In today’s briefing:
- L’Occitane (973 HK): Who Owns What, And When
- Li Auto (LI US): 1Q24, A List of Bad News
- Pre-IPO China Resources Beverage – Here Are the Concerns and the Risks Behind
- Shulan Health Management Pre-IPO – Still Ramping up but Only a Small Player
- Morning Views Asia:
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L’Occitane (973 HK): Who Owns What, And When
- A fortnight ago, I sought access to L’Occitane (973 HK)‘s lesser-known shareholder register, a byproduct of investigative disclosure reports under Chapter 571, s329 of the Securities and Futures Ordinance.
- This is the same register I discussed in Giordano (709 HK): A Closer Look At The Shareholder Register Ahead Of The SGM; and one also used by proxy solicitors.
- The register confirms what has been long rumoured about a certain shareholder activist. It is also informative for what isn’t present.
Li Auto (LI US): 1Q24, A List of Bad News
- Operating profit turned negative in 1Q24 compared to 1Q23 due to the price war and the failure of new model.
- The company disappeared from the industry top-10 list of sales volume and revenue growth slowed down to zero in April.
- All cross-sectional comparisons suggest a Sell rating for the stock.
Pre-IPO China Resources Beverage – Here Are the Concerns and the Risks Behind
- Over 92% of CR Beverage’s revenue is from packaged drinking water products, but YoY growth this business is already below industry CAGR, raising concerns about whether future growth will stall.
- The revenue scale/profitability of CR Beverage are far inferior to Nongfu Spring. In terms of cost control, operational efficiency and the strength of supply chain, CR Beverage is lagging behind.
- For low-priced packaging water, the nationwide expansion is not a simple task, which will lead to significant cash outflow. Valuation of CR Beverage should be lower than that of peers.
Shulan Health Management Pre-IPO – Still Ramping up but Only a Small Player
- Shulan Health Management (1807987D CH) is looking to raise around US$150m in its Hong Kong IPO.
- Shulan Health Management (SHM) is a technology-driven healthcare group in China that integrates healthcare services and medical research and education.
- In this note, we talk about the firm’s historical performance.
Morning Views Asia:
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.