In today’s briefing:
- StubWorld: NWD (17 HK) Is Cheap. It May Get Cheaper Still
- Doosan Robotics IPO Trading – Strong Insti Subscription Rates but Still Feels like a Punt
- Kokusai Electric IPO: Valuation Insights
- Kokusai Electric Pre-IPO – Thoughts on Valuation
- IDFC First Bank QIP – Well Flagged but Valuations Appear Lofty
- J&T Global Express IPO: Updates Tilts the Balance Positively
- Pre-IPO Concord Healthcare Group – Business Challenges Are Greater than Expected
StubWorld: NWD (17 HK) Is Cheap. It May Get Cheaper Still
- New World Development (17 HK) nudges an all-time low P/B and implied stub; as the privatisation of NWS Holdings (659 HK) moves gradually forward.
- Preceding my comments on NWD/NWS are the current setup/unwind tables for Asia-Pacific Holdcos
- These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation >20%.
Doosan Robotics IPO Trading – Strong Insti Subscription Rates but Still Feels like a Punt
- Doosan Robotics (454910 KS) raised around US$318m in its Korea IPO, after pricing its IPO at the top end of the range at KRW26,000/share.
- Doosan Robotics (DR) manufactures and sells collaborative robots (Cobots). The firm’s product portfolio primarily includes different series of robot arms as well as its coffee module.
- In this note, we will talk about the demand for the deal and other trading dynamics.
Kokusai Electric IPO: Valuation Insights
- Kokusai Electric (6525 JP) is a speciality manufacturer of semiconductor production equipment. KKR & (KKR US) seeks to raise about US$745 million through listing Kokusai.
- We previously discussed the IPO in Kokusai Electric IPO: The Bull Case and Kokusai Electric IPO: The Bear Case.
- In this note, we discuss valuation. Our analysis suggests that Kokusai is fully valued at the IPO reference price of JPY1,890 per share. We would pass on the IPO.
Kokusai Electric Pre-IPO – Thoughts on Valuation
- KKR is looking to raise around US$750m 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 undertaken a peer comparison. In this note, we talk about valuations.
IDFC First Bank QIP – Well Flagged but Valuations Appear Lofty
- IDFC First Bank Limited (IDFCBK IN) is looking to raise up to INR30bn (US$361m) via a Qualified Institutional Placement (QIP).
- The deal is a relatively small one to digest at 6.3 days of three month ADV and 4.9% dilution.
- In this note, we will talk about the placement and run the deal through our ECM framework.
J&T Global Express IPO: Updates Tilts the Balance Positively
- J&T Global Express (1936374D CH), a leading express delivery business in Southeast Asia and China, is pre-marketing a HKEx IPO to raise US$500 million, according to press reports.
- We previously discussed the IPO in J&T Global Express IPO: The Bull Case and J&T Global Express IPO: The Bear Case.
- The PHIP filing favours the bull case due to a return to organic growth across the main geographies, maiden profitability, stabilization in contract liabilities and declining FCF burn.
Pre-IPO Concord Healthcare Group – Business Challenges Are Greater than Expected
- Concord Healthcare Group (CHG HK)’s hospital business is not strong enough to contribute strong performance consistently, leading to unsatisfactory profit margin considering its weak hospital operation and management capability.
- The network business could face some legal risks based on our analysis. In the context of anti-corruption campaign in China healthcare, Concord’s business and patients flow could be affected.
- Together with potential policy risks such as DRGs/centralized procurement, we tend to be conservative about Concord’s outlook. In terms of valuation, Concord’s valuation should be lower than Inkon Life Technology.
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