In today’s briefing:
- Five-Star Business Pre-IPO – The Positives – Fast Growth, Juicy Margins and Strong Backers
- Betagro Pre-IPO – Thoughts on Valuation
- Giant Biogene IPO: The Bear Case
- Kaynes Technology- Forensic Analysis
- Lionheart IPO – Thoughts on Valuation
- Pre-IPO Giant Biogene – The Strength and the Concerns
Five-Star Business Pre-IPO – The Positives – Fast Growth, Juicy Margins and Strong Backers
- Five-Star Business Finance (0958461D IN) is looking to raise around US$300m in its upcoming India IPO. The deal will be run by ICICI Securities, Edelweiss, Kotak, and Nomura.
- Five-Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals.
- In this note, we talk about the positive aspects of the deal.
Betagro Pre-IPO – Thoughts on Valuation
- Betagro (BTG TB) is looking to raise about US$460m in its Thailand IPO.
- Betagro is an integrated agro-industrial and food business in Thailand.
- In our previous note, we undertook a peer comparison. In this note, we will talk about valuations.
Giant Biogene IPO: The Bear Case
- Giant Biogene Holding (GBH HK), a leading professional skin care product manufacturer, has started pre-marketing a US$500 million HKEx IPO.
- In Giant Biogene IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on a worrying performance of Collgene (the second flagship brand), an inexorable rise in S&M expenses and margins on a downward trajectory.
Kaynes Technology- Forensic Analysis
- Kaynes Technology India (7575164Z IN) (KTIL) has received SEBI’s approval for its IPO.
- Company is one of the end-to-end and IoT solutions enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of ESDM services.
- Key forensics issues that should not be ignored include high liabilities off the books, grey areas surrounding receivables, perplexing churning across CFO and directors posts, etc.
Lionheart IPO – Thoughts on Valuation
- Lionheart Studio (426630 KS), a game development studio based in South Korea, aims to raise around US$420m via its South Korean IPO.
- The company is majority owned by Kakao Games Corp (293490 KS), which after having recently hiked its stake, owned 54.94% of the company prior to listing.
- We spoke about the company’s past performance and undertook a peer comparison in our previous note. In this note, we’ll talk about our earnings estimates and valuation.
Pre-IPO Giant Biogene – The Strength and the Concerns
- The strength about Giant Biogene is that the founders have R&D background, which helps build trust. Meanwhile, the financial performance was good, with three years of consistent high margins.
- The sustainability of high-profit model will face pressure due to increasing competition. The establishment of long-term core competitiveness and second growth point is important. Complex related-party transaction is another concern.
- Giant Biogene is in an industry that has a large potential for future growth in valuation. Its valuation should be lower than that of Bloomage and Imeik.
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