In today’s briefing:
- Chongqing Hongjiu Fruit IPO – Not Fully Convinced but Appears Cheap on the Low End
- Retailer Gome Doubles Down on Brick-And-Mortar Business
- Booking Holdings: Collaboration With Citigroup & Other Drivers
- Procter & Gamble Company: Financial Forecasts
- Conagra Brands Inc: New Product Launches & Other Drivers
- YH Entertainment IPO – Proven Track Record Could Mask Volatilities
Chongqing Hongjiu Fruit IPO – Not Fully Convinced but Appears Cheap on the Low End
- Chongqing Hongjiu Fruit (6689 HK) is looking to raise up to US$93m in its HK 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 take a look at its valuations vs that of listed peers.
Retailer Gome Doubles Down on Brick-And-Mortar Business
- Gome Retail Holdings Ltd, one of China’s largest bricks-and-mortar electronics retailers, plans to acquire real estate to develop into shopping malls and a customer experience center.
- The company will modify an eight-story shopping mall in Gome Commercial Capital into an arena capable of accommodating roughly 300 manufacturers of home appliances and consumer electronics to display and sell their products.
- The Beijing property covers an area of 524,638 square meters and also includes catering and entertainment facilities, a hotel, a warehouse and an underground parking lot.
Booking Holdings: Collaboration With Citigroup & Other Drivers
- For the first time since the Covid-19 pandemic, Booking Holdings managed to exceed the levels for room nights in the last quarter which is a significant milestone in its recovery.
- Nearly 0.25 billion room nights were reserved by the company’s clients in Q2, a slight increase from the first quarter’s 9% fall and a rise of 16% compared to Q2 2019.
- The near-term macroeconomic climate is unpredictable which is why we maintain our ‘Hold’ rating on Booking Holdings with a revised target price.
Procter & Gamble Company: Financial Forecasts
- Procter and Gamble delivered a decent top-line growth in the last quarter surpassing Wall Street expectations and continued its strong cash productivity which enables its high dividend payouts.
- Feminine care, fabric care, and Personal health care were up by double digits, whereas personal care, skin and hair care, and oral and home care all grew low-single digit.
- We provide the stock of Procter and Gamble Company with a ‘Hold’ rating with a revision in the target price.
Conagra Brands Inc: New Product Launches & Other Drivers
- Conagra Brands’ strong result was driven by the excellent performance of its snacks business and it managed to deliver an all-around beat.
- With the joint venture, Ardent Mills, the company had a strong quarter performance that recently managed through the latest instability in the wheat markets as well as proved to be an effective windbreak against inflation.
- Conagra brands are planning to deliver $1 billion in cost savings in the upcoming three years as it updates and renovates its supply chain.
YH Entertainment IPO – Proven Track Record Could Mask Volatilities
- YH Entertainment Group (2306 HK) is looking to raise up to US$144m in its Hong Kong IPO.
- YH Entertainment (YHE) is an artist management company in China. Its business covers the entire artist management industry value chain, from auditioning, training, artist operation to artist promotion.
- As per Frost & Sullivan (F&S), YHE was ranked first amongst artist management companies in China with a market share of 1.9%, based on artist management revenue generated in 2021.
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