In today’s briefing:
- Past A/H Listings Performance – Most of the Deals Haven’t Done Much
- Betagro Pre-IPO – The Negatives – Muted Long Term Track Record and Operating on Razor Thin Margins
- Vietnam Consumer Discretionary – Phu Nhuan Jewelry: Hedge Against Rising Inflation Rates
- Tokyo Base: A Future Abroad
- Chongqing Hongjiu Fruit IPO – Peer Comparison & Valuations – Growth & Margins Stand Out Among Peers
Past A/H Listings Performance – Most of the Deals Haven’t Done Much
- China Tourism Group Duty Free Corporation Limited (CDF) is gearing up to launch Hong Kong’s largest listing so far this year, with a reported deal size of around US$2-3bn.
- Prior to the deal launch, we’ve had a quick look at the A/H premium, subscription and past performance of some of the earlier A/H listings.
- Overall, most of the recent A/H listings haven’t done much over the first month.
Betagro Pre-IPO – The Negatives – Muted Long Term Track Record and Operating on Razor Thin Margins
- Betagro Group (1737144D TB) is looking to raise about US$600m in its upcoming Thailand IPO.
- Betagro is an integrated agro-industrial and food business in Thailand. The firm’s products cover all stages of the food value chain including upstream, midstream and downstream.
- Margins have fluctuated and operating/net margins are razor thin. Over a longer term period, track record hasn’t been the greatest as well.
Vietnam Consumer Discretionary – Phu Nhuan Jewelry: Hedge Against Rising Inflation Rates
- Phu Nhuan Jewelry Jsc (PNJ VN) is the number one jewelry company in Vietnam.
- The company is benefiting from several key catalysts including reduced social distancing measures resulting in higher store visits and sales, hedge against rising inflation, and pent up demand for jewelry.
- The combination of higher expected earnings this year along with stable recent prices have resulted in more attractive valuations for the company.
Tokyo Base: A Future Abroad
- Tokyo Base rebounded in 2021 thanks to strong support at home and overseas for its Japan-made designs.
- The fashion retailer plans to add new concepts as well as expand more quickly overseas.
- The Japanese fashion sector has taken a beating in the market but over the medium term there will be recovery for the better retailers, particularly those with potential overseas.
Chongqing Hongjiu Fruit IPO – Peer Comparison & Valuations – Growth & Margins Stand Out Among Peers
- Chongqing Hongjiu Fruit (CHF HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
- Chongqing Hongjiu Fruit (CHJF) is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. They have 1.0% market share as China’s second largest fruit distributor.
- CHJF had grown at an impressive rate even in the face of COVID-19. In this note, we will undertake a peer comparison of CHJF with its listed peers.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
