Category

ECM

Jun 07
0

Equity Capital Markets: HPSP, Thai Life Insurance and more

By | Daily Briefs, ECM

In today’s briefing:

  • HPSP IPO Valuation Analysis
  • Thai Life Insurance Pre-IPO – The Positives – Resilient Performance with a Changing Product Mix

HPSP IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of HPSP is implied market cap of 810 billion won or target price of 38,228 won per share.
  • This is 53% higher than the high end of the IPO price range of 25,000 won.  Given the solid upside, we have a POSITIVE view of the HPSP IPO.
  • Our base case valuation uses our estimated net profit of 79.8 billion won in 2022 and P/E of 10.2x which is the median valuation multiple of its peers. 

Thai Life Insurance Pre-IPO – The Positives – Resilient Performance with a Changing Product Mix

By Sumeet Singh

  • 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 talk about the positive aspects of the deal.

Before it’s here, it’s on Smartkarma

Learn More
Jun 06
0

Equity Capital Markets: HPSP and more

By | Daily Briefs, ECM

In today’s briefing:

  • HPSP Preview: A Korean IPO With Best Fundamentals So Far in 2022

HPSP Preview: A Korean IPO With Best Fundamentals So Far in 2022

By Douglas Kim

  • HPSP is getting ready for an IPO in Korea in July. This semiconductor equipment Korean company is an IPO with the best fundamentals for a so far in 2022.
  • The IPO base deal size is from $55 million to $60 million. Crescendo Equity Partners (backed by Peter Thiel) is the controlling shareholder of HPSP.
  • HPSP had revenue of 91.8 billion won (up 50% YoY) and operating profit of 45.2 billion won (up 82.3% YoY) in 2021. Its sales and profits surged higher in 1Q22.

Before it’s here, it’s on Smartkarma

Learn More
Jun 05
0

Equity Capital Markets: Tsingtao Brewery Co Ltd H and more

By | Daily Briefs, ECM

In today’s briefing:

  • ECM Weekly (5th June 2022) – Tsingtao, Woodside, Digital Tel, CALB, Scivita

ECM Weekly (5th June 2022) – Tsingtao, Woodside, Digital Tel, CALB, Scivita

By Sumeet Singh

  • 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 with Tsingtao, Woodside and Digital Tel Infra all managing to do well.

Before it’s here, it’s on Smartkarma

Learn More
Jun 04
0

Equity Capital Markets: Winia Aid and more

By | Daily Briefs, ECM

In today’s briefing:

  • Winia Aid IPO Valuation Analysis

Winia Aid IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Winia Aid is target price of 21,724 won per share, which is 34% higher than the high end of the IPO price range.
  • Winia Aid had ROE of 29% in 2021 which was much higher than the comps’ average of 9.6% in 2021. 
  • The company’s core businesses include after sales service and logistics for Winia Group electronics related products and Apple after sales service and support.

Before it’s here, it’s on Smartkarma

Learn More
Jun 02
0

Equity Capital Markets: Calb, WM Motor Technology Co Ltd, OrbusNeich Medical Group and more

By | Daily Briefs, ECM

In today’s briefing:

  • CALB Pre-IPO – The Negatives – Lots of Shareholder Re-Shuffling
  • WM Motor IPO Initiation: Electric Jitters
  • Pre-IPO OrbusNeich Medical Group – The Industry, the Business and the Concerns

CALB Pre-IPO – The Negatives – Lots of Shareholder Re-Shuffling

By Sumeet Singh

  • CALB aims to raise around US$1.5bn in its Hong Kong IPO.
  • CALB undertakes design, R&D, production and sales of EV batteries and Energy Storage Systems (ESS) products. 
  • In this note, we will talk about the not so positive aspects of the deal.

WM Motor IPO Initiation: Electric Jitters

By Arun George

  • WM Motor Technology Co Ltd (WMT CH), an EV manufacturer, has filed for a US$1 billion IPO on the HKEx. It recently raised US$595.7 million at a US$7 billion valuation.
  • In line with industry trends and listed Chinese peers, WM Motor rapidly grew its vehicle deliveries in 2021. Price increases and a good roadmap support future growth. 
  • WM Motor is sub-scale vs peers pointing to an uncertain path to profitability. As the era of being rewarded for growth at any cost is over, the timing feels off.

Pre-IPO OrbusNeich Medical Group – The Industry, the Business and the Concerns

By Xinyao (Criss) Wang

  • OrbusNeich Medical Group (NEICHZ HK) has a rich pipeline with a leadership position in the PCI balloon markets.
  • Its global business layout would also help the Company “hedge” the negative domestic policy impact or regulation changes.
  • However, the fierce competition, market pattern, industry characteristics, centralized procurement and other concerns should not be neglected.

Before it’s here, it’s on Smartkarma

Learn More
Jun 01
0

Equity Capital Markets: Digital Telecommunications Infrastructure Fund, Scivita Medical Technology and more

By | Daily Briefs, ECM

In today’s briefing:

  • Digital Telecommunications Infrastructure Fund Placement – Routine Trim Down from Parent
  • Scivita (新光维医疗) Pre-IPO: Intense Competition Ahead

Digital Telecommunications Infrastructure Fund Placement – Routine Trim Down from Parent

By Clarence Chu

Scivita (新光维医疗) Pre-IPO: Intense Competition Ahead

By Ke Yan, CFA, FRM

  • Scivita is a China-based medical device company with a focus on single-use endoscope. The company is looking to raise up to USD100 m via a Hong Kong listing.
  • In this note, we look at the company’s background, the industry dynamics and the company’s products.
  • We think the company has a decent investor backing and management team but the intense competition is the main issue.

Before it’s here, it’s on Smartkarma

Learn More
May 31
0

Equity Capital Markets: Tsingtao Brewery Co Ltd H, Calb and more

By | Daily Briefs, ECM

In today’s briefing:

  • Tsingtao Placement – Ending the Selldowns with the Biggest One so Far
  • CALB Pre-IPO – The Positives – Has Been Growing Fast

Tsingtao Placement – Ending the Selldowns with the Biggest One so Far

By Sumeet Singh

  • Fosun aims to raise around US$527m via selling a 3.5% stake in Tsingtao.
  • This is not the first selldown by Fosun, we have covered three prior deals in Dec 2020, Apr 2021 and Dec 2021.
  • In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

CALB Pre-IPO – The Positives – Has Been Growing Fast

By Sumeet Singh

  • CALB aims to raise around US$1.5bn in its Hong Kong IPO.
  • CALB undertakes design, R&D, production and sales of EV batteries and Energy Storage Systems (ESS) products. 
  • In this note, we will talk about the positive aspects of the deal.

Before it’s here, it’s on Smartkarma

Learn More
May 29
0

Equity Capital Markets: Woodside Petroleum and more

By | Daily Briefs, ECM

In today’s briefing:

  • ECM Weekly (29th May 2022) -Woodside, Cloud Village, Delhivery, Nufarm, Converge, Oyo, Sayona Mining

ECM Weekly (29th May 2022) -Woodside, Cloud Village, Delhivery, Nufarm, Converge, Oyo, Sayona Mining

By Clarence Chu

  • Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
  • Delhivery surprised with a strong debut, closing 10% above IPO price by the end of its first day.
  • There were a couple of blocks that hit markets this week, and we discussed the lockup expiries on both Grab and Cloud Village.

Before it’s here, it’s on Smartkarma

Learn More
May 28
0

Equity Capital Markets: Beauty Farm Medical and Health Industry, Oyo and more

By | Daily Briefs, ECM

In today’s briefing:

  • Beauty Farm Medical and Health Industry Pre-IPO: Near-Term Operating Environment Is Not Beautiful
  • Oyo Pre-IPO – The Negatives – Muddied by Controversies and Operates a Cash Burning Machine

Beauty Farm Medical and Health Industry Pre-IPO: Near-Term Operating Environment Is Not Beautiful

By Tina Banerjee

  • Beauty Farm Medical and Health Industry (BFM HK), second largest body and skin care service provider in China has filed for IPO on the Hong Kong Stock Exchange.  
  • Large and growing addressable market, comprehensive service offering, nationwide store network, and sound financial position are the major strengths of the company.
  • BFM’s operation faces uncertainties over COVID and related restrictions. This IPO is not expected to see listing gain unless general market condition and China’s economic growth outlook improve.

Oyo Pre-IPO – The Negatives – Muddied by Controversies and Operates a Cash Burning Machine

By Clarence Chu

  • Oyo (1698548D IN) is looking to raise around US$700m in its upcoming India IPO. The IPO will consist of both a primary and secondary portion.
  • Oyo runs a digital platform that serves as a hotel and home aggregator between patrons, which include owners and lessors, and customers, such as travelers and guests booking for accommodation.
  • The firm’s business remains far from being profitable and is running on a cash-burning model. Also, it’s listing is muddied by a host of controversies in the past and present. 

Before it’s here, it’s on Smartkarma

Learn More
May 27
0

Equity Capital Markets: Oyo, Paradeep Phosphates and more

By | Daily Briefs, ECM

In today’s briefing:

  • Oravel Stays (Oyo) Pre-IPO – The Positives – Network Effects Coupled with Industry Tailwinds
  • Paradeep Phosphates IPO Trading – Tepid Demand and Anchor Quality Isn’t the Greatest

Oravel Stays (Oyo) Pre-IPO – The Positives – Network Effects Coupled with Industry Tailwinds

By Clarence Chu

  • Oyo (1698548D IN) is looking to raise around US$700m in its upcoming India IPO. The IPO will consist of both a primary and secondary portion.
  • Oyo runs a digital platform that serves as a hotel and home aggregator between patrons, which include owners and lessors, and customers, such as travelers and guests booking for accommodation.
  • As of Mar 2021, Oyo had 157,344 storefronts across more than 35 countries listed on its platform.

Paradeep Phosphates IPO Trading – Tepid Demand and Anchor Quality Isn’t the Greatest

By Clarence Chu

  • Paradeep Phosphates raised around US$194m in its India IPO. The IPO consisted of a mix of primary and secondary shares.
  • Subscription for PP’s IPO had been tepid and previous deals with similar subscription rates had produced mixed performances upon debut.
  • Were the firm to trade towards its closer peers’ average, there is a 5% upside potential and -18.6% downside potential on the FY23E and FY24E EV/EBITDA front, respectively. 

Before it’s here, it’s on Smartkarma

Learn More