1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Metrics vs Peers
3. Valuation
4. Offer Terms
5. Financial Statements
Discussion
Research report, target price, DCF and forensic scores are for subscribers. View plans
Symbol
TCJH
Listed on
2023-04-18
Sector
Industrials
Subsector
Commercial Services & Supplies
Offer Price
$4.00
Shares Offered
2.75M
14.75M
$59.0M
18.6%
Implied Upside vs Midpoint
Description
We provide a number of important business services in China to young and emerging companies including (i) corporate business training services, which mainly focus on advanced knowledge and new perspectives on the capital markets, (ii) corporate consulting services, which mainly focus on various aspects of fundraising, and (iii) advisory and transaction services. Our main clients are entrepreneurs and executives in small and medium enterprises (“SMEs”) in China. Corporate business training, corporate consulting, and advisory and transaction services constituted approximately 7%, 23% and 70% of our business, respectively, during the nine months ended September 30, 2022. Supported by the rapid economic growth and friendly business policies in China, the number of SMEs in China has significantly increased from 2016 to 2021. According to Frost & Sullivan, an independent market research firm, from 2016 to 2021, the number of SMEs in China increased from 13.9 million to 26.8 million with a compound annual growth rate (“CAGR”) of 14.0%. Frost & Sullivan expects the number of SMEs in China will steadily increase at 9.8% CAGR from 2021 to 2026. We believe that the increasing number of SMEs provide a solid foundation for the future development of our business. With the increase in number of companies entering the China market, most industries in China are becoming more competitive. Therefore founders, senior management teams and key employees of companies have an increasing awareness for professional business education in order to enhance their professional knowledge, boost their company’s strategic growth and allow the company to stay competitive in today’s economy. China’s economy is shifting from traditional real estate investment and manufacturing to new economy industries such as internet-driven or technology-driven industries. Currently, the new economy industry has been a vital driving force in the growth of the economy in China. According to Frost & Sullivan, from 2016 to 2021, the market size of new economy industries by revenue in China experienced significant growth with 28.2% CAGR, which was much higher than the synchronized growth rate of 8.9% in China’s nominal GDP, attaining $4.0 trillion (RMB25.2 trillion) by the end of 2021. We believe that the rapid growth of new economy industries benefits the development of our business. Our mission is to provide comprehensive services to address client’s needs throughout all phases of their development and growth. --- Our principal executive offices are located at Room 1304, Building No. 25, Tian’an Headquarters Center, No. 555, North Panyu Avenue, Donghuan Street, Panyu District, Guangzhou, Guangdong Province, PRC. Our telephone number at this address is +86 400 661 3113. Our registered office in the Cayman Islands is currently located at the office of 89 Nexus Way, Camana Bay, Grand Cayman, KY1-9009, Cayman Islands, which may be changed from time to time at the discretion of our directors. Our agent for service of process in the United States is Cogency Global Inc.
▼ More expensive than its peers on 1 of 2 valuation measures
| Metric | Value | Peer median | Among peers | Trend |
|---|---|---|---|---|
EV / revenue | 8.8x | 4.6x | ||
Price / earnings | 25.6x | 26.7x | ||
Revenue growth | 372% | 26.1% | ||
Gross margin | 78.4% | 30.7% | ||
Operating margin | 48.3% | -2.7% | ||
Net margin | 36.7% | -7.9% | ||
Free cash flow margin | 57.9% | 2.5% | ||
Rule of 40 | 421% | 33.3% | ||
Net cash / market cap | 6.6% | 1.2% | ||
Debt / equity | 0.00 | 0.00 | ||
Current ratio | 1.92 | 1.98 | ||
9 premium metrics: DCF value / price, Growth the price needs: how common, Last 12 months vs full year and 6 more Unlock | ||||
Each filing is plotted ahead of the first trading day on the price chart.
| Filed | Form | Price range | Price | Shares offered | Deal size |
|---|---|---|---|---|---|
| 2023-01-18 | F-1 | — | — | 500,000,000 | — |
| 2023-02-09 | F-1/A | — | — | 500,000,000 | — |
| 2023-03-22 | F-1/A | — | — | 500,000,000 | — |
| 2023-04-19 | 424B4 | — | — | 500,000,000 | — |
Top KingWin Ltd income statement and balance sheet, FY Dec 2022 to FY Dec 2025, as reported in SEC filings.
| Metric | FY Dec 2022 | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Revenue | $3.1M | $5.5M | $3.8M | $8.0M |
| Gross profit | $2.2M | $3.6M | $1.3M | $700K |
| Operating income | ($920K) | ($2.5M) | ($7.1M) | ($24.2M) |
| Net income | ($771K) | ($2.5M) | ($8.7M) | ($24.0M) |
| Revenue growth | — | 74.7% | −31.2% | 114% |
| Gross margin | 69.3% | 65.8% | 35.5% | 8.7% |
| Operating margin | −29.5% | −45.4% | −190% | −302% |
| Net margin | −24.7% | −46.7% | −231% | −299% |
| Metric | FY Dec 2022 | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Total assets | $5.1M | $10.2M | $41.6M | $33.3M |
| Total liabilities | $3.3M | $2.8M | $5.9M | $3.0M |
| Total equity | $1.8M | $7.4M | $35.7M | $30.3M |
| Cash & equivalents | $2.7M | $4.6M | $2.8M | $13.1M |