In today’s briefing:
- CR Beverage IPO: The Bear Case
- Shuangdeng Group Pre-IPO Tearsheet
- Duality Biotherapeutics (映恩生物) Pre-IPO: Too Early, Too Ambitious
CR Beverage IPO: The Bear Case
- China Resources Beverage (CRB HK), China’s largest purified drinking water company, has received HK listing approval for a US$1 billion IPO.
- In CR Beverage IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rests on core business’ pricing pressure, a slow pace of revenue diversification, a sizeable pre-IPO dividend, and margin and FCF generation below its key peer.
Shuangdeng Group Pre-IPO Tearsheet
- Shuangdeng Group Co Ltd (JISHUZ CH) is looking to raise about US$150m in its upcoming Hong Kong IPO. The deal will be run by CICC, CCBI and Huatai.
- Shuangdeng Group Co Ltd is engaged in energy storage business for big-data and telecommunication industries with a focus on design, R&D, manufacturing and sales of energy storage batteries and systems.
- It was ranked first among global telecom base station and data-center energy storage battery providers in terms of shipment volume, achieving a 10.4% market share in 2023, according to F&S.
Duality Biotherapeutics (映恩生物) Pre-IPO: Too Early, Too Ambitious
- Duality Biotherapeutics, a China-based clinical-stage biotechnology company, plans to raise up to US$300m via a Hong Kong listing.
- In this note, we examine the company’s two core products, namely DB-1313 (HER2 ADC) and DB-1311 (B7-H3 ADC). We think the company’s products are not yet convincing.
- While the management has expertise as biotech investors, biotech-related operational experience seems to be lacking.
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