In today’s briefing:
- Dozn IPO Valuation Analysis
- Pre-IPO Foshan Haitian Flavouring & Food Company – The Challenges Ahead and the Outlook
Dozn IPO Valuation Analysis
- Our base case valuation of Dozn is implied market cap of 429 billion won or target price of 17,910 won per share (43% higher than high-end of IPO price range).
- Our base case target price is based on P/E of 25.3x (20% premium to comps’ average valuation multiple) using our estimated net profit of 17 billion won in 2025.
- This valuation premium is appropriate due to Dozn’s higher sales growth rate, higher net margins, and higher ROE versus the comps.
Pre-IPO Foshan Haitian Flavouring & Food Company – The Challenges Ahead and the Outlook
- The entire condiments market in China is deeply mired in fierce competition with limited market increment space. The future performance growth of companies in the industry will further slow down.
- Haitian tries to find new growth points through diversification/internationalization. A big concern is whether China’s local brand will face “adaptation issue” overseas. The supply chain system is not yet perfect
- Due to the concerns on slowing performance growth in the future as well as the uncertainties on internationalization, we think reasonable valuation for Haitian is about 20-30x P/E.
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