{"id":7241,"date":"2023-10-30T20:01:13","date_gmt":"2023-10-30T20:01:13","guid":{"rendered":"https:\/\/zoominfinancial.com\/news\/raytech-holding-proposes-terms-for-mini-ipo-ray\/"},"modified":"2023-10-30T20:01:14","modified_gmt":"2023-10-30T20:01:14","slug":"raytech-holding-proposes-terms-for-mini-ipo-ray","status":"publish","type":"post","link":"https:\/\/zoominfinancial.com\/?p=7241","title":{"rendered":"Raytech Holding Proposes Terms For Mini-IPO (RAY)"},"content":{"rendered":"<div data-test-id=\"content-container\">\n<p><figure class=\"getty-figure\" data-type=\"getty-image\"><picture>  <\/picture><figcaption> <\/figcaption><\/figure>\n<\/p>\n<h2>A Quick Take On Raytech Holding Limited<\/h2>\n<p><strong>Raytech Holding Limited<\/strong> (RAY) has filed to raise $13.5 million in an IPO of its ordinary shares, according to an SEC F-1 registration statement.<\/p>\n<p>The firm sources production<span class=\"paywall-full-content invisible\"> process capabilities for personal care electronic appliances.<\/span><\/p>\n<p class=\"paywall-full-content invisible\">Given RAY\u2019s tiny size, ultra-high customer concentration risk, operating risks and high valuation expectations at IPO, my outlook on the IPO is to Sell [Avoid].<\/p>\n<h2 class=\"paywall-full-content invisible\">Raytech Overview<\/h2>\n<p class=\"paywall-full-content invisible\">Hong Kong, PRC-based Raytech Holding Limited was founded to provide sourcing and wholesaling services of personal care electrical appliance products across a range of categories.<\/p>\n<p class=\"paywall-full-content invisible\">Management is headed by Chairman and CEO Mr. Tim Hoi Ching, who has been with the firm since 2010 and also serves as the Vice President of the Hong Kong Electrical Appliance Industries Association.<\/p>\n<p class=\"paywall-full-content invisible\">The company\u2019s primary offerings include the following:<\/p>\n<ul class=\"paywall-full-content invisible no-summary-bullets\">\n<li>\n<p>Hair styling<\/p>\n<\/li>\n<li>\n<p>Trimmers<\/p>\n<\/li>\n<li>\n<p>Eyelash curlers<\/p>\n<\/li>\n<li>\n<p>Neck care<\/p>\n<\/li>\n<li>\n<p>Nail care<\/p>\n<\/li>\n<li>\n<p>Tooling<\/p>\n<\/li>\n<li>\n<p>Others<\/p>\n<\/li>\n<\/ul>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The firm&#8217;s primary customer is Koizumi Seiki Corp., a large seller of personal care products in Japan.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">For the year ended March 31, 2023, Koizumi accounted for 91.3% of the firm&#8217;s revenue, so Raytech&#8217;s revenue is extremely concentrated, which represents a high risk in case of loss or reduction from the Koizumi account.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">As of March 31, 2023, Raytech has booked fair market value investment of $12,739 from investors, including Chun Yin Ling, Ace Challenger Limited and Wai Yi Look.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Raytech Customer Acquisition<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The firm obtains customers via its direct sales, marketing and business development efforts and through trade shows and industry activities.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The company also develops relationships with personal electrical appliance manufacturers, which are primarily China-based companies.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Selling, G&amp;A expenses as a percentage of total revenue have risen as revenues have increased, as the figures below indicate:<\/p>\n<p> <span class=\"table-responsive paywall-full-content invisible no-summary-bullets\"><span class=\"table-scroll-wrapper\"><span data-intersection-boundary=\"start\"><\/span><\/p>\n<table>\n<colgroup>\n<col>\n<col> <\/colgroup>\n<tr>\n<td>\n<p><strong>Selling, G&amp;A<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Expenses vs. Revenue<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Period<\/p>\n<\/td>\n<td>\n<p>Percentage<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2023<\/p>\n<\/td>\n<td>\n<p>9.4%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2022<\/p>\n<\/td>\n<td>\n<p>3.1%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n<p> <span data-intersection-boundary=\"end\"><\/span><\/span><button class=\"table-enlarge-button\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 16 16\" class=\"table-enlarge-icon\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16 11a5 5 0 0 1-5 5H5a5 5 0 0 1-5-5V5a5 5 0 0 1 5-5h6a5 5 0 0 1 5 5v6zm-4.5-2.5h2v-6h-6v2h4v4zm-9-1h2v4h4v2h-6v-6z\"><\/path><\/svg>Click to enlarge<\/button><\/span> <\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">(Source &#8211; SEC.)<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The Selling, G&amp;A efficiency multiple, defined as how many dollars of additional new revenue are generated by each dollar of Selling, G&amp;A expense, was 0.1x in the most recent reporting period. (Source &#8211; SEC.)<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Raytech\u2019s Market &amp; Competition<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">According to a 2022 market research report by Allied Market Research, the global market for personal care electrical appliances was an estimated $19.6 billion in 2020 and is forecasted to reach $42.5 billion by 2031.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">This represents a forecast CAGR (Compound Annual Growth Rate) of 6.8% from 2022 to 2031.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The primary drivers for this expected growth are an increase in disposable income across developed and emerging markets and a desire by consumers for time-saving and appearance-improving products.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Also, the chart below shows the relative market size and expected growth for various product types:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/saupload_M1yeZ9_0OQBEgi4-gVFf_SvR5YSm4Z8T21EthKwL9DEoyTIgeIhVHqb5wX17NdT_13_Mhgvclm7FNUQWzNgNyxW1y5v.jpeg\" alt=\"Personal Care Electrical Appliances Market\" contenteditable=\"false\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\"><span>Allied Market Research<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Major competitive or other industry participants include the following firms:<\/p>\n<ul class=\"paywall-full-content invisible no-summary-bullets\">\n<li>\n<p>Procter and Gamble<\/p>\n<\/li>\n<li>\n<p>Conair Corp<\/p>\n<\/li>\n<li>\n<p>Royal Philips Electronics NV<\/p>\n<\/li>\n<li>\n<p>Panasonic Corporation<\/p>\n<\/li>\n<li>\n<p>Groupe SEB<\/p>\n<\/li>\n<li>\n<p>Colgate-Palmolive<\/p>\n<\/li>\n<li>\n<p>Helen of Troy L.P<\/p>\n<\/li>\n<li>\n<p>HoMedics Inc.<\/p>\n<\/li>\n<li>\n<p>LION Corp.<\/p>\n<\/li>\n<li>\n<p>Fenbo Holdings<\/p>\n<\/li>\n<\/ul>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Raytech Holding Limited Financial Performance<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The company\u2019s recent financial results can be summarized as follows:<\/p>\n<ul class=\"paywall-full-content invisible no-summary-bullets\">\n<li>\n<p>Slowly growing topline revenue<\/p>\n<\/li>\n<li>\n<p>Decreased gross profit and gross margin<\/p>\n<\/li>\n<li>\n<p>Reduced operating profit<\/p>\n<\/li>\n<li>\n<p>Higher cash flow from operations<\/p>\n<\/li>\n<\/ul>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Below are relevant financial results derived from the firm\u2019s registration statement:<\/p>\n<p> <span class=\"table-responsive paywall-full-content invisible no-summary-bullets\"><span class=\"table-scroll-wrapper\"><span data-intersection-boundary=\"start\"><\/span><\/p>\n<table>\n<colgroup>\n<col>\n<col>\n<col> <\/colgroup>\n<tr>\n<td>\n<p><strong>Total Revenue<\/strong><\/p>\n<\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p>Period<\/p>\n<\/td>\n<td>\n<p>Total Revenue<\/p>\n<\/td>\n<td>\n<p>% Variance vs. Prior<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2023<\/p>\n<\/td>\n<td>\n<p>$ 5,798,576<\/p>\n<\/td>\n<td>\n<p>1.2%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2022<\/p>\n<\/td>\n<td>\n<p>$ 5,728,451<\/p>\n<\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Gross Profit (Loss)<\/strong><\/p>\n<\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p>Period<\/p>\n<\/td>\n<td>\n<p>Gross Profit (Loss)<\/p>\n<\/td>\n<td>\n<p>% Variance vs. Prior<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2023<\/p>\n<\/td>\n<td>\n<p>$ 1,461,414<\/p>\n<\/td>\n<td>\n<p>-4.9%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2022<\/p>\n<\/td>\n<td>\n<p>$ 1,537,262<\/p>\n<\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Gross Margin<\/strong><\/p>\n<\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p>Period<\/p>\n<\/td>\n<td>\n<p>Gross Margin<\/p>\n<\/td>\n<td>\n<p>% Variance vs. Prior<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2023<\/p>\n<\/td>\n<td>\n<p>25.20%<\/p>\n<\/td>\n<td>\n<p>-6.1%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2022<\/p>\n<\/td>\n<td>\n<p>26.84%<\/p>\n<\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Operating Profit (Loss)<\/strong><\/p>\n<\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p>Period<\/p>\n<\/td>\n<td>\n<p>Operating Profit (Loss)<\/p>\n<\/td>\n<td>\n<p>Operating Margin<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2023<\/p>\n<\/td>\n<td>\n<p>$ 916,480<\/p>\n<\/td>\n<td>\n<p>15.8%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2022<\/p>\n<\/td>\n<td>\n<p>$ 1,362,003<\/p>\n<\/td>\n<td>\n<p>23.8%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Net Income (Loss)<\/strong><\/p>\n<\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p>Period<\/p>\n<\/td>\n<td>\n<p>Net Income (Loss)<\/p>\n<\/td>\n<td>\n<p>Net Margin<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2023<\/p>\n<\/td>\n<td>\n<p>$ 801,650<\/p>\n<\/td>\n<td>\n<p>13.8%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2022<\/p>\n<\/td>\n<td>\n<p>$ 1,198,930<\/p>\n<\/td>\n<td>\n<p>20.9%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Cash Flow From Operations<\/strong><\/p>\n<\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p>Period<\/p>\n<\/td>\n<td>\n<p>Cash Flow From Operations<\/p>\n<\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2023<\/p>\n<\/td>\n<td>\n<p>$ 1,396,430<\/p>\n<\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p>Fiscal Year Ended March 31, 2022<\/p>\n<\/td>\n<td>\n<p>$ 1,045,076<\/p>\n<\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td> <\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<tr>\n<td>\n<p>(Glossary Of Terms.)<\/p>\n<\/td>\n<td> <\/td>\n<td> <\/td>\n<\/tr>\n<\/table>\n<p> <span data-intersection-boundary=\"end\"><\/span><\/span><button class=\"table-enlarge-button\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 16 16\" class=\"table-enlarge-icon\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16 11a5 5 0 0 1-5 5H5a5 5 0 0 1-5-5V5a5 5 0 0 1 5-5h6a5 5 0 0 1 5 5v6zm-4.5-2.5h2v-6h-6v2h4v4zm-9-1h2v4h4v2h-6v-6z\"><\/path><\/svg>Click to enlarge<\/button><\/span> <\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">(Source &#8211; SEC.)<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">As of March 31, 2023, Raytech had $2.7 million in cash and $1.5 million in total liabilities.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Free cash flow during the twelve months ending March 31, 2023, was $1.4 million.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Raytech Holding Limited IPO Details<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Raytech intends to raise $13.5 million in gross proceeds from an IPO of its ordinary shares, offering three million shares at a proposed midpoint price of $4.50 per share.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">No existing shareholders have indicated an interest in purchasing shares at the IPO price.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Management has elected to register as a \u2018foreign private issuer\u2019 and an \u2018emerging growth company\u2019, which will enable it to provide substantially less information to public shareholders.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Such companies have generally performed poorly post-IPO.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Assuming a successful IPO, the company\u2019s enterprise value at IPO would approximate $99.6 million, excluding the effects of underwriter over-allotment options.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The float to outstanding shares ratio (excluding underwriter over-allotments) will be approximately 15.8%.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Management says it will use the net proceeds from the IPO as follows:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/saupload_G1Y_IQwL-YI8W82CvHl6OPqq0CdeYo7sNmbSWks0pTS8xiv2WdS9ZCBlb_fo_kAQU0107o4qjWRWvQo3tjqeUvw2HuY.jpeg\" alt=\"Proposed Use Of IPO Proceeds\" contenteditable=\"false\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\"><span>SEC<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Management\u2019s presentation of the company roadshow is not available.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Regarding outstanding legal proceedings, management said the firm is not currently &#8220;a party to any material legal or administrative proceedings.&#8221;<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The sole listed bookrunner of the IPO is Revere Securities.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Valuation Metrics For Raytech<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Below is a table of relevant capitalization and valuation figures for the company:<\/p>\n<p> <span class=\"table-responsive paywall-full-content invisible no-summary-bullets\"><span class=\"table-scroll-wrapper\"><span data-intersection-boundary=\"start\"><\/span><\/p>\n<table>\n<colgroup>\n<col>\n<col> <\/colgroup>\n<tr>\n<td>\n<p><strong>Measure [TTM]<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Amount<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Market Capitalization at IPO<\/p>\n<\/td>\n<td>\n<p>$85,500,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Enterprise Value<\/p>\n<\/td>\n<td>\n<p>$99,610,773<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Price \/ Sales<\/p>\n<\/td>\n<td>\n<p>14.74<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>EV \/ Revenue<\/p>\n<\/td>\n<td>\n<p>17.18<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>EV \/ EBITDA<\/p>\n<\/td>\n<td>\n<p>68.16<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Earnings Per Share<\/p>\n<\/td>\n<td>\n<p>$0.05<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Operating Margin<\/p>\n<\/td>\n<td>\n<p>25.20%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Net Margin<\/p>\n<\/td>\n<td>\n<p>15.81%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Float To Outstanding Shares Ratio<\/p>\n<\/td>\n<td>\n<p>15.79%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Proposed IPO Midpoint Price per Share<\/p>\n<\/td>\n<td>\n<p>$4.50<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Capital Expenditures<\/p>\n<\/td>\n<td>\n<p>$0<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Free Cash Flow Yield Per Share<\/p>\n<\/td>\n<td>\n<p>0.00%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Debt \/ EBITDA Multiple<\/p>\n<\/td>\n<td>\n<p>9.66<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>Revenue Growth Rate<\/p>\n<\/td>\n<td>\n<p>1.22%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p>(Glossary Of Terms.)<\/p>\n<\/td>\n<td> <\/td>\n<\/tr>\n<\/table>\n<p> <span data-intersection-boundary=\"end\"><\/span><\/span><button class=\"table-enlarge-button\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 16 16\" class=\"table-enlarge-icon\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16 11a5 5 0 0 1-5 5H5a5 5 0 0 1-5-5V5a5 5 0 0 1 5-5h6a5 5 0 0 1 5 5v6zm-4.5-2.5h2v-6h-6v2h4v4zm-9-1h2v4h4v2h-6v-6z\"><\/path><\/svg>Click to enlarge<\/button><\/span> <\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">(Source &#8211; SEC.)<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Commentary About Raytech\u2019s IPO<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Raytech Holding Limited is seeking U.S. public capital market investment for its general corporate and working capital purposes.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The company\u2019s financials have produced very little topline revenue growth, reduced gross profit and gross margin, and lower operating profit but increased cash flow from operations.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Free cash flow for the twelve months ending March 31, 2023, was $1.4 million.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Selling, G&amp;A expenses as a percentage of total revenue have risen as revenue has increased slightly; its Selling, G&amp;A efficiency multiple was only 0.1x, indicating low efficiency in generating incremental revenue as a function of these costs.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The firm currently plans to pay no dividends and to retain any future earnings for reinvestment back into the firm&#8217;s growth and general corporate purposes.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The market opportunity for selling personal care electronic products is large and expected to grow at a moderate rate of growth in the coming years.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Business risks to the company\u2019s outlook as a public company include its location and primary operations in Hong Kong and Mainland China, which have been subject to unpredictable regulatory and political developments in recent years.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Management is seeking an Enterprise Value\/Revenue multiple of approximately 17.2x despite revenue growth that has essentially stopped.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Given the firm\u2019s small size, high customer concentration risk, operating risks and high valuation expectations at IPO, my outlook on the Raytech Holding Limited IPO is to Sell [Avoid].<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Expected IPO Pricing Date: To be announced.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/seekingalpha.com\/article\/4645113-raytech-holding-proposes-terms-for-mini-ipo?source=feed_all_articles\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Quick Take On Raytech Holding Limited Raytech Holding Limited (RAY) has filed to raise $13.5 million in an IPO of its&#8230;<\/p>\n","protected":false},"author":1,"featured_media":7242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":{"0":"post-7241","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Raytech Holding Proposes Terms For Mini-IPO (RAY) | ZoomInFinancial<\/title>\n<meta name=\"description\" content=\"A Quick Take On Raytech Holding Limited Raytech Holding Limited (RAY) has filed to raise $13.5 million in an IPO of its ordinary shares, according to an\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zoominfinancial.com\/?p=7241\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Raytech Holding Proposes Terms For Mini-IPO (RAY) | ZoomInFinancial\" \/>\n<meta property=\"og:description\" content=\"A Quick Take On Raytech Holding Limited Raytech Holding Limited (RAY) has filed to raise $13.5 million in an IPO of its ordinary shares, according to an\" \/>\n<meta property=\"og:url\" content=\"https:\/\/zoominfinancial.com\/?p=7241\" \/>\n<meta property=\"og:site_name\" content=\"ZoomInFinancial\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-30T20:01:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-30T20:01:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/image_200409219.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1536\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/zoominfinancial.com\/?p=7241#article\",\"isPartOf\":{\"@id\":\"https:\/\/zoominfinancial.com\/?p=7241\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/zoominfinancial.com\/#\/schema\/person\/27fc0bac212db836c2d4246d4037414b\"},\"headline\":\"Raytech Holding Proposes Terms For Mini-IPO (RAY)\",\"datePublished\":\"2023-10-30T20:01:13+00:00\",\"dateModified\":\"2023-10-30T20:01:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/zoominfinancial.com\/?p=7241\"},\"wordCount\":1152,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/zoominfinancial.com\/#organization\"},\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/zoominfinancial.com\/?p=7241#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/zoominfinancial.com\/?p=7241\",\"url\":\"https:\/\/zoominfinancial.com\/?p=7241\",\"name\":\"Raytech Holding Proposes Terms For Mini-IPO (RAY) | ZoomInFinancial\",\"isPartOf\":{\"@id\":\"https:\/\/zoominfinancial.com\/#website\"},\"datePublished\":\"2023-10-30T20:01:13+00:00\",\"dateModified\":\"2023-10-30T20:01:14+00:00\",\"description\":\"A Quick Take On Raytech Holding Limited Raytech Holding Limited (RAY) has filed to raise $13.5 million in an IPO of its ordinary shares, according to an\",\"breadcrumb\":{\"@id\":\"https:\/\/zoominfinancial.com\/?p=7241#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/zoominfinancial.com\/?p=7241\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/zoominfinancial.com\/?p=7241#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/zoominfinancial.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Raytech Holding Proposes Terms For Mini-IPO (RAY)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/zoominfinancial.com\/#website\",\"url\":\"https:\/\/zoominfinancial.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/zoominfinancial.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/zoominfinancial.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/zoominfinancial.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/zoominfinancial.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/zoominfinancial.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/zoominfinancial.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/zoominfinancial.com\/#\/schema\/person\/27fc0bac212db836c2d4246d4037414b\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/zoominfinancial.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/zoominfinancial.com\"],\"url\":\"https:\/\/zoominfinancial.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Raytech Holding Proposes Terms For Mini-IPO (RAY) | ZoomInFinancial","description":"A Quick Take On Raytech Holding Limited Raytech Holding Limited (RAY) has filed to raise $13.5 million in an IPO of its ordinary shares, according to an","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/zoominfinancial.com\/?p=7241","og_locale":"en_US","og_type":"article","og_title":"Raytech Holding Proposes Terms For Mini-IPO (RAY) | ZoomInFinancial","og_description":"A Quick Take On Raytech Holding Limited Raytech Holding Limited (RAY) has filed to raise $13.5 million in an IPO of its ordinary shares, according to an","og_url":"https:\/\/zoominfinancial.com\/?p=7241","og_site_name":"ZoomInFinancial","article_published_time":"2023-10-30T20:01:13+00:00","article_modified_time":"2023-10-30T20:01:14+00:00","og_image":[{"width":1536,"height":1024,"url":"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/image_200409219.jpg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/zoominfinancial.com\/?p=7241#article","isPartOf":{"@id":"https:\/\/zoominfinancial.com\/?p=7241"},"author":{"name":"Press Room","@id":"https:\/\/zoominfinancial.com\/#\/schema\/person\/27fc0bac212db836c2d4246d4037414b"},"headline":"Raytech Holding Proposes Terms For Mini-IPO (RAY)","datePublished":"2023-10-30T20:01:13+00:00","dateModified":"2023-10-30T20:01:14+00:00","mainEntityOfPage":{"@id":"https:\/\/zoominfinancial.com\/?p=7241"},"wordCount":1152,"commentCount":0,"publisher":{"@id":"https:\/\/zoominfinancial.com\/#organization"},"articleSection":["News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/zoominfinancial.com\/?p=7241#respond"]}]},{"@type":"WebPage","@id":"https:\/\/zoominfinancial.com\/?p=7241","url":"https:\/\/zoominfinancial.com\/?p=7241","name":"Raytech Holding Proposes Terms For Mini-IPO (RAY) | ZoomInFinancial","isPartOf":{"@id":"https:\/\/zoominfinancial.com\/#website"},"datePublished":"2023-10-30T20:01:13+00:00","dateModified":"2023-10-30T20:01:14+00:00","description":"A Quick Take On Raytech Holding Limited Raytech Holding Limited (RAY) has filed to raise $13.5 million in an IPO of its ordinary shares, according to an","breadcrumb":{"@id":"https:\/\/zoominfinancial.com\/?p=7241#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/zoominfinancial.com\/?p=7241"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/zoominfinancial.com\/?p=7241#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/zoominfinancial.com\/"},{"@type":"ListItem","position":2,"name":"Raytech Holding Proposes Terms For Mini-IPO (RAY)"}]},{"@type":"WebSite","@id":"https:\/\/zoominfinancial.com\/#website","url":"https:\/\/zoominfinancial.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/zoominfinancial.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/zoominfinancial.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/zoominfinancial.com\/#organization","name":"Fintech Advance","url":"https:\/\/zoominfinancial.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/zoominfinancial.com\/#\/schema\/logo\/image\/","url":"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/zoominfinancial.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/zoominfinancial.com\/#\/schema\/person\/27fc0bac212db836c2d4246d4037414b","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/zoominfinancial.com\/#\/schema\/person\/image\/","url":"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/zoominfinancial.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/zoominfinancial.com"],"url":"https:\/\/zoominfinancial.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/zoominfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/7241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zoominfinancial.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zoominfinancial.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zoominfinancial.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zoominfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7241"}],"version-history":[{"count":1,"href":"https:\/\/zoominfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/7241\/revisions"}],"predecessor-version":[{"id":7243,"href":"https:\/\/zoominfinancial.com\/index.php?rest_route=\/wp\/v2\/posts\/7241\/revisions\/7243"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zoominfinancial.com\/index.php?rest_route=\/wp\/v2\/media\/7242"}],"wp:attachment":[{"href":"https:\/\/zoominfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zoominfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zoominfinancial.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}