In today’s briefing:
- JD Property IPO: The Bull Case
- Mobvoi IPO Preview
- JD Property Pre-IPO Peer Comparison – Small Amongst Giants, and Sentiment Isn’t the Greatest
- Synopsys Inc.: Acquisition of Silicon Frontline Technology & Other Drivers
- Deere & Company: Healthy Demand
- Weilong Delicious Global IPO Lock-Up – Now for the Re-IPO with 10x Increase in Free Float
- Heico Corporation: Acquisition of Wencor Group & Other Drivers
- Parker-Hannifin Corporation: Aerospace Business Recovery Is A Major Highlight – Key Drivers
JD Property IPO: The Bull Case
- JD Property (JDP HK)/JDP, a leading modern infrastructure provider in Asia, has filed for a US$1 billion HKEx IPO. JD.com Inc (ADR) (JD US) owns a 74.96% stake.
- JDP is the third and second largest modern infrastructure provider in Asia and China, respectively, in terms of GFA, according to JLL.
- The key elements of the bull case rest on large addressable markets, market share gains, reducing dependence on JD Group, core business’ accelerating organic growth and improving margin.
Mobvoi IPO Preview
- Mobvoi is getting ready to complete its IPO in Hong Kong in the coming weeks. Mobvoi is aiming to raise US$200 million to US$300 million in this IPO.
- Given the exceptional interest in AI related companies such as ChatGPT and NVIDIA, the current environment should be an opportune time for Mobvoi to complete its IPO.
- Furthermore, Mobvoi has achieved a strong growth in sales and operating profits in 2022 which is also likely to drive higher interest in this IPO.
JD Property Pre-IPO Peer Comparison – Small Amongst Giants, and Sentiment Isn’t the Greatest
- JD Property (JDP HK) is looking to raise about US$1bn in its upcoming Hong Kong IPO.
- JD Property (JDP) develops and manages modern infrastructure, consisting primarily of logistics parks, as well as business parks and other assets in China and in Asia.
- We have looked at the company’s past performance in our earlier notes, in this note we will undertake a peer comparison.
Synopsys Inc.: Acquisition of Silicon Frontline Technology & Other Drivers
- Synopsys delivered an all-around beat in the most recent quarterly result.
- Despite weaker demand for semiconductors overall, Synopsys has been prioritizing research and development to emerge stronger when demand accelerates.
- Collaborations with industry leaders like NVIDIA, TSMC, MediaTek, Renesas, and IBM Research have resulted in impressive results, showcasing the criticality of Synopsys.ai in delivering breakthrough outcomes.
Deere & Company: Healthy Demand
- Deere managed to exceed analyst expectations in terms of revenue as well as earnings.
- Revenues and net sales were up and price realization was positive.
- Deere viewed production and precision ag net revenue to rise.
Weilong Delicious Global IPO Lock-Up – Now for the Re-IPO with 10x Increase in Free Float
- Weilong Delicious Global (9985 HK), a spicy snack food company in China, raised around US$130m in its Hong Kong IPO in Dec 2022.
- 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
- In this note, we will talk about the lock-up dynamics and updates since our last note.
Heico Corporation: Acquisition of Wencor Group & Other Drivers
- Heico delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat.
- The operating income of The Flight Support Group increased, reflecting the improved gross profit margin and net sales growth.
- The improved gross margin replicates higher net sales within Heico’s Specialty Products as well as Aftermarket Replacement Parts product lines.
Parker-Hannifin Corporation: Aerospace Business Recovery Is A Major Highlight – Key Drivers
- Parker-Hannifin delivered a solid result and managed an all-around beat in the last quarter.
- Organic sales increased by roughly 12% in the quarter, extending the company’s track record of double-digit organic growth quarters.
- Given these strong results, the company anticipates 4% organic growth for the next quarter, with segment operating margins of roughly 22.6%.
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