CulperResearch Posts On X, "We are short Jin Medical International Ltd $ZJYL, a China Hustle-style charade. Jin sells wheelchairs and parts in China. In 2022, its revenues fell 8% to just $19M. trades at ~45x revenues. At reasonable "peer" levels..."
Portfolio Pulse from Benzinga Newsdesk
CulperResearch has announced a short position on Jin Medical International Ltd (ZJYL), criticizing the company's high valuation at approximately 45 times its revenues, which fell 8% to $19M in 2022. They argue that at more typical industry revenue multiples of 1-6x, ZJYL's stock could plummet by 90% or more. CulperResearch also highlights concerns about the company's underwriter, Prime Number Capital, and its history of involvement in alleged China frauds. Additionally, ZJYL faced a NASDAQ delisting notice in September 2023 and has recently changed its auditor.
January 17, 2024 | 4:04 pm
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NEGATIVE IMPACT
CulperResearch's short position and critical report on Jin Medical International Ltd (ZJYL) suggest significant overvaluation and potential legal and regulatory issues, which could lead to a substantial decline in the stock price.
The short position taken by CulperResearch, combined with their detailed criticism of Jin Medical's financials and concerns about its underwriter, could lead to negative investor sentiment and a drop in stock price. The potential NASDAQ delisting and auditor change are additional red flags that may worry investors.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100