IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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.

Equity Capital Markets

Chervon Holdings / Equity Capital Markets

<ul>
<li>Chervon Holdings (CHL HK) is a leading global provider of power tools and outdoor power equipment. It has launched an HKEx IPO to raise up to HK$3.13 billion (US$402 million).</li>
<li>In <a href="https://www.smartkarma.com/insights/chervon-holdings-ipo-initiation-not-quite-right" target="_blank" data-smartkarma-citation="insights:62550" rel="noopener">Chervon Holdings IPO Initiation: Not Quite Right</a>, we noted a tepid 3Q21 performance and the vanishing of the former largest customer is a worry.   </li>
<li>Our valuation analysis suggests that the price range fairly values Chervon. However, due to our lingering concerns, we err on the side of caution and pass on the IPO.</li>
</ul>


Chervon Holdings (CHL HK) is a leading global provider of power tools and outdoor power equipment. It has launched an HKEx IPO to raise up to HK$3.13 billion (US$402 million).
In Chervon Holdings IPO Initiation: Not Quite Right, we noted a tepid 3Q21 performance and the vanishing of the former largest customer is a worry.   
Our valuation analysis suggests that the price range fairly values Chervon. However, due to our lingering concerns, we err on the side of caution and pass on the IPO.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/chervon-holdings-limited" target="_blank" data-smartkarma-citation="entities:35309:1" rel="noopener">Chervon Holdings (CHL HK)</a> is a leading global provider of power tools and outdoor power equipment. It will launch an HKEx IPO to raise US$400m-450 million, according to press reports.</li>
<li>At first glance, the fundamentals look attractive with strong revenue growth, operating leverage and cash generation. </li>
<li>However, a tepid 3Q21 performance and the vanishing of the former largest customer is a worry. We take a safety-first approach in the current environment and pass on this IPO.  </li>
</ul>



Chervon Holdings (CHL HK) is a leading global provider of power tools and outdoor power equipment. It will launch an HKEx IPO to raise US$400m-450 million, according to press reports.
At first glance, the fundamentals look attractive with strong revenue growth, operating leverage and cash generation. 
However, a tepid 3Q21 performance and the vanishing of the former largest customer is a worry. We take a safety-first approach in the current environment and pass on this IPO.  


Chervon Holdings IPO Initiation: Not Quite Right

Taiwan

Rexon Industrial Corp. Ltd. manufactures and markets woodworking tools, drill presses, and fitting equipment.

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Rexon Industrial Corp (1515 TT)

Chervon Holdings IPO: Valuation Insights

Our valuation analysis suggests that the price range fairly values Chervon. However, due to our lingering concerns, we err on the side of caution...

Arun George

Chervon Holdings IPO Initiation: Not Quite Right

Chervon is set to launch an HKEx IPO to raise US$400m-450m, according to press reports. The fundamentals are far from perfect and we are inclined...

Arun George

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