In today’s briefing:
- Li Ning (2331 HK): Bearish Thesis Playing Out
- Vinfast: New Funding to Support Growth Plans Despite Struggling to Sell EVs
- Cello World IPO – Thoughts on Valuation
- FSN E-Commerce Ventures (NYKAA IN) | Troubles at Core?
- Porsche: Elements of Discussion
- Honasa Consumer IPO – RHP Updates – Sales Strong, Slight Margin Improvement
- Cirrus Aircraft Pre-IPO – Has Grown Steadily but Faces Prominent Regulatory Risks
Li Ning (2331 HK): Bearish Thesis Playing Out
- Li Ning (2331 HK) is trading down 18% today due to a bad 3Q23 operational date.
- Retail sales grew by only mid-single-digit yoy, while same-store-sales recorded a mid-single-digit decline yoy.
- Given the operational update, FY23 earnings should be revised down, to likely flat or low-single-digit growth.
Vinfast: New Funding to Support Growth Plans Despite Struggling to Sell EVs
- Vinfast’s shares have fallen more than 80% since its IPO in August. Shares are currently trading at $4.93 per share compared to IPO open price of $22 per share.
- On 20th October, Vinfast announced that the company has entered into a standby equity subscription agreement of up to $1.0bn with Yorkville Advisors which has a term of 36 months.
- A majority of Vinfast’s EV sales in 9M2023 were to related parties or affiliates of its parent, raising serious concerns over the company’s ability to establish a market presence.
Cello World IPO – Thoughts on Valuation
- Cello World is looking to raise around US$240m in its upcoming India IPO.
- Cello World (CW) is an Indian consumer products company. The firm is a leading company in the consumerware market in India.
- In our previous note, we looked at the company’s past performance. In this note, we talk about valuations.
FSN E-Commerce Ventures (NYKAA IN) | Troubles at Core?
- FSN E-Commerce Ventures (Nykaa) (NYKAA IN) seems to be facing problems in its core BPC segment.
- Our casual LinkedIn browsing led us to an interesting post on the company and its practices that warrant attention.
- We have previously highlighted issues with the way the company has managed its Fashion Business, an attack on the BPC business could compound issues further.
Porsche: Elements of Discussion
- Although we are bullish on the Porsche story, we note a few relevant elements of discussion that could pose threats/hurdles/explain share price overhang
- Conflict of interest: Oliver Blume is both CEO of Porsche and VW. Can you be Porsche’s CEO just part-time?
- Once upon a time, Porsche had a great story to tell. What’s the new story?
Honasa Consumer IPO – RHP Updates – Sales Strong, Slight Margin Improvement
- Honasa Consumer (HC) is looking to raise about US$200m in its upcoming India IPO.
- HC’s product portfolio includes products in the baby care, face care, body care, hair care, color cosmetics and fragrances segments.
- In our previous note, we looked at the company’s past performance. In this note, we talk about the RHP updates and valuations.
Cirrus Aircraft Pre-IPO – Has Grown Steadily but Faces Prominent Regulatory Risks
- Cirrus Aircraft (0153126D US) is looking to raise up to US$300m in its upcoming HK IPO.
- Cirrus Aircraft designs, develops, manufactures, and sells premium aircrafts. Its two aircraft product lines, the SR2X Series and the Vision Jet, are currently certified and validated in over 60 countries.
- CA has managed to grow its profitability steadily over the track record period. However, the firm is subjected to heightened regulatory risks as US and China tensions rise.
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