ECM Daily Briefs | Page 61 of 118

In today’s briefing:

Blibli IPO: Valuation Insights
Bionote Pre-IPO – The Negatives – Fortunes Generated from a Sole Related Party
Bumble Inc.: New Feature Additions & Other Developments

Blibli IPO: Valuation Insights

Blibli (1437710D IJ), a leading Indonesian e-commerce player, has launched an IDR8.2 trillion (US$530 million) Indonesian IPO. Bookbuilding is from 17 to 24 October.
We have previously discussed the IPO in Blibli IPO: The Bull Case, Blibli IPO: The Bear Case and Blibli Vs Tokopedia Vs Bukalapak Vs Lazada Vs Shopee.
Our valuation analysis suggests that the IPO price range is unattractive. We would give the IPO a pass.

Bionote Pre-IPO – The Negatives – Fortunes Generated from a Sole Related Party

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.
A large part of the firm’s fortunes came from supplying to a sole customer, which is also a related party. Margins have since come under pressure as well.

Bumble Inc.: New Feature Additions & Other Developments

By Baptista Research

Bumble delivered a mixed set of results for the past quarter surpassing Wall Street expectations on the revenue front but missing out on earinings.
The Bumble app continued to grow as the company performed well in traditional as well as international growth markets.
In the quarter, Bumble brought a wide portfolio of discovery-oriented products to the market.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Oct 19

Daily Brief ECM: PT Global Digital Trade (BliBli) Pre-IPO – The Positives – Wide Offering and more

In today’s briefing:

PT Global Digital Trade (BliBli) Pre-IPO – The Positives – Wide Offering, Strong COVID Bounce Back
Blibli IPO – Indonesia E-Commerce Is Struggling, Blibli Even More So
Blibli IPO: The Bear Case
Giant Biogene Pre-IPO – Thoughts on Valuation

PT Global Digital Trade (BliBli) Pre-IPO – The Positives – Wide Offering, Strong COVID Bounce Back

PT Global Digital Trade (1437710D IJ) (BliBli) aims to raise up to US$530m in its Indonesian IPO.
BliBli provides e-commerce services across Indonesia to both retail consumers and institutions
In this note, we’ll talk about the positive aspects of the deal.

Blibli IPO – Indonesia E-Commerce Is Struggling, Blibli Even More So

By Oshadhi Kumarasiri

Blibli (1437710D IJ), one of Indonesia’s leading e-commerce platforms is looking to raise around $470-530m via an IPO on Indonesia Stock Exchange.
Looking at Shopee’s struggles in the past year and Bukalapak’s rapid fall following the IPO, we think investors are unlikely to be interested in the Blibli IPO.
This could mean that Blibli’s days are numbered as it is resting all hopes on the IPO to fund its short-term loan repayment obligations.

Blibli IPO: The Bear Case

Blibli (1437710D IJ), a leading Indonesian e-commerce player, has launched an IDR8.2 trillion (US$530 million) Indonesian IPO. Bookbuilding is from 17 to 24 October.
In Blibli IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The key elements of the bear case rest on weak sector sentiment, an unclear path to profitability, and credible long-term funding to support the high cash burn.

Giant Biogene Pre-IPO – Thoughts on Valuation

Giant Biogene Holding (GBH HK) aims to raise around US$500m in its Hong Kong IPO.
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.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Oct 18

Daily Brief ECM: Mitsubishi Estate Logistics REIT Placement – Decent Track Record but Lacks Accretion and more

In today’s briefing:

Mitsubishi Estate Logistics REIT Placement – Decent Track Record but Lacks Accretion
Blibli IPO: The Bull Case
Giant Biogene Pre-IPO – Peer Comparison – Might Need to Spend a Lot More Online
BioNote IPO Valuation Analysis

Mitsubishi Estate Logistics REIT Placement – Decent Track Record but Lacks Accretion

Mitsubishi Estate Logistics (3481 JP) (MEL) is looking to raise US$145m from its primary follow-on offering to acquire eight properties.
The offering is a large one, resulting in a 10.2% dilution, and would represent 34 days of three month ADV.
In this note, we will look at the deal dynamics, and run the deal through our framework.

Blibli IPO: The Bull Case

Blibli (1437710D IJ), a leading Indonesian e-commerce player, has launched an IDR8.2 trillion (US$530 million) Indonesian IPO. Bookbuilding is from 17 to 24 October.
According to Frost & Sullivan, Blibli.com was No. 1 in the fresh food category and 1P consumer electronics in the B2C omnichannel among e-commerce players in Indonesia in 2021.
The key elements of the bull case rest on a large and growing addressable market, strong ecosystem, high order values, rising cohort spending and fast-paced growth.

Giant Biogene Pre-IPO – Peer Comparison – Might Need to Spend a Lot More Online

Giant Biogene Holding (GBH HK) aims to raise around US$500m in its Hong Kong IPO.
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 in our previous notes. In this note, we’ll undertake a peer comparison.

BioNote IPO Valuation Analysis

Our base case valuation is target price of 16,182 won per share, which is 10% lower than the low end of the IPO price range.
We estimate BioNote to generate sales of 535.2 billion won (down 14% YoY) in 2022 and 349 billion won (down 34.8% YoY) in 2023.
Given the downside risk relative to the IPO price range, we have a Negative View of the BioNote IPO.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Oct 17

Daily Brief ECM: BioNote IPO Preview and more

In today’s briefing:

BioNote IPO Preview

BioNote IPO Preview

BioNote, a Korean company specializing in bio contents and animal diagnostics, is getting ready for an IPO in November.
The IPO price range is from 18,000 won to 22,000 won per share. The IPO offering amount is from 234 billion won to 286 billion won.
At the high end of IPO price, its market cap would be 2.3 trillion won. Using annualized net profit of 597 billion won, this would suggest a P/E of 3.9x.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Oct 16

Daily Brief ECM: ECM Weekly (16th Oct 2022) – Socionext and more

In today’s briefing:

ECM Weekly (16th Oct 2022) – Socionext, Betagro, Lionheart, Five-Star, Giant Biogene, GLP J-REIT

ECM Weekly (16th Oct 2022) – Socionext, Betagro, Lionheart, Five-Star, Giant Biogene, GLP J-REIT

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, Socionext (6526 JP) provided a welcome respite with a positive listing, while South Korean IPOs continued to struggle.
There was only one large placement this week, with GLP J-REIT (3281 JP) deciding to brave the markets.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Oct 15

Daily Brief ECM: Giant Biogene IPO: Strong Growth Prospects Offsets Short-Term Margin Concerns and more

By Shifara Samsudeen, ACMA, CGMA

In today’s briefing:

Giant Biogene IPO: Strong Growth Prospects Offsets Short-Term Margin Concerns
Yunsung F&C IPO Preview

Giant Biogene IPO: Strong Growth Prospects Offsets Short-Term Margin Concerns

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 has filed for an IPO on the Hong Kong Stock Exchange and plans to raise proceeds of around HK$500m.
We remain positive on Biogene’s growth prospects as it operates in a growing market which should further benefit from regulatory tailwinds.

Yunsung F&C IPO Preview

Yunsung F&C is a leading maker of materials mixing equipment that are used in the rechargeable battery production.
The IPO price range is from 53,000 won to 62,000 won and offering amount is from 106 billion won to 124 billion won. The book building starts on 26 October.
According to the bankers’ valuation, the expected IPO market cap range is from 423 billion won to 495 billion won.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Oct 14

Daily Brief ECM: Five-Star Business Pre-IPO – The Negatives – NPLs Low but Delayed Payments Aren’t and more

In today’s briefing:

Five-Star Business Pre-IPO – The Negatives – NPLs Low but Delayed Payments Aren’t
Lionheart Studio IPO: Still Same Inflated Valuation
Kaynes Technology Pre-IPO – Can’t Put a Finger on the Business

Five-Star Business Pre-IPO – The Negatives – NPLs Low but Delayed Payments Aren’t

Five-Star Business Finance (0958461D IN) is looking to raise around US$300m in its upcoming India IPO. The deal will be run by ICICI Securities, Edelweiss, Kotak, and Nomura.
Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.
In this note, we talk about the not so positive aspects of the deal.

Lionheart Studio IPO: Still Same Inflated Valuation

By Sanghyun Park

Lionheart used the net profit from 3Q last year to 2Q this year. The Odin sales peaked in the third quarter of last year and are on a downward trend.
The indicative price band reaches a P/E multiple of 22~32x reasonably projected earnings of ₩140B. NCsoft’s 12M forward PER stands at 14-15x. Krafton is only 12x.
It is unclear whether the market will accept this price deception under current conditions. We should refrain from aggressively approaching it without a clear answer to the decline in sales.

Kaynes Technology Pre-IPO – Can’t Put a Finger on the Business

By Ethan Aw

Kaynes Technology India (7575164Z IN) is looking to raise about US$125m in its upcoming India IPO.
Kaynes Technology (KT) is an end-to-end and IoT solutions enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of electronics system design and manufacturing (ESDM) services.
Profitability accelerated post COVID-19 with margins expanding slightly. However, revenue growth might have been driven by the pandemic and there hasn’t been much operating data for us to work with.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Oct 13

Daily Brief ECM: Five-Star Business Pre-IPO – The Positives – Fast Growth and more

In today’s briefing:

Five-Star Business Pre-IPO – The Positives – Fast Growth, Juicy Margins and Strong Backers
Betagro Pre-IPO – Thoughts on Valuation
Giant Biogene IPO: The Bear Case
Kaynes Technology- Forensic Analysis
Lionheart IPO – Thoughts on Valuation
Pre-IPO Giant Biogene – The Strength and the Concerns

Five-Star Business Pre-IPO – The Positives – Fast Growth, Juicy Margins and Strong Backers

Five-Star Business Finance (0958461D IN) is looking to raise around US$300m in its upcoming India IPO. The deal will be run by ICICI Securities, Edelweiss, Kotak, and Nomura.
Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.
In this note, we talk about the positive aspects of the deal.

Betagro Pre-IPO – Thoughts on Valuation

Betagro (BTG TB) is looking to raise about US$460m in its Thailand IPO.
Betagro is an integrated agro-industrial and food business in Thailand.
In our previous note, we undertook a peer comparison. In this note, we will talk about valuations.

Giant Biogene IPO: The Bear Case

Giant Biogene Holding (GBH HK), a leading professional skin care product manufacturer, has started pre-marketing a US$500 million HKEx IPO.
In Giant Biogene IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
The key elements of the bear case rest on a worrying performance of Collgene (the second flagship brand), an inexorable rise in S&M expenses and margins on a downward trajectory.

Kaynes Technology- Forensic Analysis

By Nitin Mangal

Kaynes Technology India (7575164Z IN) (KTIL) has received SEBI’s approval for its IPO.
Company is one of the end-to-end and IoT solutions enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of ESDM services.
Key forensics issues that should not be ignored include high liabilities off the books, grey areas surrounding receivables, perplexing churning across CFO and directors posts, etc.

Lionheart IPO – Thoughts on Valuation

Lionheart Studio (426630 KS), a game development studio based in South Korea, aims to raise around US$420m via its South Korean IPO.
The company is majority owned by Kakao Games Corp (293490 KS), which after having recently hiked its stake, owned 54.94% of the company prior to listing.
We spoke about the company’s past performance and undertook a peer comparison in our previous note. In this note, we’ll talk about our earnings estimates and valuation.

Pre-IPO Giant Biogene – The Strength and the Concerns

By Xinyao (Criss) Wang

The strength about Giant Biogene is that the founders have R&D background, which helps build trust. Meanwhile, the financial performance was good, with three years of consistent high margins.
The sustainability of high-profit model will face pressure due to increasing competition. The establishment of long-term core competitiveness and second growth point is important. Complex related-party transaction is another concern.
Giant Biogene is in an industry that has a large potential for future growth in valuation. Its valuation should be lower than that of Bloomage and Imeik.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Oct 12

Daily Brief ECM: Socionext IPO Trading – Upsized IPO with Strong Demand. Peers Inched Downwards and more

In today’s briefing:

Socionext IPO Trading – Upsized IPO with Strong Demand. Peers Inched Downwards, but Upside Remains
LionHeart Studio Pre-IPO – The Negatives – Appears to Be Well past Its Peak, Founder Cashed In $700m
Giant Biogene IPO: The Bull Case
LionHeart Studio IPO – Peer Comparison – Youngest and Most Untested

Socionext IPO Trading – Upsized IPO with Strong Demand. Peers Inched Downwards, but Upside Remains

Socionext (6526 JP) raised around US$463m in its Japan IPO. The IPO consisted of 100% secondary shares.
Socionext is a fabless semiconductor provider which commenced operations after integrating the system on a chip (SoC) businesses of Fujitsu Semiconductor Limited and Panasonic Holding Corporation.
In this note we will talk about the trading dynamics.

LionHeart Studio Pre-IPO – The Negatives – Appears to Be Well past Its Peak, Founder Cashed In $700m

Lionheart Studio (426630 KS), a game development studio based in South Korea, aims to raise around US$420m via its South Korean IPO.
The company is majority owned by Kakao Games Corp (293490 KS) , which after having recently hiked its stake, owned 54.94% of the company prior to listing.
In this note, we will talk about the not-so-positive aspects of the deal.

Giant Biogene IPO: The Bull Case

Giant Biogene Holding (GBH HK), a leading professional skin care product manufacturer, has started pre-marketing a US$500 million HKEx IPO.
According to Frost & Sullivan, Biogene was China’s second-largest professional skin treatment product company by retail sales in 2021.
The key elements of the bull case rest on a large and growing addressable market, regulatory tailwinds, the core brand’s stellar performance and high cash generation.

LionHeart Studio IPO – Peer Comparison – Youngest and Most Untested

Lionheart Studio (426630 KS), a game development studio based in South Korea, aims to raise around US$420m via its South Korean IPO.
The company is majority owned by Kakao Games Corp (293490 KS), which after having recently hiked its stake, owned 54.94% of the company prior to listing.
We spoke about the company’s past performance in our previous note. In this note, we’ll undertake a peer comparison.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Oct 11

Daily Brief ECM: Lion Heart Studio Pre-IPO – The Positives – Got One Hit and more

In today’s briefing:

Lion Heart Studio Pre-IPO – The Positives – Got One Hit
Lohia Corp Pre-IPO Tearsheet
SAMG Entertainment IPO Preview
Giant Biogene Pre-IPO – PHIP Updates – Sales Growing Faster but so Have Marketing Spends

Lion Heart Studio Pre-IPO – The Positives – Got One Hit

Lionheart Studio (426630 KS), a game development studio based in South Korea, aims to raise around US$420m via its South Korean IPO.
The company is majority owned by Kakao Games Corp (293490 KS), which after having recently hiked its stake, owned 54.94% of the company prior to listing.
In this note, we will talk about the positive aspects of the deal.

Lohia Corp Pre-IPO Tearsheet

By Ethan Aw

Lohia Corp (1638860D IN) is looking to raise about US$183m in its upcoming India IPO. The deal will be run by ICICI Securities, HSBC, IIFL Securities and Motilal Oswal.
Lohia Corp is the market leader in India for end-to-end manufacturing solutions within the machine segment for the Raffia industry in Fiscal 2022, according to Frost & Sullivan.
In addition to machines for the Raffia industry, it also manufactures spin-draw-wind machines (LOFIL) for polypropylene (PP) multifilament yarn that is used in upholstery, among others.

SAMG Entertainment IPO Preview

SAMG Entertainment is getting ready for an IPO on the KOSDAQ market. SAMG Entertainment is a leading children animation and digital contents focused entertainment company targeting young children.
The IPO offering amount is from 37.8 billion won to 46.7 billion won. The book building for the institutional investors starts on 1 November.
The company operates 42 Youtube channels including 15 domestic channels and 27 overseas channels. The total number of subscribers for these 42 Youtube channels exceeds 39 million.

Giant Biogene Pre-IPO – PHIP Updates – Sales Growing Faster but so Have Marketing Spends