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

Renrui Human Resources / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/renrui-human-resources-techn" target="_blank" data-smartkarma-citation="entities:28134:1" rel="noopener">Renrui Human Resources (6919 HK)</a> is the largest company operating in China’s flexible staffing services market by revenue in 2018, accounting for a 2.5% market share. Renrui has launched a Hong Kong IPO to raise net proceeds of HK$971 million ($124 million) at the mid-point of the IPO price range.<div class="content-highlight">In <a href="https://www.smartkarma.com/insights/renrui-hr-technology-ipo-initiation-not-the-perfect-candidate" target="_blank" rel="noopener">our initiation note</a>, we stated that on the surface, Renrui appears to be heading in the right direction as the 1H19 results demonstrated robust growth, margin progression and cash generation. However, a closer look reveals several areas of caution. Our valuation analysis shows that the IPO price range is unattractive. Consequently, we would not participate in the IPO. </div>

Renrui Human Resources (6919 HK) is the largest company operating in China’s flexible staffing services market by revenue in 2018, accounting for a 2.5% market share. Renrui has launched a Hong Kong IPO to raise net proceeds of HK$971 million ($124 million) at the mid-point of the IPO price range.In our initiation note, we stated that on the surface, Renrui appears to be heading in the right direction as the 1H19 results demonstrated robust growth, margin progression and cash generation. However, a closer look reveals several areas of caution. Our valuation analysis shows that the IPO price range is unattractive. Consequently, we would not participate in the IPO. 

Renrui HR Technology IPO: Valuation Unappealing

<a href="https://www.smartkarma.com/entities/renrui-human-resources-techn" target="_blank" data-smartkarma-citation="entities:28134:1" rel="noopener">Renrui Human Resources (6919 HK)</a> is the largest company operating in China’s flexible staffing services market by revenue in 2018, accounting for a 2.5% market share. Renrui has launched a Hong Kong IPO to raise net proceeds of HK$971 million ($124 million) at the mid-point of the IPO price range.<div class="content-highlight">On the surface, Renrui appears to be heading in the right direction as the 1H19 results demonstrated robust growth, margin progression and cash generation. However, a closer look reveals several areas of caution. On balance, we are inclined to err on the side of caution by sitting out this IPO. </div>

Renrui Human Resources (6919 HK) is the largest company operating in China’s flexible staffing services market by revenue in 2018, accounting for a 2.5% market share. Renrui has launched a Hong Kong IPO to raise net proceeds of HK$971 million ($124 million) at the mid-point of the IPO price range.On the surface, Renrui appears to be heading in the right direction as the 1H19 results demonstrated robust growth, margin progression and cash generation. However, a closer look reveals several areas of caution. On balance, we are inclined to err on the side of caution by sitting out this IPO. 

Renrui HR Technology IPO Initiation: Not the Perfect Candidate

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Our international Human Resources &amp; Employment Services Groups are showing signs of price and RS bottoms throughout Japan, Europe, and the UK. We believe short-term pullbacks in the names highlighted today should be bought, particularly in light of the Fed hinting at increased flexibility and the potential for improving trade headlines. Today we highlight our favorite setups within our int’l HR &amp; Employment Services Groups: Recruit Holdings Co., Ltd. (6098-JP), PERSOL HOLDINGS CO. LTD. (2181-JP), Meitec Corporation (9744-JP), Teleperformance SE (TEP-FR), Randstad NV (RAND-NL), Adecco Group AG (ADEN-CH), and PageGroup PLC (PAGE-GB). Add exposure.

Our international Human Resources &amp; Employment Services Groups are showing signs of price and RS bottoms throughout Japan, Europe, and the UK. We believe short-term pullbacks in the names highlighted today should be bought, particularly in light of the Fed hinting at increased flexibility and the potential for improving trade headlines. Today we highlight our favorite setups within our int’l HR &amp; Employment Services Groups: Recruit Holdings Co., Ltd. (6098-JP), PERSOL HOLDINGS CO. LTD. (2181-JP), Meitec Corporation (9744-JP), Teleperformance SE (TEP-FR), Randstad NV (RAND-NL), Adecco Group AG (ADEN-CH), and PageGroup PLC (PAGE-GB). Add exposure.

Int’l Human Resources & Employment Services Stocks Are Bottoming -- Add Exposure

EURO STOXX 50 Price EUR / Technical Analysis

This report highlights actionable set ups from predominately European, developed markets, and is supportive of our view that Europe is bottoming, a viewpoint that remains far from consensus. Within Europe, we put a spotlight on Germany’s DAX and France’s CAC 40. Today’s recommendations are primarily from cyclical Sectors, however European Consumer Staples also exhibits bottoming RS.

This report highlights actionable set ups from predominately European, developed markets, and is supportive of our view that Europe is bottoming, a viewpoint that remains far from consensus. Within Europe, we put a spotlight on Germany’s DAX and France’s CAC 40. Today’s recommendations are primarily from cyclical Sectors, however European Consumer Staples also exhibits bottoming RS. 

Developed Markets Chart Book: Europe in Focus

As global equity markets pull back amid the U.S./China tariff saga we continue to believe this is an attractive time to add exposure. This view is supported technically with all major global indexes (MSCI ACWI, ACWI ex-U.S., EAFE, and EM) pulling back to their respective 200-day moving averages. In this report we highlight important technical levels across global markets and highlight actionable opportunities from a bottoms-up perspective within Europe (attractive pullback opportunity on the STOXX Europe 600 index) and Japan, including stocks within Financials, Communications, Consumer Discretionary, and Manufacturing.

As global equity markets pull back amid the U.S./China tariff saga we continue to believe this is an attractive time to add exposure. This view is supported technically with all major global indexes (MSCI ACWI, ACWI ex-U.S., EAFE, and EM) pulling back to their respective 200-day moving averages. In this report we highlight important technical levels across global markets and highlight actionable opportunities from a bottoms-up perspective within Europe (attractive pullback opportunity on the STOXX Europe 600 index) and Japan, including stocks within Financials, Communications, Consumer Discretionary, and Manufacturing.

Opportunities in European & Japanese Equities

Netherlands

Randstad Holding nv provides temporary employees.  The Company places workers for temporary assignments in educational, secretarial and banking, information technology, engineering, and finance positions.  The Company operates primarily in the Benelux countries, Germany, Canada, Denmark, France, Italy, Portugal, Spain, the United Kingdom, Switzerland, and the United States.

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Randstad Holding Nv (RAND NA)

Renrui HR Technology IPO: Valuation Unappealing

Renrui Human Resources (6919 HK) is the largest company operating in China’s flexible staffing services market by revenue in 2018, accounting for a...

Arun George

Renrui HR Technology IPO Initiation: Not the Perfect Candidate

Renrui Human Resources (6919 HK) is the largest company operating in China’s flexible staffing services market by revenue in 2018, accounting for a...

Arun George

Int’l Human Resources & Employment Services Stocks Are Bottoming -- Add Exposure

Our international Human Resources & Employment Services Groups are showing signs of price and RS bottoms throughout Japan, Europe, and the...

Vermilion Research

Developed Markets Chart Book: Europe in Focus

This report highlights actionable set ups from predominately European, developed markets, and is supportive of our view that Europe is bottoming, a...

Vermilion Research

Opportunities in European & Japanese Equities

As global equity markets pull back amid the U.S./China tariff saga we continue to believe this is an attractive time to add exposure. This view is...

Vermilion Research

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