In today’s briefing:
- Past A/H Listings Performance – Most of the Deals Haven’t Done Much
- Betagro Pre-IPO – The Negatives – Muted Long Term Track Record and Operating on Razor Thin Margins
- Biocytogen Pharma IPO: Large Drug Pipeline but Negatives Outweighs the Positives
- Chongqing Hongjiu Fruit IPO – Peer Comparison & Valuations – Growth & Margins Stand Out Among Peers
Past A/H Listings Performance – Most of the Deals Haven’t Done Much
- China Tourism Group Duty Free Corporation Limited (CDF) is gearing up to launch Hong Kong’s largest listing so far this year, with a reported deal size of around US$2-3bn.
- Prior to the deal launch, we’ve had a quick look at the A/H premium, subscription and past performance of some of the earlier A/H listings.
- Overall, most of the recent A/H listings haven’t done much over the first month.
Betagro Pre-IPO – The Negatives – Muted Long Term Track Record and Operating on Razor Thin Margins
- Betagro Group (1737144D TB) is looking to raise about US$600m in its upcoming Thailand IPO.
- Betagro is an integrated agro-industrial and food business in Thailand. The firm’s products cover all stages of the food value chain including upstream, midstream and downstream.
- Margins have fluctuated and operating/net margins are razor thin. Over a longer term period, track record hasn’t been the greatest as well.
Biocytogen Pharma IPO: Large Drug Pipeline but Negatives Outweighs the Positives
- Biocytogen Pharmaceuticals (Beijing) (BCP HK) is a biopharmaceutical and pre-clinical research services company with two core products (YH003 and YH001) and 10 other pipeline candidates.
- The company currently does not have any commercialised products and earns revenue through offering pre-clinical research services and antibody development.
- Biocytogen’s business model comes with inherent risks such as absence of approved drugs. Hence, we would recommend staying on the side line.
Chongqing Hongjiu Fruit IPO – Peer Comparison & Valuations – Growth & Margins Stand Out Among Peers
- Chongqing Hongjiu Fruit (CHF HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
- Chongqing Hongjiu Fruit (CHJF) is a multi-brand fresh fruit distributor in China with an end-to-end supply chain. They have 1.0% market share as China’s second largest fruit distributor.
- CHJF had grown at an impressive rate even in the face of COVID-19. In this note, we will undertake a peer comparison of CHJF with its listed peers.
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