ECM Daily Briefs | Page 21 of 118

In today’s briefing:

MIXUE Group IPO: The Investment Case

MIXUE Group IPO: The Investment Case

By Arun George

Mixue Group (MIX HK), a world-leading freshly made drinks company, filed for an HKEx IPO to raise US$0.5-1.0 billion.
Mixue is China’s largest and the world’s second-largest freshly made drinks company, in terms of both the number of stores and cups sold in 9M23, according to CIC.
The investment case rests on a strong brand, leading market share, high revenue growth, robust cost control, stable profitability and cash generation.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jan 06

Daily Brief ECM: Hyundai Hyms IPO Valuation Analysis and more

In today’s briefing:

Hyundai Hyms IPO Valuation Analysis

Hyundai Hyms IPO Valuation Analysis

Our base case valuation of Hyundai Hyms is implied target price of 8,025 won per share, which is 27% higher than the high end of the IPO price range.
We believe Hyundai Hyms’ valuation premium to the comps is appropriate due to much stronger operating profit growth and its strong relationships with HD Hyundai Heavy Industries.
Hyundai Hyms’s main business includes shipbuilding equipment and related services. The company manufactures a wide variety of items necessary for ship construction, such as ship unit blocks and piping manufacturing.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jan 05

Daily Brief ECM: Ola Electric IPO: The Bull Case and more

In today’s briefing:

Ola Electric IPO: The Bull Case
Cloudbreak Pharma (拨康视云) Pre-IPO: Old Drug, New Formulation

Ola Electric IPO: The Bull Case

By Arun George

Ola Electric (1700674D IN), the largest Indian electric two-wheel vehicles (E2W) player, is seeking US$660 million from a primary raise along with a secondary raise at a US$7-8 billion valuation.
Ola is the best-selling E2W brand in India in terms of monthly E2W registrations on the VAHAN Portal of the Ministry of Road Transport and Highways.
The bull case rests on rising market share in a growing market, a rapid growth phase, increasing gross margin and a favourable cash conversion cycle.

Cloudbreak Pharma (拨康视云) Pre-IPO: Old Drug, New Formulation

By Ke Yan, CFA, FRM

Cloudbreak Pharma, a China-based clinical-stage biotechnology company, plans to raise up to US$200m via a Hong Kong listing.
In this note, we examine the company’s core products, namely CBT-001 and CBT-009, for pterygium and juvenile myopia respectively.
We are seeing a lack of convincing sustainable innovation from the company. Pre-IPO investors and management are mediocre.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jan 04

Daily Brief ECM: Pre-IPO QuantumPharm – Good Stories May Not Be Backed up by Performance and more

In today’s briefing:

Pre-IPO QuantumPharm – Good Stories May Not Be Backed up by Performance

Pre-IPO QuantumPharm – Good Stories May Not Be Backed up by Performance

By Xinyao (Criss) Wang

The essential difference between QuantumPharm and InSilico in terms of business models is that InSilico is an end-to-end generative AI-driven biotech but QuantumPharm is more of a platform-based service provider.
It’s difficult for QuantumPharm to achieve significant increase in revenue scale in short time,because the service fee amount is usually not large, and it takes time to accumulate order volume.
If there is no substantial performance contribution, these good stories would not bring about a sustained leap in valuation. QuantumPharm’s valuation in last funding round before IPO is too expensive.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jan 03

Daily Brief ECM: Hyundai Hyms IPO Preview and more

In today’s briefing:

Hyundai Hyms IPO Preview
APR IPO Valuation Analysis
J&T Global Express FY23 Earnings Preview | Revenue Growth & Margin | China, SE Asia, ‘Other’

Hyundai Hyms IPO Preview

Hyundai Hyms is getting ready to complete its IPO in KOSDAQ in January. The total IPO offering amount is 43.5 billion to 54.9 billion won.
The company is offering 8.7 million shares in this IPO, of which 40% are old shares and 60% are new shares.
Hyundai Hyms specializes in shipbuilding equipment. Hyundai Hyms’s main business includes shipbuilding equipment and related services.

APR IPO Valuation Analysis

Our base case valuation of APR is implied price of 370,809 won per share, representing an 85% upside from the high end of the bankers’ valuation range.
We estimate APR to generate sales of 683.9 billion won (up 25.7% YoY) and operating profit of 114.6 billion won (up 39.5% YoY) in 2024.
APR is one of the best IPOs in the Korean cosmetics sector in the past several years.

J&T Global Express FY23 Earnings Preview | Revenue Growth & Margin | China, SE Asia, ‘Other’

By Daniel Hellberg

In this insight we preview J&T’s maiden earnings report as a listed company
We focus on revenue growth & margin trends in the China & SE Asia businesses
We fear slowing organic growth & margin deterioration could spook investors

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Jan 02

Daily Brief ECM: APR IPO Preview and more

In today’s briefing:

APR IPO Preview

APR IPO Preview

APR is getting ready to complete an IPO in KOSPI in February 2024. The IPO price range is from 147,000 won to 200,000 won.
According to the bankers’ valuation, the company’s valuation is expected to range from 1.1 trillion won to 1.6 trillion won post IPO.
The company’s best selling product is its skin care beauty device product called Medicube Age-R.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 27

Daily Brief ECM: Pre-IPO Concord Healthcare Group (PHIP Updates) – Some Points Worth the Attention and more

In today’s briefing:

Pre-IPO Concord Healthcare Group (PHIP Updates) – Some Points Worth the Attention

Pre-IPO Concord Healthcare Group (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

Concord’s financial performance seems improving on the surface,but a closer look reveals that the sudden explosive revenue increase in 2021 was mainly due to an acquisition, with potential risks behind.
We’ve doubts about Concord’s endogenous growth capability. If Concord’s hospitals cannot make a profit, then any further expansion is just a beautiful story and cannot bring expected returns to investors.
Concord conducted a total of four rounds of financing, with a valuation of approximately RMB7.2 billion. However, based on our analysis, its valuation could be lower than peers.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 24

Daily Brief ECM: ECM Weekly (24th Dec 2023) – Embassy REIT and more

In today’s briefing:

ECM Weekly (24th Dec 2023) – Embassy REIT, Muthoot Microfin, India Shelter, Inox, UBTech

ECM Weekly (24th Dec 2023) – Embassy REIT, Muthoot Microfin, India Shelter, Inox, UBTech

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, things started to cool down into the year end with some smaller issuers still trying their luck to get listed before the year ends.
On the placement front, most of the action continued to come from India.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 22

Daily Brief ECM: 2024 IPOs Pipeline Worldwide (Top 100 Companies) and more

In today’s briefing:

2024 IPOs Pipeline Worldwide (Top 100 Companies)
Midea (000333 CH): Positive Read-Through From Gree’s Profit Alert
UBTech Robotics IPO – Quick Thoughts on Valuation – Too Hefty a Premium for Slowing Growth
Emcure Pharmaceuticals Pre-IPO: IPO Size Trimmed; Domestic Revenue Growth Decelerated

2024 IPOs Pipeline Worldwide (Top 100 Companies)

This is our 5th annual edition of the IPOs Pipeline Worldwide (Top 100 Companies) report.
After weak global IPO markets in 2022 and 2023, the near term trend for global IPOs continues to remain lackluster.
For those investors that closely monitor the global IPO opportunities, this is a good reference insight to check out the largest potential IPOs that could get completed next year.

Midea (000333 CH): Positive Read-Through From Gree’s Profit Alert

By Steve Zhou, CFA

Gree Electric Appliances (000651 CH) announced a profit alert for FY22 yesterday. Net profit is expected to increase 10.2% – 19.6% yoy for the whole year.
The resilient result of Gree should alleviate concerns of the market that Midea is too correlated with China’s new home sales.
The stock is trading at 10x 2024E earnings compared to an average of 13x over the last 10 years, with earnings likely growing at a high-single-digit pace.

UBTech Robotics IPO – Quick Thoughts on Valuation – Too Hefty a Premium for Slowing Growth

UBTech Robotics (9880 HK) is looking to raise about US$168m in its upcoming HK IPO, after downsizing from an earlier reported float of up to US$700m.
UBTech Robotics is engaged in artificial intelligence (AI)-empowered robotics in China, dedicated to the innovation of humanoid robots and development and sales of smart service robotic solutions.
In our previous note, we looked at the company’s performance and its PHIP updates. In this note, we share our quick thoughts on valuation.

Emcure Pharmaceuticals Pre-IPO: IPO Size Trimmed; Domestic Revenue Growth Decelerated

By Tina Banerjee

Emcure Pharmaceuticals has re-submitted DRHP to the SEBI for the second time. The IPO consists of a fresh issue of INR8 billion and an offer-for-sale of up to ~14M shares.
In the re-submitted DRHP, the company has trimmed the sizes of both the fresh issue and OFS. Emcure originally planned to launch IPO its in 2022.
Emcure has added latest financial performances in re-filed DRHP. During H1FY24, revenue from India increased only 3% YoY to INR16.4M, due to lower sales of anti-viral HIV products.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Dec 21

Daily Brief ECM: Embassy Office Parks REIT Block – Likely Well Flagged and Overhang Will Be Removed and more

In today’s briefing:

Embassy Office Parks REIT Block – Likely Well Flagged and Overhang Will Be Removed
Inox India IPO Trading – Hot Demand for Cryogenics

Embassy Office Parks REIT Block – Likely Well Flagged and Overhang Will Be Removed

Blackstone (BX US) is looking to raise around US$834m through a secondary block deal. This will be a clean-up as Blackstone fully exits from Embassy Office Parks REIT (EMBASSY IN).
The deal is a large one to digest, at approximately 397.2 days of three month ADV and 20.7% of current mcap.
In this note, we will talk about the selldown and run the deal through our ECM framework.

Inox India IPO Trading – Hot Demand for Cryogenics