Equity Capital Markets: Huitongda, Enovix Corp, Vedant Fashions, HeMo Bioengineering and more

In today’s briefing:

Huitongda (汇通达) IPO – Not the Right Price
Enovix (ENVX) Is a Speculative Company with a Big Amount of Stock that Recently Unlocked.
Vedant Fashions IPO – Dominant Position in a Small Niche but Appears Pricey
Pre-IPO HeMo Bioengineering – Insights on Industry, Business and Concerns

Huitongda (汇通达) IPO – Not the Right Price

Huitongda (9878 HK) is looking to raise up to US$318m in its Hong Kong IPO.
Huitongda (HTD) is a leading commerce and service platform serving businesses in the lower-tier retail markets of China.
In this note, we will look at deal dynamics, assumptions, and share our thoughts on valuation.

There is lots of competition for Li-Ion batteries and also for silicon anode Li-Ion batteries
Enovix is a going concern and has a material internal control weakness
With facilities that need to be built, lacking firm contracts with customers/suppliers, and unfinished products, lots of things need to go perfectly.

Vedant Fashions is looking to raise up to US$420m in its India IPO.
It is a fashionwear company targeting the Indian wedding and celebration wear segment. According to CRISIL, it was the largest company in India in the men’s Indian wedding wear segment.
In this note, we will run the deal through our ECM framework and talk about the deal background.

It is worth rejoicing that HeMo Bioengineering (HMB HK) has entered commercialization stage, but some of the key products are in-licensed from other companies, not self-developed.
In front of fierce competition and policy impact, how to establish its high moat in R&D, innovation and commercialization capability would be the key factors to support long-term development.
Our view is that opportunities coexist with challenges, and investors should also pay attention to the market sentiment towards new IPOs at that time.

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