ECM Daily Briefs | Page 60 of 118

In today’s briefing:

Betagro IPO Trading – Seems Fairly Valued
Go Digit General Insurance Pre-IPO – The Negatives – Still Has a Lot to Explain

Betagro IPO Trading – Seems Fairly Valued

By Clarence Chu

Betagro (BTG TB) raised about US$460m in its Thailand IPO.
Betagro is an integrated agro-industrial and food business in Thailand.
In this note we will talk about the trading dynamics.

Go Digit General Insurance Pre-IPO – The Negatives – Still Has a Lot to Explain

Go Digit General Insurance is looking to raise about US$503m in its upcoming India IPO. The deal will be run by ICICISec, MS, Axis, Edelweiss, HDFC Bank and IIFL.
Go Digit General Insurance is a digital full stack insurance company, offering motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products.
In this note, we talk about the not so positive aspects of the deal.

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Nov 01

Daily Brief ECM: Global Health IPO – Small Player but Attractive and more

In today’s briefing:

Global Health IPO – Small Player but Attractive
Go Digit General Insurance Pre-IPO – The Positives – Has Been Growing a Lot Faster than the Industry
Boeing Co: Major Drivers
Tyler Technologies: Acquisition of Rapid Financial Solutions & Other Drivers

Global Health IPO – Small Player but Attractive

By Ethan Aw

Global Health (Medanta) (GH IN) is looking to raise approximately US$268m in its upcoming India IPO.
Global Health (GH) is a hospital network that operates under the Medanta brand. The firm currently has five hospitals in operation and one more planned for development.
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.

Go Digit General Insurance Pre-IPO – The Positives – Has Been Growing a Lot Faster than the Industry

Go Digit General Insurance is looking to raise about US$503m in its upcoming India IPO. The deal will be run by ICICISec, MS, Axis, Edelweiss, HDFC Bank and IIFL.
Go Digit General Insurance is a digital full stack insurance company, offering motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products.
In this note, we talk about the positive aspects of the deal.

Boeing Co: Major Drivers

Boeing delivered yet another highly disappointing set of results as it failed to meet the market expectations with respect to revenues as well as earnings.
Despite the challenge created by the supply chain market problems, Boeing’s management believes that their performance was not too bad.
The revenue increased by 4% in the third quarter, and besides that, the company delivered 9 airplanes in the quarter and has 115 airplanes in inventory.

Tyler Technologies: Acquisition of Rapid Financial Solutions & Other Drivers

Tyler Technologies delivered yet another all-around beat that was a result of its 3% organic growth in this quarter, excluding COVID-related revenues of approximately 9%.
It reflects both company’s accelerating shift to the cloud and growth in transaction-based revenues.
Overall, we provide the stock of Tyler Technologies with a ‘Hold’ rating and a revision in the target price.

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Oct 30

Daily Brief ECM: ECM Weekly (30th Oct 2022) – Giant Biogene and more

In today’s briefing:

ECM Weekly (30th Oct 2022) – Giant Biogene, Sunshine, I-Tail, Global Health, Lygend, Fusion, Blibli

ECM Weekly (30th Oct 2022) – Giant Biogene, Sunshine, I-Tail, Global Health, Lygend, Fusion, Blibli

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, Blibli managed to upsize its IPO, while a few companies will launch their Indian IPOs in the coming week.
There were no notable placements this week, which wasn’t surprising after Monday’s market turmoil.

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Oct 29

Daily Brief ECM: Lygend Resources & Technology Pre-IPO – Resting Its Hopes and Dreams on a JV with a Singular Partner and more

In today’s briefing:

Lygend Resources & Technology Pre-IPO – Resting Its Hopes and Dreams on a JV with a Singular Partner
Atour Lifestyle Holdings IPO Analysis
Novartis ADR: Initiation of Coverage – Latest Focus Areas & Key Drivers
BlackBerry Ltd: Major Drivers

Lygend Resources & Technology Pre-IPO – Resting Its Hopes and Dreams on a JV with a Singular Partner

By Clarence Chu

Lygend Resources & Technology (LR HK) is looking to raise about US$800m in its 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.
With the Obi Project expanding the firm’s capacity into the higher margin production segment, Lygend expects sales and profitability to pick up.

Atour Lifestyle Holdings IPO Analysis

By Douglas Kim

Atour Lifestyle Holdings (ATAT US) is a leading upper midscale hotel chain group in China is getting ready for an IPO in the US.
We believe that a valuation range of RMB12.8 billion ($1.8 billion) to RMB16.9 billion ($2.3 billion) is appropriate for Atour Lifestyle Holdings.
Unless the IPO is priced sufficiently lower than the intrinsic value of the company, many institutional investors will likely pass on the IPO given the Bearish market sentiment.

Novartis ADR: Initiation of Coverage – Latest Focus Areas & Key Drivers

This is our first report global pharma major, Novartis.
The company delivered a mixed set of results for the last quarter, failing to meet Wall Street expectations in terms of revenues but managing an earnings beat.
The innovative medicine sales grew consistently in the quarter across the U.S.

BlackBerry Ltd: Major Drivers

BlackBerry had a mediocre quarterly, beating profitability estimates of Wall Street while delivering revenue aligned with forecasts.
The best performer continues to be QNX design base revenue.
Royalty revenue increased on the production side, but it is still below pre-pandemic levels, mostly because of supply chain challenges.

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Oct 28

Daily Brief ECM: Global Health Pre-IPO – RHP Updates – Post-COVID Growth Likely to Normalize and more

In today’s briefing:

Global Health Pre-IPO – RHP Updates – Post-COVID Growth Likely to Normalize
Yunsung F&C Valuation Analysis

Global Health Pre-IPO – RHP Updates – Post-COVID Growth Likely to Normalize

By Ethan Aw

Global Health (Medanta) (GH IN) is looking to raise approximately US$270m in its upcoming India IPO.
Global Health (GH) is a hospital network that operates under the Medanta brand. The firm currently has five hospitals in operation and one more planned for development.
We had looked at the company’s past performance in our previous note. In this note, we’ll talk about its RHP updates.

Yunsung F&C Valuation Analysis

By Douglas Kim

Our base case valuation of Yunsung F&C is target price of 53,360 won per share, which is 0.7% higher than the low end of the IPO price range.
Given the lack of upside, we would avoid this IPO.
Yunsung F&C is one of the leaders in Korea in producing mixers for rechargeable battery materials for customers including LG Energy Solution and SK On.

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Oct 27

Daily Brief ECM: I-Tail Corporation Pre-IPO – Peer Comparison and more

In today’s briefing:

I-Tail Corporation Pre-IPO – Peer Comparison
GoTo: Lock-Up Expiry and a Coordinated Secondary Offering – Further Downside to Share Price Likely
Pre-IPO Giant Biogene (2367 HK) – Some Unstable Factors
I-Tail Corporation Pre-IPO – Initial Thoughts on Valuation
FactSet Research Systems: Alternative Data Services & Other Drivers

I-Tail Corporation Pre-IPO – Peer Comparison

By Shifara Samsudeen, ACMA, CGMA

I-Tail Corporation, an original equipment manufacturer (OEM) in the wet pet food category, aims to list in Thailand in 4Q22. ITC 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. In this note, we undertake a peer comparison.

GoTo: Lock-Up Expiry and a Coordinated Secondary Offering – Further Downside to Share Price Likely

GoTo on Monday confirmed that it’s currently working with pre-IPO shareholders to explore a coordinated secondary offering of shares held by these shareholders when their lock-up expires on 30 November.
Following IPO, most shareholders agreed to hold onto their shares for a period of 8-months, and the lock-up period for around 90% of outstanding shares will expire next month.
As we continue to highlight in our previous insights, growth in top line does not necessarily mean profits for GoTo, and the company continues to burn cash to fuel growth.

Pre-IPO Giant Biogene (2367 HK) – Some Unstable Factors

By Xinyao (Criss) Wang

Although the recombinant collagen with relatively low price is “subversive” in the preparation process, animal-derived collagen is still more widely used, covering larger markets with various products.
Either for business diversification or to avoid policy risks, how to explore the second growth point is important to Giant Biogene.Otherwise,the Company’s hard to improve the resilience to market/policy changes.
Bloomage would have higher valuation expansion potential than Giant Biogene in mid- to long-term. In other words, if the valuation of Giant Biogene is higher than Bloomage, there’s overvaluation risk.

I-Tail Corporation Pre-IPO – Initial Thoughts on Valuation

I-Tail Corporation, an original equipment manufacturer (OEM) in the wet pet food category, aims to list in Thailand in 4Q22. ITC 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 and undertaken a peer comparison. In this note, we talk about valuations.

FactSet Research Systems: Alternative Data Services & Other Drivers

After many quarters of consistently beating Wall Street expectations on all counts, FactSet delivered a mixed result in the last quarter exceeded revenue expectations of analysts but missing out on earnings.
The company finished fiscal 2022 with organic ASV plus professional services growth of $158 million, accelerating by approximately 200 basis points year over year to over 9%.
With private company coverage throughout their content refinery, workflow solutions for private equity and venture capital companies, and seamless linked workstation integration, the team is progressing with its private market strategy.

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Oct 26

Daily Brief ECM: Giant Biogene IPO – Reasonable Valuation but in Unreasonable Markets and more

In today’s briefing:

Giant Biogene IPO – Reasonable Valuation but in Unreasonable Markets
GoTo Lock-Up: A Sizeable Secondary Offering Incoming
Giant Biogene IPO: Peer Comparison and Valuation
Giant Biogene IPO: Valuation Insights
Sunshine Insurance Group Pre-IPO – The Negatives – Lacks Growth
Incyte Corp: Acquisition of Villaris Therapeutics & Other Drivers
Omnicom Group Inc: Launch of Transact & Other Drivers
Paychex Inc: New Voice Assist Launch & Other Drivers

Giant Biogene IPO – Reasonable Valuation but in Unreasonable Markets

By Shifara Samsudeen, ACMA, CGMA

Giant Biogene (GB) is now looking to raise around US$80m in its Hong Kong IPO, down from its earlier target of US$500m raising.
GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.
We had looked at the company’s past performance and undertaken a peer comparison in our previous notes. In this note, we’ll talk about valuations and other deal dynamics.

GoTo Lock-Up: A Sizeable Secondary Offering Incoming

By Arun George

GoTo (GOTO IJ) confirmed that it is exploring a coordinated secondary offering of shares held by pre-IPO shareholders. The Series A shareholders’ lock-up expires on 30 November 2022.
The lock-up of 89.63% of the outstanding shares expires on 30 November. Within these shares, Alibaba (ADR) (BABA US) and Softbank Group (9984 JP) stakes are worth a combined US$2.6bn.
GoTo continues to grow but with material losses and cash burn. The shares are fairly valued but the sizeable secondary offering (US$1 billion based on reports) will pressure the price.

Giant Biogene IPO: Peer Comparison and Valuation

Giant Biogene Holding (GBH HK) designs, develops and manufactures professional skin treatment products with recombinant collagen as the key bioactive ingredient in China.
The company’s IPO offering has been downsized and now plans to raise approx. US$80m through issuing 22.6m shares at an indicative IPO price range of HK$24.3-27.7 per share.
Our analysis shows that Giant Biogene’s IPO is attractively priced compared to domestic and international peers, however, we expect the upside to be limited given the current market volatility.

Giant Biogene IPO: Valuation Insights

By Arun George

Giant Biogene Holding (GBH HK) has launched its HKEx listing atHK$24.30-27.70 per share to raise up to US$80 million, materially below previous expectations of a US$500 million raise.
We previously discussed the IPO in Giant Biogene IPO: The Bull Case, Giant Biogene IPO: The Bear Case andGiant Biogene IPO: Valuation First Look.
The China A Share peers have derated due to the sharp sell-off in the last few days. Nevertheless, Biogene is attractively valued at the IPO price range. We would participate.

Sunshine Insurance Group Pre-IPO – The Negatives – Lacks Growth

Sunshine Insurance Group (SIG), a life, health and P&C insurance company, aims to raise up to US$1bn 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.
In this note, we talk about the not-so-positive aspects of the deal.

Incyte Corp: Acquisition of Villaris Therapeutics & Other Drivers

Incyte has started appreciating with its financial results being just around the corner.
In the last quarter, the company’s revenues rose 29% and it managed an all-around beat.
With an increase in new patient starts across all 3 indications, Jakafi’s net revenues increased 13% to $598 million.

Omnicom Group Inc: Launch of Transact & Other Drivers

Omnicom had a decent financial performance this quarter with organic growth that was broad-based across its client sectors, regions, disciplines, and agencies.
The introduction of Transact by Omnicom follows the blossoming interest from the agencies in getting a piece of the retail media pie.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

Paychex Inc: New Voice Assist Launch & Other Drivers

Paychex’s stock has started seeing the first signs of recovery after the company delivered a good result, outperforming Wall Street expectations in terms of revenues and earnings.
This is a logical extension of Paychex’s vast, constantly expanding, and widely used self-service capabilities.
In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

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Oct 25

Daily Brief ECM: Sunshine Insurance Group Pre-IPO – The Positives – Steady Headline Growth and more

In today’s briefing:

Sunshine Insurance Group Pre-IPO – The Positives – Steady Headline Growth

Sunshine Insurance Group Pre-IPO – The Positives – Steady Headline Growth

Sunshine Insurance Group (SIG), a life, health and P&C insurance company, aims to raise up to US$1bn 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.
In this note, we talk about the positive aspects of the deal.

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Oct 24

Daily Brief ECM: Giant Biogene IPO: Valuation First Look and more

In today’s briefing:

Giant Biogene IPO: Valuation First Look

Giant Biogene IPO: Valuation First Look

By Arun George

Giant Biogene Holding (GBH HK), a leading professional skin care product manufacturer, is set to launch a US$500 million HKEx IPO.
We previously discussed the IPO in Giant Biogene IPO: The Bull Case and Giant Biogene IPO: The Bear Case.
In this note, we present our forecasts and take the first look at Giant Biogene’s potential valuation range.

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Oct 23

Daily Brief ECM: Accenture plc: Acquisition of MacGregor Partners & Other Drivers and more

In today’s briefing:

Accenture plc: Acquisition of MacGregor Partners & Other Drivers
ECM Weekly (23rd Oct 2022) – Giant Biogene, Blibli, Bionote, Fusion Micro, Mitsubishi Estate
Sirius XM Holding: Project Amplify Update & Key Drivers
ZoomInfo Technologies Inc: ZoomInfo Labs Launch & Other Drivers

Accenture plc: Acquisition of MacGregor Partners & Other Drivers

Accenture delivered a good performance in its last result surpassing Wall Street expectations in terms of revenues as well as earnings.
The company’s revenues grew in local currency which was driven by double-digit growth across all industries, services, and markets.
The cloud business of Accenture performed well, with Cloud First being one of the big drivers of growth.

ECM Weekly (23rd Oct 2022) – Giant Biogene, Blibli, Bionote, Fusion Micro, Mitsubishi Estate

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, Blibli launched its Indonesian IPO, while a few other names are said to be gearing up to launch in Hong Kong and India.
There were a few placements this week, notable ones being Mitsubishi Estate Logistics (3481 JP) and Zee Entertainment Enterprises (Z IN).

Sirius XM Holding: Project Amplify Update & Key Drivers

Sirius XM has had a volatile trajectory off late in terms of its stock price performance and with its results around the corner, another key factor that must be remembered is its history of below par earnings.
The company is making progress in deploying its 360L platform, and it is making progress with various EV start-ups.
We provide the stock of Sirius with a ‘Hold’ rating with a revision in the target price.

ZoomInfo Technologies Inc: ZoomInfo Labs Launch & Other Drivers