In today’s briefing:
- Yamae Group Placement – Would Result in a Large Dilution, Although Its Momentum Has Been Strong
- MIXUE Group Pre-IPO – The Positives – Leading by a Mile
- MIXUE Group Pre-IPO – The Negatives – Declining GMV Share
- Pre-IPO Guming Holdings – The Current Market Position Is Not Secure
Yamae Group Placement – Would Result in a Large Dilution, Although Its Momentum Has Been Strong
- Yamae Group Holdings (7130 JP) is looking to raise US$115m from a primary follow-on. As per the firm, proceeds will be used to pay down its acquisition-linked debt.
- We would argue that the deal is somewhat well flagged given the firm’s track record of acquisitions, with the most recent being Confex Holdings.
- That being said, the deal would result in a large dilution for the firm, and would be a large one to digest at 48 days of Yamae’s three month ADV.
MIXUE Group Pre-IPO – The Positives – Leading by a Mile
- Mixue Group is looking to raise about US$1bn in its upcoming Hong Kong IPO.
- MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.
- In this note, we talk about the positive aspects of the deal.
MIXUE Group Pre-IPO – The Negatives – Declining GMV Share
- Mixue Group is looking to raise about US$1bn in its upcoming Hong Kong IPO.
- MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.
- In this note, we talk about the not-so-positive aspects of the deal.
Pre-IPO Guming Holdings – The Current Market Position Is Not Secure
- Guming generates revenue mainly from the sales of goods/equipment to its franchisees (or ToB business). So, Guming’s future growth depends significantly on its ability to operate and expand store network.
- China’s freshly-made beverage market is highly competitive. Guming is unlikely to catch up with MIXUE, but Guming will be overtaken by the rest players if it fails to compete effectively.
- Due to Guming’s business model, investors’re hard to see the real picture of Guming solely based on its revenue/profits. Guming’s valuation should be higher than Nayuki but lower than MIXUE.
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