In today’s briefing:
- ZEEKR IPO: The Bear Case
- EIA Watch: September Weakness Was Fake News. Time to Buy Oil?
- IPower, Inc. – Solid Start to FY24; Demonstrates Several Avenues for Further Growth
ZEEKR IPO: The Bear Case
- ZEEKR (ZK US), a premium Chinese BEV manufacturer and a subsidiary of Geely Auto (175 HK), has filed for a US$500 million IPO to list on the NYSE.
- In ZEEKR IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rests on growth slowdown in the second-largest business, high related-parties dependence, Virdi/CEVT gross margin pressure, ongoing operating losses and FCF burn.
EIA Watch: September Weakness Was Fake News. Time to Buy Oil?
- Welcome back to our weekly EIA report, where we run through demand and supply data and give our cents on where we are heading next – and what the implications are for energy markets.
- As always we present the main conclusions up-front: 1) Oil demand will likely come in hot in November on the back of strong gasoline demand in October due to the lags in energy markets (Gasoline leads oil – not the other way around).
- 2) Gasoline numbers in September were likely just a data-glimpse, as no high-frequent data series seem to agree with the narrative that demand for fuel is dropping.
IPower, Inc. – Solid Start to FY24; Demonstrates Several Avenues for Further Growth
- iPower reported $26.5 million in revenue in 1QFY24, its highest quarterly revenue ever, compared with $26.0 million in 1QFY23.
- The company’s performance was helped by business generated by its SuperSuite supply chain partnerships, currently on a $7 million annual run rate.
- The company’s TikTok Shop sales also contributed to the solid sales results.
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