Category

ECM

Mar 03
0

Equity Capital Markets: SBI Sumishin Net Bank, Farm Fresh Berhad and more

By | Daily Briefs, ECM

In today’s briefing:

  • SBI Sumishin Net Bank Pre-IPO – Earnings Forecast and Thoughts on Valuations
  • Farm Fresh IPO Initiation: Bet the Farm
  • Farm Fresh IPO – Not the Cheapest but Could Be Worth the Price

SBI Sumishin Net Bank Pre-IPO – Earnings Forecast and Thoughts on Valuations

By Sumeet Singh

  • SBI Sumishin Net Bank (SSNB) will be looking to raise around US$1.1bn in its upcoming IPO.
  • SSNB is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group, a financial services firm. 
  • The deal, if successful, would be Japan’s first online-only bank to go public. In this note, we will talk about our earnings forecast and throughts in valuations.

Farm Fresh IPO Initiation: Bet the Farm

By Arun George

  • Farm Fresh Berhad (FF MY) is a leading vertically integrated dairy player in Malaysia. It has launched an IPO to raise $239 million. 
  • The business is navigating the normalisation of consumer demand and input cost inflation by delivering healthy growth, market share gains, creditable margin performance and cash generation. 
  • Overall, this IPO is worth a closer look. The offer period is from 28 February to 10 March. The listing is on 22 March.   

Farm Fresh IPO – Not the Cheapest but Could Be Worth the Price

By Clarence Chu

  • Farm Fresh Berhad (FF MY) is looking to raise US$239m in its Malaysia IPO.
  • While not exactly the cheapest per se, including Nestle Malaysia, were the firm to trade towards its domestic peer’s simple average, there is an upside potential of 26%-33.3%. 
  • In this note, we will look at peers, assumptions, and share our thoughts on valuation.

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Mar 01
0

Equity Capital Markets: Zip Co Ltd, SBI Sumishin Net Bank, Yunkang Group and more

By | Daily Briefs, ECM

In today’s briefing:

  • ZIP Acquisition and Unlinked Placement – Too Many Things at Once
  • SBI Sumishin Net Bank Pre-IPO – Peer Comparison – One of the Largest but Also One of the Slowest
  • Pre-IPO Yunkang Group – Lack of New Growth Point

ZIP Acquisition and Unlinked Placement – Too Many Things at Once

By Sumeet Singh

  • ZIP announced that it would acquire Sezzle in an all-stock deal. It also announced its earnings and that it would raise A$149m (A$107m) from a placement.
  • We have also covered the Oct 2020 placements in our earlier note, Zip Placement – Sorry, It’s Not You. It’s Me. 
  • In this note we will talk about the recent developments and run the deal through our ECM framework.

SBI Sumishin Net Bank Pre-IPO – Peer Comparison – One of the Largest but Also One of the Slowest

By Sumeet Singh

  • SBI Sumishin Net Bank (SSNB) will be looking to raise around US$1.1bn in its upcoming IPO.
  • SSNB is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group, a financial services firm. 
  • The deal, if successful, would be Japan’s first online-only bank to go public. In this note, we compare the company with some of its peers.

Pre-IPO Yunkang Group – Lack of New Growth Point

By Xinyao (Criss) Wang

  • Benefiting from the opportunities brought to the healthcare industry by the COVID-19 pandemic in 2020, Yunkang Group (YK HK) took a ride and ushered in a turning point in performance.
  • As the pandemic stabilizes and gets gradually under control, the revenue generated from COVID-19 tests may significantly decrease, which means Yunkang may return to net loss again in the future.
  • We currently haven’t seen any new growth point with high certainty. Therefore, we are conservative about Yunkang’s outlook.

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Feb 28
0

Equity Capital Markets: SBI Sumishin Net Bank and more

By | Daily Briefs, ECM

In today’s briefing:

  • SBI Sumishin Net Bank IPO: Bricks ‘n’ Clicks

SBI Sumishin Net Bank IPO: Bricks ‘n’ Clicks

By Arun George

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Feb 27
0

Equity Capital Markets: SBI Sumishin Net Bank and more

By | Daily Briefs, ECM

In today’s briefing:

  • ECM Weekly (27th Feb 2022) – LIC, SBI Sumishin, Farm Fresh, Yunkang, Shanghai Pulse, Jinmao, IDP Edu

ECM Weekly (27th Feb 2022) – LIC, SBI Sumishin, Farm Fresh, Yunkang, Shanghai Pulse, Jinmao, IDP Edu

By Sumeet Singh

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Feb 26
0

Equity Capital Markets: Jinmao Property Services, Yunkang Group and more

By | Daily Briefs, ECM

In today’s briefing:

  • Jinmao Property Services IPO – Premium Asking Valuation and Cornerstones Took up 80% of Deal
  • Yunkang IPO: Core Business Growth to Slow Down Post-Covid

Jinmao Property Services IPO – Premium Asking Valuation and Cornerstones Took up 80% of Deal

By Clarence Chu

  • Jinmao Property Services (JM HK) is looking to raise around US$105m in its Hong Kong IPO.
  • At listing, it is asking for a steep premium and 82% of the deal size has already been taken up by cornerstones, not leaving a whole lot for other investors.
  • In this note, we will look at deal dynamics, assumptions, and share our thoughts on valuation.

Yunkang IPO: Core Business Growth to Slow Down Post-Covid

By Shifara Samsudeen, ACMA, CGMA

  • Yunkang Group (YK HK) is a medical operation service provider in China and offers a full suite of diagnostic testing services.
  • The company’s earnings had a boost in 2020 with the pandemic which resulted in huge demand for Covid-19 diagnostic tests.
  • Yunkang has filed for an IPO to raise about US$200m. We expect the company’s earnings to gradually decline with pandemic conditions easing off.

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Feb 25
0

Equity Capital Markets: Yunkang Group, Shanghai Pulse Medical Technology and more

By | Daily Briefs, ECM

In today’s briefing:

  • Yunkang Group Pre-IPO – Would Need to Prove Itself Post-COVID
  • Shanghai Pulse Medical (博动医疗) Pre-IPO: Leading Image-Based FFR Player

Yunkang Group Pre-IPO – Would Need to Prove Itself Post-COVID

By Clarence Chu

  • Yunkang Group (YK HK) is looking to raise about US$200m in its upcoming Hong Kong IPO. 
  • Yunkang Group is a medical operation service provider in China and as per F&S, had a market share of 3.7% in China’s medical operation service market as per 2020 revenue.
  • While it has managed to grow its on-site diagnostics centers, the firm has to prove that it can still thrive post-COVID.

Shanghai Pulse Medical (博动医疗) Pre-IPO: Leading Image-Based FFR Player

By Ke Yan, CFA, FRM

  • Shanghai Pulse is a leading player in the FFR assessment in China. The company is looking to raise up to USD 200 m via a Hong Kong listing.
  • We look at the company’s key products QFR, OFR and UFR. We also provide our thoughts on the investment thesis.
  • We think the company has a decent investor backing and meanwhile we also highlight concerns on its management.

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Feb 24
0

Equity Capital Markets: Delhivery, IDP Education, ClouDr Group and more

By | Daily Briefs, ECM

In today’s briefing:

  • Delhivery IPO: A Bumpy Delivery
  • IDP Education Placement – Time for Round 2 (US$700m Worth) Of the Selldown
  • Pre-IPO ClouDr Group – The Logical Business Model Can Support Future Growth

Delhivery IPO: A Bumpy Delivery

By Shifara Samsudeen, ACMA, CGMA

  • Delhivery (1058656D IN) is a fully integrated logistics player in India. The company’s application for a listing has been approved by the regulators.
  • The company plans to raise US$650m through issuing new shares while existing shareholders will offer US$3120m worth of shares at the IPO.
  • The company plans to use proceeds from the IPO for funding growth (both organic as well as inorganic growth through acquisitions and strategic initiatives) and for other general corporate purposes.

IDP Education Placement – Time for Round 2 (US$700m Worth) Of the Selldown

By Sumeet Singh

  • Education Australia, the largest shareholder of IDP Education, last raised around US$858m (A$1.1bn) via selling 15% of IDP Education in Aug 2021.
  • The lock-up from that deal is set to expire later this month, which will result in an additional 12.5% of the company’s shares, worth US$670m (A$927m) being unlocked. 
  • In this note we will talk about the recent results and the upcoming lockup expiry.

Pre-IPO ClouDr Group – The Logical Business Model Can Support Future Growth

By Xinyao (Criss) Wang

  • Based on our analysis, the logic of ClouDr Group’s business model is more solid and feasible than that of Ping An Good Doctor, indicating better outlook.
  • If compared with JD Health and Alibaba Health,besides the sales of pharmacy supplies and hospital supplies, ClouDr also provides hospital/pharmacy SaaS services, indicating wider business scope and broader development space.
  • In terms of valuation, Neusoft Xikang Holdings (NXH HK) is a good comparable company for ClouDr,but investors need to be aware of the market sentiment to new IPOs at that time.

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Feb 21
0

Equity Capital Markets: Life Insurance Corp of India, Huitongda and more

By | Daily Briefs, ECM

In today’s briefing:

  • Life Insurance Corp of India IPO: Premium Market
  • Huitongda IPO – First Day Trading

Life Insurance Corp of India IPO: Premium Market

By Arun George

  • Life Insurance Corp of India (1248Z IN) is the largest life insurer in India. LIC is looking to raise about $8 billion. It opens for anchor investors on 11 March. 
  • LIC has leveraged its dominance to deliver healthy premium growth and high persistency ratio. However, the VNB margin and operational efficiency metrics are mid-tier compared to peers. 
  • On balance, the fundamentals look sound. The IPO is worth a look for investors willing to brave the volatile IPO market conditions. 

Huitongda IPO – First Day Trading

By Oshadhi Kumarasiri

  • Huitongda (9878 HK) had a subdued stock market debut with shares opening marginally above the IPO price.
  • Its subdued first-day performance suggests that investors are no longer misled by artificially low valuation multiples of “1P” EC players.
  • Based on EV/ (GMV + Retail Revenue), there’s a 38% downside to Huitongda’s valuation. However, it may be best to wait for signs of weakness before arranging a short position.

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Feb 20
0

Equity Capital Markets: Life Insurance Corp of India and more

By | Daily Briefs, ECM

In today’s briefing:

  • ECM Weekly (20th Feb 2022) – LIC, SBI Sumishin, Huitongda, Delhivery, Vedant, Persol, Emcure, Linom

ECM Weekly (20th Feb 2022) – LIC, SBI Sumishin, Huitongda, Delhivery, Vedant, Persol, Emcure, Linom

By Sumeet Singh

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Feb 19
0

Equity Capital Markets: Daemyung Energy and more

By | Daily Briefs, ECM

In today’s briefing:

  • Daemyung Energy IPO Valuation Analysis

Daemyung Energy IPO Valuation Analysis

By Douglas Kim

  • Our base case valuation of Daemyung Energy is implied market cap of 624 billion won or target price of 35,003 won per share.
  • Our target price represents 21% upside from the high end of the IPO price range, suggesting a reasonable upside. Therefore, we have a positive view of this IPO. 
  • Our base case valuation is based on 15.7x P/E (2022) which is based on a 30% discount to the comps’ average P/E valuation multiple in 2022.

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