In today’s briefing:
- Weiqiao Textile (2698 HK): Vote on 8 March
- Amer Sports IPO – Deal Updates and Thoughts on Valuation
- Texwinca (321 HK): Even Cheaper Than Pacific Textiles (1382 HK)
- CG Watch, Which Made Great Strides Will Be Tested Next Time for Substantial Governance Improvements
- Guming Holdings (Goodme) Pre-IPO – The Negatives – Growth Sustainability Remains a Question Mark
- BBW: Snapping the Store: Glisten Glistens, Valentines & Skoosherz Impressive
- Cash Converters International – Rejuvenated and Growing
- Brainbees Solutions (FirstCry) Pre-IPO – The Negatives – Not All of It Fits Together
Weiqiao Textile (2698 HK): Vote on 8 March
- Weiqiao Textile Co (2698 HK)’s IFA opines that Weiqiao Chuangye’s privatisation offer of HK$3.50 per H Share, a 104.7% premium to the undisturbed price, is fair and reasonable.
- Despite amassing a blocking stake, Prudence’s ongoing buying supports the view that it intends to play the spread rather than block the deal.
- Despite the offer being below net cash, this is a done deal. At the last close and for the 28 March payment, the gross/annualised spread is 1.7%/10.2%.
Amer Sports IPO – Deal Updates and Thoughts on Valuation
- Amer Sports (AS US) now aims to raise up to US$1.8bn in its US IPO. Proceeds from the listing will be used to pay down debt to the Anta-led consortium.
- Amer Sports is a sports and outdoor brands company making clothing and other sporting equipment for use in snow sports, running, climbing, baseball, american football, tennis and other sports.
- We have looked at the company’s performance in our past note. In this note, we talk about valuations.
Texwinca (321 HK): Even Cheaper Than Pacific Textiles (1382 HK)
- Following the recent Offer for Weiqiao Textile Co (2698 HK), I flagged Pacific Textiles (1382 HK) in Pacific Textiles (1382 HK): Material Benefits as a potential M&A play.
- Also in this space is Texwinca Holdings (321 HK) which is trading down towards its Covid-affected lows.
- Both Pacific Textiles and Texwinca are pursuing a Vietnamese expansion. Texwinca is trading cheaper to Pacific Textiles, is net cash, and has a superior yield..
CG Watch, Which Made Great Strides Will Be Tested Next Time for Substantial Governance Improvements
- Government ministries, agencies and the TSE want to raise the value of the Tokyo market, even if it means using the opinions of overseas investors, including activist investors.
- Companies with high foreign ownership and large market capitalization are proactive in corporate governance efforts, while many other companies are passive, indicating that differences in efforts among companies are significant.
- Thanks to the revision of the Corporate Governance Code, corporate governance practices have improved mainly in terms of formal criteria, and now substantive improvements are required.
Guming Holdings (Goodme) Pre-IPO – The Negatives – Growth Sustainability Remains a Question Mark
- Guming Holdings (GUM HK) (Guming) is looking to raise US$300m in its upcoming Hong Kong IPO.
- Guming Holdings (Guming) is a maker of freshly-made beverages in China.
- In this note, we will talk about the not so positive aspects of the deal.
BBW: Snapping the Store: Glisten Glistens, Valentines & Skoosherz Impressive
- We are reiterating our Buy rating, $41 price target and projections for Build-A-Bear Workshop after visiting stores in Connecticut and Long Island.
- January is a key month for Build-A-Bear, as the company enjoys material traffic from gift card purchases post-Xmas and almost immediately thereafter shifts to the key Valentine’s Day season.
- As such, we are reiterating our Buy rating and $41 price target for BBW.
Cash Converters International – Rejuvenated and Growing
- Cash Converters International (ASX:CCV) is a consumer finance company operating as a service provider, owner and franchisor of second-hand goods and financial services stores in Australia and internationally.
- It derives its revenue from personal loans, vehicle finance, sale of goods and store services.
- In recent years, the business has faced both company specific and industry headwinds involving litigation and regulatory scrutiny, but it has worked through those and evolved into a highly regulated, well-run profitable business with a clear strategic direction and multi- layered growth opportunities.
Brainbees Solutions (FirstCry) Pre-IPO – The Negatives – Not All of It Fits Together
- FirstCry is looking to raise up to US$700m in its upcoming India IPO.
- FirstCry is India’s largest multi-channel retailing platform for Mothers’, Babies’ and Kids’ products in terms of GMV, for the year ending Dec 2022 (9M23), according to RedSeer.
- In this note, we talk about the not-so-positive aspects of the deal.
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