In today’s briefing:
- Kokusai Electric IPO – Weaker Demand Than We Expected
- Kokusai Electric IPO – Not Wholly Convinced, One Needs to Look past the Cycle
- Lalatech IPO: 1H2023 Numbers Point to Strong Improvement in Financials
- Thai Credit Bank Pre-IPO – The Positives – Loan Book Has Grown While Earnings Expanded
- J&T Global Express Pre-IPO – Peer Comparison
- Pre-IPO Guoquan Food (Shanghai) – High Growth May Not Be Sustainable; Long Logic Doesn’t Hold Water
Kokusai Electric IPO – Weaker Demand Than We Expected
- Kokusai Electric announced its pricing range today, setting it rather tightly at ¥1,830-1,840.
- This is slightly below the initial indicative price of ¥1,890 pointing to modest demand.
- That is a rather more tepid response than we initially expected given that this is the first sizable offering in some time.
Kokusai Electric IPO – Not Wholly Convinced, One Needs to Look past the Cycle
- KKR is looking to raise around US$730m via selling a stake in Kokusai Electric (6525 JP) (KE) in its Japan IPO.
- KE main business activities consist of the manufacturing, sales and maintenance service of semiconductor manufacturing equipment.
- In our previous notes we have looked at the company’s past performance and undertook a peer comparison. In this note, we talk about valuations.
Lalatech IPO: 1H2023 Numbers Point to Strong Improvement in Financials
- Lalatech has refiled for HKEx IPO and the company plans to raise around US$1bn through the IPO. This insight focuses on latest data points from the company’s new filing.
- The company has disclosed results for 1H2023 which point to notable improvement in the company’s financials including an operating profit margin of around 21% for 1H2023.
- There has been significant reduction in the company’s operating costs, merchant discounts and carrier incentives in particular, which have helped significant improve the company’s margins.
Thai Credit Bank Pre-IPO – The Positives – Loan Book Has Grown While Earnings Expanded
- Thai Credit Bank PCL (3674238Z TB) is looking to raise US$300m from its upcoming Thailand IPO via selling a mix of primary and secondary shares in its Thailand IPO.
- TCB is a commercial bank that focuses on providing business loans to small and medium-size enterprises (SMEs), nano loans and micro credits to merchants, and home loans for individual customers.
- In this note, we will talk about the positive aspects of the deal.
J&T Global Express Pre-IPO – Peer Comparison
- J&T Global Express, a global logistics service provider, is looking to raise about US$500m in its upcoming Hong Kong IPO.
- As per Frost & Sullivan (F&S), the firm is the leading express delivery business in Southeast Asia, with a 22.5% market share as per 2022 parcel volume.
- We have looked at the company’s past performance and its PHIP updates in our earlier notes. In this note we will undertake a peer comparison.
Pre-IPO Guoquan Food (Shanghai) – High Growth May Not Be Sustainable; Long Logic Doesn’t Hold Water
- Guoquan’s model is easy to replicate.The so-called “moat” is all based on scale effects, without which Guoquan would lose competitiveness.This is why Guoquan has been striving to expand franchised stores.
- With the increasing frequency of people dining out after China reopens, the high-speed expansion in 2020 seems unsustainable. To B model has less growth space/potential than To C model.
- In such a fiercely competitive market, Guoquan’s long-term development logic is not solid. The current temporary improvement in financial performance is likely to be a flash in the pan.
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