In today’s briefing:
- Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support
- JX Advance Metals Pre-IPO – The Positives – Transforming
- Pre-IPO MIXUE Group Update – The Snow King Is Facing Headwinds
- Hi-Think Technology Pre-IPO Tearsheet
Sony To Sell Down SRE Holdings (2980 JP) Block – AI-Related Growth Stock Should See Support
- SRE Holdings Corp (2980 JP) does a business in AI Cloud&Consulting for the real estate, finance, and Life & Healthcare business. Sony Corp (6758 JP) is selling a stake.
- The offering is for about US$50mm assuming a 10% discount today’s close. It is not clear how much this was expected but there is a decent-sized short position.
- The stock has its ups and downs, and recently decided it liked Q3 earnings and guidance. That bodes well for the offering.
JX Advance Metals Pre-IPO – The Positives – Transforming
- JX Advance Metal’s (JXAM) parent, ENEOS Holdings (5020 JP), is looking to raise around US$2.6bn via selling more than half of its stake in JXAM in its Japan IPO.
- JXAM engages in business activities primarily focused on the development, manufacture and sale of materials made from copper and rare metals, which are used in the semiconductor and ICT fields.
- In this note, we talk about the positive aspects of the deal.
Pre-IPO MIXUE Group Update – The Snow King Is Facing Headwinds
- MIXUE invited experts to conduct calculations based on population data. The result is a maximum of 45,000 stores can be opened. So, MIXUE has reached the growth ceiling in China.
- The pain point is since MIXUE’s growth depends significantly on its ability to expand store network, once the growth of franchised stores slows down, a performance decline would be inevitable.
- Due to larger scale effect/stronger supply chains/higher net profit margin, MIXUE’s valuation should be higher than peers. Higher valuation depends on whether MIXUE is able to make breakthrough in internationalization.
Hi-Think Technology Pre-IPO Tearsheet
- Hi-Think Technology International Ltd (2224226D HK) is looking to raise at least US$150m in its upcoming Hong Kong IPO.
- It is a leading Chinese provider of digital intelligence software technology services and solutions serving the international market.
- It was the largest Chinese provider of software technology services and solutions to the Japanese market.
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