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ECM

Daily Brief ECM: Jacobio Pharmaceuticals Placement (1167.HK) – We Keep Hope for Jacobio Because of Dr. Wang Yinxiang and more

By | Daily Briefs, ECM

In today’s briefing:

  • Jacobio Pharmaceuticals Placement (1167.HK) – We Keep Hope for Jacobio Because of Dr. Wang Yinxiang

Jacobio Pharmaceuticals Placement (1167.HK) – We Keep Hope for Jacobio Because of Dr. Wang Yinxiang

By Xinyao (Criss) Wang

  • There is limited breakthrough points in the field of small molecule drugs. Except those big varieties, the market space of small-molecular drugs is not optimistic due to small applicable population.
  • For KRAS, it just crossed the threshold of druggablility, but the whole pathway hasn’t shown the feeling of being a blockbuster variety, which would dampen the optimism of Jacobio’s valuation.
  • Jacobio is among the few biotech under Chapter 18A who really develop drugs seriously. Therefore, despite the challenging outlook, we hoped that Dr. Yinxiang Wang would finally break through.

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Daily Brief ECM: ECM Weekly (12th Feb 2023) – Hesai and more

By | Daily Briefs, ECM

In today’s briefing:

  • ECM Weekly (12th Feb 2023) – Hesai, Oasis, Mankind, Greatpower, Ruipeng, CATL, Nissan/Renault
  • Ball Corporation: Details of Product Offerings & Key Drivers
  • Church & Dwight: Major Drivers
  • Corning Inc: Gorilla Glass Victus 2 & Other Developments
  • Exxon Mobil: Major Drivers

ECM Weekly (12th Feb 2023) – Hesai, Oasis, Mankind, Greatpower, Ruipeng, CATL, Nissan/Renault

By Sumeet Singh

  • 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, Hesai Group (HSAI US) provided the first Asia linked listing for the year.
  • Things were quiet on the placement front owing to the annual earnings reporting season.

Ball Corporation: Details of Product Offerings & Key Drivers

By Baptista Research

  • Ball’s performance in the quarter was extremely disappointing and the company missed out on meeting Wall Street expectations with respect to revenues as well as earnings.
  • The company did see a decent performance in EMEA aerospace and aerosol operations, especially in its newly constructed facilities in EMEA.
  • The management believes that Ball’s aerospace and aerosol segments are having ongoing success and will complement the activities of its global beverage operations.

Church & Dwight: Major Drivers

By Baptista Research

  • Church & Dwight delivered a strong set of results in the last quarter, with revenue growth of around 0.4% that was beyond Wall Street expectations.
  • Its international business delivered 3.2% organic growth, driven by impressive performance across international subsidiaries.
  • On the other hand, TROJAN condoms returned to share growth, while OXICLEAN stain removers and ARM & HAMMER baking soda achieved double-digit consumption growth.

Corning Inc: Gorilla Glass Victus 2 & Other Developments

By Baptista Research

  • Corning faced the impact of a series of pandemic-driven effects during the last quarter but the company managed to deliver an all-around beat.
  • The purchase of laptops, tablets, smartphones, televisions, and cars was below the company’s estimation in the last quarter.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Exxon Mobil: Major Drivers

By Baptista Research

  • Exxon Mobil delivered a mixed set of results for the last quarter.
  • The company’s cash flow performance was solid.
  • Exxon merged its downstream and chemical businesses to create Product Solutions, one of the world’s biggest fuels, chemicals, and lubricants companies.

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Daily Brief ECM: Concord Healthcare Pre-IPO Tearsheet and more

By | Daily Briefs, ECM

In today’s briefing:

  • Concord Healthcare Pre-IPO Tearsheet

Concord Healthcare Pre-IPO Tearsheet

By Clarence Chu

  • Concord Healthcare Group (CHG HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
  • Concord Healthcare (Concord) is an oncology health platform in China researching and implementing advanced oncology diagnostic and treatment technologies.
  • As per Frost and Sullivan (F&S), in 2021, Concord was the market leader among private oncology healthcare groups in China, as measured by cancer treatment empowerment service revenue.

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Daily Brief ECM: Hesai Group IPO Trading – Managed to Break the Drought and more

By | Daily Briefs, ECM

In today’s briefing:

  • Hesai Group IPO Trading – Managed to Break the Drought
  • Discussing the Timing of the Samsung SDS Block Deal by Lee Seo-Hyun
  • Mankind Pharma Pre-IPO – Thoughts on Valuations
  • Oasis Corp IPO Preliminary Book Building Results
  • Dekon Food and Agriculture Group Pre-IPO Tearsheet

Hesai Group IPO Trading – Managed to Break the Drought

By Sumeet Singh

  • Hesai Group (HSAI US) (HSAI) raised around US$190m in its US IPO.
  • HSAI is a manufacturer of three-dimensional light detection and ranging (Lidar) solutions. It has shipped over 103,000 Lidar units from 2017 to the end of 2022.
  • We have looked at the company’s past performance and valuations. In this note, we will talk about the trading updates.

Discussing the Timing of the Samsung SDS Block Deal by Lee Seo-Hyun

By Sanghyun Park

  • The term of Lee’s trust contract with Hana Bank is from February 2nd to April 28th, and the volume is 1.95% of SO, the total remaining quantity owned by Lee.
  • The price movement on the day the previous block deals by the Lee family were executed was substantial. Of particular note is that SDS showed the most significant price impact.
  • We should focus on the possibility that a block deal will come to the market much earlier, as SDS is in short-term overbought territory from a valuation perspective.

Mankind Pharma Pre-IPO – Thoughts on Valuations

By Sumeet Singh

  • Mankind Pharma is looking to raise around US$1bn in its upcoming India IPO.
  • MP is a pharmaceutical company engaged in developing, manufacturing and marketing a range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
  • We have looked at the company background and undertaken a peer comparison in our previous notes. In this note, we will talk about valuations.

Oasis Corp IPO Preliminary Book Building Results

By Douglas Kim

  • The local media mentioned that the preliminary book building results of the Oasis IPO were terrible. 
  • Therefore, the company is likely to either materially lower the IPO price range or postpone the IPO altogether.
  • Our base case valuation of Oasis Corp is target price of 24,847 won per share, which is 18.5% lower than the low end of the IPO price range. 

Dekon Food and Agriculture Group Pre-IPO Tearsheet

By Ethan Aw

  • Dekon Food and Agriculture Group (DFAG CH) is looking to raise at least US$100m in its upcoming HK IPO. The deal will be run by CICC and Citibank.  
  • Dekon Food and Agriculture Group (DFAG) is a livestock and poultry breeding and farming enterprise in China, focusing on the breeding and farming of pigs and yellow-feathered broilers. 
  • As of 30th Sep 2022, its business footprint covered 39 cities across 12 provinces and autonomous regions in China. 

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Daily Brief ECM: UBTech Robotics IPO Preview and more

By | Daily Briefs, ECM

In today’s briefing:

  • UBTech Robotics IPO Preview
  • New Ruipeng Pet Group Pre-IPO Peer Comparison – Largest Domestic Player, but Smallest Margins
  • IndiaFirst Life Insurance Pre-IPO – Hardly Stands Out as One of the Smallest Players
  • CStone Pharmaceuticals Placement (2616.HK) – There Is No Certainty that the Dilemma Will Reverse

UBTech Robotics IPO Preview

By Douglas Kim

  • UBTech Robotics is trying to complete its IPO in Hong Kong in the coming weeks. UBTech Robotics is a leading artificial intelligence based robotics company headquartered in China.
  • UBTech Robotics received very fat valuations in the past couple of years. Back in January 2021, it was reported that the company’s valuation reached as high as $7 billion.
  • In China’s smart education robot based solution market, UBTech Robotics is the number one player. 

New Ruipeng Pet Group Pre-IPO Peer Comparison – Largest Domestic Player, but Smallest Margins

By Clarence Chu

  • New Ruipeng Pet Group (RPET US) is looking to raise at least US$100m in its upcoming US IPO.
  • New Ruipeng Pet Group (Ruipeng) is a pet services platform, primarily offering pet care services, supply chain services and local services, covering the entire lifecycle of pets. 
  • In our previous notes, we have looked at the company’s past performance. In this note, we undertake a peer comparison.

IndiaFirst Life Insurance Pre-IPO – Hardly Stands Out as One of the Smallest Players

By Ethan Aw

  • IndiaFirst Life Insurance (1083896D IN) is looking to raise about US$250m in its upcoming India IPO. 
  • IndiaFirst Life Insurance (IFLI) is a private life insurer in India with a product portfolio of retail and group products, ranging across different segments. 
  • Its GWP and AUM have grown over the track record period. However, bottomline growth has on the other hand, declined further. 

CStone Pharmaceuticals Placement (2616.HK) – There Is No Certainty that the Dilemma Will Reverse

By Xinyao (Criss) Wang

  • The revenue brought by CStone’s differentiated layout of pipeline does not match the R&D investment. CStone needs to in-license more late-stage products, but the Company is not cash rich.
  • CStone was incubated by WuXi Bio. Its business model is“VC+IP+CRO”. Cstone doesn’t have independent R&D capability. The increasingly low cost performance of in-licensed products has made the capital “reconsider” .
  • Cstone doesn’t have the potential to be a biopharma as it licensed out the key/core candidates. Its future valuation growth would be “discounted”. Corporate governance/instability is also a concern.

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Daily Brief ECM: Hesai Group IPO: Valuation Insights and more

By | Daily Briefs, ECM

In today’s briefing:

  • Hesai Group IPO: Valuation Insights
  • Mankind Pharma Pre-IPO – Peer Comparison – One of the Largest, with Better Growth and Margins
  • New Ruipeng Pet IPO: Covid-19 Is Not the Sole Reason for Mediocre Performance

Hesai Group IPO: Valuation Insights

By Arun George


Mankind Pharma Pre-IPO – Peer Comparison – One of the Largest, with Better Growth and Margins

By Sumeet Singh

  • Mankind Pharma is looking to raise about US$1bn in its upcoming India IPO.
  • MP is a pharmaceutical company engaged in developing, manufacturing and marketing a range of pharmaceutical formulations across various acute and chronic therapeutic areas, as well as several consumer healthcare products.
  • In this note, we will undertake a peer comparison with some of the India listed and domestically focussed pharmaceutical firms.

New Ruipeng Pet IPO: Covid-19 Is Not the Sole Reason for Mediocre Performance

By Shifara Samsudeen, ACMA, CGMA

  • New Ruipeng is the largest pet care platform in China and second largest globally in terms of no.of hospitals and revenue from pet care services in both 2020 and 2021.
  • The company has filed for an IPO in the US and plans to raise at least US$100m through the IPO.
  • Though the company’s operations were negatively affected by Covid-19, our analysis shows that intense competition has led to the company losing its market share in the pet care services.

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Daily Brief ECM: JEIO IPO: Book Building Results Analysis and more

By | Daily Briefs, ECM

In today’s briefing:

  • JEIO IPO: Book Building Results Analysis
  • New Ruipeng Pet Group IPO: Struggling Pet Hospital Operator. Hard To Justify Premium Valuation
  • Greatpower Nickel and Cobalt Materials Pre-IPO – Should Turnaround once COVID Is Over

JEIO IPO: Book Building Results Analysis

By Douglas Kim

  • Jeio (418550 KS) announced its IPO price of 13,000 won, which was at the high end of the recently revised down IPO price range of 10,000 won to 13,000 won.
  • There were 1,174 institutional investors that participated in this IPO survey. The demand ratio was 352.6 to 1.
  • Our base case valuation of JEIO is target price of 12,575 won per share, which is 3.3% lower than the IPO price 13,000 won.

New Ruipeng Pet Group IPO: Struggling Pet Hospital Operator. Hard To Justify Premium Valuation

By Andrei Zakharov

  • New Ruipeng Pet Group, a China-based pet clinic operator and provider of pet care services, filed for a U.S. IPO. The company plans to list ADSs under the ticker “RPET.”
  • The company’s most recent private round was a $500M venture round led by Boehringer Ingelheim and Tencent at a ~$4.4B valuation in September 2020. 
  • We believe investors should think twice before investing in the New Ruipeng IPO as the pet hospital operator struggled to grow revenues, operating losses mounted, and labor costs increased.

Greatpower Nickel and Cobalt Materials Pre-IPO – Should Turnaround once COVID Is Over

By Ethan Aw

  • Greatpower Nickel & Cobalt Materials (1919613D CH) is looking to raise about US$300m in its upcoming Hong Kong IPO.
  • Greatpower Nickel and Cobalt Materials (GNCM) is a supplier of new energy battery materials in China, with a dual focus on nickel and cobalt for the production of cathode materials. 
  • The firm has made itself one of the top Chinese players in terms of cobalt refining by sales volume and nickel by trading volume. However, its profitability was significantly impacted. 

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Daily Brief ECM: Pertamina Geothermal IPO: Valuation Insights and more

By | Daily Briefs, ECM

In today’s briefing:

  • Pertamina Geothermal IPO: Valuation Insights
  • Hesai Group IPO – Thoughts on Valuation
  • Hesai Group IPO: The Bear Case
  • HESAI Group IPO Valuation Analysis
  • Alphamab Co Ltd Placement (9966.HK) – Has No Potential to Be a Biopharma; Just Remain as a Biotech

Pertamina Geothermal IPO: Valuation Insights

By Arun George


Hesai Group IPO – Thoughts on Valuation

By Sumeet Singh

  • Hesai Group (HSAI US) is looking to raise around US$170m in its upcoming US IPO.
  • HSAI is a manufacturer of three-dimensional light detection and ranging (Lidar) solutions. It has shipped over 103,000 Lidar units from 2017 to the end of 2022.
  • We have looked at the company’s past performance and undertaken a peer comparison in our previous notes. In this note, we will talk about valuations.

Hesai Group IPO: The Bear Case

By Arun George

  • Hesai Group (HSAI US) has launched a Nasdaq IPO to raise up to US$171 million at an indicative price range of US$17-19 per ADS.
  • In Hesai Group IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
  • The key elements of the bear case rest on continuing pricing pressure, declining contract liabilities, gross margin decline, ongoing losses, worsening cash conversion cycle and FCF burn.

HESAI Group IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Hesai Group is implied market cap of US$3.4 billion or target price of US$27.1 per share.
  • Our target price is 43% higher than the high end of the IPO price of US$19 per share. Given the solid upside, we have a positive view of this IPO. 
  • The company’s superior technology in the LiDAR product segment along with its global market leadership should help Hesai Group to successfully complete this IPO despite political risks related to China. 

Alphamab Co Ltd Placement (9966.HK) – Has No Potential to Be a Biopharma; Just Remain as a Biotech

By Xinyao (Criss) Wang

  • Unlike ADC, there’re still doubts on the outlook of whole bispecific antibody mechanism. Alphamab Oncology doesn’t actively promote related head-to-head trials, which makes people doubt the competitiveness of its products.
  • Investors’ trust in Alphamab Oncology continues to decline, mainly because the Company often missed the guidance/milestones it announced before. This will greatly affect the credibility of Alphamab Oncology.
  • The current valuation is expensive and has basically priced in all the positive factors. The Company is more suitable for short-term trading to capture the rebound rather than long-term holding.

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How to Invest in IPOs

How to Invest in IPOs: A Beginner’s Guide

By | ECM, Smartkarma 101s

An initial public offering (IPO) occurs when a company first offers its shares to the public. Investing in IPOs can be an exciting opportunity for investors to get in on the ground floor of a growing company. However, it’s important to understand the risks involved and conduct thorough research before making an investment decision.

Is IPO a Good Investment?

The answer to this question is not straightforward and depends on a number of factors. On one hand, investing in an IPO can provide investors with the opportunity to get in on the ground floor of a growing company and potentially realize substantial returns. On the other hand, IPOs can also be high-risk investments, as the performance of newly public companies is often uncertain.

It’s important to conduct thorough research and understand the risks involved before making an investment decision. This includes analyzing the company’s financials, understanding its industry and competition, and considering the experience and track record of its management team.

Smartkarma is an independent investment research network where top independent analysts publish their research and insights. Independent analysts cover important content verticals such as IPO research on Smartkarma, providing investors with in-depth analysis and insights on the most popular IPOs.

Should a Beginner Invest in IPO?

Investing in IPOs is not recommended for beginners, as it can be a high-risk investment. Beginners should consider starting with more conservative investments and building their knowledge and experience before considering an IPO investment.

Can Anyone Buy IPO Stocks?

Yes, anyone can buy IPO stocks, provided they have a brokerage account and the necessary funds to make the investment.

Is IPO High Risk?

Yes, investing in IPOs can be high-risk due to the uncertain performance of newly public companies. It’s important to understand the risks involved and conduct thorough research before making an investment decision.

How Much Money Do I Need to Invest in an IPO?

The amount of money needed to invest in an IPO can vary, but it’s typically possible to purchase shares with a small amount of money. It’s important to consider the investment goals and risk tolerance before determining how much money to invest in an IPO.

Which is the Best IPO to Buy?

There is no single best IPO to buy, as the performance of an IPO is dependent on a variety of factors such as the company’s financials, industry, competition, and management team. It’s important to conduct thorough research and consider the risks involved before making an investment decision.

Some of the top independent analysts on Smartkarma who cover IPOs include Douglas Kim, Sumeet Singh, Andrei Zakharov, Ke Yan, CFA, FRM, Arun George, Rickin Thakrar, Clarence Chu, and Ethan Aw. These analysts have in-depth knowledge of the latest market trends and have analyzed some of the most popular IPOs in the last 12 months, such as WCP, Lionheart Acquisition Corp II, CALB, SK Shieldus, GoTo, Onewo, Tianqi Lithium, Life Insurance Corp of India (LIC), SOCAR, Alibaba Dual Listing, Leapmotor, Thai Life Insurance, Giant Biogene Holding, Growatt Technology, I-Tail, Weilong Delicious Global, Yunkang Group, Tencent, China Tourism Group Duty Free Corp Ltd, Delhivery, Sunshine Insurance, Thai Beverage, VinFast, Lygend Resources & Technology, and Blibli.

Which is Better: IPO or Share?

The answer to this question depends on the specific investment goals and risk tolerance. 

Daily Brief ECM: Hesai Group IPO: The Bull Case and more

By | Daily Briefs, ECM

In today’s briefing:

  • Hesai Group IPO: The Bull Case
  • HESAI Group IPO Preview
  • ECM Weekly (5th Feb 2023) – Adani, Pertamina, Hesai, Ruipeng Pet, Concord, Oasis, Flight Centre
  • L3Harris Technologies Inc: Acquisition Of Aerojet Rocketdyne & Other Drivers

Hesai Group IPO: The Bull Case

By Arun George

  • Hesai Group (HSAI US) has launched a Nasdaq IPO to raise up to US$171 million at an indicative price range of US$17-19 per ADS.
  • Hesai is a global leader in LiDAR technology for autonomous driving and ADAS. In the ADAS market, Hesai is the global leader in terms of shipment volume in 2022.
  • The key elements of the bull case rest on a solid competitive positioning, large addressable markets, high growth and a strong balance sheet.

HESAI Group IPO Preview

By Douglas Kim

  • Hesai Group (HSAI US) is getting ready to complete its IPO in the next several weeks in the United States, planning to raise as much as $171 million.
  • The ADAS penetration rate in China is expected to surge from 4.6% in 2022 to 11.2% in 2024 and 87.9% in 2030.
  • The company is a leading maker of laser-based LiDAR sensors in China. The company’s major customers in the ADAS segment include Li Auto, Jidu, and Lotus.

ECM Weekly (5th Feb 2023) – Adani, Pertamina, Hesai, Ruipeng Pet, Concord, Oasis, Flight Centre

By Sumeet Singh

  • 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, Indonesia kicked-off bookbuild for what is likely to be one of its largest IPOs this year.
  • On the placement front, Adani’s FPO continued to keep everyone busy with its twists and turns. 

L3Harris Technologies Inc: Acquisition Of Aerojet Rocketdyne & Other Drivers

By Baptista Research

  • L3Harris finished the year on a high note and delivered an all-around beat while continuing to build momentum going into 2023.
  • The RL10 is a high-end upper-stage engine that the ELA has ordered well over 100 of for the new Vulcan launch vehicle.
  • We remain optimistic about the company’s future growth and maintain our ‘Hold’ rating with a revised target price.

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