In today’s briefing:
- VinFast Auto Pre-IPO – The Positives – Aiming High…
- Pre-IPO OrbusNeich Medical Group: Large Global Exposure Protects from Negative Price Effect in China
- Salesforce Inc: New Real-Time CRM Platform & Other Drivers
- Sunshine Insurance Group IPO Trading – No Demand – Still Needs to Correct by 50%
- Clover Biopharmaceuticals (2197.HK) Placement – A Good Bet
- CrowdStrike Inc: Major Drivers
- Synopsys Inc: Collaboration With SiFive & Other Drivers
- Zscaler Inc: Zero Configuration Data Protection & Other Developments
- Ulta Beauty: Major Drivers
- Hewlett Packard Enterprises: New Product Launches & Other Drivers
VinFast Auto Pre-IPO – The Positives – Aiming High…
- VinFast Auto (1905332D VN) is looking to raise up to US$1bn in its upcoming US IPO.
- VinFast is a full-scale mobility platform focused primarily on designing and manufacturing premium EVs, electric scooters and electric buses.
- In this note, we talk about the positive aspects of the deal.
Pre-IPO OrbusNeich Medical Group: Large Global Exposure Protects from Negative Price Effect in China
- OrbusNeich Medical Group (NEICHZ HK) is among the top six players in PCI balloon markets in terms of sales volume in multiple countries including China, Japan, the U.S., and Europe.
- OrbusNeich earns ~60% of revenue from Europe, Japan, and the U.S. The company’s high exposure to international markets safeguards it from the low prices commanded by China’s centralized procurement system.
- With diversified product portfolio, robust inhouse production facilities, established global sales network, rich pipeline enabling continuous launching of new products, and growing market demand, OrbusNeich is well-positioned for strong growth.
Salesforce Inc: New Real-Time CRM Platform & Other Drivers
- Salesforce’s stock has been badly hit by the general bearishness in the markets towards tech stocks and is trading at a low.
- However, the company’s results were decent as it delivered strong sales growth and profitability surpassing Wall Street expectations on all fronts.
- This quarter, the ARR increased by more than 50% in seven of their 13 industry clouds.
Sunshine Insurance Group IPO Trading – No Demand – Still Needs to Correct by 50%
- Sunshine Insurance Group (SIG), a life, health and P&C insurance company, raised around US$850m in its HK IPO.
- SIG is an integrated insurance provider which offers both life and health (L&H) and property and casualty (P&C) insurance in China.
- We have looked at various aspects of the deal in our previous notes. In this note, we will talk about the trading dynamics.
Clover Biopharmaceuticals (2197.HK) Placement – A Good Bet
- Clover is placing 128 million shares, raising an estimated HK$500.5 million in net proceeds, which was released right after Clover’s lead COVID-19 vaccine was included for emergency use in China.
- The COVID-19 vaccine would be the only hope for Clover in the short term. There could be big upside potential in share price if this vaccine could be successfully commercialized.
- After Clover successfully develops a vaccine and goes through the whole commercialization process, it won’t be at the same level as those enterprises with no commercial products on the market.
CrowdStrike Inc: Major Drivers
- CrowdStrike had a solid quarter increasing its revenue by 53% year-over-year, surpassing Wall Street expectations.
- In the enterprise, sales cycles or average days to closure remain marginally higher than the previous quarter.
- Furthermore, LogScale experienced another solid quarter in Q3 thanks to their wins in the financial services, insurance, technology, retail, energy, and telecommunications industries.
Synopsys Inc: Collaboration With SiFive & Other Drivers
- Synopsys ended the year with a decent result meeting the revenue expectations of Wall Street and managing an earnings beat.
- The company reached the $5 billion yearly revenue milestone during this quarter as they extended customer relationships and altered their product lineup in order to sharpen their competitive edge.
- Despite a slowdown in revenue growth for the semiconductor business, design activity is still strong.
Zscaler Inc: Zero Configuration Data Protection & Other Developments
- Zscaler delivered good results in the last quarter surpassing Wall Street expectations in terms of revenues as well as earnings.
- Consumers are buying Zscaler for users, its complete platform for user protection, including ZDX, ZPA, and ZIA bundled together.
- We provide the stock of Zscaler a ‘Buy’ rating and a revision in the target price.
Ulta Beauty: Major Drivers
- Ulta Beauty delivered a good performance in the last quarter with robust revenue growth driving double-digit earnings growth and operating margin expansion.
- The double-digit comp of Ulta Beauty in this quarter was an outcome of growth from its core assortment, compelling newness, and price increases.
- To support guest education and drive discovery, this quarter Ulta Beauty introduced its Skincare We Love All in every store.
Hewlett Packard Enterprises: New Product Launches & Other Drivers
- Hewlett Packard Enterprises had a decent fourth quarter as its revenues managed to surpass Wall Street expectations and strong quarterly free cash flow.
- The company managed to meet Wall Street expectations with respect to earnings.
- We remain neutral on Hewlett Packard Enterprises and maintain our ‘Hold’ rating with a revised target price.
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