In today’s briefing:
- Coupang: Maverick Capital’s Supersized Exposure Is Too Big of a Risk
- India Channel Insight #42 | Britannia, Dabur
- Beijing UBOX Online Technology Pre-IPO – Trimming Losses, but yet to Factor in 2022 Lockdowns
- Fosun Tourism (1992 HK): Positive Profit Alert and Improving Outlook Guidances
- Zomato IPO Lock-Up – A US$3.4bn Lockup Release Test Case for India
Coupang: Maverick Capital’s Supersized Exposure Is Too Big of a Risk
- Coupang (CPNG US) has bounced sharply following a 13G filling which indicated a change of heart from the pre-IPO investor, Maverick Capital with the purchase of an additional 7.7m Coupang shares.
- Maverick seems to be expecting a significant improvement in profitability, in line with Q1. However, we think this is unrealistic, given Coupang’s marginal cost trends.
- Maverick’s investment decisions on Coupang lack objectivity and its supersized exposure create too big of a risk to Coupang’s share price.
India Channel Insight #42 | Britannia, Dabur
- The current excess rainfall across India is so far not leading to any material damage in rural India.
- Britannia Industries (BRIT IN) continues to operate in a favourable environment and is possibly even immune to down trading.
- Dabur India Ltd (DABUR IN) channels remain optimistic about matching YoY value growth, however, in terms of volume there still is quite a bit of ambiguity.
Beijing UBOX Online Technology Pre-IPO – Trimming Losses, but yet to Factor in 2022 Lockdowns
- Beijing UBOX Online Technology (1741985D CH) is looking to raise up to US$500m in its upcoming Hong Kong IPO.
- Beijing UBOX Online Technology (UBOX) is an unmanned retail operator (vending machine) in China.
- As per F&S, it was the largest unmanned retail operator in China, with the largest retail machine network in the country.
Fosun Tourism (1992 HK): Positive Profit Alert and Improving Outlook Guidances
- Fosun Tourism (1992 HK) expects a sharp 87.5-92.5% reduction in its losses in 1H22, driven primarily by significant revival in its Club Med business, though China is weak.
- Outlook for 2H22 looks very encouraging as booking figures indicate good YoY volume growth and double-digit rate improvement in EMEA and Americas.
- China also witnessed solid rebound in Jul and Aug after removal of lockdowns in 2Q22. New Club Med Joyview resorts including Changbaishan and Qiandaohu are added contributors.
Zomato IPO Lock-Up – A US$3.4bn Lockup Release Test Case for India
- Zomato (Zomato IN) raised US$1.3bn in its India IPO in Jul 2021. At that time, it was the largest technology sector listing in India.
- Zomato is one of two leading food delivery app operators in India. It recently acquired Blinkit marking its foray into the instant grocery segment.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
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