Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>This year marks the fifth year in the most current downcycle for the stocks we monitor in the direct selling channel, with the brief exception of the pandemic-related benefits they reaped in 2H20 and 1H21, as a result of their product focus on health and wellness as well as their direct-to-consumer business models during the widespread lockdowns.</li><li>Even those benefits have been mostly given back in 2022 and 2023 as consumers moved from spending on goods for the home and body to services and experiences as mobility returned to the global marketplace</li><li>Below are the five key trends we are looking for to drive this group in 2024.</li></ul>

This year marks the fifth year in the most current downcycle for the stocks we monitor in the direct selling channel, with the brief exception of the pandemic-related benefits they reaped in 2H20 and 1H21, as a result of their product focus on health and wellness as well as their direct-to-consumer business models during the widespread lockdowns.Even those benefits have been mostly given back in 2022 and 2023 as consumers moved from spending on goods for the home and body to services and experiences as mobility returned to the global marketplaceBelow are the five key trends we are looking for to drive this group in 2024.

2024 Trends for Direct Sellers - Looking for an Inflection Point

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dxn-holdings-bhd" target="_blank" data-smartkarma-citation="entities:36030:1" rel="noopener">DXN Holdings (2080694D MK)</a> raised around US$147m in its Malaysian IPO.</li>
<li>DXN Holdings (DXN) is a global health-oriented and wellness direct selling company.</li>
<li>In this note, we will talk about the trading dynamics.</li>
</ul>



DXN Holdings (2080694D MK) raised around US$147m in its Malaysian IPO.
DXN Holdings (DXN) is a global health-oriented and wellness direct selling company.
In this note, we will talk about the trading dynamics.


DXN Holdings IPO Trading - Lukewarm Subscription Rates, Peers Have Corrected Since Last Note

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dxn-holdings-bhd" target="_blank" data-smartkarma-citation="entities:36030:1" rel="noopener">DXN Holdings (2080694D MK)</a> is looking to raise around US$159m in its Malaysia IPO.</li>
<li>DXN Holdings (DXN) is a global health-oriented and wellness direct selling company.</li>
<li>In this note, we will undertake a peer comparison, discuss our earnings assumptions, and share our thoughts on valuation.</li>
</ul>



DXN Holdings (2080694D MK) is looking to raise around US$159m in its Malaysia IPO.
DXN Holdings (DXN) is a global health-oriented and wellness direct selling company.
In this note, we will undertake a peer comparison, discuss our earnings assumptions, and share our thoughts on valuation.


DXN Holdings IPO - Peer Comparison & Valuation

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dxn-holdings-bhd" target="_blank" data-smartkarma-citation="entities:36030:1" rel="noopener">DXN Holdings (2080694D MK)</a> is looking to raise around US$159m in its Malaysia IPO.</li>
<li>DXN Holdings (DXN) is a global health-oriented and wellness direct selling company.</li>
<li>In our previous note, we looked at the company’s past performance. In this note, we take a look at the company’s updated financials.</li>
</ul>



DXN Holdings (2080694D MK) is looking to raise around US$159m in its Malaysia IPO.
DXN Holdings (DXN) is a global health-oriented and wellness direct selling company.
In our previous note, we looked at the company’s past performance. In this note, we take a look at the company’s updated financials.


DXN Holdings IPO - Updates Since Our Last Note

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/blackmores-ltd" target="_blank" data-smartkarma-citation="entities:928:1" rel="noopener">Blackmores Ltd (BKL AU)</a> has entered a binding proposal with <a href="https://www.smartkarma.com/entities/kirin-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:16977:1" rel="noopener">Kirin Holdings (2503 JP)</a> at A$95.00 per share, a 23.7% premium to the undisturbed price (16 April).</li>
<li>The offer is attractive. Marcus Blackmore, the largest shareholder, will vote in favour of the offer. Regulatory approvals should be forthcoming.   </li>
<li>The scheme meeting is in July. At the last close, the gross and annualised spread for a late August payment is 0.8% and 2.2%, respectively.</li>
</ul>



Blackmores Ltd (BKL AU) has entered a binding proposal with Kirin Holdings (2503 JP) at A$95.00 per share, a 23.7% premium to the undisturbed price (16 April).
The offer is attractive. Marcus Blackmore, the largest shareholder, will vote in favour of the offer. Regulatory approvals should be forthcoming.   
The scheme meeting is in July. At the last close, the gross and annualised spread for a late August payment is 0.8% and 2.2%, respectively.


Blackmores (BKL AU): Kirin’s Binding A$95.00 Offer

United States

USANA Health Sciences, Inc. develops, manufactures, and markets nutritionals, personal care, and weight management products.  The Company's products are sold directly to preferred customers and distributors throughout the United States, Canada, Australia, New Zealand, the United Kingdom, and Hong Kong.

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Usana Health Sciences (USNA US)

2024 Trends for Direct Sellers - Looking for an Inflection Point

This year marks the fifth year in the most current downcycle for the stocks we monitor in the direct selling channel with the brief exception of...

Water Tower Research

DXN Holdings IPO Trading - Lukewarm Subscription Rates, Peers Have Corrected Since Last Note

DXN Holdings (2080694D MK) raised around US$147m in its Malaysian IPO. In this note, we will talk about the trading dynamics.

Clarence Chu

DXN Holdings IPO - Peer Comparison & Valuation

DXN Holdings (2080694D MK) is looking to raise around US$159m in its Malaysia IPO. In this note, we will undertake a peer comparison, and share our...

Clarence Chu

DXN Holdings IPO - Updates Since Our Last Note

DXN Holdings (2080694D MK) is looking to raise around US$159m in its Malaysia IPO. DXN Holdings (DXN) is a global health-oriented and wellness...

Clarence Chu

Blackmores (BKL AU): Kirin’s Binding A$95.00 Offer

The offer is attractive. Regulatory approvals should be forthcoming. At the last close, the annualised spread for a late August payment is 2.2%.

Arun George

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)