Equity Analysis /
United States of America

STAAR Surgical

    Anne Stevenson-Yang
    Anne Stevenson-Yang

    Director of Research

    J Capital
    11 August 2020
    Published byJ Capital

    We think that STAAR Surgical has overstated sales in China by at least one-third, or $21.6 mln. That would mean that all of the company’s $14 mln in 2019 profit is fake.

    A single Chinese distributor accounted for 43% of STAAR’s total sales and 71% of its growth in 2019 and over half in Q2 this year. In the 2019 10K, STAAR reports: “One customer, Shanghai Langsheng [sic], our China distributor who sells in to China and Hong Kong, accounted for more than 43% of our consolidated net sales during fiscal 2019.” ​ Unfortunately, the Chinese numbers (which are not audited) are unreliable.