In today’s briefing:
- Last Week In Event SPACE: Vingroup/VinFast, Prosus/Naspers, STAR CM
- China Healthcare Weekly (Sep.1) – China’s New IPO Reform, Financing Environment, Junshi Biosciences
- ECM Weekly (3rd Sep 2023) – Doosan, VNG, Tuhu, Integral, ARM, Zomato, APM, Auckland Int, Daiwa REIT
- 26 Sept Scheme Vote For ENM (128 HK)
- SF Holding HK IPO | Q2/H1 Results | “Internationalization” Thesis Refined | Air, Int’l Impact in H1
Last Week In Event SPACE: Vingroup/VinFast, Prosus/Naspers, STAR CM
- Marginal float helped fuel the VinFast (VFS US) bubble. Then it popped.
- The Prosus (PRX NA)/Naspers (NPN SJ) Circularity Detour and subsequent unwind created the B-Share construct which means they can maintain the voting control in South Africa without maintaining economic control.
- The backlash against Star CM Holdings (6698 HK) calls into question the broader Chinese entertainment industry, and how it strikes a balance between viewership/profitability and ethical boundaries.
China Healthcare Weekly (Sep.1) – China’s New IPO Reform, Financing Environment, Junshi Biosciences
- IPO rules in SSE STAR Market faces adjustments, so investors have lowered expectations, which will affect the fundraising ecology. Recovery of China’s financing environment would be slower than US/Europe.
- The CSRC has issued new policies related to stamp duty, IPO, and reduction of shares held by listed companies, which would significantly affect the capitalization path of pharmaceutical companies.
- Junshi is “an interesting Biotech” that once generated sales/profits in scale, but is losing money again.Since Junshi is outside the first echelon and the gap is widening, we remain conservative.
ECM Weekly (3rd Sep 2023) – Doosan, VNG, Tuhu, Integral, ARM, Zomato, APM, Auckland Int, Daiwa REIT
- Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
- In the IPO space, we primarily looked at Doosan Robotics, Tuhu Car and VNG (VNG US).
- There were placements in AIA NZ , Ventia (VNT AU), FIVESTAR IN and Daiwa House Reit. ZOMATO IN also had large blocks post its acquisition led lockup release.
26 Sept Scheme Vote For ENM (128 HK)
- Back on the 2 June, small-cap fashion wear retailer ENM Holdings (128 HK) received a delisting Offer from major shareholder, Chinachem, at HK$0.58/share, in cash.
- The Scheme Doc is now out after thrice being delayed. The EGM/Court Meeting will be held on the 26 September with expected payment around the 14 November.
- There’s a whiff of opportunism embedded in the Offer. But being loss-making and illiquid, I’d expect the vote to still get up.
SF Holding HK IPO | Q2/H1 Results | “Internationalization” Thesis Refined | Air, Int’l Impact in H1
- Review of Q2/H1 results, including impact from international, Kerry Logistics Network
- Refining idea of “internationalization”, which we believe is driving force behind SF’s HK IPO
- Testing thesis: did air and international exposure help or hurt SF margins in H1?
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