Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

<ul>
<li>Bloks Group, a fast-growing toy company in China, will disclose the proposed size and the initial price range for the share sale soon.</li>
<li>In my insight, I discuss IPO valuation, update relative valuation table and set a target valuation for Bloks Group ahead of an IPO.</li>
<li>Bloks Group enjoys higher relative growth profile and superior gross profit margins. The company has over RMB600M in cash and equivalents and no debt.  </li>
</ul>


Bloks Group, a fast-growing toy company in China, will disclose the proposed size and the initial price range for the share sale soon.
In my insight, I discuss IPO valuation, update relative valuation table and set a target valuation for Bloks Group ahead of an IPO.
Bloks Group enjoys higher relative growth profile and superior gross profit margins. The company has over RMB600M in cash and equivalents and no debt.  


Bloks Group IPO Valuation Analysis: Is The Offering Worth Buying?

<ul>
<li>Bloks Group, a fast-growing toy company and leader of assembly character toys, filed for a Hong Kong IPO. The company is headquartered in Shanghai, PRC, and has 410 full-time employees.</li>
<li>Bloks Group has raised $200M+ to date from investors, including YF Capital, Legend Capital, Source Code Capital, Gaorong Capital and SinoMedia Asia Pacific.</li>
<li>The Chinese toy maker has delivered an exceptional revenue hyper-growth of 169% y/y in 2023. Elite operating metrics and impressive financial profile make IPO attractive for investors.</li>
</ul>


Bloks Group, a fast-growing toy company and leader of assembly character toys, filed for a Hong Kong IPO. The company is headquartered in Shanghai, PRC, and has 410 full-time employees.
Bloks Group has raised $200M+ to date from investors, including YF Capital, Legend Capital, Source Code Capital, Gaorong Capital and SinoMedia Asia Pacific.
The Chinese toy maker has delivered an exceptional revenue hyper-growth of 169% y/y in 2023. Elite operating metrics and impressive financial profile make IPO attractive for investors.


Bloks Group IPO: Exceptional Revenue Hyper-Growth and Profitability Are Unique Among Toy Makers

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Bottom-Up

<ul>
<li>Based in Hong Kong, Dream International is one of the largest toy manufacturers in the world. It specializes on plush stuffed toys and plastic figures. </li>
<li>Despite the global toys markets going into destocking cycle, the company has generated significant growth in operating profit in the past year driven by strong demand for plush stuffed toys.</li>
<li>If we assume a moderate 20% YoY increase in dividends in 2023, this would imply DPS of HKD 0.48 and this would suggest a dividend yield of 12.7% current prices. </li>
</ul>


Based in Hong Kong, Dream International is one of the largest toy manufacturers in the world. It specializes on plush stuffed toys and plastic figures. 
Despite the global toys markets going into destocking cycle, the company has generated significant growth in operating profit in the past year driven by strong demand for plush stuffed toys.
If we assume a moderate 20% YoY increase in dividends in 2023, this would imply DPS of HKD 0.48 and this would suggest a dividend yield of 12.7% current prices. 


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Pop Mart International Group L / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/pop-mart-international-group-limited" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">POP MART (POP HK)</a> is the largest and fastest-growing pop toy company in China, as measured by revenue in 2019 and revenue growth from 2017 to 2019, respectively, according to Frost &amp; Sullivan. Pop Mart will commence trading on Friday, 11 December. Pop Mart priced its IPO at HK$38.50 and <a href="http://www.aastocks.com/en/stocks/news/aafn-con/NOW.1062357/ipo-news" target="_blank" rel="noopener">opened 82% higher</a> at HK$70.00 in the grey market and last stood at $70.00.</p></div><div><p>In <a href="https://www.smartkarma.com/insights/pop-mart-international-ipo-creditable-performance-in-tough-times" target="_blank" data-smartkarma-citation="insights:45653" rel="noopener">Pop Mart International IPO: Creditable Performance in Tough Times</a> we noted that the 1H20 results demonstrate that Pop Mart has navigated a tough trading environment by delivering creditable growth and margin. In <a href="https://www.smartkarma.com/insights/pop-mart-international-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:45956" rel="noopener">Pop Mart International IPO: Valuation Insights</a>, we noted that IPO price range is attractive.</p></div><div><div><div class="content-highlight"><p>Our base-case DCF derived price target of HK$43.06 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price continues to provide good upside potential. </p></div></div></div>

POP MART (POP HK) is the largest and fastest-growing pop toy company in China, as measured by revenue in 2019 and revenue growth from 2017 to 2019, respectively, according to Frost &amp; Sullivan. Pop Mart will commence trading on Friday, 11 December. Pop Mart priced its IPO at HK$38.50 and opened 82% higher at HK$70.00 in the grey market and last stood at $70.00.In Pop Mart International IPO: Creditable Performance in Tough Times we noted that the 1H20 results demonstrate that Pop Mart has navigated a tough trading environment by delivering creditable growth and margin. In Pop Mart International IPO: Valuation Insights, we noted that IPO price range is attractive.Our base-case DCF derived price target of HK$43.06 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price continues to provide good upside potential. 

Pop Mart International IPO: Trading Debut

<div><p><a href="https://www.smartkarma.com/entities/pop-mart-international-group-limited" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">POP MART (POP HK)</a> is the largest and fastest-growing pop toy company in China, as measured by revenue in 2019 and revenue growth from 2017 to 2019, respectively, according to Frost &amp; Sullivan.</p></div><div><p>At the proposed IPO price range of HK$31.50-38.50 per share, Pop Mart will have a market cap of HK$43,519.8-53,190.8 million ($5.6-6.9 billion). At the mid-point of the IPO price range, the total net proceeds are HK$4,568.8 million ($589 million). </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/pop-mart-international-ipo-creditable-performance-in-tough-times" target="_blank" data-smartkarma-citation="insights:45653" rel="noopener">Pop Mart International IPO: Creditable Performance in Tough Times</a> we noted that the 1H20 results demonstrate that Pop Mart has navigated a tough trading environment by delivering creditable growth and margin. Overall, we would participate in the IPO due to an attractive IPO price range.</p></div></div></div>

POP MART (POP HK) is the largest and fastest-growing pop toy company in China, as measured by revenue in 2019 and revenue growth from 2017 to 2019, respectively, according to Frost &amp; Sullivan.At the proposed IPO price range of HK$31.50-38.50 per share, Pop Mart will have a market cap of HK$43,519.8-53,190.8 million ($5.6-6.9 billion). At the mid-point of the IPO price range, the total net proceeds are HK$4,568.8 million ($589 million). In Pop Mart International IPO: Creditable Performance in Tough Times we noted that the 1H20 results demonstrate that Pop Mart has navigated a tough trading environment by delivering creditable growth and margin. Overall, we would participate in the IPO due to an attractive IPO price range.

Pop Mart International IPO: Valuation Insights

United States

Mattel, Inc. designs, manufactures, and markets a broad variety of children's toy products on a worldwide basis.  The Company sells its products to retailers and directly to consumers.  Mattel's products include branded fashion dolls, infant and preschool products, toy cars, and electrical vehicles, among others.

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Mattel Inc (MAT US)

Bloks Group IPO Valuation Analysis: Is The Offering Worth Buying?

Bloks Group plans to raise up to $300M in Hong Kong IPO. Goldman Sachs (Asia) and Huatai International are leading the offering. In my insight, I...

Andrei Zakharov

Bloks Group IPO: Exceptional Revenue Hyper-Growth and Profitability Are Unique Among Toy Makers

Bloks Group, a fast-growing leader of assembly character toys, is seeking to raise capital in Hong Kong. The company is something exceptional in...

Andrei Zakharov

Asian Dividend Gems: Dream International

Based in Hong Kong, Dream International is one of the largest toy manufacturers in the world. It specializes on plush stuffed toys and plastic...

Douglas Kim

Pop Mart International IPO: Trading Debut

Pop Mart priced its IPO at HK$38.50 and opened 82% higher at HK$70.00 in the grey market. Our DCF sensitivity analysis shows that the IPO price...

Arun George

Pop Mart International IPO: Valuation Insights

At the mid-point of the IPO price range, the total net proceeds are HK$4,568.8 million ($589 million). Overall, we would participate in the IPO due...

Arun George

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