HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

InSilico Medicine Cayman TopCo / Equity Capital Markets

<ul>
<li>Although Insilico’s development direction is AI-Biotech, its “genes” don’t support the continuous promotion of drug R&amp;D into later clinical stages. It’s more realistic to sell early-stage candidates and collect cash.</li>
<li>Relying solely on AI pharmaceuticals cannot quickly enter the commercialization stage of innovative drugs. In fact, capital has seen the truth and pharmaceutical companies also doubt its real value.</li>
<li>Insilico in on the right path in terms of business model.If InSilico has the opportunity to develop blockbuster drugs, its future valuation can easily lead QuantumPharm by a large margin.</li>
</ul>


Although Insilico’s development direction is AI-Biotech, its “genes” don’t support the continuous promotion of drug R&amp;D into later clinical stages. It’s more realistic to sell early-stage candidates and collect cash.
Relying solely on AI pharmaceuticals cannot quickly enter the commercialization stage of innovative drugs. In fact, capital has seen the truth and pharmaceutical companies also doubt its real value.
Insilico in on the right path in terms of business model.If InSilico has the opportunity to develop blockbuster drugs, its future valuation can easily lead QuantumPharm by a large margin.


Pre-IPO InSilico Medicine (PHIP Updates) - Some Points Worth the Attention

Yeeper Nutrition Technology (Qingdao) Group / Equity Capital Markets

Yeeper Nutrition Technology (Qingdao) Group (YNT HK)

Yeeper Nutrition Technology (Qingdao) Group

<ul>
<li>Many companies enter the goat/sheep milk powder market due to higher gross margin than cow milk powder, but after years of development, this market has been in a shrinking trend.</li>
<li>With a closed-loop capability in full internal control, production and supply of core ingredients of demineralized goat and sheep whey, Yeeper has supply chain advantage, thus with higher pricing power.</li>
<li>Yeeper’ has shown the characteristics of "slowing revenue growth, and increasing pressure on net profit margin" due to intensified competition. Valuation could be lower than Yili but higher than <a href="https://www.smartkarma.com/entities/china-feihe-ltd" target="_blank" data-smartkarma-citation="entities:24413:1" rel="noopener">China Feihe</a>.</li>
</ul>


Many companies enter the goat/sheep milk powder market due to higher gross margin than cow milk powder, but after years of development, this market has been in a shrinking trend.
With a closed-loop capability in full internal control, production and supply of core ingredients of demineralized goat and sheep whey, Yeeper has supply chain advantage, thus with higher pricing power.
Yeeper’ has shown the characteristics of "slowing revenue growth, and increasing pressure on net profit margin" due to intensified competition. Valuation could be lower than Yili but higher than China Feihe.


Pre-IPO Yeeper Nutrition Technology (Qingdao) Group - Concerns About the Business and the Outlook

Equity Bottom-Up

Zijin Gold is a leading gold mining company formed by combining all the gold mines of Zijin Mining (ZM), located outside of China. Leveraging ZM’s competitive advantage in management of exploration, development and operation of low-grade and refractory resources, ZG has emerged as a global leading and market-oriented gold mining company, vertically integrated through the value chain.

<ul>
<li>Stock price of Zijin Gold fluctuated up and down and not closely followed gold prices, which may disappoint investors who buy gold companies to take advantage of rising gold prices.</li>
<li>We'll reduce holdings of gold/silver and hold cash to deal with liquidity crises. Given the hyperinflation brought about by dollar depreciation, we'll focus on inflation trading after liquidity crisis occurs.</li>
<li>The main investment targets we will select include: commodities (e.g. gold, silver, copper). Upstream gold mining companies (e.g. Zijin Mining, Zijin Gold) will have priority over downstream company like Laopu.</li>
</ul>


Stock price of Zijin Gold fluctuated up and down and not closely followed gold prices, which may disappoint investors who buy gold companies to take advantage of rising gold prices.
We'll reduce holdings of gold/silver and hold cash to deal with liquidity crises. Given the hyperinflation brought about by dollar depreciation, we'll focus on inflation trading after liquidity crisis occurs.
The main investment targets we will select include: commodities (e.g. gold, silver, copper). Upstream gold mining companies (e.g. Zijin Mining, Zijin Gold) will have priority over downstream company like Laopu.


Zijin Gold (2259 HK) Vs Laopu Gold (6181 HK) Vs Gold Commodity- The Investment Logic and the Outlook

Chando Global Holding / Equity Capital Markets

<ul>
<li>Revenue growth is just at the industry level and the growth rate is lower than the CAGR of market size of domestic brands. So, CHANDO is not a fast-growing company.</li>
<li>Profit margin is disappointing due to high selling and marketing costs. Net profit fluctuated. This reflects that CHANDO’s profit model is not yet stable, with relatively weak risk resistance capacity</li>
<li>Due to lower performance growth and profit margin, we think valuation of CHANDO would be lower than peers such as <a href="https://www.smartkarma.com/entities/giant-biogene-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:35950:1" rel="noopener">Giant Biogene</a>, <a href="https://www.smartkarma.com/entities/mao-geping-cosmetics-co-ltd-41b64ec7-42e1-4d89-9424-b63b5ba53ea4" target="_blank" data-smartkarma-citation="entities:1521:1" rel="noopener">Mao Geping</a>, <a href="https://www.smartkarma.com/entities/shanghai-chicmax-cosmetic-co-ltd" target="_blank" data-smartkarma-citation="entities:35503:1" rel="noopener">Chicmax </a>in Hong Kong market. </li>
</ul>


Revenue growth is just at the industry level and the growth rate is lower than the CAGR of market size of domestic brands. So, CHANDO is not a fast-growing company.
Profit margin is disappointing due to high selling and marketing costs. Net profit fluctuated. This reflects that CHANDO’s profit model is not yet stable, with relatively weak risk resistance capacity
Due to lower performance growth and profit margin, we think valuation of CHANDO would be lower than peers such as Giant Biogene, Mao Geping, Chicmax in Hong Kong market. 


Pre-IPO Chando Global Holding - Low Growth and Profitability Are Pain Points

JD Industrial Technology Ltd. operates internet technology development businesses. The Company provides information system integration and other services. JD Industrial Technology conducts businesses in China.

<ul>
<li>Based on 2025 revenue forecast of RMB24.1bn and the IPO price range, P/S is about 1.28-1.56x, higher than ZKH but lower than <a href="https://www.smartkarma.com/entities/ww-grainger-inc" target="_blank" data-smartkarma-citation="entities:20019:1" rel="noopener">Ww Grainger</a>. This is a reasonable valuation range.</li>
<li>The median IPO price range (HK$14.1/share) is a more likely/relatively safe outcome.This not only acknowledges JD Industrials’ leading position/growth story, but also partly reflects the market's perception of its challenges.</li>
<li>The IPO pricing is the result of seeking a balance between the "premium of industry leaders" and "its shortcomings".However, future valuation depends on whether JD Industrials can solve fundamental issues.</li>
</ul>


Based on 2025 revenue forecast of RMB24.1bn and the IPO price range, P/S is about 1.28-1.56x, higher than ZKH but lower than Ww Grainger. This is a reasonable valuation range.
The median IPO price range (HK$14.1/share) is a more likely/relatively safe outcome.This not only acknowledges JD Industrials’ leading position/growth story, but also partly reflects the market's perception of its challenges.
The IPO pricing is the result of seeking a balance between the "premium of industry leaders" and "its shortcomings".However, future valuation depends on whether JD Industrials can solve fundamental issues.


Pre-IPO JD Industrials - Thoughts on Valuation, IPO Pricing, and the Outlook

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

Xinyao (Criss) Wang
HK/China Healthcare Analyst (ex-Fosun Pharma)

Pre-IPO InSilico Medicine (PHIP Updates) - Some Points Worth the Attention

Positioned as AI-biotech,Insilico has to sell pipeline for cash as AI pharmaceuticals face challenge in commercialization and skepticism from...

Xinyao (Criss) Wang

Pre-IPO Yeeper Nutrition Technology (Qingdao) Group - Concerns About the Business and the Outlook

The goat/sheep milk powder market faces shrinking trend. Yeeper's closed-loop supply chain gives pricing advantage but with big competition...

Xinyao (Criss) Wang

Zijin Gold (2259 HK) Vs Laopu Gold (6181 HK) Vs Gold Commodity- The Investment Logic and the Outlook

We've offload gold/silver commodities and related stocks. We started holding gold in 2023 and silver in Feb. 2025. So far, we've achieved good...

Xinyao (Criss) Wang

Pre-IPO Chando Global Holding - Low Growth and Profitability Are Pain Points

CHANDO's slow revenue growth and low profit margin suggest lower valuation compared to peers in the Hong Kong market. CHANDO’s profit model is not...

Xinyao (Criss) Wang

Pre-IPO JD Industrials - Thoughts on Valuation, IPO Pricing, and the Outlook

The IPO pricing of JD Industrials (HK$14.1/share) is in line with our analysis and is fairly priced in our view. However, as analyzed in the...

Xinyao (Criss) Wang

Pre-IPO InSilico Medicine (PHIP Updates) - Some Points Worth the Attention

Positioned as AI-biotech,​Insilico has to sell pipeline for cash as AI pharmaceuticals face challenge in commercialization and skepticism from...

Xinyao (Criss) Wang

Pre-IPO Yeeper Nutrition Technology (Qingdao) Group - Concerns About the Business and the Outlook

The goat/sheep milk powder market faces shrinking trend. Yeeper's closed-loop supply chain gives pricing advantage but with big competition...

Xinyao (Criss) Wang

Zijin Gold (2259 HK) Vs Laopu Gold (6181 HK) Vs Gold Commodity- The Investment Logic and the Outlook

We've offload gold/silver commodities and related stocks. We started holding gold in 2023 and silver in Feb. 2025. So far, we've achieved good...

Xinyao (Criss) Wang

Pre-IPO Chando Global Holding - Low Growth and Profitability Are Pain Points

​CHANDO's slow revenue growth and low profit margin suggest lower valuation compared to peers in the Hong Kong market. CHANDO’s profit model is not...

Xinyao (Criss) Wang

Pre-IPO JD Industrials - Thoughts on Valuation, IPO Pricing, and the Outlook

The IPO pricing of JD Industrials (HK$14.1/share) is in line with our analysis and is fairly priced in our view. However, as analyzed in the...

Xinyao (Criss) Wang

Positioned as AI-biotech,Insilico has to sell pipeline for cash as AI pharmaceuticals face challenge in commercialization and skepticism from...

CHANDO's slow revenue growth and low profit margin suggest lower valuation compared to peers in the Hong Kong market. CHANDO’s profit model is not...