In today’s briefing:
- Integral Corporation IPO: The Bear Case
- Ping An Insurance – Dramatic Worsening Key Areas, Big Bank Exposure, Macro Insurance Stats Are Poor
- SHK 86_HK: Dividend Yield 8.5%, P/E 1.96x, P/B 0.25x
- Union Bank of India QIP – Well-Flagged Deal, Recent Momentum Has Been Strong
- Kolte Patil: Strong Growth Momentum Continues from FY23
- Samhi Hotels Pre-IPO – The Negatives – Peer Comp and Valuation
Integral Corporation IPO: The Bear Case
- Integral Corporation (5842 JP) is an independent Japanese private equity firm seeking to raise about US$175 million. The pricing is on 4 September, and the listing is on 20 September.
- In Integral Corporation IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rest on the declining mix of fee-earning AUM, growth driven by volatile investment income and uninspiring 1HFY22 performance in fee-related revenue growth and margin.
Ping An Insurance – Dramatic Worsening Key Areas, Big Bank Exposure, Macro Insurance Stats Are Poor
- There is considerable worsening in net profit, including from key divisions
- Despite rising assets for Health and Life, profit in this core division is down a lot
- Banking exposure is significant, with a poor outlook, and making Ping An less pure
SHK 86_HK: Dividend Yield 8.5%, P/E 1.96x, P/B 0.25x
- Despite Headwinds Revenue Remains Relatively Stable at HK $1,968 million
- For 1HFY2023–Total Buyback of 0.77 million shares (HK$2.3 million) at average price of $2.99
- Stock at 0.25x tangible P/B and at 1.96x P/E on our FY2024 earnings estimate
Union Bank of India QIP – Well-Flagged Deal, Recent Momentum Has Been Strong
- Union Bank Of India (UNBK IN) is looking to raise US$301m from its qualified institutional placement (QIP). Included in the deal is an option to effectively double its base deal.
- The deal is a relatively large one to digest with the base deal alone representing 21.1 days of three months ADV.
- That being said, the deal here is a very well flagged one with the firm having earlier reported to look to do so to boost its free float.
Kolte Patil: Strong Growth Momentum Continues from FY23
- Kolte Patil (KPDL) reported record sales velocity in Q1FY24 and is on track to achieve 25%+ sales value growth in FY24 as per its stated guidance.
- Business development activity is also happening at a record pace and Kolte Patil is on track to beat its prior FY24 guidance of INR 8000cr by a wide margin.
- Despite 80%+ rise in the share price since our coverage initiation 2Y ago, Kolte Patil still offers an upside potential of 25%+ IRR over a holding period of three years.
Samhi Hotels Pre-IPO – The Negatives – Peer Comp and Valuation
- SAMHI Hotels (SAMHI IN) plans to raise around US$200m (estimated) in its Indian IPO.
- Samhi is India’s third-largest hotel asset owner, by number of keys, with a portfolio of 25 operating hotel assets comprising 3,839 keys, as of Feb 2023.
- In this note, we will undertake a peer comparison and provide our thoughts on valuation.
💡 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
