In today’s briefing:
- Olympus Placement – Had Been Doing Well, till Recently
- I-Tail Corporation IPO – Blowout 3Q22, Revised Earnings, Updated Thoughts on Valuation
- Yungkang Group Lock-Up – Shares Benefited from a Protracted Lockdown. Shareholders Could Monetise
- Bikaji Foods International IPO Trading – One of the Strongest Demand This Year
- I-Tail Corporation IPO: Valuation Insights
- Escorts Kubota (ESCORTS IN) | Costly Market Share Gains & AR Concerns
- Daiei Kankyo Pre-IPO – Steady, at Best
- DuPont de Nemours: DuPont Liveo Healthcare Solutions In China & Other Drivers
- Lyft Inc: Entry Into The Advertising Business & Other Drivers
Olympus Placement – Had Been Doing Well, till Recently
- MUFG aims to raise around US$255m via selling around 1% of Olympus Corp (7733 JP).
- The stock has been doing well recently and MUFG has sold before. Although, the recent earnings updates didn’t go down too well.
- In this note, we will run the deal through our ECM framework and comment on other deal dynamics.
I-Tail Corporation IPO – Blowout 3Q22, Revised Earnings, Updated Thoughts on Valuation
- I-Tail, an OEM in the wet pet food category, aims to raise around US$600m in its Thailand IPO. It is a subsidiary of Thai Union Group (TU TB) .
- As per ITC, it was the number two pet food company in Asia and in the top ten pet food companies globally. ITC expertise lies in fish-based wet pet food.
- In our previous notes, we have looked at various aspects of the deal. In this note, we talk about its 3Q22 updates and run the deal through our ECM framework.
Yungkang Group Lock-Up – Shares Benefited from a Protracted Lockdown. Shareholders Could Monetise
- Yunkang Group (2325 HK) was listed on 18th May 2022, with its six month lockup expiring on 17th November 2022.
- Yunkang Group is a medical operation service provider in China and as per F&S, had a market share of 3.7% in China’s medical operation service market as per 2020 revenue.
- Coming up for six-month lockup expiry are the controlling shareholders and cornerstones. With protracted lockdowns underway in China, this stock has continued to benefit, currently trading 86.3% above IPO price.
Bikaji Foods International IPO Trading – One of the Strongest Demand This Year
- Bikaji Foods (BIKAJI IN) , an ethnic snacks company, raised approximately US$107m in its India IPO.
- Its product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs, frozen food, mathri range and cookies.
- We have looked at various aspects of the deal in our previous notes. In this note, we talk about the demand for the deal and the trading dynamics.
I-Tail Corporation IPO: Valuation Insights
- I-Tail (ITC TB), Thai Union Group (TU TB)’s pet care division, has launched its SET listing at THB30-32 per share to raise up to US$593 million.
- We previously discussed the IPO in I–Tail Corporation IPO: The Bull Case, I-Tail Corporation IPO: The Bear Case and I-Tail Corporation IPO: A Strong 3Q Results Update.
- I-Tail is attractively valued at the IPO price range. We would participate. Pricing will be announced on 28 November.
Escorts Kubota (ESCORTS IN) | Costly Market Share Gains & AR Concerns
- Escorts Kubota Limited (ESCORTS IN) reported a 69 bps YoY gain in market share, but a -540 bps drop in EBITDA margins in spite of a 2% price hike.
- We believe the product and management issues highlighted earlier, are likely to ensure both margins and market share do not cross 10% for FY23.
- As per the FY22 Annual Report, auditors have received whistle-blower complaints, but no details are disclosed. Credit-impaired trade receivables are also increasing. Stock is not cheap and hence the caution.
Daiei Kankyo Pre-IPO – Steady, at Best
- Daiei Kankyo (9336 JP) (DK), a waste management company, aims to raise around US$280m in its Japan IPO.
- Daiei Kankyo is involved in the waste management and related businesses in Japan. The core of its operations consists of its waste management and recycling business.
- In this note, we talk about the company’s past performance.
DuPont de Nemours: DuPont Liveo Healthcare Solutions In China & Other Drivers
- DuPont’s stock price has surged past our target price and is witnessing a strong momentum after the company posted a solid set of results this quarter in an extremely challenging environment.
- The revenue growth of the company included solid organic growth.
- We provide the stock of DuPont with a ‘Buy’ rating and a revision in the target price.
Lyft Inc: Entry Into The Advertising Business & Other Drivers
- Lyft had a mixed quarter and failed to meet the revenue expectations of Wall Street but managed an earnings beat.
- Active drivers, active riders, and total rides everything was high.
- In this quarter, the number of active users who are using Lyft displayed the strongest growth.
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