IPO Preview | Targeting a flagship product for 340 million balding people, selling 50 million bottles in 7 years, can the growth narrative of Mandy International make the Hong Kong stock market "buy in"?

In recent years, due to multiple factors, the issue of hair loss has evolved from a niche group's anxiety to a widely recognized health problem. Public data shows that by 2024, over 339 million people in China will be affected by hair loss problems, with over 60% of them being under the age of 35. The increasing prevalence and younger age of hair loss problems present a clear growth opportunity for companies providing hair loss treatment products. Recently, Mundi International, the first company to introduce minoxidil products under the brand Mundi, has submitted an application for listing on the Hong Kong Stock Exchange. According to the prospectus, Mundi International obtained approval for its first 5% minoxidil lotion in 2001 in China, filling a critical gap in the domestic hair loss treatment market. From 2018 to 2024, the sales of Mundi International's Mundi series minoxidil products totaled over 50 million bottles. In terms of sales, the company's Mundi series minoxidil products have been the top choice in the Chinese hair loss drug market for the past ten years since 2014. Mundi International has clearly established itself as a leader in the field of hair health with a strong market presence. The company is now making a move towards the capital market. How strong are the company's fundamentals? Will Mundi International's growth prospects satisfy discerning investors in the secondary market? These questions may be answered by examining the company's prospectus. Steady growth in performance with a gross profit margin exceeding 80% Benefiting from the rapid expansion of China's consumer medical market, especially in the field of hair health management, Mundi International's financial performance has shown continuous and stable growth in recent years. This serves as an important foundation for the company's application to the Hong Kong Stock Exchange for further capitalization. Data shows that from 2022 to the first half of 2025, Mundi International's revenues were 9.82 billion yuan, 12.28 billion yuan, 14.55 billion yuan, and 7.43 billion yuan respectively, showing a continuous increase in revenue scale. Looking at the revenue structure, the majority of revenues come from the Mundi product series, accounting for over 90% of total revenue throughout the period, with a record high of 92.4% in the first half of this year. In addition to the Mundi products, Mundi International also derives some revenue from the Leiz products, with their revenue contributions ranging from 5.7% to 3.4% from 2022 to the first half of 2025. During the same period, revenue from other commercialized products accounted for 2.6% to 4.2% of total revenue. Looking at Mundi International's development strategies in recent years, one notable feature is the company's efforts to cultivate new growth points beyond its flagship products. In addition to the hair health field, Mundi International has launched products in dermatology and effective hair care fields. For example, the Leiz product mentioned earlier is a calcium phosphatase inhibitor used to treat atopic dermatitis. Additionally, the Mundi product series includes Mundi shampoo, which achieved a historical high revenue contribution of 4.7% in the first half of this year. The company also launched a new Mundi anti-hair loss shampoo in March, with sales of 500,000 bottles within the first six months of its release. In terms of sales channels, Mundi International has established a comprehensive sales network covering both online and offline channels. For the first half of 2022 to 2025, the company's online channel sales stood out, accounting for 55.2% to 74% of total revenue, providing substantial incremental revenue. Additionally, all revenues generated by Mundi International during the reporting period were from the domestic market. Strong profitability is another prominent feature of Mundi International's fundamentals. The company's gross profits during the reporting period were 7.89 billion yuan, 10.07 billion yuan, 12.03 billion yuan, and 6.03 billion yuan, with corresponding gross profit margins of 80.3%, 82%, 82.7%, and 81.1%, consistently above 80%. Similarly, the company's net profits showed continuous growth, reaching 2.02 billion yuan, 3.41 billion yuan, 3.9 billion yuan, and 1.74 billion yuan during the same period. Building a diverse product matrix to strengthen prospects for the future? Having established itself in the field of hair health, Mundi International seems poised to become an "all-around" player. According to the prospectus, the company is venturing into new businesses. For example, in broader areas such as skin health and weight management, Mundi International's pipeline assets include Coratolon cream (Winlevi), the world's first and only topical androgen receptor inhibitor for common acne. It is currently undergoing Phase III clinical trials in China and is expected to submit a drug registration application in 2027. Similarly, a long-acting GLP-1 receptor agonist for weight management, Semaglutide injection, is also in Phase III clinical trials in China and aims to submit a drug registration application in the first half of next year. If successful, Mundi International's Semaglutide injection could become one of the first domestically approved Semaglutide formulations for weight management. In addition to these two products, Mundi International has developed a series of early-stage assets, including D2501 for treating vitiligo and WS2505 for treating obesity and related metabolic syndrome. While expanding into new markets, Mundi International is also actively consolidating its strength in the traditional field of hair health. Last April, the company initiated the development of 5% minoxidil foam in Europe, with plans to submit a listing approval application through the Decentralized Procedure (DCP) next year. In the domestic market, Mundi International's clinical project focused on female androgenetic alopecia obtained approval from the National Medical Products Administration last year and began Phase III trials to evaluate the efficacy and safety of 5% minoxidil foam in adult female patients, with plans to launch the product for female androgenetic alopecia in 2028. Additionally, Mundi International has submitted abbreviated new drug applications for 2% and 5% minoxidil lotions. It is also worth noting that Mundi International is developing a humanized monoclonal antibody targeting the prolactin receptor (PRLR), currently in Phase I clinical trials, with the goal of providing a new systemic biological treatment for androgenetic alopecia. Whether Mundi International's strategy of venturing into multiple markets will help initiate a strong new product cycle remains to be seen and may determine the company's growth performance for the foreseeable future. Seizing this critical period for breakthrough development, Mundi International is making a bold move into the Hong Kong stock market, indicating significant intentions. In recent years, there have been many successful new stocks in the new consumer field in the Hong Kong stock market. If Mundi International can achieve success in the Hong Kong stock market, it may become a new favorite in the consumer healthcare sector, which is certainly worth observing.