ECM Daily Briefs | Page 71 of 118

In today’s briefing:

ThaiBev’s BeerCo IPO: Third Time’s the Charm?
Lunit IPO Preview: A Pioneer in AI-Based Cancer Diagnosis and Treatment Solutions
DXN Holdings Pre-IPO Tearsheet
ClouDr (智云健康) Pre-IPO – PHIP Updates – Mixed Results, Strong Growth Could Be Masking Some Volatility
Sona Comstar Lock-Up – Blackstone up 17x, Sold Half in the IPO with over US$1bn Left

ThaiBev’s BeerCo IPO: Third Time’s the Charm?

Thai Beverage (THBEV SP)’s BeerCo is once again pre-marketing an SGX IPO to raise US$0.8-1.0 billion (vs US$2 billion previously), according to press reports.
In 1HFY2022, the group revenue returned to growth due to Vietnam. The easing of restrictions in Thailand should boost volumes in 2HFY2022.
Creditably despite rising raw material costs, the margins remained steady helped by forward buying contracts. However, the unwinding of the forward contracts will likely lead to margin pressures in FY2023.

Lunit IPO Preview: A Pioneer in AI-Based Cancer Diagnosis and Treatment Solutions

By Douglas Kim

Lunit is getting ready to complete its IPO in Korea in July. The IPO base deal size is from $42 million to $46 million.
Established in 2013, Lunit is one of the leading companies in Korea that specializes in AI-based cancer diagnosis and treatment solutions.
Lunit is a pioneer in the medical artificial intelligence industry. The company has developed and commercialized AI-assisted detection solutions that complement human visual limitations through deep learning technology.

DXN Holdings Pre-IPO Tearsheet

By Ethan Aw

DXN Holdings (2080694D MK) is looking to raise about US$300m in its upcoming Malaysia IPO. The deal will be run by Maybank, CIMB, CLSA and RHB.
As a global health and wellness direct selling company, DXN’s portfolio consists of health and wellness consumer products such as fortified food and beverages, health and dietary supplements and more.
It has 291 stock keeping units (SKUs) of health and wellness consumer products manufactured in-house and distribution footprints in 50 countries as of the Latest Practicable Date (30 Apr 2022).

ClouDr (智云健康) Pre-IPO – PHIP Updates – Mixed Results, Strong Growth Could Be Masking Some Volatility

ClouDr Group (16897333D CH) is looking to raise around US$100m in its upcoming Hong Kong IPO.
The firm is a digital chronic condition management solution provider and is market leader in China in terms of the number of SaaS installations in hospitals and pharmacies in 2020.
In this note, we will discuss ClouDr’s recent PHIP updates.

Sona Comstar Lock-Up – Blackstone up 17x, Sold Half in the IPO with over US$1bn Left

Sona Comstar (Sona) raised around US$761m in its Indian IPO in Jun 2021.
The shares are now trading well above the IPO price and its largest PE investor, Blackstone, will be released from its lockup soon.
In this note, we will talk about the lock-up dynamics and updates since our last note.

Before it’s here, it’s on Smartkarma

Jun 19

Equity Capital Markets: Chunbo Co Ltd, Sichuan Tianqi Lithium Industries, Inc and more

In today’s briefing:

Sungeel HiTech IPO Preview
ECM Weekly (19th June 2022) – Tianqi, GoAir, China United, Hongjiu Fruit, Airtel/Singtel, ExaWizards

Sungeel HiTech IPO Preview

By Douglas Kim

Sungeel Hitech is getting ready to complete its IPO in Korea in July. This is one of the market leaders in the recycling of rechargeable battery materials in Korea.
It has experienced excellent growth in sales and profits. It had revenue of 147.3 billion won (up 123.3% YoY) and operating profit of 16.9 billion won in 2021.
The IPO price range is from 40,700 won to 47,500 won. The IPO base deal size ranges from $86 million to $100 million.

ECM Weekly (19th June 2022) – Tianqi, GoAir, China United, Hongjiu Fruit, Airtel/Singtel, ExaWizards

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
IPO volumes remain subdued across the region, although a number of deals are said to be looking to launch soon.
Given the recent market volatility, there were no large placements this week.

Before it’s here, it’s on Smartkarma

Jun 18

Equity Capital Markets: Chongqing Hongjiu Fruit, Thai Life Insurance and more

In today’s briefing:

Chongqing Hongjiu Fruit Pre-IPO – Lack of Moat Despite Long Operating History and Growth In Scale
Thai Life Insurance IPO: The Bear Case

Chongqing Hongjiu Fruit Pre-IPO – Lack of Moat Despite Long Operating History and Growth In Scale

By Ethan Aw

Chongqing Hongjiu Fruit (CHF HK) is looking to raise up to US$100m in its upcoming Hong Kong IPO.
Chongqing Hongjiu Fruit (CHJF) is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. They have 1.0% market share as China’s second largest fruit distributor.
While CHJF is already profitable, its long cash conversion cycle has been straining its balance sheet as the company tries to scale up.

Thai Life Insurance IPO: The Bear Case

Thai Life Insurance (124744Z TB) has started to meet investors ahead of its $1 billion IPO. The roadshow will run till early July with a listing targeted later in July.
In Thai Life Insurance 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 market share pressure, tepid total premium performance, a checkered record in sales channel diversification, stagnating agent growth and inconsistent agent productivity.

Before it’s here, it’s on Smartkarma

Jun 17

Equity Capital Markets: Sichuan Tianqi Lithium Industries, Inc, ExaWizards, Thai Life Insurance, Beijing Yuanxin Technology Group Co Ltd and more

In today’s briefing:

Tianqi Lithium A/H Listing – Back once Again, This Time with a More Compelling Industry Backdrop
ExaWizards IPO Lock-Up – PE/Investment Funds Coming off Lockup, Could See Some Scattered Selling
Thai Life Insurance IPO: The Bull Case
Pre-IPO Beijing Yuanxin Technology Group – Conservative About the Outlook

Tianqi Lithium A/H Listing – Back once Again, This Time with a More Compelling Industry Backdrop

Tianqi Lithium (TL) is looking to raise up to US$1.5bn via its H-shares listing. It undertakes mining of lithium ore and manufacturing of lithium concentrate, lithium compounds and derivatives.
TL was the largest producer of mined lithium globally in terms of output and ranked third in terms of revenue generated from lithium in 2020, according to Wood Mackenzie .
In this note, we look at the company’s past performance and the deal dynamics.

ExaWizards IPO Lock-Up – PE/Investment Funds Coming off Lockup, Could See Some Scattered Selling

ExaWizards (4259 JP) raised around US$300m in its Japan IPO in Dec 2021, where its IPO had been priced at the top end of its indicative price range.
ExaWizards is an AI service provider in Japan, it develops and delivers AI products with the aim of addressing industry and social issues.
While in our view, we would not expect a large block to come from this lockup expiry, we could expect some scattered selling across the shareholders.

Thai Life Insurance IPO: The Bull Case

Thai Life Insurance (124744Z TB) has started to meet investors ahead of its $1 billion IPO. The roadshow will run till early July with a listing targeted later in July.
Thai Life is the third-largest life insurer in Thailand with a 12.9% market share as measured by gross premium income in 1Q22.
The key elements of the bull case rest on a strong brand, the largest agent network, return to APE growth, high persistency ratio and improving VONB margin.

Pre-IPO Beijing Yuanxin Technology Group – Conservative About the Outlook

By Xinyao (Criss) Wang

Based on the business analysis, Beijing Yuanxin Technology Group Co Ltd (1865453D CH) is more of a traditional offline chain drugstores than a healthcare technology company.
Yuanxin has been suffering from loss for years. With a gross margin of lower than 10%, it’s going to be tough to turn a profit, leading to concerns on survival.
Due to the fierce competition in each of its businesses, homogeneous business model, weak financial position, lack of high moat, policy risks, etc., we are conservative about the Company’s outlook.

Before it’s here, it’s on Smartkarma

Jun 16

Equity Capital Markets: China United Lines and more

In today’s briefing:

China United Lines Pre-IPO – Profitable and Growing Rapidly, However Market Is Concentrated

China United Lines Pre-IPO – Profitable and Growing Rapidly, However Market Is Concentrated

China United Lines (CUL HK) is looking to raise around US$300m in its upcoming Hong Kong IPO.
China United Lines (CUL) is a container shipping company in China. CUL has grown rapidly and its large proportion of vessels being chartered-in, has allowed it to scale its capacity.
Shipping volume growth was accompanied by topline growth, and margins have been on the uptrend. However, the firm is only a small player in a concentrated market.

Before it’s here, it’s on Smartkarma

Jun 15

Equity Capital Markets: Go Air Limited, ClouDr Group and more

In today’s briefing:

Go Air (Go First) Pre-IPO – The Positives – Was Flying Reasonably High Pre-COVID
ClouDr IPO: Strong Business Model with Multiple Revenue Channels
Go Air (Go First) Pre-IPO – The Negatives – Competition Is About to Pick-Up Again

Go Air (Go First) Pre-IPO – The Positives – Was Flying Reasonably High Pre-COVID

By Shifara Samsudeen, ACMA, CGMA

GoAir (Go First) is looking to raise up to US$500m in its upcoming India IPO. The company is owned by the Wadia family, who also own Britannia Industries (BRIT IN).
Go Air is an ultra-low-cost carrier (ULCC) primarily operating in India. It had a market share of 10.8% in FY20 in the domestic market.
In this note, we will talk about the positive aspects of the deal.

ClouDr IPO: Strong Business Model with Multiple Revenue Channels

ClouDr was the largest digital chronic condition management solution provider in China. The company’ application for a HKEx IPO has been approved and plans to raise proceeds of around US$500m.
The company is well positioned to benefit from growing demand for digital healthcare marketing and services in China driven by increased health awareness, technological advancements and prevalence of chronic conditions.
In this insight, we examine the company’s business model, segments and financials.

Go Air (Go First) Pre-IPO – The Negatives – Competition Is About to Pick-Up Again

GoAir (Go First) is looking to raise up to US$500m in its upcoming India IPO. The company is owned by the Wadia family, who also own Britannia.
Go Air is an ultra-low-cost carrier (ULCC) primarily operating in India. It had a market share of 10.8% in FY20 in the domestic market.
In this note, we talk about the not so positive aspects of the deal.

Before it’s here, it’s on Smartkarma

Jun 14

Equity Capital Markets: Shanghai Junshi Bioscience, Winia Aid and more

In today’s briefing:

Shanghai Junshi Bioscience Placement- Junshi Is Having a Hard Time, with Lower than Expected Returns
Winia Aid IPO Bookbuilding Results

Shanghai Junshi Bioscience Placement- Junshi Is Having a Hard Time, with Lower than Expected Returns

By Xinyao (Criss) Wang

Junshi’s fatal flaw is not that it is still suffering loss, or that its founders have no medical background, but that the Company is very short of money.
Considering the gloomy prospects of etesevimab/VV116, uncertainties in toripalimab and other late-stage candidates, we remain conservative about Junshi’s commercialization outlook. Junshi’s higher valuation than Innovent is not justified.
Together with unfriendly macro environment, we don’t think heavy investment in R&D/MRCT/commercial development could bring high return as expected.Investors need to be rational about Junshi’s RMB4 billion private placement plan.

Winia Aid IPO Bookbuilding Results

By Douglas Kim

Winia Aid (377460 KS) announced its IPO book building results. The IPO price has been determined at 16,200 won, which is at the high end of the IPO price range.
There were 1,225 institutions that were involved in the IPO survey and the demand ratio was 955 to 1. The IPO offering amount is 87 billion won.
Our base case valuation of Winia Aid is 21,724 won per share, which is 34% higher than the IPO price.

Before it’s here, it’s on Smartkarma

Jun 12

Equity Capital Markets: Alibaba (ADR) and more

In today’s briefing:

ECM Weekly (12th June 2022) – Alibaba, Kakao Pay, Thai Life, Tuhu, GoGoX, Net Protection, WM Motor

ECM Weekly (12th June 2022) – Alibaba, Kakao Pay, Thai Life, Tuhu, GoGoX, Net Protection, WM Motor

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
IPO volumes remain subdued across the region, although a number of deals are said to be looking to launch soon.
Placements stole the limelight this week too with Kakao Pay’s selldown by Ant and Joy Spreader’s crash pulling the scales even on last week’s better performing deals.

Before it’s here, it’s on Smartkarma

Jun 09

Equity Capital Markets: WM Motor Technology Co Ltd, Tuhu Car, GoGoX Holdings, Mega Genomics, 58 Freight (GogoX), Net Protections and more

In today’s briefing:

WM Motor Pre-IPO Tearsheet
Tuhu Car Pre-IPO – The Negatives – Remains Unprofitable and Have Been Racking up Its Payables
GOGOX IPO: Growth at All Costs
Pre-IPO Mega Genomics – Immature Market and Over-Reliance on Meinian Put Future Performance in Doubt
58 Freight (GogoX) Pre-IPO – (June 2022) PHIP Updates – Prospects Seem Bleaker
Net Protections Holding IPO Lock-Up – Small Expiry Now, Before 20% Is Released Later in the Year

WM Motor Pre-IPO Tearsheet

By Ethan Aw

WM Motor Technology Co Ltd (WMT CH) is looking to raise about US$1bn in its upcoming Hong Kong IPO. The deal will be run by Haitong International, CMBI and BOCI.
WM Motor is a smart EV player in China. As of the latest practicable date, it had a total of four main EV models (with various versions of each model).
As per the CIC, it was the first EV automaker in China to have established its own manufacturing facilities from the outset.

Tuhu Car Pre-IPO – The Negatives – Remains Unprofitable and Have Been Racking up Its Payables

Tuhu Car (2007986D HK) is looking to raise up to US$400m in its upcoming Hong Kong IPO.
Tuhu is an integrated online and offline platform for automotive services in China.
The firm remains loss making with no signs of being profitable in the near/medium term given its aggressive growth strategy.

GOGOX IPO: Growth at All Costs

GoGoX Holdings (GOGO HK) is a major online intra-city logistics platform in Asia. It has passed the listing hearing for an HKEx IPO to raise US$100-150 million.
In GOGOX IPO Initiation: A Less than Perfect Delivery, we noted that as the losses are expected to persist over the next three years, we would avoid the IPO.
In this note, we examine the PHIP for the 2021 results and recent developments. The fundamentals remain unattractive and we would give the IPO a pass.

Pre-IPO Mega Genomics – Immature Market and Over-Reliance on Meinian Put Future Performance in Doubt

By Xinyao (Criss) Wang

Mega should establish core competitiveness via entering hospital market and being recognized by hospitals. It’s not a long-term solution to exploit the market by mainly relying on Meinian.
Although Mega’s competitive advantage in the channels is still more obvious due to Meinian, it is actually a double-edged sword, especially when Meinian is in financial difficulty.
Without Meinian, whether Mega can develop independently is a question mark. In terms of valuation, BGI and Berry could be comparable companies, and Mega’s valuation could be lower than Berry.

58 Freight (GogoX) Pre-IPO – (June 2022) PHIP Updates – Prospects Seem Bleaker

58 Freight (GogoX) (1903638D HK) is looking to raise US$150m in its upcoming Hong Kong IPO.
GogoX is an online intra-city logistics platform in Asia. The company operates in more than 30 cities across five countries and regions in Asia.
GGX’s platform services segment continues to languish, even after the firm expended much higher incentives during the fiscal period. In this note, we look at GGX’s June 2022 PHIP updates.

Net Protections Holding IPO Lock-Up – Small Expiry Now, Before 20% Is Released Later in the Year

Net Protections Holdings, a buy now pay later service provider, raised around US$570m via selling a mix of primary and secondary shares in its Japan IPO in Dec 2021.
As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.
In this note, we will talk about the upcoming lock-up expiry on 12th Jun 2022.

Before it’s here, it’s on Smartkarma

Jun 08

Equity Capital Markets: Kakao Pay, Tuhu Car, Thai Life Insurance and more

In today’s briefing:

Kakao Pay Placement – Discount Is Enticing, That’s It
Tuhu Car Pre-IPO – The Positives – Aiming to Address the Painpoints of the Industry
Thai Life Insurance Pre-IPO – The Negatives – Lacks Growth

Kakao Pay Placement – Discount Is Enticing, That’s It

Alipay aims to raise around US$386m via selling around 3.3% of outstanding shares of Kakao Pay.
The stock more than doubled on listing, providing one of the best first day returns in 2021. However, its performance since then hasn’t been all that great.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Tuhu Car Pre-IPO – The Positives – Aiming to Address the Painpoints of the Industry

Tuhu Car (2007986D HK) is looking to raise up to US$400m in its upcoming Hong Kong IPO.
Tuhu is an integrated online and offline platform for automotive services in China.
Initially starting as a pure online retail platform, the firm has over time been building its offline network with well-managed stores and technicians to deliver standardized services in-store.

Thai Life Insurance Pre-IPO – The Negatives – Lacks Growth

Thai Life Insurance is looking to raise up to US$1bn in its upcoming Thailand IPO.
Thai Life Insurance is one of the largest life insurance companies in Thailand, third by assets. As of Mar 2022, it had 64,000 insurance agents.
In this note, we will talk about the not so positive aspects of the deal.

Before it’s here, it’s on Smartkarma