In today’s briefing:
- Merger Arb Mondays (25 Apr) – VNET, Yashili, Dongzheng AFC, Sezzle, Link, Razer, Ramsay Health
- Hangzhou Tigermed Consulting (3347.HK/300347.CH) – The Business Model May Not Be a Safe Play
Merger Arb Mondays (25 Apr) – VNET, Yashili, Dongzheng AFC, Sezzle, Link, Razer, Ramsay Health
- We summarise the latest spreads and newsflow of merger arb situations covered by us across Hong Kong, Australia, New Zealand, Singapore and the US (Chinese ADRs only).
- This week, the highest gross spreads are 21Vianet Group (VNET US), Yashili International Holdings (1230 HK), Dongzheng Automotive Finance (2718 HK), Sezzle Inc (SZL AU), Link Administration Holdings (LNK AU).
- The lowest gross spreads are Virtus Health (VRT AU), Uniti Group Ltd (UWL AU), 51 Job Inc Adr (JOBS US), China Logistics Property Holdings (1589 HK), Jin Jiang Capital.
Hangzhou Tigermed Consulting (3347.HK/300347.CH) – The Business Model May Not Be a Safe Play
- Despite solid growth in 2021, if seen from prior years, the revenue YoY growth rate and net profit YoY growth rate showed a state of divergence, which is “interesting”.
- Since half of Tigermed’s net profits were from investment income,it’s not logical to apply the valuation methods of traditional CXO to Tigermed. Its CRO and investment should be valued separately.
- The poor IPO sentiment, risk of recession and the domestic healthcare rational return would make investors reconsider if Tigermed’s “CRO + PE/VC business model” would be a safe play.
Before it’s here, it’s on Smartkarma
