In today’s briefing:
- China Vanke Placement – A Placement Was Expected, Unclear if It Was This One
- SBI Sumishin NetBank (7163 JP) Re-IPO Details, Fundamentals Tearsheet, Likely Index Treatment
- Nexus Select Trust Pre-IPO – The Negatives – Some Assets Were Recently Acquired, Not All Doing Well
- SBI Sumishin Net Bank Pre-IPO – Refiling Updates – Growth Picks Up
- Downer EDI (DOW AU): Down or Out
- Beisen Holdings Pre-IPO Tearsheet
- JF Wealth IPO – Has Grown Well over Track Period, but Questions on Sustainability Remain
- NVIDIA Corporation: Major Drivers
- Palo Alto Networks Inc.: Major Drivers
- EPAM Systems Inc.: Major Drivers
China Vanke Placement – A Placement Was Expected, Unclear if It Was This One
- China Vanke aims to raise around US$500m in its H-share primary placement.
- Vanke had recently stated that it aimed to raise around US$2bn via an A-share private placement, so a placement was expected for sure.
- In this note, we will talk about the placement and run the deal through our ECM framework.
SBI Sumishin NetBank (7163 JP) Re-IPO Details, Fundamentals Tearsheet, Likely Index Treatment
- In February 2022, SBI Holdings (8473 JP) and Sumitomo Mitsui Trust Holdings (8309 JP) announced they would IPO SBI Sumishin Net Bank (7163 JP) but that got cancelled by Ukraine.
- Yesterday, they announced they were going to try again. This time, with a reduced price and reduced aspirations. Given the way banks have performed in the last year… 👀
- That changes – completely – the picture of index demand. But it also changes the fundamental picture.
Nexus Select Trust Pre-IPO – The Negatives – Some Assets Were Recently Acquired, Not All Doing Well
- Nexus Select Trust (NST IN) is looking to raise up to US$500m in its upcoming India IPO.
- NST is a REIT with a portfolio of 17 Grade A urban consumption centers. It is backed by Blackstone.
- In this note, we will talk about the not-so-positive aspects of the deal.
SBI Sumishin Net Bank Pre-IPO – Refiling Updates – Growth Picks Up
- SBI Sumishin Net Bank (SSNB) is now looking to raise around US$380m in its second listing attempt.
- SBI Sumishin Net Bank is a Japanese digital bank set up as a 50-50 joint venture between Sumitomo Mitsui Trust Bank, Japan’s largest trust bank, and SBI Group.
- In this note, we talk about the updates from the latest filings.
Downer EDI (DOW AU): Down or Out
- Downer EDI Ltd (DOW AU) shares are battered on the back of two quick successive profit warnings, accounting restatements and dividend cuts.
- A worrying deterioration in cash generation and an increase in leverage add to the nervousness. Management flux adds to the uncertainty and the chance of a third profit warning.
- While Downer’s multiples are in line with peers, momentum is against it and there are question marks if the earnings have been flattered by the misuse of exceptional items.
Beisen Holdings Pre-IPO Tearsheet
- Beisen Holdings (1667838D CH) is looking to raise about US$200m in its upcoming HK IPO. The deal will be run by Morgan Stanley and CICC.
- Beisen Holdings is the largest provider of cloud-based HCM solutions in China in terms of revenues in 2021, according to CIC. Its platform iTalentX delivers cloud-native SaaS products.
- Its platform is the first and the only in the industry to offer a suite of cloud-based applications covering organization’s HCM needs throughout the entire employee lifecycle, according to CIC.
JF Wealth IPO – Has Grown Well over Track Period, but Questions on Sustainability Remain
- JF Wealth Holdings (9636 HK) is looking to raise US$143m in its Hong Kong IPO.
- JF Wealth (JFW) is an online investment decision-making solution provider in China, focusing on the online investor content services market.
- With total gross billings of RMB2bn in 2021, it was the second largest online investment decision-making solution provider in China with a 5.9% market share.
NVIDIA Corporation: Major Drivers
- Despite macroeconomic uncertainty, NVIDIA’s stock has been on a solid bull run.
- The company’s revenue was down in the quarter but managed to surpass analyst expectations.
- The sequential growth in revenues was driven by the robust reception of its 40 Series GeForce RTX GPU based on the architecture of Ada Lovelace.
Palo Alto Networks Inc.: Major Drivers
- Palo Alto Networks had another strong quarter and delivered an all-around beat while generating substantial free cash flows.
- The management informed analysts that some projects got descoped or delayed while most continued to be on track especially in its hardware pipeline.
- They also closed the acquisition of Cider and brought CICD’s security capability of Cider to its platform.
EPAM Systems Inc.: Major Drivers
- EPAM Systems generated strong results in the fourth quarter.
- The decrease in Russian customer revenues due to its decision to quit the Russian market had a negative impact on revenue growth of 440 basis points.
- We give EPAM Systems a ‘Buy’ rating with a revised target price.
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