In today’s briefing:
- STAR50 Index Rebalance Preview: Changes Depend on Minimum Listing History
- JD Industrials Pre-IPO – The Negatives – Hasn’t Provided a Whole Lot of Details
- Horizon Construction Development IPO: The Bear Case
- Amaero International Ltd – No Surprises in Q3 Result, Focus on the UAE Greenlight
- Horizon Construction Dev Pre-IPO – Refiled PHIP Updates – Affected by COVID-19 & Fueled by More Debt
STAR50 Index Rebalance Preview: Changes Depend on Minimum Listing History
- The review period for the June rebalance ends 28 April. We expect the changes to be announced 26 May with the implementation taking place after the close on 9 June.
- Using a 12-month minimum listing history results in no index changes. Using a 6-month minimum listing history results in two changes – we think this is what will be used.
- The potential adds have outperformed the potential deletes but both sets of stocks have underperformed the SSE STAR50 (STAR50 INDEX) and the CSI Smallcap 500 Index – Shanghai (SH000905 INDEX).
JD Industrials Pre-IPO – The Negatives – Hasn’t Provided a Whole Lot of Details
- JD Industrials is looking to raise about US$1bn in its upcoming HK IPO.
- JD Industrials (JDI) is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
- In this note, we talk about the not-so-positive aspects of the deal.
Horizon Construction Development IPO: The Bear Case
- Horizon Construction Development (1887128D HK)/HCD, a subsidiary of Far East Horizon (3360 HK), is pre-marketing an HKEx IPO to raise US$200-250 million, according to press reports.
- In Horizon Construction Development IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The key elements of the bear case rest on core business margin decline, unexplained headcount reduction, cash burn, long receivable days and stretched balance sheet.
Amaero International Ltd – No Surprises in Q3 Result, Focus on the UAE Greenlight
- Amaero International Ltd (ASX:3DA) is a global specialist in metal additive manufacturing for the defence, aerospace, and other industrial sectors.
- The company has reported a Q3 operating cash loss of $3.33m which was in line with our expectations.
- The cash balance at the end of Q3 was $9.8m with an additional $2.05m in non-recurring cash payments has been received since the end of the quarter.
Horizon Construction Dev Pre-IPO – Refiled PHIP Updates – Affected by COVID-19 & Fueled by More Debt
- Horizon Construction Development (1887128D HK) is looking to raise US$250m in its upcoming Hong Kong IPO.
- HCD is an equipment operation service provider in China. It provides services covering the full cycle of projects.
- In our previous note, we looked at the company’s past performance. In this note, we take a look at the company’s refiled PHIP updates.
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