In today’s briefing:
- J&T Global Express IPO: Trading Debut
- Li Ning (2331 HK): Bearish Thesis Playing Out
- Cirrus Aircraft Pre-IPO – Has Grown Steadily but Faces Prominent Regulatory Risks
J&T Global Express IPO: Trading Debut
- J&T priced its IPO at a fixed price of HK$12.00 per share to raise the gross proceeds of the offering of US$500 million. The shares will start trading tomorrow.
- We previously discussed the IPO in J&T Global Express IPO: The Bull Case, J&T Global Express IPO: The Bear Case and J&T Global Express IPO: Valuation Insights.
- The market sentiment on the sector continues to weaken. The de-rating of peers lowers our SoTP valuation to HK$10.01 per share, 16.5% below the IPO price.
Li Ning (2331 HK): Bearish Thesis Playing Out
- Li Ning (2331 HK) is trading down 18% today due to a bad 3Q23 operational date.
- Retail sales grew by only mid-single-digit yoy, while same-store-sales recorded a mid-single-digit decline yoy.
- Given the operational update, FY23 earnings should be revised down, to likely flat or low-single-digit growth.
Cirrus Aircraft Pre-IPO – Has Grown Steadily but Faces Prominent Regulatory Risks
- Cirrus Aircraft (0153126D US) is looking to raise up to US$300m in its upcoming HK IPO.
- Cirrus Aircraft designs, develops, manufactures, and sells premium aircrafts. Its two aircraft product lines, the SR2X Series and the Vision Jet, are currently certified and validated in over 60 countries.
- CA has managed to grow its profitability steadily over the track record period. However, the firm is subjected to heightened regulatory risks as US and China tensions rise.
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