Capital Darling Saint Bella initiates IPO: a rare investment opportunity in high-growth industry leader

On June 18th, "the world's first stock in high-end family care" Shengbeila launched its IPO, which will end on the 23rd. According to public information, Shengbeila plans to globally issue 95.42 million shares, with 9.542 million shares issued in Hong Kong and 85.878 million shares issued internationally, at a price of HK$6.58 per share, aiming to raise HK$628 million. In this offering, Shengbeila has introduced a total of 7 cornerstone investors, including GIMM, Huaxia Fund (Hong Kong), JKKB, SS Morgan, Minui, Mr. Wu Qinan, and Ms. Wang Qianqing, subscribing for a total of 49.443 million shares, with a total subscription of 41.46 million US dollars. As a leader in the high-end family care sector, Shengbeila has a strong shareholder background and institutional endorsement, a high valuation-cost ratio, a business model built on standardization + specialization + intelligentization, and the dividends of the "golden window period" for high-end family care, attracting funds to rush into this IPO feast. Capital logic: Capital darling + valuation discount, bullish on upward trend Capital is the most sensitive. Looking back at Shengbeila's history of development, it can be regarded as a "darling" of the capital market. Since its establishment in 2017, Shengbeila has gone through 7 rounds of financing, with a total financing amount exceeding 300 million yuan, boasting a "stellar" shareholder background including Tencent, Gaorong Capital, Tangzhu Capital, C Capital, and New Hongji, among others. In terms of investment rounds, Shengbeila's high level of capital recognition is evident, and with ample ammunition, Shengbeila has embarked on a rapid expansion path. As of now, Shengbeila is not only the largest post-natal care group in Asia and China, but also the fastest-growing scale post-natal care group in China, and the first post-natal care brand to go abroad, it has become the benchmark enterprise in high-end family care. Beyond well-known institutional investments, the strategic shareholder resources of Shengbeila are also not to be underestimated. Tencent's ecological support for digital upgrading, Gaorong Capital's experience in consumer sectors empowers brand expansion, both providing long-term growth support for Shengbeila. As a high-growth leading player, Shengbeila is expected to achieve a compound annual revenue growth rate of 30% from 2022 to 2024. Considering the growth premium, the company's PE ratio is likely to be even higher. Therefore, from the current PE ratio perspective, Shengbeila's valuation discount is significant, with a high cost-performance ratio. It is worth noting that new stock investments have a liquidity premium. With multiple factors driving the way, Shengbeila's future upward trend has a strong certainty. Business core: "Three pillars" of high premium ability - upscale, standardization, intelligentization, and full-cycle Aside from capital focus, Shengbeila's business core builds a business model moat for itself. The company's three pillars of high premium ability can be summarized as: high-end, standardization, intelligentization, and full cycle; It is a strong profit model with high elasticity of growth. Shengbeila has built a differentiated competitive ability through "medical-grade care + luxury experience", leading the quality service benchmark. The prospectus shows that the company partners with high-end hotels to provide a private and comfortable nursing environment. Additionally, the company has 778,693 nursing specialists with relevant professional qualifications to support the provision of high-end specialized services. To ensure service standards, the company collaborates with the American Certification Institute (ACI) and doctoral experts to establish service benchmarks and develop standard operating procedures (SOPs) for maternal and child care. To upgrade the global maternal and infant service system comprehensively, Shengbeila has introduced the service management experience of the Lausanne Hotel Management School (EHL) in Switzerland. Furthermore, Shengbeila and EHL will jointly establish a campus base for training talents in China, build an international-standard talent pool, and be a "long-term player" in the family care industry. Secondly, the company's perfect standardized operational service system ensures that all customers receive a consistent superior service experience. All of the company's post-natal care centers are deployed with SOPs to ensure consistent service quality. In addition, Shengbeila is one of the first batch of SaaS market participants with a proprietary IT platform, utilizing data and other cutting-edge technologies to provide optimized and customized services to customers, improve operational efficiency, and promote efficient expansion. With the support of a digital base, the company is expected to enjoy the dividends of standardized operational management and standardized service on word-of-mouth marketing, validating its replication ability based on highly standardized remote expansion. Lastly, the business's full-cycle family care chart injects long-term growth drivers for Shengbeila. Shengbeila has created a full-cycle service loop of "post-natal care and repair - family parenting - health product supply" by vertically connecting the family health management industry chain through post-natal care services, enhancing users' lifetime value. It is worth noting that the gross profit margins of Shengbeila's family care services and food business in 2024 are much higher than those of post-natal care center operations. In order to ensure high-level delivery of its products and services, despite increasing rental and labor costs year by year, the food business profits move against the trend, reaching up to 61.5%. With a multi-format full-cycle brand strategy, Shengbeila's strong profit model continues to be realized. Profit growth is expected to be upward for two consecutive years from 2023 to 2024. Under the multi-format + technology empowerment, Shengbeila's growth potential is promising. In the Hong Kong stock market, investors particularly value a company's sustainable growth engine and its ability to tap into customers' lifetime value. With the release of a strong profit model and high growth elasticity, Shengbeila may continue to attract investor favor. Track dividends: "Golden window period" for high-end family care, scarce leaders attract capital focus Currently, the high-end family care track is in a "golden window period" of development. On one hand, driven by policies and demand, the industry's space is expanding, while on the other hand, the industry concentration is low, the brand space is large, and Shengbeila as a leader is expected to quickly occupy core business districts of first-tier cities through standardized service systems and direct operations, forming a first-mover advantage. In the capital market, scarce leaders are more likely to attract capital focus, forming a "capital-scale" growth virtuous cycle. Although the penetration rate of post-natal care in China is expected to increase from 7.5% in 2019 to 17.0% in 2024, the penetration rate is much lower than that of other mature markets in Asia. In addition, the market size of post-natal repair services in China is also expected to grow significantly, with a compound annual growth rate of 23.2% from 2025 to 2030. In particular, for the high-end market segment, the number of high-net-worth individuals (families with assets of 6 million+) is continuously increasing, and the consumption levels of high-net-worth individuals are also rising, so the growth rate of high-end post-natal centers will exceed that of the overall post-natal centers, with the growth rate of ultra-high-end and high-end post-natal centers even reaching around 30% after 2024. In addition, in March of this year, the General Office and State Council issued the "Special Action Plan to Boost Consumption", proposing to optimize the supply of services for "the elderly and the young." All of these provide a more relaxed development environment for family care enterprises like Shengbeila. Looking at the competitive landscape of the track, the players in the industry are highly dispersed, and with more brand advantages, Shengbeila undoubtedly can gain a higher market share. The prospectus shows that the net proceeds from the fundraising will be used for three major purposes: approximately 29% for expanding post-natal care networks; 37% for launching new services and products to expand comprehensive categories to meet customers' lifecycle needs; and about 15-18% for the development of elderly care services, among others. It can be seen that Shengbeila, centered around "care", horizontally expands its service network, vertically connects the entire industry chain, and thus achieves comprehensive and meticulous layout, aiming to become a "long-term player" in the family care industry. In the capital market, as a scarce leader in family care, enjoying a high premium, its ability to attract investments is also worth looking forward to. In conclusion, as the "world's first high-end family care stock," Shengbeila demonstrates strong profitability and growth potential with its scarce leader position, deep moat, and clear growth path. With the endorsement of capital and valuation advantages, the company's investment value is undoubtedly revealed. With the three-dimensional drive of policy support, consumption upgrading, and capital assistance, the company is expected to continue consolidating its leading position in the high-end family care track through standard replication and ecological extension, becoming the value benchmark in the high-end family care track. For investors, this is not only an opportunity to participate in a quality consumption track but also a long-term value investment in the development of China's service consumption upgrade and standardized brand development in family care.