In today’s briefing:
- ATRenew (RERE US): Pre-Owned Satisfaction
- DPC Dash IPO: Dominos Getting Dominated
- Weilong Delicious Global IPO – Tepid Recent Performance Still Makes It Look Expensive
- Weilong Delicious IPO: Valuation Insights
- Baxter International Inc.: Initiation of Coverage – Recent FDA Approvals & Other Drivers
ATRenew (RERE US): Pre-Owned Satisfaction
- ATRenew (RERE US) operates the largest pre-owned consumer electronics transactions and services platform in China. It is listed in June 2021 at US$14 per ADS.
- The shares are down 63% YTD largely due to the tech market sell-off. Unlike most tech companies, ATRenew is starting to deliver growth with profits, cash generation and share buybacks.
- The valuation is undemanding compared to a peer group of pre-owned marketplaces and global online retail marketplaces. It will also appeal to investors with an ESG mandate.
DPC Dash IPO: Dominos Getting Dominated
- DPC Dash (DPC HK) is the exclusive master franchisee of Domino’s Pizza (DPZ US) in mainland China, Hong Kong and Macau with around 546 stores as of 9M2022.
- The company has refiled for an IPO on the Hong Kong Stock Exchange after failing the first time to raise around US $100m in March 2022.
- Discounted pricing has failed to propel the Dominos brand to the top in many Asian markets where pizza is considered a luxury meal. DPC-Dash is experiencing the same in China.
Weilong Delicious Global IPO – Tepid Recent Performance Still Makes It Look Expensive
- Weilong Delicious Global (WDG HK) a spicy snack food company in China, aims to raise around US$140m in its Hong Kong IPO.
- According to F&S, WDG ranked first among spicy snack food enterprises in China, with a market share of 6.2%, and in the seasoned flour product and spicy vegetable snacks categories.
- We have covered various aspects of the deal in our previous notes, in this note, we will talk about the final valuations.
Weilong Delicious IPO: Valuation Insights
- Weilong Delicious Global (WDG HK), a leading spicy snack food company in China, has launched its IPO to raise up to US$141 million.
- We previously discussed the IPO in Weilong Delicious IPO: Remains in a Pickle, Weilong Delicious IPO: In a Pickle, Weilong Delicious IPO: Mixed Update, Weilong Delicious IPO Initiation: Tasty Bite.
- In this note, we present our forecasts and look at valuation. Weilong is unattractively valued at the IPO price range. We would pass on the IPO.
Baxter International Inc.: Initiation of Coverage – Recent FDA Approvals & Other Drivers
- This is our first report on Baxter International, one of the largest players in the domain of dialysis therapies and other healthcare products.
- The overall demand for products across the Baxter and traditional Hillrom portfolios continues to be strong.
- We initiate coverage on the stock of Baxter International with a ‘Buy’ rating.
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