Core Viewpoint - The stock price of Ying Tong Holdings, known as the "first stock of perfume," plummeted by 23.96% within two days of its listing, raising concerns among investors about the company's future prospects [1][2]. Company Overview - Ying Tong Holdings is the largest perfume group in China (including Hong Kong and Macau) by retail revenue, excluding brand owners, and ranks as the third-largest perfume group in mainland China and Hong Kong [3]. - The company has a diverse portfolio of brands, including perfumes, cosmetics, skincare products, eyewear, and home fragrances [3]. Financial Performance - For the fiscal years 2022 to 2025, Ying Tong Holdings is projected to have revenues of 1.699 billion, 1.864 billion, and 2.083 billion yuan, with net profits of 173 million, 206 million, and 227 million yuan respectively [4]. Brand Portfolio - As of March 31, 2023, 2024, and 2025, Ying Tong Holdings' brand portfolio includes 52, 65, and 73 external brands respectively, with all licensing agreements still valid [5]. Market Dynamics - The global perfume market grew from 590.7 billion yuan in 2018 to 709.6 billion yuan in 2023, with a compound annual growth rate (CAGR) of 12.3%, while the Chinese market grew at 11.6% [8]. - However, the company faces structural risks as international brands increasingly reclaim licenses or establish their own perfume businesses, which threatens Ying Tong's growth potential [8]. Business Model Concerns - Ying Tong Holdings primarily operates as a brand agency rather than owning its own brands, with 99% of its revenue coming from external brands [9]. - The company has a high dependency on a few suppliers, with the top five suppliers accounting for a significant portion of its procurement, raising concerns about revenue stability if key partnerships end [9]. - The expiration of a distribution agreement with a major luxury brand in December 2022 resulted in a revenue drop of 425 million yuan, representing 25.5% of total revenue for that fiscal year [9]. Brand Development Challenges - The company's own brand, Santa Monica, has minimal revenue contributions projected at 0.3%, 0.8%, and 0.9% for the fiscal years 2023 to 2025, indicating a lack of market presence [12]. - Ying Tong Holdings has been criticized for insufficient investment in research and development, which limits its ability to compete effectively in the market [12]. Market Sentiment - The timing of the IPO coincided with tight liquidity in the Hong Kong market and pressure on the consumer sector, leading to negative market sentiment towards high-priced listings [13]. - The broader perfume industry is experiencing collective anxiety, as the market appears to have a consumption gap, with younger consumers favoring niche brands but showing low repurchase rates [13]. Industry Trends - The decline in stock prices of other new consumer concept stocks, such as Perfect Diary and Nayuki Tea, reflects a diminishing patience from the capital market for "story-driven" companies lacking solid fundamentals [14]. - Ying Tong Holdings must transition from being perceived merely as a "middleman" to demonstrating its capability in developing proprietary brands and expanding beyond fragrance products to regain investor confidence [14].

Core Viewpoint - The Hong Kong IPO market is experiencing a significant resurgence, highlighted by the successful listings of three companies on June 26, 2023, indicating renewed investor interest and confidence in the market [2][4][20]. Group 1: IPO Highlights - Three companies, Chow Tai Fook, Saint Bella, and Ying Tong Holdings, collectively marked a vibrant day for the Hong Kong stock exchange with substantial subscription rates and market performances [2][3][16]. - Chow Tai Fook's IPO saw over 700 times subscription, with an initial market capitalization exceeding HKD 10.1 billion, closing with a market value of HKD 11.36 billion after a 25% increase [3][8]. - Saint Bella, a high-end maternity center brand, had a market capitalization of nearly HKD 4 billion at listing, with a peak increase of over 44% on its opening day [3][11]. - Ying Tong Holdings, managing renowned luxury brands, had a market capitalization of approximately HKD 3.7 billion at closing [3][13]. Group 2: Market Trends - The Hong Kong IPO market is projected to host around 40 new listings in the first half of 2023, raising approximately HKD 108.7 billion, marking a 33% increase in the number of IPOs and a staggering 711% increase in fundraising compared to the previous year [20][25]. - The consumer sector is particularly vibrant, with several high-profile companies like Mi Xue Bing Cheng and Gu Ming successfully listing and achieving significant market valuations [22][24]. - The current environment has led to a surge in interest from investment institutions, with many urging companies to expedite their IPO processes in Hong Kong [31][35]. Group 3: Future Outlook - The trend of asset revaluation in China is beginning in the Hong Kong market, with expectations of a continued influx of companies seeking to list, particularly in the consumer sector [27][32]. - There is potential for the return of Chinese companies listed in the U.S. to the Hong Kong market, as indicated by plans from companies like Pony.ai and Hesai Technology to submit listing applications [34]. - The current market conditions present a limited window for domestic companies to engage with international capital markets, emphasizing the urgency for IPOs [35][36].

Core Viewpoint - The Hong Kong IPO market is experiencing a significant resurgence, highlighted by multiple companies going public simultaneously, indicating renewed investor confidence and interest in the market [3][12]. Group 1: Recent IPO Activity - On June 26, three companies, Zhou Li Fu, Sheng Bella, and Ying Tong Holdings, collectively rang the bell for their IPOs, marking a lively day for the Hong Kong stock exchange [1][7]. - Zhou Li Fu's IPO was oversubscribed by over 700 times, with a market capitalization exceeding 10.1 billion HKD, and it opened with a gain of over 18% [2]. - Sheng Bella, a high-end confinement center brand, had a market capitalization of nearly 40 billion HKD at its IPO, with its stock rising over 4% on debut [2][6]. - Ying Tong Holdings, which manages several luxury brands, had an IPO market capitalization of approximately 3.7 billion HKD [2][6]. Group 2: Market Trends and Statistics - The Hong Kong IPO market is projected to see around 40 companies debut in the first half of the year, raising approximately 1,087 billion HKD, representing a year-on-year increase of 33% in the number of IPOs and 711% in fundraising [9][10]. - The market is currently witnessing a surge in consumer companies going public, with significant names like Mi Xue Ice City and Hu Ming Tea already listed, reflecting a strong appetite for consumer stocks [10][11]. - As of June 24, over 160 companies are in the IPO queue, with a total refinancing scale reaching 1,428.54 million HKD, surpassing last year's total [11]. Group 3: Investor Sentiment and Future Outlook - There is a renewed confidence in the Hong Kong market, with investors showing increased interest in IPOs, driven by the performance of recent listings [14]. - The market is expected to see a revaluation of Chinese assets, particularly in consumer stocks, as international capital shows a growing interest [14][15]. - Companies are encouraged to accelerate their IPO plans, as the current window for accessing international capital markets is perceived to be limited [16].