HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Anjoy Foods Group / Equity Capital Markets

<ul>
<li>With the outbreak of the Middle East war, Anjoy would face rising costs due to hyperinflation. Together with the sluggish consumption, 2025 performance growth of Anjoy would be under pressure.</li>
<li>The price war caused by overcapacity and increasing competition in the industry has forced companies to increase their promotional efforts, resulting in downward pressure on profit margin.</li>
<li>We shared our forecast for next three years. Valuation of Anjoy could be lower than <a href="https://www.smartkarma.com/entities/yihai-international-holding" target="_blank" data-smartkarma-citation="entities:22803:1" rel="noopener">Yihai (1579 HK)</a> and <a href="https://www.smartkarma.com/entities/zhengzhou-qianweiyangchu-food" target="_blank" data-smartkarma-citation="entities:34155:1" rel="noopener">Qianweiyangchu Food (001215 CH),</a> but could be higher than the industry average. </li>
</ul>


With the outbreak of the Middle East war, Anjoy would face rising costs due to hyperinflation. Together with the sluggish consumption, 2025 performance growth of Anjoy would be under pressure.
The price war caused by overcapacity and increasing competition in the industry has forced companies to increase their promotional efforts, resulting in downward pressure on profit margin.
We shared our forecast for next three years. Valuation of Anjoy could be lower than Yihai (1579 HK) and Qianweiyangchu Food (001215 CH), but could be higher than the industry average. 


Pre-IPO Anjoy Foods Group (PHIP Updates) - Thoughts on Performance Forecast and IPO Valuation

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

<ul><li>Author recommends investing in DingDong Limited (DDL) to play a recovery in China</li><li>DDL has shown promise with consecutive quarters of operating profits despite China's economic issues</li><li>Investment thesis is based on potential for DDL's stock to rise for every 1% increase in operating margins, without assuming further margin expansion</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Author recommends investing in DingDong Limited (DDL) to play a recovery in ChinaDDL has shown promise with consecutive quarters of operating profits despite China's economic issuesInvestment thesis is based on potential for DDL's stock to rise for every 1% increase in operating margins, without assuming further margin expansionThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Dingdong (Cayman) Limited (DDL) - Thursday, Oct 24, 2024

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.</li>
<li>The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.</li>
<li>In this note, we'll talk about the latest developments, possible outcomes and implications.</li>
</ul>


PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US listed China companies.
The Hong Kong visit was on the back of the 26th Aug 2022 announcement by PCAOB and CSRC that they had entered into an agreement with US authorities for access.
In this note, we'll talk about the latest developments, possible outcomes and implications.


China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dada-nexus-ltd" target="_blank" data-smartkarma-citation="entities:28961:1" rel="noopener">Dada Nexus (DADA US)</a> has filed the <a href="https://ir.imdada.cn/static-files/159abee6-f8ee-4ad7-ac9a-e1943183d072" target="_blank" rel="noopener">13E-3</a> relating to the binding proposal from <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a> at US$2.00 per ADS, a 41.8% premium to the undisturbed price.</li>
<li>The 13E-3 filing provides more details on the price negotiations, required regulatory approvals and IFA valuation. Crucially, no Chinese regulatory approvals are required.</li>
<li>The completion conditions are low-risk. At last close and for an end-September payment, the gross/annualised spread is 5.4%/12.1% (including the US$0.05 ADS cancellation fee). </li>
</ul>



Dada Nexus (DADA US) has filed the 13E-3 relating to the binding proposal from JD.com Inc (ADR) (JD US) at US$2.00 per ADS, a 41.8% premium to the undisturbed price.
The 13E-3 filing provides more details on the price negotiations, required regulatory approvals and IFA valuation. Crucially, no Chinese regulatory approvals are required.
The completion conditions are low-risk. At last close and for an end-September payment, the gross/annualised spread is 5.4%/12.1% (including the US$0.05 ADS cancellation fee). 


Dada Nexus (DADA US): Takeaways from the 13E-3 Filing

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dada-nexus-ltd" target="_blank" data-smartkarma-citation="entities:28961:1" rel="noopener">Dada Nexus (DADA US)</a> disclosed a binding proposal from <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a> at US$2.00 per ADS, a 41.8% premium to the undisturbed price of US$1.41 (24 January).</li>
<li>The shareholder vote is low-risk (two-thirds voting threshold), as JD.com represents 63.2% of voting power. The dissenting condition (less than 12% of outstanding shares) is waivable. </li>
<li>Although the offer is unattractive, this is a done deal. The transaction is expected to close within the third quarter of 2025.</li>
</ul>



Dada Nexus (DADA US) disclosed a binding proposal from JD.com Inc (ADR) (JD US) at US$2.00 per ADS, a 41.8% premium to the undisturbed price of US$1.41 (24 January).
The shareholder vote is low-risk (two-thirds voting threshold), as JD.com represents 63.2% of voting power. The dissenting condition (less than 12% of outstanding shares) is waivable. 
Although the offer is unattractive, this is a done deal. The transaction is expected to close within the third quarter of 2025.


Dada Nexus (DADA US): JD.com’s Binding Offer a Done Deal

China

Dingdong Maicai provides on-demand e-commerce services in China

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Dingdong Maicai (DDL US)

Pre-IPO Anjoy Foods Group (PHIP Updates) - Thoughts on Performance Forecast and IPO Valuation

Anjoy's 2025 performance growth faces pressure from Middle East war and sluggish consumption, while industry price war leads to profit margin...

Xinyao (Criss) Wang

Dingdong (Cayman) Limited (DDL) - Thursday, Oct 24, 2024

Author recommends investing in DingDong Limited (DDL) to play a recovery in China. DDL has shown promise with consecutive quarters of operating...

Value Investors Club

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

Dada Nexus (DADA US): Takeaways from the 13E-3 Filing

The 13E-3 filing provides more details on the price negotiations, required regulatory approvals and IFA valuation. The gross/annualised spread is...

Arun George

Dada Nexus (DADA US): JD.com’s Binding Offer a Done Deal

Although the offer is unattractive, this is a done deal. The transaction is expected to close within the third quarter of 2025.

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Anjoy Foods Group (PHIP Updates) - Thoughts on Performance Forecast and IPO Valuation

​Anjoy's 2025 performance growth faces pressure from Middle East war and sluggish consumption, while industry price war leads to profit margin...

Xinyao (Criss) Wang

Dingdong (Cayman) Limited (DDL) - Thursday, Oct 24, 2024

Author recommends investing in DingDong Limited (DDL) to play a recovery in China. DDL has shown promise with consecutive quarters of operating...

Value Investors Club

China ADRs Delisting - Friday Could Be Judgment Day for over US$800bn Mcap of Stocks

PCAOB officials concluded their Hong Kong visit last month and PCAOB is due to announce its annual judgment on whether it had adequate access to US...

Sumeet Singh

Dada Nexus (DADA US): Takeaways from the 13E-3 Filing

The 13E-3 filing provides more details on the price negotiations, required regulatory approvals and IFA valuation. The gross/annualised spread is...

Arun George

Dada Nexus (DADA US): JD.com’s Binding Offer a Done Deal

Although the offer is unattractive, this is a done deal. The transaction is expected to close within the third quarter of 2025.

Arun George

Anjoy's 2025 performance growth faces pressure from Middle East war and sluggish consumption, while industry price war leads to profit margin...