IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/amer-sports-inc" target="_blank" data-smartkarma-citation="entities:21751:1" rel="noopener">Amer Sports (AS US)</a> is a global iconic sports and outdoor brand group. According to press reports, it has filed for a NYSE IPO to raise US$2 billion.</li>
<li>In 2019, a consortium of <a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a>, FountainVest, Anamered Investments and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> acquired Amer at an EV of €5.5 billion.  </li>
<li>The bull case rests on the rapid growth and gross margin improvement under the consortium's ownership, along with technical apparel and outdoor performance’s improving revenue and margin profile. </li>
</ul>



Amer Sports (AS US) is a global iconic sports and outdoor brand group. According to press reports, it has filed for a NYSE IPO to raise US$2 billion.
In 2019, a consortium of Anta Sports Products (2020 HK), FountainVest, Anamered Investments and Tencent (700 HK) acquired Amer at an EV of €5.5 billion.  
The bull case rests on the rapid growth and gross margin improvement under the consortium's ownership, along with technical apparel and outdoor performance’s improving revenue and margin profile. 


Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Nike's Q2 results lead to a 12% drop in its shares, affecting sector peers Onon, Skechers, and Asics with significant declines.</li>
<li>Challenging trading conditions in China and Europe, coupled with a subdued digital traffic outlook from Nike, raise broader concerns for the sector.</li>
<li>Asics stock declines 20% post-Nike's fall, presenting an attractive buying opportunity with an estimated 20% upside, positioning Asics as a cost-effective play in the global performance running market.</li>
</ul>


Nike's Q2 results lead to a 12% drop in its shares, affecting sector peers Onon, Skechers, and Asics with significant declines.
Challenging trading conditions in China and Europe, coupled with a subdued digital traffic outlook from Nike, raise broader concerns for the sector.
Asics stock declines 20% post-Nike's fall, presenting an attractive buying opportunity with an estimated 20% upside, positioning Asics as a cost-effective play in the global performance running market.


Asics (7936) | Footwear Fallout as Nike's Q2 Sends Sector Shockwaves

<ul>
<li>Asics unveils MTP with focus on financial milestones: 7-10% Sales CAGR to 660 billion yen and Operating profit of 80 billion yen by 2026. </li>
<li>The biggest risk to the MTP looks to be market share goals in the US. However, we think overall sales and margin targets are achievable.</li>
<li>The share price is up 80% YTD and stock is no longer cheap. However, plugging in the MTP assumptions into a DCF reveals further 17% upside</li>
</ul>


Asics unveils MTP with focus on financial milestones: 7-10% Sales CAGR to 660 billion yen and Operating profit of 80 billion yen by 2026. 
The biggest risk to the MTP looks to be market share goals in the US. However, we think overall sales and margin targets are achievable.
The share price is up 80% YTD and stock is no longer cheap. However, plugging in the MTP assumptions into a DCF reveals further 17% upside


Asics (7936) | Stepping Ahead with New MTP

<ul>
<li>ASICS reports solid Q3 results, featuring a 14.5% rise in net sales, 31% rise in operating profit, improved gross margin, and digital growth.</li>
<li>ASICS revises FY23 outlook with increased sales and operating profit. New OP guidance of Y52b is inline with consensus</li>
<li>Market to focus on new Mid-Term Plan (end-Nov). Valuation at 16x forecast EBIT still a discount to average 18x multiple.</li>
</ul>


ASICS reports solid Q3 results, featuring a 14.5% rise in net sales, 31% rise in operating profit, improved gross margin, and digital growth.
ASICS revises FY23 outlook with increased sales and operating profit. New OP guidance of Y52b is inline with consensus
Market to focus on new Mid-Term Plan (end-Nov). Valuation at 16x forecast EBIT still a discount to average 18x multiple.


<ul>
<li>Asics is due to report on 8th August. We expect another strong quarter and guidance revision</li>
<li>Recent results from Nike bode well for Asics – declining inventories and strong top line performance in China</li>
<li>We believe that higher operating margins will be the key stock driver and see 10% upside to fair value</li>
</ul>


Asics is due to report on 8th August. We expect another strong quarter and guidance revision
Recent results from Nike bode well for Asics – declining inventories and strong top line performance in China
We believe that higher operating margins will be the key stock driver and see 10% upside to fair value


Asics (7936) | Q2 Preview; Guidance Revision

Japan

ASICS CORPORATION manufactures general sporting goods and equipment.  The Company's products, such as athletic shoes and sportswear, are distributed in the United States, Europe, Australia, and Asia.

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ASICS Corp (7936 JP)

Amer Sports IPO: The Bull Case

The bull case rests on the rapid growth and gross margin improvement under the consortium's ownership, along with technical apparel and outdoor...

Arun George

Asics (7936) | Footwear Fallout as Nike's Q2 Sends Sector Shockwaves

Nike's Q2 results cause a 12% drop in shares, impacting sector including Asics; challenging conditions in China and Europe raise concerns for the...

Mark Chadwick

Asics (7936) | Stepping Ahead with New MTP

Asics aims for: 7-10% sales growth and 80 bn yen operating profit by 2026. Market share in the US poses a risk, but overall targets seem...

Mark Chadwick

Asics (7936) | Running the Numbers

ASICS reports strong Q3 results with increased sales and profit, and revises outlook for FY23. Market awaits new Mid-Term Plan.

Mark Chadwick

Asics (7936) | Q2 Preview; Guidance Revision

Nike reported 1Q23 earnings. Revenue +2% to $12.9b (in line ). Gross margin came in at 44.2% (better than expected 43.7%). EPS +1% to $0.94 (far...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Amer Sports IPO: The Bull Case

The bull case rests on the rapid growth and gross margin improvement under the consortium's ownership, along with technical apparel and outdoor...

Arun George

Asics (7936) | Footwear Fallout as Nike's Q2 Sends Sector Shockwaves

​Nike's Q2 results cause a 12% drop in shares, impacting sector including Asics; challenging conditions in China and Europe raise concerns for the...

Mark Chadwick

Asics (7936) | Stepping Ahead with New MTP

​Asics aims for: 7-10% sales growth and 80 bn yen operating profit by 2026. Market share in the US poses a risk, but overall targets seem...

Mark Chadwick

Asics (7936) | Running the Numbers

​ASICS reports strong Q3 results with increased sales and profit, and revises outlook for FY23. Market awaits new Mid-Term Plan.

Mark Chadwick

Asics (7936) | Q2 Preview; Guidance Revision

Nike reported 1Q23 earnings. Revenue +2% to $12.9b (in line ). Gross margin came in at 44.2% (better than expected 43.7%). EPS +1% to $0.94 (far...

Mark Chadwick

Nike's Q2 results cause a 12% drop in shares, impacting sector including Asics; challenging conditions in China and Europe raise concerns for the...

Asics aims for: 7-10% sales growth and 80 bn yen operating profit by 2026. Market share in the US poses a risk, but overall targets seem...

ASICS reports strong Q3 results with increased sales and profit, and revises outlook for FY23. Market awaits new Mid-Term Plan.