profit margin may not be sustainable in the long term.</li>
<li>Pre-IPO post-investment valuation was approximately 7.407 billion yuan. Zhou Liu Fu has applied for H-Share full circulation, which may put pressure on stock price performance after the lockdown period expires.</li>
</ul>


The franchise model of Zhou Liu Fu is the biggest performance contributor, which is also the main reason for the Company's rapid expansion and high gross profit margin.  
However, the CSRC questioned the rationality of franchise model and thus rejected its A-share IPO. We think the high revenue growth/profit margin may not be sustainable in the long term.
Pre-IPO post-investment valuation was approximately 7.407 billion yuan. Zhou Liu Fu has applied for H-Share full circulation, which may put pressure on stock price performance after the lockdown period expires.


Pre-IPO Zhou Liu Fu Jewellery - The Potential Risks and Concerns Brought by the Business Model