ECM Daily Briefs | Page 52 of 118

In today’s briefing:

Pertamina Geothermal IPO: The Investment Case
New Ruipeng Pet Group Pre-IPO – The Negative – Loss-Making and Cash Burn Could Dampen Ambitions
Snap Inc: New Promotional Campaign & Other Developments

Pertamina Geothermal IPO: The Investment Case

By Arun George

Pertamina Geothermal (0125738D IJ)/PGE, a subsidiary of PT Pertamina (Persero) (PERT IJ), is seeking to raise up to US$657 million at a price range of IDR820-945 per share.
PGE is the largest geothermal concession holder in Indonesia, in terms of capacity installed, according to Wood Mackenzie.
The investment case rest on steady growth, high margins, strong cash generation, manageable leverage, ambitious growth plans and attractive dividend payout.

New Ruipeng Pet Group Pre-IPO – The Negative – Loss-Making and Cash Burn Could Dampen Ambitions

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 this note, we will talk about the not-so-positive aspects of the deal.

Snap Inc: New Promotional Campaign & Other Developments

Snap continued to encounter massive challenges due to increased competition and macroeconomic headwinds.
In the quarter, the company released communities to expand its content offerings and onboarded several new media partners.
The company has also launched new Snapchat+ features to increase audience engagement on the platform in the quarter.

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Feb 03

Daily Brief ECM: Pertamina Geothermal Energy IPO – Somewhat like an Energy Explorer. Somewhat like a Power Producer and more

In today’s briefing:

Pertamina Geothermal Energy IPO – Somewhat like an Energy Explorer. Somewhat like a Power Producer
New Ruipeng Pet Group Pre-IPO – The Positives – Compelling Growth Story Reflected in Sales Growth
Pertamina Geothermal Energy IPO – Thoughts on Valuation

Pertamina Geothermal Energy IPO – Somewhat like an Energy Explorer. Somewhat like a Power Producer

Pertamina Geothermal Energy (PGE) is looking to raise around US$650m in its upcoming Indonesia IPO. PGE is an Indonesian state owned power producer which utilizes geothermal energy to produce electricity.
PGE currently manages 13 Geothermal Working Areas with a total capacity of 1,877 MW, of which 672 MW is owned by it, while 1,205 MW is via joint operations.
In this note, we talk about the company’s financial performance and other issues, based on its recent filings.

New Ruipeng Pet Group Pre-IPO – The Positives – Compelling Growth Story Reflected in Sales Growth

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 this note, we will talk about the positive aspects of the deal.

Pertamina Geothermal Energy IPO – Thoughts on Valuation

Pertamina Geothermal Energy (PGE) is looking to raise around US$650m in its upcoming Indonesia IPO. PGE is an Indonesian state owned power producer which utilizes geothermal energy to produce electricity.
PGE currently manages 13 Geothermal Working Areas with a total capacity of 1,877 MW, of which 672 MW is owned by it, while 1,205 MW is via joint operations.
We have looked at the company’s performance in our previous note. In this note, we talk about valuations.

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Feb 02

Daily Brief ECM: Aequitas Korea IPOs Bookrunner Performance (2021-2022) and more

In today’s briefing:

Aequitas Korea IPOs Bookrunner Performance (2021-2022)
Aequitas Korea Placements Bookrunner Performance (2019-2022)
Freeport-McMoRan: Major Drivers
Hesai Group Pre-IPO – Peer Comparison – Not Really the Largest, Globally or Locally
Pre-IPO Changchun BCHT Biotechnology – The Risk of Single-Product Dependence and Uncertain Outlook
Boeing Co: New Military Aircraft Launch & Other Developments

Aequitas Korea IPOs Bookrunner Performance (2021-2022)

In this note, we will take a look at bookrunner performance for Korean IPOs from 2021-2022.
The following dataset includes all Korean IPOs above US$100m for the period of Calendar Years 2021-2022, which amounted to a total of 11 deals.
The deals you see in this note are based on our historical IPO tracker. Feel free to drop us a message for additional information on any of these IPOs.

Aequitas Korea Placements Bookrunner Performance (2019-2022)

In this note, we will take a look at the performance of bookrunners for Korean placements from 2019-2022.
The following dataset includes all Korean placements above US$100m for the period of Calendar Years 2019-2022, which amounted to a total of 29 deals.
The deals you see in this note are based on our historical placements tracker. Feel free to drop us a message for additional information on any of these placements.

Freeport-McMoRan: Major Drivers

This was a strong quarter for Freeport with the company managing an all-around beat.
Indonesia’s operations by PT Freeport Indonesia are characterized by very low costs due to the gold content and the grades, large volumes, and the world’s largest goldmine is a byproduct.
In the quarter, gold and copper sales exceeded the guidance of the company and the company generated strong margins.

Hesai Group Pre-IPO – Peer Comparison – Not Really the Largest, Globally or Locally

Hesai Group (HSAI US) is looking to raise at least US$100m 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.
In this note, we will undertake a peer comparison with domestic and US-listed peers.

Pre-IPO Changchun BCHT Biotechnology – The Risk of Single-Product Dependence and Uncertain Outlook

By Xinyao (Criss) Wang

Single product structure is the biggest risk of BCHT. Varicella vaccine is hard to drive BCHT’s performance growth in the future and the sales of influenza vaccine are not ideal.
There’re concerns about the protection rate of attenuated zoster vaccine,which won’t be officially sold until 2023H2/2024. It’s not sure whether the situation can be reversed by attenuated zoster vaccine alone.
BCHT is inferior to CanSino in terms of pipeline quality and R&D capability. The investment value of BCHT is not high. We think its valuation should be lower than CanSino.

Boeing Co: New Military Aircraft Launch & Other Developments

Boeing had another weak quarter and failed to meet Wall Street expectations with respect to revenues as well as earnings.
The company managed over $3 billion in free cash flow driven by the progress in its performance and continued demand.
Boeing has a strong pipeline of development programs, and it has been preparing itself for the next generation of products.

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Feb 01

Daily Brief ECM: Flight Centre Travel Group Placement – Still a Good Deal Despite Its Track Record and more

In today’s briefing:

Flight Centre Travel Group Placement – Still a Good Deal Despite Its Track Record
Nucor Corp: Launch Of Elcyon & Other Developments

Flight Centre Travel Group Placement – Still a Good Deal Despite Its Track Record

Flight Centre Travel (FLT AU) is looking to raise US$127m from a fully underwritten institutional placement.
The proceeds will be used to acquire Luxury Travel Holdings (Scott Dunn), a UK-based luxury travel business.
In this note, we will discuss deal dynamics, past deal performance, and share the scores on our ECM framework.

Nucor Corp: Launch Of Elcyon & Other Developments

Nucor had a mediocre quarter as its earnings dropped compared to the previous two quarters due to reduced shipping volumes and metal margin contraction, particularly at the company’s plate and sheet mills.
The startup and construction of the company’s Nucor Stell Brandenburg mill continue progressing incredibly great with respect to schedule, budget, and safety.
Lastly, at the end of this quarter, the company announced the approval of the construction of the galvanizing line at its Nucor Steel Berkeley mill.

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Jan 31

Daily Brief ECM: Concord Biotech Pre-IPO – Sales Have Been Growing but Watch Out for Its High Concentration Risk and more

In today’s briefing:

Concord Biotech Pre-IPO – Sales Have Been Growing but Watch Out for Its High Concentration Risk
Hesai Group IPO Preview: Will Rich Valuation Worry Long-Term Investors?
Aequitas ASEAN Placements Bookrunner Performance (2019-2022)
F5 Networks: F5 Distributed Cloud AIP & Other Drivers

Concord Biotech Pre-IPO – Sales Have Been Growing but Watch Out for Its High Concentration Risk

Concord Biotech Ltd (658823Z IN) is looking to raise around US$250m in its upcoming India IPO.
Concord Biotech (Concord) is an India-based biopharma firm, which develops and manufactures fermentation-based active pharmaceutical ingredients (APIs).
As per F&S, it was one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on FY21 volume.

Hesai Group IPO Preview: Will Rich Valuation Worry Long-Term Investors?

By Andrei Zakharov

Hesai Group (HSAI US) , a global leader in LiDAR technology for autonomous driving and ADAS, filed for a $100M placeholder IPO with Goldman Sachs and Morgan Stanley leading the offering.
The company’s last round was a $70M Series D+ at a $3B pre-money valuation, implying EV/LTM Rev multiple of 19x today, a significant premium to comparable companies in the space.
We remain cautious about buying into the Hesai Group (HSAI US) IPO due to rich valuation, negative free cash flows, loss-making business, intense competition, and developments in alternative technologies.

Aequitas ASEAN Placements Bookrunner Performance (2019-2022)

In this note, we will take a look at the performance of bookrunners for ASEAN placements from 2019-2022.
The following dataset includes all ASEAN placements above US$100m for the period of Calendar Years 2019-2022, which amounted to a total of 54 deals.
The deals you see in this note are based on our historical placements tracker. Feel free to drop us a message for additional information on any of these placements.

F5 Networks: F5 Distributed Cloud AIP & Other Drivers

Against the backdrop of the continued tough competition, F5 delivered an all-around beat in the recent result.
The company experienced more pervasive deal delays and heightened budget in the quarter across all geographies.
Among new launches, F5 launched a cloud workload protection solution named F5 Distributed Cloud AIP (App Infrastructure Protection) to accelerate application protection and observability to cloud-native infrastructures.

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Jan 30

Daily Brief ECM: Aequitas ASEAN IPOs Bookrunner Performance (2019-2022) and more

In today’s briefing:

Aequitas ASEAN IPOs Bookrunner Performance (2019-2022)
Pre-IPO New Ruipeng Pet Group (RPET.US)- The Industry, the Business and the Concerns

Aequitas ASEAN IPOs Bookrunner Performance (2019-2022)

In this note, we will take a look at bookrunner performance for ASEAN IPOs from 2019-2022.
The following dataset includes all ASEAN IPOs above US$100m for the period of Calendar Years 2019-2022, which amounted to a total of 41 deals.
The deals you see in this note are based on our historical IPO tracker. Feel free to drop us a message for additional information on any of these IPOs.

Pre-IPO New Ruipeng Pet Group (RPET.US)- The Industry, the Business and the Concerns

By Xinyao (Criss) Wang

Pet medical industry is the second largest core industry after pet food industry.Pet hospital,with dual attributes of medical treatment and consumption,represents the direction of consumption upgrading and has huge potential.
New Ruipeng maintained rapid growth these years, but its business is still in the investment period. The Company is hard to generate high profit/returns due to low gross margin level.
There’re still technical bottlenecks in China.If New Ruipeng can fill these market gaps in time and provide comprehensive pet medical solutions, its development space and moat will be much higher.

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Jan 29

Daily Brief ECM: ECM Weekly (29th Jan 2023) – Adani and more

In today’s briefing:

ECM Weekly (29th Jan 2023) – Adani, Oasis, Mankind Pharma, ZJLD, India IPO Bookrunners
Accenture plc: Acquisition of FiftyFive5 & Other Drivers
MongoDB Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)

ECM Weekly (29th Jan 2023) – Adani, Oasis, Mankind Pharma, ZJLD, India IPO Bookrunners

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
While the holiday shortened week didn’t see much action in Asia, but there was one more ADR filing in the US, adding to the mini-pipeline.
Adani’s ongoing FPO was the only live deal this week, although it had enough drama to make up for the lack of other deals.

Accenture plc: Acquisition of FiftyFive5 & Other Drivers

Accenture continued its acquisition-led growth strategy in the last quarter and delivered another all-around beat, increasing operating margin while making significant investments in related businesses.
Engineering and industrial digitization are still in high demand and experienced strong double-digit growth in Q1.
Furthermore, they are assisting Celanese to undergo a digital transformation that will boost their manufacturing production resilience, productivity, and plant operations predictability.

MongoDB Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)

MongoDB performed well in the third quarter in both financial and operational terms.
In addition, ISVs are continuing to develop their solutions using MongoDB in an increasing number of cases.
MongoDB is looking to achieve profitable growth and focus on acquiring new workloads from both existing and new customers.

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Jan 28

Daily Brief ECM: Aequitas India IPOs Bookrunner Performance (2019-2022) and more

In today’s briefing:

Aequitas India IPOs Bookrunner Performance (2019-2022)
Teradyne Inc: Merger of AutoGuide Mobile Robots & MiR & Other Drivers
Five9 Inc: R&D Expansion & Other Drivers
DocuSign Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)
Cognizant Technology Solutions: Acquisition Of AustinCSI & Other Drivers
FuelCell Energy: Solid Oxide Fuel Cell And Electrolyzer Platform & Other Drivers
Lumentum Holdings: R&D Expansion & Other Drivers
Amkor Technology: Entry Into TSMC’s OIP 3DFabric Alliance & Other Developments
Under Armour: New SlipSpeed Range For Athletes & Other Developments

Aequitas India IPOs Bookrunner Performance (2019-2022)

In this note, we will take a look at bookrunner performance for Indian IPOs from 2019-2022.
The following dataset includes all Indian IPOs above US$100m for the period of Calendar Years 2019-2022, which amounted to a total of 49 deals.
The deals you see in this note are based on our historical IPO tracker. Feel free to drop us a message for additional information on any of these IPOs.

Teradyne Inc: Merger of AutoGuide Mobile Robots & MiR & Other Drivers

Teradyne delivered a solid result in the last quarter as the company surpassed analyst expectations with respect to revenues as well as earnings.
At the operating level, it cleared some supply bottlenecks that allowed the company to ship more of semiconductor test products than previously planned.
Automation Group’s quarter revenue, in constant currency, grew.

Five9 Inc: R&D Expansion & Other Drivers

Five9 delivered an all-around beat in its last result as the company stock has seen a reversal in fortunes over the past few weeks.
The company gets leverage from its channels, ecosystem of partners, and system integrators, which helped it build its pipeline in its last result.
Overall, we provide the stock of Five9 with a ‘Hold’ rating and a revision in the target price.

DocuSign Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)

DocuSign delivered solid quarter results despite the challenging operating environment, surpassing Wall Street expectations in terms of both, the top and bottom lines.
However, the company stills see healthy results with customers recognizing DocuSign high-ROI applications that are cost-effective, efficient, and easy to use.
DocuSign is continuing its innovation on the CLM front, solidifying its execution, customer validation, and vision within the CLM space.

Cognizant Technology Solutions: Acquisition Of AustinCSI & Other Drivers

With its results around the corner, it would be interesting to look at Cognizant’s results from the last quarter.
The company had delivered revenue below the guidance range of the management, primarily driven by a lower billable headcount in North America.
Cognizant has been seeing revenue growth from health services and from products and resources driven by demand for its digital services among travel and hospitality, consumer goods, automotive, and logistics clients.

FuelCell Energy: Solid Oxide Fuel Cell And Electrolyzer Platform & Other Drivers

FuelCell Energy had another disappointing result as it failed to meet Wall Street expectations in terms of revenues as well as earnings.
FuelCell delivered 8 more modules of Ex Works to the Fuel Cell in Korea.
It is worth highlighting that FuelCell has started accepting orders for its solid oxide platform for hydrogen electrolysis and power generation applications.

Lumentum Holdings: R&D Expansion & Other Drivers

Lumentum Holdings delivered a strong result in the last quarter and managed an all-around beat.
This quarter reported strong demand from customers.
Overall, the demand for the Telecom products of Lumentum remains strong, particularly in edge networking applications.

Amkor Technology: Entry Into TSMC’s OIP 3DFabric Alliance & Other Developments

Amkor Technology delivered excellent results in the last quarter and managed an all-around beat as its end markets showed a very strong demand.
Whereas market forecasts are weakened in some areas and the industry has been facing near-term macroeconomic headwinds, demand for the company’s advanced packaging technology stays strong, and the momentum strengthened in this quarter.
Revenue from computing end markets increased, and the test business of the company grew.

Under Armour: New SlipSpeed Range For Athletes & Other Developments

Under Armour delivered an all- beat in its last result and was able to protected its financial health despite various headwinds.
Revenue was up in footwear with positive results in every category, led by significant strength in team sports.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

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Jan 27

Daily Brief ECM: Mankind Pharma Pre-IPO – The Negatives – Recent Updates Weren’t Great and more

In today’s briefing:

Mankind Pharma Pre-IPO – The Negatives – Recent Updates Weren’t Great
Oasis Corporation IPO – Thoughts on Valuation
ZJLD Group Pre-IPO Tearsheet

Mankind Pharma Pre-IPO – The Negatives – Recent Updates Weren’t Great

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 talk about the not-so-positive aspects of the deal.

Oasis Corporation IPO – Thoughts on Valuation

OASIS Corp (370190 KS) is looking to raise up to US$166m in its upcoming Korea IPO.
Oasis Corporation is an early morning delivery service business that delivers fresh food to consumers. It runs an e-commerce platform named ‘Oasis Market’ as well as offline stores.
In our previous notes, we looked at the company’s past performance and peer comparison. In this note, we talk about valuations.

ZJLD Group Pre-IPO Tearsheet

ZJLD Group (ZJLD HK) is looking to raise up to US$400m in its Hong Kong IPO. The deal will be run by Goldman Sachs and China Securities.
ZJLD Group (ZJLD) is a Chinese liquor company primarily producing baijiu.
As per F&S, the firm was the fourth largest privately-owned baijiu company and ranked third among all baijiu companies with three or more aroma types in terms of FY21 sales.

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Jan 26

Daily Brief ECM: Mankind Pharma Pre-IPO – The Positives – Diverse Portfolio with Steady past Performance and more

In today’s briefing:

Mankind Pharma Pre-IPO – The Positives – Diverse Portfolio with Steady past Performance
Broadcom Inc: New Test Solutions With Rohde & Schwarz & Other Drivers
Juniper Networks: Agreement With Powerco & Other Developments
Pre-IPO CanSino Biologics – 2022 Annual Results May Be Ugly as MCV4 Commercialization Hit a Snag
GoDaddy Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)
SunPower Corporation: Partnership With General Motors & Other Drivers

Mankind Pharma Pre-IPO – The Positives – Diverse Portfolio with Steady past Performance

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 talk about the positive aspects of the deal.

Broadcom Inc: New Test Solutions With Rohde & Schwarz & Other Drivers

Broadcom delivered a strong result in the last quarter with revenues growing 21% year-on-year, surpassing Wall Street expectations.
This growth was driven by the company’s strong partnerships and increased R&D investments that enabled accelerated adoption of its new-generation technologies.
In the quarter, semiconductor solution revenue and infrastructure software revenue grew.

Juniper Networks: Agreement With Powerco & Other Developments

Juniper’s stock has seen good upward momentum with its results around the corner.
The company had delivered better-than-expected results in the last quarter with its total revenues as well as earnings exceeding Wall Street expectations.
The cloud business of Juniper also delivered solid quarterly result with revenue growth.

Pre-IPO CanSino Biologics – 2022 Annual Results May Be Ugly as MCV4 Commercialization Hit a Snag

By Xinyao (Criss) Wang

CanSino Biologics Inc (6185 HK) disclosed plans to publicly list in Switzerland, but the story of the fourth dose of COVID-19 vaccine is difficult to boost its stock price/valuation.
According to CanSino’s management,MCV4’s commercialization faced some challenges, which means 2022 annual performance may not be good. 2021 would probably be a high point of CanSino’s performance in recent years.
Share price could pullback when 2022 annual report is released, which offers a better opportunity if investors want to go long, considering CanSino’s long-term investment value analyzed in prior insights.

GoDaddy Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)

GoDaddy delivered a mixed set of results for the last quarter.
However, it did manage an earnings beat which was largely a result of the robust consumer retention.
This quarter, GoDaddy launched free SSL on almost all innovative web hosting plans in its major markets.

SunPower Corporation: Partnership With General Motors & Other Drivers