Report
EUR 88.49
For Business Accounts Only
Chongqing Hongjiu Fruit is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. It focuses on managing the entire supply chain for quality fruits primarily grown in China, Thailand and Vietnam. It has established a comprehensive product portfolio covering 49 fruit categories, among which durian, mangosteen, longan, dragon fruit, cherry and grapes are its core products.
As of FY21, the company has 1.0% market share as China’s second largest fruit distributor. While the company has been scaling up in a bid to gain greater market share, the fruit distribution industry is heavily fragmented with over 300,000 players, each with their own regional presence.
While CHJF is already profitable, its long cash conversion cycle has been straining its balance sheet as the company tries to scale up. Its lack of competitive moat after an operating history of 20 years and poor control over margins also makes this unattractive in the long term unless the company is able to come up with a differentiated growth strategy.
Chongqing Hongjiu Fruit Pre-IPO
Chongqing Hongjiu Fruit (CHJF) is looking to raise up to US$100m in its upcoming Hong Kong IPO.Chongqing Hongjiu Fruit is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. It focuses on managing the entire supply chain for quality fruits primarily grown in China, Thailand and Vietnam. It has established a comprehensive product portfolio covering 49 fruit categories, among which durian, mangosteen, longan, dragon fruit, cherry and grapes are its core products.
As of FY21, the company has 1.0% market share as China’s second largest fruit distributor. While the company has been scaling up in a bid to gain greater market share, the fruit distribution industry is heavily fragmented with over 300,000 players, each with their own regional presence.
While CHJF is already profitable, its long cash conversion cycle has been straining its balance sheet as the company tries to scale up. Its lack of competitive moat after an operating history of 20 years and poor control over margins also makes this unattractive in the long term unless the company is able to come up with a differentiated growth strategy.
Underlying
Chongqing Hongjiu Fruit Co Ltd
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Ethan Aw
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