In today’s briefing:
- Vertex Technology’s Hybrid Arb
- Ecopro Materials IPO – Peer Comparison – Doesn’t Particularly Stand Out
- Vertex Technology Acquisition (VTAC SP)/17LIVE: Turn Off
- J&T Global Express IPO: PHIP Updates
- Beijing UBOX Online Technology Pre-IPO – PHIP Updates – Signs of Recovery, but Still Making Losses
- J&T Global Express Pre-IPO, Part 5 | Analysis of H123 Performance | Updated EV Estimate US$9.1 Bn
- Pre-IPO Malo Medical Management – Profit Model Is Not Mature; Future Expansion Is Worrying
- Luyuan Group IPO: Likely To Be Priced At The Low-End Of Range As E-Bikes Sales Have Slowed in Asia
- J&T Global Express Pre-IPO – PHIP Updates – Managed to Grow but Isn’t Sustainable Yet
Vertex Technology’s Hybrid Arb
- Temasek-Backed Vertex Technology Acquisition Corporation (VTAC SP), the first of three SPACs (so far) to list on the SGX, has announced a transaction to buy Taiwanese live-streaming platform, 17Live.
- Assuming the deal completes, potentially by year-end, the merged entity would be valued at ~S$1.16bn.
- All independent shareholders are entitled to redemption rights. That is, you’ll get ~$5 back if redeeming against $4.96/share now. But liquidity is not great. Plus this appears a related-party transaction.
Ecopro Materials IPO – Peer Comparison – Doesn’t Particularly Stand Out
- EcoPro Materials (ECO123 KS) is looking to raise up to US$500m in its Korean IPO.
- Ecopro Materials (EPM) manufactures and sells high-nickel precursors, one of the key materials for high-nickel cathode materials for secondary (rechargeable) batteries.
- In our previous note, we covered the company’s performance. In this note, we will undertake a peer comparison.
Vertex Technology Acquisition (VTAC SP)/17LIVE: Turn Off
- Vertex Technology Acquisition Corporation (VTAC SP) agreed to a De-SPAC transaction with 17LIVE, the top pure-play live streaming platform (by revenue) in Japan and Taiwan combined.
- Industry data and the financials suggest that 17LIVE does not have a sustainable competitive advantage to translate its position into high earnings quality.
- The purchase consideration of 17LIVE in the De-SPAC transaction is S$925.1 million (US$682.2 million). Our valuation analysis suggests that this consideration is full.
J&T Global Express IPO: PHIP Updates
- Global logistics and express delivery service provider J&T Express’ HKEx IPO application has been approved and this insight focuses on new data points from the PHIP filings.
- SEA segment’s GPM has further declined during 1H2023, however, gross losses of the other two segments have declined significantly resulting in GPM for the company.
- Our analysis suggests that with falling SEA margins, J&T Global Express (1936374D CH) may not be able to generate operating profits in the medium-term.
Beijing UBOX Online Technology Pre-IPO – PHIP Updates – Signs of Recovery, but Still Making Losses
- Beijing UBOX Online Technology (1741985D CH) is looking to raise up to US$500m in its upcoming Hong Kong IPO.
- Beijing UBOX Online Technology (UBOX) is an unmanned retail operator (vending machine) in China.
- We had looked at its past performance earlier. In this note, we look at the updates from its recently filed PHIP.
J&T Global Express Pre-IPO, Part 5 | Analysis of H123 Performance | Updated EV Estimate US$9.1 Bn
- In this insight we focus on J&T’s improved H123 performance in China and SE Asia
- How did the company achieve these gains? And do the improvements appear sustainable?
- We conclude with an updated estimate of J&T’s Enterprise Value: US$9.1 Bn
Pre-IPO Malo Medical Management – Profit Model Is Not Mature; Future Expansion Is Worrying
- Malo’s revenue had good growth, but revenue scale is still small. At the current gross margin level, it would be difficult to generate decent profits considering the large SG&A expenses.
- Dental care expansion is difficult. Malo would face the challenging such as lack of high-quality dentists and centralized procurement. Both would drag down profits and cash flow.
- We are not optimistic about Malo’s share price performance after IPO. This industry’s profit mode is not mature. Most of chain dental services providers are still in cash-burning expansion stage.
Luyuan Group IPO: Likely To Be Priced At The Low-End Of Range As E-Bikes Sales Have Slowed in Asia
- Luyuan Group, a pioneer in the e-bike industry in China, set terms for an upcoming IPO. The company offers ~106.7M shares at the expected price range of HK$6.00 to HK$8.00.
- The IPO price range implies a market cap of roughly HK$3B at the midpoint. Cornerstone investors have agreed to subscribe and purchase ~71% of the Offer Shares.
- Shares will begin trading on the HKSE next week. I believe the IPO will be priced at the low end of the range as e-bikes sales have slowed in Asia.
J&T Global Express Pre-IPO – PHIP Updates – Managed to Grow but Isn’t Sustainable Yet
- J&T Global Express, a global logistics service provider, is looking to raise about US$500m in its upcoming Hong Kong IPO.
- As per Frost & Sullivan (F&S), the firm is the leading express delivery business in Southeast Asia, with a 22.5% market share as per 2022 parcel volume.
- We have looked at the company’s past performance in our earlier notes. In this note we will look at its PHIP updates.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
