In today’s briefing:
- Miniso Hong Kong Listing: Still Too Cheap
- Kids Clinic India Pre-IPO – Losses Narrowing with Cluster Model Growth Strategy
- Readboy Education IPO: Struggling Amidst COVID and Supply Shortages
Miniso Hong Kong Listing: Still Too Cheap
- The offer period for Miniso (MNSO US)’s HK listing began on 30th June at a maximum offer-price of HK$22.10 per-share, which translates to a 42% premium to its ADSs .
- With store-level performance expected to reach the pre-COVID level , alongside an aggressive plan to increase the store count by 60%, we predict more than 100% upside to FY24 consensus.
- Our estimates put Miniso on 4.3x FY24 OP, which seems genuinely cheap compared to most of the GMS stocks in New York and Hong Kong.
Kids Clinic India Pre-IPO – Losses Narrowing with Cluster Model Growth Strategy
- Kids Clinic India (9890311Z IN) is looking to raise approximately US$160m in its upcoming India IPO.
- Kids Clinic India (KCI) is a super-specialty mother and baby-care provider, offering end-to-end coverage of all stages of the parenthood journey, beginning with fertility treatments, through maternity, neonatology and paediatrics.
- KCI’s growth has been impressive, becoming operating EBITDA and CFO positive in recent years. However, it remains unclear as to which business segment or regions are KCI’s largest growth drivers.
Readboy Education IPO: Struggling Amidst COVID and Supply Shortages
- Readboy Education has the second largest market share in China’s smart learning device market. The company has filed for an IPO on the HKEx to raise around HK$ 520m.
- The company grew its revenues strongly over the past three years but shipments have been declining in 2021 amidst the COVID-19 resurgence and subsequent lockdowns.
- Margins have been declining due to raw material shortages and even though Readboy claims to have taken measures to deal with the shortages, we are yet to see its effectiveness.
Before it’s here, it’s on Smartkarma
