In today’s briefing:
- Deewin Tianxia IPO Trading – Weak Subscription Rates, Retail Portion Undersubscribed
- HRTech Sector Series: Changing HR Landscape Post-Covid Create Opportunities
- Bharat FIH Pre-IPO – The Negatives – Not a Whole Lot to Show Yet
- SCGP : Time to Repack for Brighter 2H22 Outlook
- WCP IPO – The Negatives – Patent, Going Concern, Customer Concentration
Deewin Tianxia IPO Trading – Weak Subscription Rates, Retail Portion Undersubscribed
- Deewin Tianxia (2418 HK) raised around US$123m in its Hong Kong IPO.
- DT’s subscription rates had been lackluster with weak coverage on the institutional tranche and the retail portion being undersubscribed.
- Given its smaller size, in our view, the firm should come in at a discount to its peer average.
HRTech Sector Series: Changing HR Landscape Post-Covid Create Opportunities
- The global HRTech market is forecast to grow at a CAGR of 5.8% between 2022-2028E to US$35.68bn driven by increased investment in product and technology development.
- We have chosen four companies that will have an exciting year ahead (either bullish or bearish) and have discussed their business models, key drivers, fundamentals and their valuation.
- We have chosen two stocks from the US (Ceridian and Automatic Data Processing) and two from Japan (Recruit and Visional) with a market capitalisation of >$1bn and ADTV>$1m.
Bharat FIH Pre-IPO – The Negatives – Not a Whole Lot to Show Yet
- Bharat FIH (BFIH) aims to raise around US$660m in its India IPO via selling a mix of both primary and secondary shares. BFIH is a subsidiary of Foxconn.
- Its initial operations were focused on mobile phones, of late it has been expanding its portfolio to include mechanics, electric vehicles, televisions and hearables.
- In this note, we will talk about the not so positive aspects of the deal.
SCGP : Time to Repack for Brighter 2H22 Outlook
- We retain our BUY rating with a TP of Bt66 derived from 33xPE’22E which is close to its 3-years trailing mean. We recommend investors to increase position in SCGP ahead
- Modest recovery in 2Q22, post 1Q22 bottom : We estimate 2Q22 core profit at Bt1.9bn (-8%YoY, +12%QoQ) based on assuming gross margin of 17.4% (-3.1ppts YoY, +0.3ppts QoQ).
- Likewise, we forecast the company to register revenue at Bt38.1bn (+28%YoY, +4%QoQ). The YoY rise is attributed to healthier demand volume and M&Ps contribution, upon the resumption of economic activities
WCP IPO – The Negatives – Patent, Going Concern, Customer Concentration
- WCP aims to raise around US$690m via selling a mix of primary and secondary shares in its Korean IPO.
- WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries
- In this note, we will talk about the not-so-positive aspects of the deal.
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