Core Insights - A hair loss treatment product from Mandi International, a subsidiary of Sangfor Pharmaceutical, is set to go public on the Hong Kong Stock Exchange, potentially marking the third IPO for the Liu family [1] - Mandi International holds a significant 57% market share in China's hair loss medication market, driven by its flagship product, Mandi® Minoxidil [1][4] - Despite strong financial performance, Mandi International faces challenges such as product concentration, reduced R&D investment, and increasing competition [1][7] Financial Performance - Mandi International's revenue projections for 2022 to 2024 are 982 million RMB, 1.228 billion RMB, and 1.455 billion RMB, with net profits of 202 million RMB, 441 million RMB, and 309 million RMB respectively [2] - In the first half of 2025, the company reported revenue of 743 million RMB, a 20.2% increase year-on-year, and a net profit of 174 million RMB, up 64.1% [2] - The gross margin for the company has remained high, with figures of 80.3%, 82.0%, 82.7%, and 81.1% from 2022 to 2025 [3] Product Structure - Over 90% of Mandi International's revenue comes from the Mandi® product line, with the core product Mandi® 5% Minoxidil accounting for 91.3% and 91.6% of revenue in 2022 and 2023 respectively [4] - The company is expanding its product line to include other skin care products and is developing a long-acting GLP-1 receptor agonist for weight management, currently in Phase III clinical trials [6] R&D and Marketing - Mandi International's R&D expenses saw a significant drop from 92.2 million RMB in 2024 to 19.5 million RMB in the first half of 2025, raising concerns about its innovation capabilities [7] - In contrast, sales expenses have increased, reaching 374 million RMB in the first half of 2025, which is over 50% of total revenue [9] Market Competition - The hair loss treatment market is becoming increasingly competitive, with major players like Merck and Johnson & Johnson entering the space [12] - Mandi International's core patents are set to expire in 2028, which could lead to a surge in generic products and price competition [12] - The number of registered hair loss shampoos in China has exceeded 400, indicating a crowded market [12] Industry Trends - The global hair loss medication market is projected to reach $2.11 billion in 2024 and $3.175 billion by 2031, with a CAGR of 6.1% [12] - The rising interest in consumer healthcare and the potential for high-margin, self-purchased products are attracting capital market attention [13]

Core Viewpoint - A hair loss treatment product from Mandi International, a subsidiary of 3SBio, is expected to lead to a third IPO for the Liu family, amidst a growing hair loss crisis in China, where over 330 million people are affected, with more than 60% under the age of 35 [2][4]. Financial Performance - Mandi International reported impressive financial data, with revenues projected to reach RMB 9.82 billion, RMB 12.28 billion, and RMB 14.55 billion from 2022 to 2024, and net profits of RMB 2.02 billion, RMB 4.41 billion, and RMB 3.09 billion respectively [6]. - In the first half of 2025, the company achieved revenue of RMB 7.43 billion, a year-on-year increase of 20.2%, and a net profit of RMB 1.74 billion, up 64.1% [6]. Product Concentration - Over 90% of Mandi International's revenue comes from the Mandi® product series, with the core product, Mandi® 5% Minoxidil solution, accounting for 91.3% and 91.6% of revenue in 2022 and 2023 respectively [7][8]. R&D and Marketing Expenditure - Despite strong performance, Mandi International's R&D spending saw a significant drop from RMB 9.22 million in 2024 to RMB 1.95 million in the first half of 2025, raising concerns about its innovation capabilities [11]. - Sales expenses have increased significantly, with over 50% of revenue in the first half of 2025 allocated to sales costs, indicating rising customer acquisition costs in a competitive market [13][14]. Market Competition - The hair loss treatment market is becoming increasingly competitive, with major players like Merck and Johnson & Johnson entering the space. The global market for hair loss treatment is projected to reach USD 2.11 billion in 2024, growing at a CAGR of 6.1% [18]. - Mandi International faces potential risks as some of its core patents are set to expire in 2028, which could lead to a flood of generic products and price wars [18]. Industry Trends - The rising incidence of hair loss among younger demographics is transforming "hair health" into a significant consumer pharmaceutical category, attracting capital market interest [19]. - The company's ability to innovate and diversify its product pipeline will be crucial for its future growth potential, especially in a market that has shown clear demand [19].

Core Insights - Mandee International has submitted its application to list on the Hong Kong Stock Exchange, with Huatai International as its sole sponsor [1] - The company is recognized as a leading professional consumer pharmaceutical company in China, focusing on skin health and weight management solutions [1] - Mandee International has established a leading position in the hair health sector within the broader skin health industry [1] Market Position - According to Zhi Shi Consulting, Mandee's flagship product, the Mandee® series minoxidil hair loss treatment, has ranked first in the Chinese hair loss medication market and the minoxidil drug market for ten consecutive years since 2014 [1] - The market shares for these two segments in 2024 are projected to be approximately 57% and 71%, respectively [1] Product Launch - In March 2025, Mandee International will launch the Mandee® anti-hair loss shampoo, which is the first shampoo in China to include the anti-hair loss ingredient Unodial [1] - The product achieved over 500,000 bottles in sales within the first six months of its launch, redefining the domestic anti-hair loss and hair care market landscape [1]