In today’s briefing:
- Taiwan Cement GDS – Momentum Hasn’t Been the Greatest, Although It Is Very Well Flagged
- J&T Global Express IPO: Peer Comparison and Valuation
- Cainiao Smart Logistics IPO: The Bull Case
- Asirvad Micro Finance Limited Pre-IPO Tearsheet
- Agilus Diagnostics Pre-IPO: Large Scale of Operation and Favorable Sector Demand To Drive Growth
- Cainiao Pre-IPO – Initial Thoughts on Valuation
Taiwan Cement GDS – Momentum Hasn’t Been the Greatest, Although It Is Very Well Flagged
- Taiwan Cement (1101 TT) is looking to raise US$395m in its global depository share (GDSs) issuance. Included in the offering is a concurrent US$420m convertible bond issuance.
- The deal is a relatively large one to process at 19.5 days of three months ADV. Recent momentum on the stock hasn’t been the greatest as well.
- That being said, the deal is very well flagged, and short interest remains elevated as well.
J&T Global Express IPO: Peer Comparison and Valuation
- J&T Global Express (1519 HK) has announced the terms for its IPO. The company plans to issue 327m shares at HK$12 per share, which should raise proceeds of around US$501m.
- Though profitability of the company’s China business has improved, SEA margins continue to decline, hence our analysis suggests that J&T may not be able to generate profits in the near-term.
- Our SOTP valuation offers per share value of HK$9.48 per share which is at a 21% discount to the indicative IPO price suggesting J&T’s IPO is overvalued.
Cainiao Smart Logistics IPO: The Bull Case
- Cainiao Smart Logistics (1437124D HK), a global leader in e-commerce logistics, has filed for a HKEx IPO to raise at least US$1 billion at a US$15-20 billion valuation.
- According to CIC, Cainiao is the world’s leading cross-border e-commerce logistics company regarding parcel volume in 2022, with one of the world’s largest logistics networks in terms of geographic reach.
- The bull case rests on market share gains in China, improving performance of the largest business (international logistics), and rising gross and operating margins.
Asirvad Micro Finance Limited Pre-IPO Tearsheet
- Asirvad Micro Finance Limited (1053198D IN) is looking to raise around US$183m in its upcoming India IPO. The deal will be run by JM Financial, Kotak, Nomura, SBI Caps.
- Asirvad Micro Finance Limited (Asirvad) is a non-banking finance company (NBFC), and a microfinance institution (MFI) offering small loans to low-income women in India.
- As per the CRISIL report, Asirvad was the largest MFI in India in terms of geographical coverage and third largest MFI in India in terms of AUM, in FY23.
Agilus Diagnostics Pre-IPO: Large Scale of Operation and Favorable Sector Demand To Drive Growth
- Agilus Diagnostics Limited (SRLL IN) is the largest diagnostics service provider in terms of number of laboratories and the second largest in terms of revenue from operations in India.
- Agilus has built an extensive network spread across 25 states and five union territories in India. An asset light model enables growth of the service network in a cost-effective manner.
- Indian diagnostics industry is expected to have a CAGR of 8–10% during FY23–28 to reach INR1,150B–1,250B in FY28, providing immense growth opportunities for large players like Agilus.
Cainiao Pre-IPO – Initial Thoughts on Valuation
- Cainiao Smart Logistics, Alibaba Group Holding’s logistics linked arm, is planning to raise at least US$1bn in its Hong Kong IPO.
- Cainiao is the largest provider of cross-border e-commerce logistics services globally and a leader in China logistics services, according to CIC.
- In our previous note we looked at the company’s past performance and undertook a peer comparison. In this note, we will talk about valuations.
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