ECM Daily Briefs | Page 56 of 118

In today’s briefing:

Our IPO Calls for 2022
DPC Dash IPO: Valuation
Weilong Delicious IPO: Thoughts on First Day Trading
Singapore Proptech Firm Ohmyhome Files for US$15M IPO at US$88M Valuation

Our IPO Calls for 2022

As 2022 comes to an end, we revisit our IPO calls over the last 12-months and how these stocks have performed to assess the effectiveness of our calls.
We made explicit buy/sell calls on 12 IPOs during this period with a hit-rate of 83.3% with Grab, GoTo, Cloud Music, SenseTime and Leapmotor IPOs making the highest returns.
We also wrote on several other IPOs during this period, however, those IPOs have not received approval yet.

DPC Dash IPO: Valuation

By Oshadhi Kumarasiri

DPC Dash (1405 HK) is the exclusive master franchisee of Domino’s Pizza in mainland China, Hong Kong and Macau with around 546 stores as of 9M2022.
With Domino’s trailing Pizza Hut in the Chinese market, we think DPC Dash doesn’t deserve to trade on par with other leading Domino’s Master Franchisees around the world.
Therefore, we see an opportunity to make money on the short side, once the IPO is completed.

Weilong Delicious IPO: Thoughts on First Day Trading

Weilong Delicious Global (9985 HK) has priced its IPO at HK$10.56 per share, slightly above the bottom of the IPO price range of HK$10.4-11.4 per share.
The company’s HK offering was oversubscribed by 10.53x while the international offering was oversubscribed by 2.6x.
Even at the above price, Weilong’s IPO is still at a significant premium to domestic as well as international peers.

Singapore Proptech Firm Ohmyhome Files for US$15M IPO at US$88M Valuation

By e27

Singapore-based Ohmyhome has filed for an initial public offering (IPO) in the US at about US$88 million valuation, according to multiple reports.
The property-tech company seeks to raise up to US$16.25 million and offer 3.25 million shares at a price range of US$4-5 apiece.
Spartan Capital Securities is the lead managing underwriter and book-runner for the IPO.

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Dec 14

Daily Brief ECM: Endeavour Group Placement – Recent Momentum Has Been Very Weak and more

In today’s briefing:

Endeavour Group Placement – Recent Momentum Has Been Very Weak
Sula Vineyards IPO: Forensic Analysis
TEMC IPO Preview
KFin Technologies Pre-IPO – Large Domestic Player Continues to Get Larger
Weilong Delicious Global IPO Trading – Liked by Retail but Still at a Premium

Endeavour Group Placement – Recent Momentum Has Been Very Weak

Woolworths Ltd (WOW AU) plans to raise around US$438m via selling 5.5% of Endeavour Group (EDV AU).
Endeavour Group was demerged from Woolworths in Jun 2021 and it runs the drinks and hospitality business of Woolworths.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Sula Vineyards IPO: Forensic Analysis

By Nitin Mangal

Sula Vineyards (1332009D IN) has currently come up with its IPO. The ~INR 9.6 bn IPO comprises offer for sale and has a price band of INR 340-357 per share.
The company is a market leader with a market share crossing 50% in a relatively nascent INR 13.45 bn domestic 100% grape wine market.
Key forensic takeaways that one should consider is high litigation liabilities, emphasis on related party transactions, irrational dividends and absurd trend of line items.

TEMC IPO Preview

TEMC is getting ready to complete its IPO in Korea in January 2023. TEMC is a materials company that produces specialty gases for the semiconductor and display production processes.
The IPO price range is from 32,000 won to 38,000 won and the expected market cap is expected to be from 361 billion won to 429 billion won.
The company’s sales increased at a 57.4% CAGR from 2019 to 2021. Its sales exploded higher by 254% YoY to reach 238 billion won in 1Q-3Q 2022.

KFin Technologies Pre-IPO – Large Domestic Player Continues to Get Larger

KFin Technologies (1804170D IN) is looking to raise around US$300m in its India IPO.
KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.
Under its offering, it primarily serves asset managers and corporate issuers domestically, while providing investor solutions for mutual funds and private retirement schemes in other regions.

Weilong Delicious Global IPO Trading – Liked by Retail but Still at a Premium

Weilong Delicious Global (WDG), a spicy snack food company in China, raised around US$130m in its Hong Kong IPO.
According to F&S, WDG ranked first among spicy snack food enterprises in China, with a market share of 6.2%, and in the seasoned flour product and spicy vegetable snacks categories.
We have covered various aspects of the deal in our previous notes. In this note we will talk about the demand and trading dynamics.

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Dec 13

Daily Brief ECM: 2023 IPOs Pipeline Worldwide (Top 100 Companies) and more

In today’s briefing:

2023 IPOs Pipeline Worldwide (Top 100 Companies)
Sula Vineyards IPO – Does Offer a Unique Exposure with Lots of Ifs and Buts
Bionote: IPO Price Reduced Significantly & Bookbuilding Results
Vinfast Auto IPO: Initial Thoughts
Skymark Airlines IPO Trading – Subscription Has Been Strong Despite Asking More than Peers
Daiei Kankyo IPO Trading – Peers Have Been Correcting

2023 IPOs Pipeline Worldwide (Top 100 Companies)

This is our fourth annual edition of the IPOs Pipeline Worldwide (Top 100 Companies) report.
Among 100 companies in our list, those from the US, India, China/HK, and the UK account for 79% of total.
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.

Sula Vineyards IPO – Does Offer a Unique Exposure with Lots of Ifs and Buts

Sula Vineyards is looking to raise around US$117m in its upcoming India IPO.
Sula Vineyards (SV) distributes wines under a bouquet of brands. In addition to its flagship brand “Sula,” popular brands include “RASA,” “Dindori”, “The source,” “Satori”, “Madera” & “Dia”.
We have looked at various aspects of the deal in our previous notes. In this note, we will talk about recent updates and valuations.

Bionote: IPO Price Reduced Significantly & Bookbuilding Results

Bionote slashed its IPO price to 9,000 won, which is 50% lower than the low end of the previous IPO valuation range.
Our base case valuation has been revised down to 12,741 won per share in target price, which is 41% higher than the IPO price of 9,000 won.
The company is expected to have more than 615 billion in net cash post the IPO, which is expected to represent nearly 65% of its market cap!

Vinfast Auto IPO: Initial Thoughts

VinFast (1905332D VN) is a full-scale mobility platform in Vietnam focused on manufacturing electric vehicles including e-scooters and e-buses looking to raise US$1bn via a NASDAQ IPO.
The company has switched its business model from ICE vehicles to EVs and looking to sell its electric cars in Vietnam, the US and the Europe.
With relatively new to EV manufacturing and having not sold previously in overseas markets including the US and the EU, we remain conscious over Vinfast’s prospects in the medium-term.

Skymark Airlines IPO Trading – Subscription Has Been Strong Despite Asking More than Peers

Skymark Airlines (9204 JP) raised US$242m in its Japan IPO. Skymark Airlines (SA) is a Japanese low-cost airline, being the third largest domestic airline according to the company.
SA began its operations in Japan as a domestic airline and gradually increased the number of routes offered to passengers. However, it has a mired history of bankruptcy.
In our previous notes, we looked at the company’s past performance and talked about valuations. In this note, we’ll talk about the trading dynamics.

Daiei Kankyo IPO Trading – Peers Have Been Correcting

Daiei Kankyo (9336 JP) , a waste management company, raised around US$314m in its Japan IPO.
Daiei Kankyo is involved in the waste management and related businesses in Japan. The core of its operations consists of its waste management and recycling business
In our previous notes, we looked at the company’s past performance and talked about valuations. In this note, we’ll talk about the trading dynamics.

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Dec 12

Daily Brief ECM: VinFast Auto IPO: The Bear Case and more

In today’s briefing:

VinFast Auto IPO: The Bear Case

VinFast Auto IPO: The Bear Case

VinFast (1905332D VN), a Vietnamese EV manufacturer and a majority-owned affiliate of Vingroup Jsc (VIC VN), has filed for a US$1.0 billion IPO to list on Nasdaq.
In VinFast Auto 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 are a lack of brand recognition, questionable ability to generate profits, the precarious state of financing and liability exposure to ICE vehicles.

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Dec 11

Daily Brief ECM: ECM Weekly (11th Dec 2022) – ITail and more

In today’s briefing:

ECM Weekly (11th Dec 2022) – ITail, Sunshine, Weilong, VinFast, Skymark, Tian Tu, Cntry Gard, Nippon

ECM Weekly (11th Dec 2022) – ITail, Sunshine, Weilong, VinFast, Skymark, Tian Tu, Cntry Gard, Nippon

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, the usual year end rush in smaller deals appears to have resumed.
On placements front, this week was one for real estate with Country Garden Holdings Co (2007 HK), Macrotech, Seazen (1030 HK) and Nippon Prologis Reit (3283 JP) undertaking deals.

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Dec 10

Daily Brief ECM: VinFast IPO Preview – Too Big to Fail In Vietnam and more

In today’s briefing:

VinFast IPO Preview – Too Big to Fail In Vietnam
Seazen Group Placement – Won’t Do Much to Debt Profile, However Momentum Has Been Very Strong

VinFast IPO Preview – Too Big to Fail In Vietnam

VinFast Auto (“VinFast”) is getting ready to complete its IPO on Nasdaq in January 2023.
We are cautious on the IPO of VinFast. Timing is awful and investors have slashed share prices of the company’s comps in the past year.
The fact that the company is trying to hurry up to complete this IPO in early 2023 suggests that there could be some bigger concerns about long-term financing of VinFast.

Seazen Group Placement – Won’t Do Much to Debt Profile, However Momentum Has Been Very Strong

Seazen (Formerly Future Land) (1030 HK) is looking to raise US$175m from its top-up placement.
The deal is a relatively small one at just 9.5 days of three month ADV and 4.9% of current mcap.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

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Dec 09

Daily Brief ECM: I-Tail Corporation IPO Trading – Should Be Able to Provide Some Holiday Cheer and more

In today’s briefing:

I-Tail Corporation IPO Trading – Should Be Able to Provide Some Holiday Cheer
I-Tail Corporation IPO: Trading Debut
Tian Tu Capital Pre-IPO – The Negatives – Hampered by Weakened Market Sentiment. Guiding Weak FY22
Sunshine Insurance Group IPO: Trading Debut
Growatt IPO: PHIP Update
VinFast Auto IPO: The Bull Case
VinFast Auto Pre-IPO – The Negatives – … But Starting Low
PagerDuty Inc: Major Drivers
Pre-IPO Medbanks Network Technology – PHIP Updates: The Business Model Has yet to Be Verified
Box Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (12/22)

I-Tail Corporation IPO Trading – Should Be Able to Provide Some Holiday Cheer

I-Tail, an OEM in the wet pet food category, raised around US$600m in its Thailand IPO. It is a subsidiary of Thai Union Group (TU TB).
As per ITC, it was the number two pet food company in Asia and in the top ten pet food companies globally. ITC expertise lies in fish-based wet pet food.
In our previous notes, we have looked at the company’s past performance, undertaken a peer comparison and spoken about valuation. In this note, we will talk about the trading dynamics

I-Tail Corporation IPO: Trading Debut

I-Tail (ITC TB) priced its IPO at THB32 per share, the top-end of the price range, to raise gross proceeds of THB21,120m (US$608m). The shares will start trading tomorrow.
We previously discussed the IPO I-Tail Corporation IPO: The Bull Case, I-Tail Corporation IPO: The Bear Case, I-Tail Corporation IPO: A Strong 3Q Results Update, I-Tail Corporation IPO: Valuation Insights.
Peers have re-rated and the IPO price continues to imply a discount to the median peer CY2023 P/E multiple. Therefore, the IPO price remains attractive.

Tian Tu Capital Pre-IPO – The Negatives – Hampered by Weakened Market Sentiment. Guiding Weak FY22

Tian Tu Capital (1390587D CH) is looking to raise US$300m in its upcoming Hong Kong IPO.
Tiantu Capital (TTC) is a private equity/venture capital investor and fund manager with a focus on Chinese consumer brands and companies.
The fund manages capital from investors including institutional investors, multinational corporations, financial institutions, and high net-worth individuals. It also directly invests through its own capital as well.

Sunshine Insurance Group IPO: Trading Debut

Sunshine Insurance (6963 HK) priced its IPO at HK$5.83 per share to raise net proceeds of HK$6.4 billion (US$824 million). The shares will start trading tomorrow.
We previously discussed the IPO in Sunshine Insurance Group IPO: The Bull Case, Sunshine Insurance Group IPO: The Bear Case and Sunshine Insurance Group IPO: Valuation Insights.
Peers have modestly re-rated and the IPO price continues to imply a premium to the median peer CY2022 P/EV and P/B multiples. Therefore, the IPO price remains unattractive.

Growatt IPO: PHIP Update

Growatt is a distributed energy solution provider with the #1 market share for PV inverters and energy storage inverters, allowing them strong potential to benefit from a growing market.
In November 2022, the company received approval from the Hong Kong Stock Exchange and the IPO has a placeholder value of US$1bn, making it HKEX’s fourth largest IPO of 2022.
In this follow-up insight, we have highlighted and discussed some of the key new data points from the company’s latest Post Hearing Information Pack (PHIP).

VinFast Auto IPO: The Bull Case

VinFast (1905332D VN), a Vietnamese EV (electric vehicle) manufacturer and a majority-owned affiliate of Vingroup Jsc (VIC VN), has filed for a US$1.0 billion IPO to list on Nasdaq.
VinFast is in the middle of a transition from an ICE to a pure-play EV manufacturer. VF 8, its second EV SUV, will be delivered in the US in 4Q22.
The key elements of the bull case rest on a credible EV roadmap, speed-to-market, solid consumer interest and models with attractive range-to-price ratios and total cost of ownership.

VinFast Auto Pre-IPO – The Negatives – … But Starting Low

VinFast (1905332D VN) is looking to raise up to US$1bn in its upcoming US IPO.
VinFast is a full-scale mobility platform focused primarily on designing and manufacturing premium EVs, electric scooters and electric buses.
In this note, we talk about the not-so-positive aspects of the deal.

PagerDuty Inc: Major Drivers

PagerDuty performed well in the last quarter despite the relatively uncertain environment and delivered an all-around beat.
The company saw a good performance in financial services, tech retail, and other verticals.
Total paid and free customers on its platform grew, and consumers continued to adopt more products and services and expand users.

Pre-IPO Medbanks Network Technology – PHIP Updates: The Business Model Has yet to Be Verified

By Xinyao (Criss) Wang

Specialty Pharmacy Business is the main revenue contributor,but it’s hard for Medbanks to achieve breakeven or turn loss into profits by relying on this business due to its low margin.
Physician Research Assistance and Health Insurance Services have higher margin, but they have to face different challenges based on our analysis. They are hard to turn things around.
In fact, Medbanks does not control the core resources or establish high barriers in front of competition. Whether its ecological story would finally work still needs time to verify.

Box Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (12/22)

Box had a mixed third quarter, with revenue below Wall Street expectations but stronger than expected earnings.
Their leading security and data governance tools, Box Governance and Box Shield have received many significant upgrades.
The Box Shield ethical wall feature was also made public during the quarter.

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Dec 08

Daily Brief ECM: VinFast Auto Pre-IPO – The Positives – Aiming High… and more

In today’s briefing:

VinFast Auto Pre-IPO – The Positives – Aiming High…
Pre-IPO OrbusNeich Medical Group: Large Global Exposure Protects from Negative Price Effect in China
Salesforce Inc: New Real-Time CRM Platform & Other Drivers
Sunshine Insurance Group IPO Trading – No Demand – Still Needs to Correct by 50%
Clover Biopharmaceuticals (2197.HK) Placement – A Good Bet
CrowdStrike Inc: Major Drivers
Synopsys Inc: Collaboration With SiFive & Other Drivers
Zscaler Inc: Zero Configuration Data Protection & Other Developments
Ulta Beauty: Major Drivers
Hewlett Packard Enterprises: New Product Launches & Other Drivers

VinFast Auto Pre-IPO – The Positives – Aiming High…

VinFast Auto (1905332D VN) is looking to raise up to US$1bn in its upcoming US IPO.
VinFast is a full-scale mobility platform focused primarily on designing and manufacturing premium EVs, electric scooters and electric buses.
In this note, we talk about the positive aspects of the deal.

Pre-IPO OrbusNeich Medical Group: Large Global Exposure Protects from Negative Price Effect in China

By Tina Banerjee

OrbusNeich Medical Group (NEICHZ HK) is among the top six players in PCI balloon markets in terms of sales volume in multiple countries including China, Japan, the U.S., and Europe.
OrbusNeich earns ~60% of revenue from Europe, Japan, and the U.S. The company’s high exposure to international markets safeguards it from the low prices commanded by China’s centralized procurement system.
With diversified product portfolio, robust inhouse production facilities, established global sales network, rich pipeline enabling continuous launching of new products, and growing market demand, OrbusNeich is well-positioned for strong growth.

Salesforce Inc: New Real-Time CRM Platform & Other Drivers

Salesforce’s stock has been badly hit by the general bearishness in the markets towards tech stocks and is trading at a low.
However, the company’s results were decent as it delivered strong sales growth and profitability surpassing Wall Street expectations on all fronts.
This quarter, the ARR increased by more than 50% in seven of their 13 industry clouds.

Sunshine Insurance Group IPO Trading – No Demand – Still Needs to Correct by 50%

Sunshine Insurance Group (SIG), a life, health and P&C insurance company, raised around US$850m in its HK IPO.
SIG is an integrated insurance provider which offers both life and health (L&H) and property and casualty (P&C) insurance in China.
We have looked at various aspects of the deal in our previous notes. In this note, we will talk about the trading dynamics.

Clover Biopharmaceuticals (2197.HK) Placement – A Good Bet

By Xinyao (Criss) Wang

Clover is placing 128 million shares, raising an estimated HK$500.5 million in net proceeds, which was released right after Clover’s lead COVID-19 vaccine was included for emergency use in China.
The COVID-19 vaccine would be the only hope for Clover in the short term. There could be big upside potential in share price if this vaccine could be successfully commercialized.
After Clover successfully develops a vaccine and goes through the whole commercialization process, it won’t be at the same level as those enterprises with no commercial products on the market.

CrowdStrike Inc: Major Drivers

CrowdStrike had a solid quarter increasing its revenue by 53% year-over-year, surpassing Wall Street expectations.
In the enterprise, sales cycles or average days to closure remain marginally higher than the previous quarter.
Furthermore, LogScale experienced another solid quarter in Q3 thanks to their wins in the financial services, insurance, technology, retail, energy, and telecommunications industries.

Synopsys Inc: Collaboration With SiFive & Other Drivers

Synopsys ended the year with a decent result meeting the revenue expectations of Wall Street and managing an earnings beat.
The company reached the $5 billion yearly revenue milestone during this quarter as they extended customer relationships and altered their product lineup in order to sharpen their competitive edge.
Despite a slowdown in revenue growth for the semiconductor business, design activity is still strong.

Zscaler Inc: Zero Configuration Data Protection & Other Developments

Zscaler delivered good results in the last quarter surpassing Wall Street expectations in terms of revenues as well as earnings.
Consumers are buying Zscaler for users, its complete platform for user protection, including ZDX, ZPA, and ZIA bundled together.
We provide the stock of Zscaler a ‘Buy’ rating and a revision in the target price.

Ulta Beauty: Major Drivers

Ulta Beauty delivered a good performance in the last quarter with robust revenue growth driving double-digit earnings growth and operating margin expansion.
The double-digit comp of Ulta Beauty in this quarter was an outcome of growth from its core assortment, compelling newness, and price increases.
To support guest education and drive discovery, this quarter Ulta Beauty introduced its Skincare We Love All in every store.

Hewlett Packard Enterprises: New Product Launches & Other Drivers

Hewlett Packard Enterprises had a decent fourth quarter as its revenues managed to surpass Wall Street expectations and strong quarterly free cash flow.
The company managed to meet Wall Street expectations with respect to earnings.
We remain neutral on Hewlett Packard Enterprises and maintain our ‘Hold’ rating with a revised target price.

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Dec 07

Daily Brief ECM: Country Garden Placement – Hot on the Heels of the Last Deal and more

In today’s briefing:

Country Garden Placement – Hot on the Heels of the Last Deal, Momentum Has Shifted
Nippon Prologis Placement – Although Only Minimally Accretive, Past Deals Have Performed Well
2023 Major IPOs Pipeline in Korea
Weilong Delicious IPO: Peer Comparison and Valuation
Pre-IPO Shanghai Chicmax Cosmetic – PHIP Updates: Declining Performance and Challenging Outlook
Intuit Inc: The SeedFi Acquisition & Other Drivers
Mettler-Toledo International Inc.: Initiation of Coverage – Business Strategy & Other Drivers
JD.com Inc ADR: Initiation of Coverage – Business Strategy & Other Drivers
The Cooper Companies Inc.: Initiation of Coverage – Business Strategy & Key Drivers
Tian Tu Capital Pre-IPO – The Positives – Growing Its AUM and Committed Capital

Country Garden Placement – Hot on the Heels of the Last Deal, Momentum Has Shifted

Country Garden Holdings Co (2007 HK) aims to raise around US$500m via a primary placement
This will be the third placement by the company this year and the second one within a month’s time.
In this note, we will run the deal through our ECM framework and talk about the recent updates.

Nippon Prologis Placement – Although Only Minimally Accretive, Past Deals Have Performed Well

Nippon Prologis Reit (3283 JP) is looking to raise around US$175m in its global follow-on offering to acquire three logistics properties.
Acquisitions are well flagged, having been in the REIT’s pipeline for some time now. Past offerings have performed well in the first month as well.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

2023 Major IPOs Pipeline in Korea

This is our 8th “Annual Edition of the Major Korean IPOs Pipeline Preview” at Smartkarma!
This insight will feature 50 of the biggest potential IPOs in Korea in 2023.
The overall IPO market in Korea is likely to continue to be weak in 1H 2023, although there are some potential for a rebound in 2H 2023.

Weilong Delicious IPO: Peer Comparison and Valuation

Weilong Delicious has downsized its IPO to raise around HK$942m (US$121.3m). The company also has the flexibility to set its IPO price at a 10% discount to the bottom.
The company’s top line growth has slowed down in 1H2022 and margins have been under pressure with increased S&M spending to further penetrate into online channels.
Weilong’s IPO is priced at a significant premium to domestic as well as multinational peers which do not justify the growth prospects.

Pre-IPO Shanghai Chicmax Cosmetic – PHIP Updates: Declining Performance and Challenging Outlook

By Xinyao (Criss) Wang

According to the PHIP, Chicmax’s performance growth showed a downward trend. Due to consumption downgrade and weak economic situation, the Company’s short-term performance could continue to be under pressure.
If the top three brands fail to performance well, Chicmax has no other blockbuster brands to make up for it afterwards. We have concerns on Chicmax’s competitiveness in the industry.
If the total retail sales of consumer goods don’t maintain well, the probability of endogenous growth problems is high, which would finally be reflected in the decline of share price.

Intuit Inc: The SeedFi Acquisition & Other Drivers

Intuit had a successful first quarter and managed to surpass Wall Street expectations in terms of revenues as well as earnings.
TurboTax also had a strong finish with a number of improvements introduced and tested during the quarter.
Intuit is also developing its own bill-pay feature for QuickBooks and intends to make it available in the future.

Mettler-Toledo International Inc.: Initiation of Coverage – Business Strategy & Other Drivers

This is our first report on Mettler-Toledo, one of the largest manufacturers and suppliers of precision instruments and services across the globe.
The company delivered an outstanding result in the last quarter, with sales increasing by $985.8 million, a 10% local currency gain, surpassing Wall Street expectations.
They recognize that the global supply chain continues to pose risks, but their ability to meet customer demands should remain a competitive advantage.

JD.com Inc ADR: Initiation of Coverage – Business Strategy & Other Drivers

This is our first report on Chinese e-commerce giant, JD.com.
Although 2022 has been a difficult year, JD achieved a number of encouraging milestones and improved metrics in its financial and business operations, especially during the third quarter.
We initiate coverage on the stock of JD.com Inc. with a ‘Hold’ rating.

The Cooper Companies Inc.: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on Cooper Companies, one of the largest producers of contact lenses in the world.
Daily silicones are still the primary factor in the contact lens industry’s growth.
We initiate coverage on the stock of The Cooper Companies with a ‘Hold’ rating.

Tian Tu Capital Pre-IPO – The Positives – Growing Its AUM and Committed Capital

Tian Tu Capital (1390587D CH) is looking to raise US$300m in its upcoming Hong Kong IPO.
Tiantu Capital (TTC) is a private equity/venture capital investor and fund manager with a focus on Chinese consumer brands and companies.
The fund manages capital from investors including institutional investors, multinational corporations, financial institutions, and high net-worth individuals. It also directly invests through its own capital as well.

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Dec 06

Daily Brief ECM: ATRenew (RERE US): Pre-Owned Satisfaction and more

In today’s briefing:

ATRenew (RERE US): Pre-Owned Satisfaction
DPC Dash IPO: Dominos Getting Dominated
Weilong Delicious Global IPO – Tepid Recent Performance Still Makes It Look Expensive
Weilong Delicious IPO: Valuation Insights
Baxter International Inc.: Initiation of Coverage – Recent FDA Approvals & Other Drivers

ATRenew (RERE US): Pre-Owned Satisfaction

ATRenew (RERE US) operates the largest pre-owned consumer electronics transactions and services platform in China. It is listed in June 2021 at US$14 per ADS.
The shares are down 63% YTD largely due to the tech market sell-off. Unlike most tech companies, ATRenew is starting to deliver growth with profits, cash generation and share buybacks.
The valuation is undemanding compared to a peer group of pre-owned marketplaces and global online retail marketplaces. It will also appeal to investors with an ESG mandate.

DPC Dash IPO: Dominos Getting Dominated

By Oshadhi Kumarasiri

DPC Dash (DPC HK) is the exclusive master franchisee of Domino’s Pizza (DPZ US) in mainland China, Hong Kong and Macau with around 546 stores as of 9M2022.
The company has refiled for an IPO on the Hong Kong Stock Exchange after failing the first time to raise around US $100m in March 2022.
Discounted pricing has failed to propel the Dominos brand to the top in many Asian markets where pizza is considered a luxury meal. DPC-Dash is experiencing the same in China.

Weilong Delicious Global IPO – Tepid Recent Performance Still Makes It Look Expensive

Weilong Delicious Global (WDG HK) a spicy snack food company in China, aims to raise around US$140m in its Hong Kong IPO.
According to F&S, WDG ranked first among spicy snack food enterprises in China, with a market share of 6.2%, and in the seasoned flour product and spicy vegetable snacks categories.
We have covered various aspects of the deal in our previous notes, in this note, we will talk about the final valuations.

Weilong Delicious IPO: Valuation Insights

Weilong Delicious Global (WDG HK), a leading spicy snack food company in China, has launched its IPO to raise up to US$141 million.
We previously discussed the IPO in Weilong Delicious IPO: Remains in a Pickle, Weilong Delicious IPO: In a Pickle, Weilong Delicious IPO: Mixed Update, Weilong Delicious IPO Initiation: Tasty Bite.
In this note, we present our forecasts and look at valuation. Weilong is unattractively valued at the IPO price range. We would pass on the IPO.

Baxter International Inc.: Initiation of Coverage – Recent FDA Approvals & Other Drivers