In today’s briefing:
- RecBio (江苏瑞科) IPO Trading: Fairly Valued for Vaccine Hype
- Aurobindo-Veritaz Acquisition: No Justice
- Sri Trang Gloves (Thailand) Public Company Limited (STGT TB): Short-Term Pain; Long-Term Gain
RecBio (江苏瑞科) IPO Trading: Fairly Valued for Vaccine Hype
- Jiangsu RecBio raised HKD 672m (USD 86m) from its global offering and will list on the Hong Kong Stock Exchange on Thursday, March 31st.
- In the previous note, we looked at the company’s core products, including its HPV portfolio and the COVID-19 vaccine.
- In this note, we provide an update for the IPO before trading debut.
Aurobindo-Veritaz Acquisition: No Justice
- On Monday, Aurobindo Pharma (ARBP IN) had announced the acquisition of the branded generic business and certain assets of Veritaz Healthcare Limited for a cash consideration of INR 1.7 bn.
- It should be known that Veritaz is a promoter group entity, which is why acquisition will fall within the scope of Related Party Transactions.
- Being a promoter company and having had some red flags in the past such as negative net-worth, continuous loss making nature, etc. The cash consideration looks questionable.
Sri Trang Gloves (Thailand) Public Company Limited (STGT TB): Short-Term Pain; Long-Term Gain
- Riding on COVID-driven demand boom, Sri Trang Gloves (Thailand) Public Company Limited (STGT TB) reported record high performance in 2021, which is not likely to continue in near-term.
- However, post pandemic, gloves demand is expected to improve on the back of increased glove usage from emerging markets with low gloves consumption per capita and heightened hygiene awareness.
- STGT shares have corrected 15% thus far in this year, providing a good buy on dip opportunity. Shares can be considered for the long-haul.
Before it’s here, it’s on Smartkarma