ECM Daily Briefs | Page 59 of 118

In today’s briefing:

I-Tail Corporation IPO: A Strong 3Q Results Update

I-Tail Corporation IPO: A Strong 3Q Results Update

By Arun George

I-Tail (ITC TB), Thai Union Group (TU TB)’s pet care division, will launch an up to US$600 million SET IPO this week, according to press reports.
We previously discussed the IPO in I-Tail Corporation IPO: The Bull Case and I-Tail Corporation IPO: The Bear Case.
In this note, we look at the 9M22 results. The results highlight that i-Tail is in rude health with accelerating growth, healthy margins, cash generation and manageable leverage.

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Nov 13

Daily Brief ECM: ECM Weekly (13th Nov 2022) – I-Tail and more

In today’s briefing:

ECM Weekly (13th Nov 2022) – I-Tail, Blibli, Nykaa, PB Fin, Five Star, Archean, GDRs, Axis Bank
Etsy Inc: New Image Search Feature & Other Developments
Lygend Resources & Technology Pre-IPO – Thoughts on Valuation
Trimble Inc: Acquisition of B2W Software & Other Drivers

ECM Weekly (13th Nov 2022) – I-Tail, Blibli, Nykaa, PB Fin, Five Star, Archean, GDRs, Axis Bank

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, Indian IPOs continue to trickle in, while other regions appear to be waking up from their slumber.
There were a few GDR issuances this week, along with another placement in Axis Bank Ltd (AXSB IN) and a number of lock-up expiries.

Etsy Inc: New Image Search Feature & Other Developments

Etsy reported a strong set of results that were beyond market expectations with a strong adjusted EBITDA margin and growth in revenue.
Also, it had some early incorporation of buyer interests and taste to create more personalized and predictable recommendations.
The company held Etsy Up: Holiday edition, its foremost global holiday kickoff event for sellers all over the world.

Lygend Resources & Technology Pre-IPO – Thoughts on Valuation

Lygend Resources & Technology (LR HK) is looking to raise about US$600m in its upcoming Hong Kong IPO.
Lygend Resources & Technology (Lygend) is a nickel trading and production firm with a portfolio covering multiple areas across the nickel industry value chain.
In this note, we will look at assumptions, and share our thoughts on valuation.

Trimble Inc: Acquisition of B2W Software & Other Drivers

Trimble showed a decent organic revenue growth in the last quarter but failed to meet Wall Street expectations on the revenue front.
The company’s top-line was impacted by the changes in the foreign exchange rates and it barely managed to meet market expectations regarding earnings.
Recurring and software revenue continued to grow at quite a strong rate which is reflected by the sequential acceleration of its organic ARR growth.

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Nov 12

Daily Brief ECM: IndiaFirst Life Insurance Pre-IPO Tearsheet and more

In today’s briefing:

IndiaFirst Life Insurance Pre-IPO Tearsheet
Lygend Resources & Technology Pre-IPO Peer Comp – Peers Have Underperformed over the past Year
eBay Inc: Acquisition of TCGplayer & Other Drivers

IndiaFirst Life Insurance Pre-IPO Tearsheet

IndiaFirst Life Insurance (1083896D IN) is looking to raise about US$250m in its upcoming India IPO. The deal will be run by ICICI, Ambit, BNP, BOBCap, HSBC, Jefferies and JMF.
IndiaFirst Life Insurance (IFLI) Is a private life insurer in India with a product portfolio of retail and group products, ranging across different segments.
The company’s retail product portfolio in India comprises nine participating products, 16 non-participating products (comprising 11 nonparticipating savings products and six non-participating protection products) and four unit-linked products.

Lygend Resources & Technology Pre-IPO Peer Comp – Peers Have Underperformed over the past Year

Lygend Resources & Technology (LR HK) is looking to raise about US$600m in its upcoming Hong Kong IPO.
Lygend Resources & Technology (Lygend) is a nickel trading and production firm with a portfolio covering multiple areas across the nickel industry value chain.
In this note, we look at peers and undertake a peer comparison.

eBay Inc: Acquisition of TCGplayer & Other Drivers

eBay had a solid third quarter and delivered an all-around beat.
The company also completed the tech-led re-imagination in the quarter and met its short-term commitments.
Additionally, eBay is attempting to improve the standard and volume of the supply of components and accessories.

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Nov 11

Daily Brief ECM: Axis Bank Placement – Second Deal for the Month but This Is Very Well Flagged and more

In today’s briefing:

Axis Bank Placement – Second Deal for the Month but This Is Very Well Flagged
Archean Chemical Industries IPO – Strong Growth Makes It Worth a Shot
Shanghai Tofflon Science Placement (300171.CH)-Industry Periodicity May Put Valuation Under Pressure
Uber Technologies: Advertising Division & Other Drivers
Fiserv Inc: The Vert Launch & Other Drivers
CVS Health Corp: Acquisition of Signify Health & Other Drivers
L3Harris Corp: Acquisition of Viasat’s Tactical Data Links Business & Other Drivers

Axis Bank Placement – Second Deal for the Month but This Is Very Well Flagged

The Government of India (GoI) aims to raise around US$500m via selling a 1.4% stake in Axis Bank Ltd (AXSB IN).
This won’t be the first selldown by GoI as it has been reducing its stake since 2019. We have covered a number of the past deals in the name.
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

Archean Chemical Industries IPO – Strong Growth Makes It Worth a Shot

Archean Chemical Industries (0810406D IN) is looking to raise about US$178m in its India IPO.
Archean Chemical Industries (ACI) is a specialty marine chemical manufacturer in India focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.
We have looked at the background of the deal in our earlier notes. In this note, we will talk about the peer comparison and valuations.

Shanghai Tofflon Science Placement (300171.CH)-Industry Periodicity May Put Valuation Under Pressure

By Xinyao (Criss) Wang

We analyzed three main factors to drive high performance growth of Tofflon in recent years, but these factors have become untenable. The remaining opportunity mainly lies in import substitution.
Every explosive growth of Tofflon benefits from positive industry trend, whose periodicity is obvious. It’s not a good investment opportunity for long run,but a staged investment opportunity in short term.
Tofflon is in the transition from explosive growth to steady growth. The change in industry demand would suppress valuation system. Buy low and sell high,rather than hold for long time.

Uber Technologies: Advertising Division & Other Drivers

Uber delivered a mixed set of results as its revenues surpassed Wall Street expectations with gross bookings up 32% year over year.
The company may have delivered a positive EBITDA over its guidance range as well as decent free cash flows but its overall bottom-line losses were wider than Wall Street expectations.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Fiserv Inc: The Vert Launch & Other Drivers

Fiserv had a decent quarter on the revenue front and delivered a double-digit growth as it continues to demonstrate the strength of its client base.
Merchants took advantage of the more value-added business, continued to deliver better experiences, and opened up new businesses.
Also, Fiserv was awarded another quarter with California State Comptroller for the cards that support different disbursement needs.

CVS Health Corp: Acquisition of Signify Health & Other Drivers

CVS Health delivered another strong quarter.
The company increased sales by 10% compared to the last year, reaching over $81 billion and surpassed Wall Street expectations in terms of revenues as well as earnings.
The Health Care Benefits segment also had a good quarter.

L3Harris Corp: Acquisition of Viasat’s Tactical Data Links Business & Other Drivers

L3Harris delivered a highly disappointing set of results for the previous quarter as it failed to meet Wall Street expectations in terms of revenues as well as earnings.
The reduced margins and revenue have been responsible for the guidance decline in free cash flow and EPS.
L3Harris performed well in the non-traditional prime business with a record quarter of more than $5 billion in funded orders.

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Nov 10

Daily Brief ECM: Hangzhou GreatStar Industrial GDR Listing – Wider Discount Here and Momentum Has Been Strong and more

In today’s briefing:

Hangzhou GreatStar Industrial GDR Listing – Wider Discount Here and Momentum Has Been Strong
Beijing SinoHytec A/H Listing – A Whole Lot of Promise but Not Much Earnings to Show for It Yet

Hangzhou GreatStar Industrial GDR Listing – Wider Discount Here and Momentum Has Been Strong

Hangzhou Great Star Industrial Co., (002444 CH) is looking to raise around US$150m in its Swiss GDR listing. Huatai is the sole bookrunner in the deal.
The firm is offering 11.5m GDRs (1 GDR to 5 A-shares) for sale at a 16.1-18.7% discount to last close.
The deal would represent just 2.3 days of three month ADV and 4.3% of the firm’s current mcap.

Beijing SinoHytec A/H Listing – A Whole Lot of Promise but Not Much Earnings to Show for It Yet

Beijing Sinohytec Co Ltd (688339 CH) (BSH) is looking to raise up to US$400m via its H-shares listing.
BSH provides fuel cell systems in China, focusing on the design, development and manufacture of fuel cell systems and stacks mainly for commercial vehicles, such as buses and trucks.
In this note, we talk about the company’s past performance and other deal dynamics.

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Nov 09

Daily Brief ECM: Archean Chemical Industries IPO – Outstanding Growth but Keep an Eye on Leverage and more

In today’s briefing:

Archean Chemical Industries IPO – Outstanding Growth but Keep an Eye on Leverage
Bionote Pre-IPO – Thoughts on Valuation
Exxon Mobil Corp: Major Drivers
Five-Star Business IPO – Thoughts on Valuation
Pinterest Inc: New Marketing Campaign & Other Developments

Archean Chemical Industries IPO – Outstanding Growth but Keep an Eye on Leverage

Archean Chemical Industries (0810406D IN) is looking to raise about US$176m in its India IPO.
Archean Chemical Industries (ACI) is a specialty marine chemical manufacturer in India focused on producing and exporting bromine, industrial salt, and sulphate of potash to customers around the world.
ACI has been growing on the back of increasing production capacity, sales volume and average selling prices in recent years. However, the firm had nearly defaulted previously.

Bionote Pre-IPO – Thoughts on Valuation

Bionote (377740 KS) is looking to raise approximately US$200m in its Korean IPO. The IPO would consist of both a primary and secondary selldown.
Bionote is an integrated producer of diagnostics test products and biocontent products.
In this note, we will look at deal dynamics, assumptions, and share our thoughts on valuation.

Exxon Mobil Corp: Major Drivers

Like most other oil majors, Exxon Mobil too is trading close to its 52-week high.
The company an delivered outstanding quarterly results driven by higher natural gas realizations, stronger refinery throughput, solid refining margins, and strict cost control.
In the Permian Basin, Exxon increased output to almost 560,000 oil equivalent barrels per day, continuing their rapid expansion from the previous year.

Five-Star Business IPO – Thoughts on Valuation

Five Star Business Finance (0958461D IN) is looking to raise around US$250m in its upcoming India IPO.
Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.
We have looked at various aspects of the deal in our previous note, in this note, we talk about valuations.

Pinterest Inc: New Marketing Campaign & Other Developments

Pinterest’s performance as a stock has been fairly decent in what can be termed as a tumultuous environment for the technology industry.
The company’s global MAUs of 445 million were higher than in Q3 2021 because it largely overcame the pandemic’s difficulties and increased user engagement.
During the quarter, they collaborated with Merlin, BMG, Warner Music Group, and Warner Chappell Music to enhance the music experience on Pinterest.

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Nov 07

Daily Brief ECM: Blibli IPO: Trading Debut and more

In today’s briefing:

Blibli IPO: Trading Debut
I-Tail Corporation IPO: The Bull Case

Blibli IPO: Trading Debut

By Arun George

Blibli (1437710D IJ) priced its IPO at IDR450 per share to raise net proceeds of US$508 million. The shares will start trading on 8 November.
We have previously discussed the IPO in Blibli IPO: The Bull Case, Blibli IPO: The Bear Case, Blibli Vs Tokopedia Vs Bukalapak Vs Lazada Vs Shopee, Blibli IPO: Valuation Insights.
Despite peer multiple derating, the IPO price remains unattractive compared to global and Asian-focused e-commerce peers.

I-Tail Corporation IPO: The Bull Case

By Arun George

I-Tail (ITC TB), Thai Union Group (TU TB)’s pet care division, has started pre-marketing an up to US$600 million SET IPO, according to press reports.
I-Tail is one of the largest original equipment manufacturers (OEMs) for wet cat & dog food in Asia, according to Frost & Sullivan.
The key elements of the bull case rest on strong top-line growth, market share gains, ambitious growth plans and the highest margin profile among peers.

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Nov 06

Daily Brief ECM: Millie’s Library IPO Valuation Analysis and more

In today’s briefing:

Millie’s Library IPO Valuation Analysis
ECM Weekly (6th Nov 2022) – Giant Biogene, Blibli, Betagro, Bionote, Fusion, Medanta, Bikaji, Axis

Millie’s Library IPO Valuation Analysis

By Douglas Kim

Our base case valuation of the company is target price of 26,404 won per share, which represents 6% higher than the high end of the IPO price range.
Given the low upside, we have a Negative view of this IPO.
All in all, while we believe Millie’s Library is a solid company with excellent fundamentals, the IPO price range is not valued at meaningful discount to the intrinsic value.

ECM Weekly (6th Nov 2022) – Giant Biogene, Blibli, Betagro, Bionote, Fusion, Medanta, Bikaji, Axis

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, a number of companies in India have launched thier IPOs recently, even as HK and rest of Asia remains dormant.
The only notable placement this week was the selldown in Axis Bank Ltd (AXSB IN) by Bain Capital.

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Nov 04

Daily Brief ECM: Bikaji Foods International IPO – At an Equally Spicy Valuation and more

In today’s briefing:

Bikaji Foods International IPO – At an Equally Spicy Valuation
Giant Biogene: Thoughts on First Day Trading
Bionote Pre-IPO Peer Comp – Larger Segment Leads in Margins, but Trend Could Be Reversing
BioMarin Corp: Key Drivers
VF Corporation: Major Drivers

Bikaji Foods International IPO – At an Equally Spicy Valuation

By Shifara Samsudeen, ACMA, CGMA

Bikaji Foods (BIKAJI IN) , an ethnic snacks company, is looking to raise approximately US$107m in its India IPO.
Its product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs, frozen food, mathri range and cookies.
In our previous note, we looked at the company’s past performance. In this note, we’ll talk about implied valuations.

Giant Biogene: Thoughts on First Day Trading

Giant Biogene has priced its IPO at HK$24.30 per share, at the lower end of the company’s indicative IPO price range of HK$24.3-27.7 per share and raised HK$495.8m (US$63.2m).
The HK offering was oversubscribed by only 2.08 times while the international offering was subscribed by 4.22 times.
Though Biogene’s IPO was priced attractively, we think lower demand for the company’s shares led to pricing at the bottom of the IPO price range.

Bionote Pre-IPO Peer Comp – Larger Segment Leads in Margins, but Trend Could Be Reversing

Bionote (377740 KS) is looking to raise approximately US$200m in its Korean IPO. The IPO would consist of both a primary and secondary selldown.
Bionote is an integrated producer of diagnostics test products and biocontent products. Based on its unique recombinant antigen and antibody manufacturing technology, the firm researches and develops diagnostic reagent products.
In this note, we look at peers and undertake a peer comparison.

BioMarin Corp: Key Drivers

BioMarin delivered a disappointing set of results for the third quarter with revenues and earnings well below Wall Street expectations.
The company’s Kuvan offering continues to have a declining market share of prophylaxis exclusivity in the United States.
Along with new patients from reported new markets, the team continues to see patient growth in European markets similar to what they saw in the prior quarter.

VF Corporation: Major Drivers

VF Corporation is operating in a challenging macro-economic backdrop and delivered a disappointing quarterly result.
The company barely managed to meet revenue expectations given a weak performance in China and also missed out on earnings expectations.
Apart from China, VF Corporation has witnessed an improvement across the rest of Asia, led by Japan and Korea.

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Nov 03

Daily Brief ECM: Bikaji Foods International IPO – Spicy Snacks and more

In today’s briefing:

Bikaji Foods International IPO – Spicy Snacks
Fusion Micro Finance IPO – Not Worth the Premium
Giant Biogene IPO Trading – Demand Was Relatively Better but Still Weak

Bikaji Foods International IPO – Spicy Snacks

Bikaji Foods (BIKAJI IN), an ethnic snacks company, is looking to raise approximately US$107m in its India IPO.
Its product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs, frozen food, mathri range and cookies.
In this note, we look at the company’s past performance.

Fusion Micro Finance IPO – Not Worth the Premium

Fusion Micro Finance Ltd (1053199D IN) is looking to raise approximately US$134m in its India IPO.
Fusion Micro Finance (FMF) is a non-banking financial company – microfinance institution (NBFC-MFI) that provides financial services to unserved and underserved women in rural and peri-rural areas across India.
We have looked at the background of the deal in our earlier notes. In this note, we talk about its recent RHP updates, peer comparison and valuations.

Giant Biogene IPO Trading – Demand Was Relatively Better but Still Weak