In today’s briefing:
- Keda Industrial (600499 CH): Lithium Play Backed by Multi-Pronged Growth Strategies
- Keda Industrial Group: Concerns About Downturn in Ceramics Machinery Market & Uncompelling Valuation
- Genuine Biotech (GBL HK): COVID Pill No Longer Attractive Opportunity; Thin Pipeline Mars Conviction
- ECM Weekly (18th Sep 2022) – CALB, Onewo, Leapmotor, WCP, Biogene, Socionext, Prop Guru, PayMate
- Weekly Deals Digest (18 Sep) – Leapmotor, Onewo, WCP, Link, Ramsay, Giordano, VNET, FHT, Moya
Keda Industrial (600499 CH): Lithium Play Backed by Multi-Pronged Growth Strategies
- Through its 43.58% ownership in lithium carbonate producer Lanke Lithium Industry, Keda Industrial Group (600499 CH) is well placed to benefit from the increase in lithium demand.
- Lanke’s capacity has recently been upgraded to 30,000 tonnes. Also, Keda is adding capacity to its own integrated anode materials factory in Fujian to capture the ever-rising demand.
- Overseas ceramic business will see solid growth from key markets in Africa as Keda raises capacity by 65% by FY23. The stock’s valuations are inexpensive relative to peers.
Keda Industrial Group: Concerns About Downturn in Ceramics Machinery Market & Uncompelling Valuation
- We are Negative on Keda Industrial over the next year due to a potential downturn in the ceramics machinery market, uncompelling valuations, and concerns about expansion into lithium battery materials.
- Keda Industrial Group is one of the world’s leading suppliers of building ceramic machinery and equipment.
- Its A-Shares listed on Shanghai Stock Exchange and it completed a private placement of GDRs listing the shares in SIX Swiss Exchange in July 2022.
Genuine Biotech (GBL HK): COVID Pill No Longer Attractive Opportunity; Thin Pipeline Mars Conviction
- Genuine Biotech (GBL HK) has filed for HK listing. Its Azvudine received NMPA approval for the treatment of COVID-19 in July 2022 to become the first China-made oral COVID-19 drug.
- Azvudine was conditionally approved by the NMPA for the treatment of HIV infection in July 2021. However, the drug is yet to be commercialized.
- Genuine Biotech plans to use the IPO proceeds for the commercialization of Azvudine. The company’s current cash balance can maintain its financial viability for approximately 20 months.
ECM Weekly (18th Sep 2022) – CALB, Onewo, Leapmotor, WCP, Biogene, Socionext, Prop Guru, PayMate
- 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, a few large Hong Kong IPOs are rumoured to be aiming to launch their bookbuild next week.
- There was only the Atlas Arteria (ALX AU) mega entitlement offer this week, on the placements front.
Weekly Deals Digest (18 Sep) – Leapmotor, Onewo, WCP, Link, Ramsay, Giordano, VNET, FHT, Moya
- A weekly summary of key developments across ECM and Event-Driven names tracked by us across Hong Kong, Australia, New Zealand, Singapore, Indonesia, Malaysia, Thailand, Korea, India and Chinese ADRs.
- ECM developments – Leapmotor (2007699D HK) and Onewo Space-Tech (ONEWO HK) will launch US$1.0bn and US$0.8bn HKEx IPOs this week, respectively. WCP (WCP KS) is bookbuilding a US$692m KRX IPO
- Event-Driven developments –Link Administration (LNK AU), Ramsay Health Care (RHC AU), Giordano International (709 HK), Xiamen International Port H (3378 HK), Frasers Hospitality Trust (FHT SP), 21Vianet Group (VNET US)
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