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Smartkarma Daily Briefs

Apr 14
0

Daily Brief Indonesia: Adi Sarana Armada and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Adi Sarana Armada (ASSA IJ) – Adapting Speedily to the New Reality

Adi Sarana Armada (ASSA IJ) – Adapting Speedily to the New Reality

By Angus Mackintosh

  • Adi Sarana Armada (ASSA IJ) provides unique exposure across Indonesia’s mobility ecosystem from car leasing to auctions and omnichannel used car sales together with logistics and last-mile delivery.
  • The company booked relatively strong sales growth last year, with very strong growth from used cars and logistics with slower auctions but profitability was impacted by bigger losses at Anteraja.
  • The outlook for 2023 looks more positive for both sales and profitability, with the ongoing growth in used car sales, recovery in the auction business, and last mile under Anteraja. 

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Apr 14
0

Daily Brief Singapore: Jardine Matheson Holdings, XP Power Ltd and more

By | Daily Briefs, Singapore

In today’s briefing:

  • Jardine Strategic’s Dissentient Shareholders: The Sensible And Workable Approach
  • XP Power – Maintaining FY23 outlook

Jardine Strategic’s Dissentient Shareholders: The Sensible And Workable Approach

By David Blennerhassett

  • Back on the 8 March 2021, Jardine Matheson (JM SP) made a cash acquisition for the 15% of Jardine Strategic (JS SP)‘s share capital it did not already own.
  • The US$33/share Offer price was arguably light. But with the amalgamation requiring 75% approval and Matheson providing an irrevocable to vote its 84.89% stake for the transaction, it was done.
  • On the 20 April 2022, the Bermuda Court dismissed Jardine’s application to strike out dissenting shareholders who acquired shares after the Offer was announced. Last month, Jardine lost its appeal. 

XP Power – Maintaining FY23 outlook

By Edison Investment Research

XP Power confirmed that trading in Q123 was in line with its expectations. As expected, order intake declined from the record level a year ago, reflecting an improving supply chain and softening end-market demand, particularly for semiconductor equipment and industrial technology. Revenue and profitability were higher than a year ago. The strong backlog provides good visibility for the remainder of the year and we expect it to gradually reduce as current year orders are shipped and customers revert to pre-pandemic ordering patterns. We maintain our forecasts.

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Apr 14
0

Daily Brief Japan: Rakuten Bank, Seven & I Holdings, Adastria Co Ltd, Tokyo Stock Exchange Tokyo Price Index Topix, Kura Sushi Inc and more

By | Daily Briefs, Japan

In today’s briefing:

  • Rakuten Bank (5838 JP) – A Keenly Priced Quality Addition to the Global Neobanks Universe
  • Retail Ads: A New Revenue Stream for Seven & I and Rival Convenience Stores
  • Adastria Takes on Uniqlo and Muji with New Chain
  • As Human Capital Disclosures Increase, Expect to Find More Interesting Relationships for Investment
  • Five Days Later

Rakuten Bank (5838 JP) – A Keenly Priced Quality Addition to the Global Neobanks Universe

By Victor Galliano

  • Rakuten Bank’s IPO will add an attractively valued Japanese neobank to the globally listed neobank universe; furthermore, the Rakuten Group ecosystem is a powerful tool for customer acquisition and retention
  • On efficiency metrics, Rakuten Bank scores well versus its key domestic peers as well as global comparables; Rakuten Group companies act as a key conduit for new clients
  • At the announced issue price of ¥1,400, Rakuten Bank’s PBV ratio implies an attractive 25% discount to its core Japanese peer SBI Sumishin Net Bank, for similar ROE

Retail Ads: A New Revenue Stream for Seven & I and Rival Convenience Stores

By Michael Causton

  • Retail media in its traditional sense is nothing new, simply referring to the use of advertising in stores, but in modern terms retail media is something far, far bigger. 
  • It is not only a trend in the US, but one that is about to explode in Japan – although in a very different format.
  • With purchase rates up two-fold in early experiments, the potential for brands advertising through retail stores will be significant with some estimates suggesting a ¥20 trillion market.

Adastria Takes on Uniqlo and Muji with New Chain

By Michael Causton

  • Adastria is on a roll, capturing more market share in both the core apparel market as well as through licensing (Forever 21) and home decoration and other lifestyle markets.
  • Until now, it has focused on slightly premium mass markets but a new chain will face Uniqlo and Muji head on in apparel basics.
  • It is also adding a new basics chain in home decoration and hoovering up contracts to supply apparel to chain stores. 

As Human Capital Disclosures Increase, Expect to Find More Interesting Relationships for Investment

By Aki Matsumoto

  • The items to be disclosed by 300 listed companies with active women are expected to be disclosed in the Human Capital section of the Sustainability section of Annual Securities Report.
  • Investors will now decide whether these disclosure items have an impact on their investment or whether they need to seek disclosure of further material factors.
  • In Metrical universe, the ratio of female executives is also useful for investment tips, as it has been found to have a significant positive correlation with ROA and Tobin’s q.

Five Days Later

By Investment Talk

  • The memo I shared about Kura Sushi five days ago had two conclusions.
  • The fundamentals of the business continue to endure and the company was going to have to raise cash fairly soon.
  • I noted that “I believe within the next 6-12 months, we may see Kura issue additional stock or tap into their credit line”.

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Apr 14
0

Daily Brief India: Adani Green Energy, Tata Technologies, LTIMindtree, Tata Consultancy Svcs, Infosys Ltd, Indegene Limited, Vedanta Resources and more

By | Daily Briefs, India

In today’s briefing:

  • Analysis of Adani Group Shareholder Structure Changes in Q1 – Stock Moved
  • Tata Technologies Pre-IPO – The Negatives – Still Has a Few Issues
  • Quiddity Leaderboard NIFTY Sep 23: LTIMINDTREE Could Be an Intra-Review NIFTY 50 ADD
  • TCS: Q4FY23 Growth and Margins Weaker than Expected
  • Infosys: Weak Q4FY23 Earnings
  • Indegene Limited (1864095D IN) Pre-IPO: Enough Head Room For Long-Term Profitable Growth
  • Morning Views Asia: Meituan, Nickel Industries Ltd, Vedanta Resources

Analysis of Adani Group Shareholder Structure Changes in Q1 – Stock Moved

By Travis Lundy

  • Every quarter, Indian companies report their “Shareholding Pattern” for all to see. They show holdings by category type, and holders over 1%. 
  • The big news in Q1 in AdaniLand was the failed FPO, thwarted by the Hindenburg Research report, and the Adani Promoter sale of stakes in 4 companies to GQG Partners. 
  • The details in the change of the shareholder structure are, however, interesting.

Tata Technologies Pre-IPO – The Negatives – Still Has a Few Issues

By Sumeet Singh

  • Tata Technologies (TATATECH IN)  (TT) is looking to raise around US$600m in its upcoming India IPO.
  • Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers. 
  • In this note we talk about the not-so-positive aspects of the deal.

Quiddity Leaderboard NIFTY Sep 23: LTIMINDTREE Could Be an Intra-Review NIFTY 50 ADD

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the names leading the race to become ADDs/DELs for the NIFTY 50 and NIFTY 100 indices in the September 2023 rebalance.
  • A couple of these names could become intra-review additions if the HDFC Limited (HDFC IN) – HDFC Bank (HDFCB IN) Merger closes prior to the September 2023 Rebalance.
  • Apart from that, there could be five ADDs/DELs for the NIFTY 100 index which by definition will also be added/deleted from the NIFTY Next 50 index.

TCS: Q4FY23 Growth and Margins Weaker than Expected

By Ankit Agrawal, CFA

  • TCS reported weaker than expected growth and margins. YoY growth in constant currency (CC) terms came in at just 10.7%. Operating Margin (OPM) came in at 24.1% vs 25% expected.
  • North America in particular has seen some demand slowdown, largely due to deferment of discretionary projects and delayed decision making. Europe is improving as energy crisis is receding.
  • Looking forward, Europe, in particular UK, is likely to lead the growth. North America may also come back as the banking crisis there seems to have been contained.

Infosys: Weak Q4FY23 Earnings

By Ankit Agrawal, CFA

  • Infosys reported a weak Q4FY23 with QoQ CC (Constant Currency) growth down by -3.2%. OPM (Operating Margin) contracted QoQ by -50bp to 21%, and was weaker than 21.5%+ expected. 
  • Led by macro concerns, demand outlook remains cautious with FY24 growth guided to be 4-7% YoY in CC terms.
  • The bottom end of the FY24 OPM guidance has been lowered to 20% vs 21% achieved in FY23. Overall OPM guidance for FY24 is 20-22%.

Indegene Limited (1864095D IN) Pre-IPO: Enough Head Room For Long-Term Profitable Growth

By Tina Banerjee

  • Indegene Limited (1864095D IN), a healthtech firm focused on life sciences commercialization is looking to raise INR32B through an IPO, comprises of fresh issue and an offer for sale.  
  • The IPO funds will be used to repay debt, fund capex, pay for one of the company’s past acquisitions, and pursue any future inorganic growth.
  • Amid a large and growing underpenetrated addressable market, Indegene is poised for long-term profitable growth by leveraging on its marquee clientele, long-standing client relationship, and comprehensive offering.  

Morning Views Asia: Meituan, Nickel Industries Ltd, Vedanta Resources

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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Apr 14
0

Daily Brief China: JD.com Inc., Melco International Development, Shougang Fushan Resources, Guoquan Food (Shanghai), Vedanta Resources, JD.com Inc (ADR), Luckin Coffee, ADICON Holdings Limited and more

By | China, Daily Briefs

In today’s briefing:

  • JD.com Inc (9618 HK) – Prominent ST Momentum Failures – Target Tactical 9-18% Rise
  • Hong Kong CEO & Director Dealings (13 Apr): Melco, CMGE, Differ, Sino Biopharmaceutical
  • Fushan Energy: Coking Coal Weak But 14% Yield and 55% of the Mkt Cap in Cash
  • Guoquan Food (Shanghai) Pre-IPO Tearsheet
  • Morning Views Asia: Meituan, Nickel Industries Ltd, Vedanta Resources
  • [JD.com (JD US, SELL, TP US$27) Earnings Preview]: Slow-Growth and Competitive Pressure Remain
  • [Luckin Coffee Inc. (LKNCY US) TP Change]: Strong New Product Sales Driving Seasonality Rebound
  • Adicon Holdings Pre-IPO – Thoughts on Valuation

JD.com Inc (9618 HK) – Prominent ST Momentum Failures – Target Tactical 9-18% Rise

By David Coloretti, CMT

  • JD.com Inc (9618 HK) has declined heavily in 2023 (-44.5%), producing a new 5 month low of 143.50 on 13 April 2023.
  • The 143.50 low was plagued by extreme ST momentum failure and the new low was quick to fail and reverse.
  • Our TSS methodology triggered a TSS < 10 at the low and justifies a further 9-18% upswing in the coming 1-2 weeks.

Hong Kong CEO & Director Dealings (13 Apr): Melco, CMGE, Differ, Sino Biopharmaceutical

By David Blennerhassett

Fushan Energy: Coking Coal Weak But 14% Yield and 55% of the Mkt Cap in Cash

By Sameer Taneja

  • After declaring a whopping 18% dividend yield in FY22, we expect Shougang Fushan Resources (639 HK)’s generous payments to continue as they could declare another 14% in FY23e.
  • The margin of safety is high as there is a cash buffer (55% of the market cap in cash) and 10-year average annual free cash flows of 1.5 bn HKD.
  • China’s FAI stimulus and stabilizing the steel margins could be catalysts to drive the share price forward in the short term.

Guoquan Food (Shanghai) Pre-IPO Tearsheet

By Clarence Chu

  • Guoquan Food (Shanghai) (1786512D CH) is looking to raise about US$500m in its upcoming Hong Kong IPO.
  • Guoquan Food (Shanghai) is a home meal solutions provider in China.
  • Offering a wide variety of home meal solutions products under its Guoquan Shihui (鍋圈食匯) brand, the firm had a total of 755 SKUs as of Dec 22. 

Morning Views Asia: Meituan, Nickel Industries Ltd, Vedanta Resources

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

[JD.com (JD US, SELL, TP US$27) Earnings Preview]: Slow-Growth and Competitive Pressure Remain

By Shawn Yang

  • We expect JD to report C1Q23 top-line and non-IFRS net income (1.7%) and (12%) vs. consensus, respectively. 
  • We expect revenue to decline (1%) YoY in 1Q23 and grow just 3% YoY in FY23, due to (1) slow recovery in key product categories like electronics; (2) team restructuring;
  • And (3) competitive landscape. We maintain SELL and US$27 TP. Our TP implies 10x 2024 P/E.

[Luckin Coffee Inc. (LKNCY US) TP Change]: Strong New Product Sales Driving Seasonality Rebound

By Shawn Yang

  • We expect Luckin to report 1Q23 revenue at 77.0% YoY to RMB4,257mn, non-GAAP operating margin and net margin are expected to increase 12.6ppt and 9.1ppt to 16.4% and 13.2%; 
  • We think the current moderate competition can bring positive externality to coffee players, whereas it may hurt street tea shops; 
  • We maintain the stock as BUY and raise TP by US$1 to US$41.

Adicon Holdings Pre-IPO – Thoughts on Valuation

By Ethan Aw

  • ADICON Holdings Limited (ADI HK)  is looking to raise about US$400m in its upcoming HK IPO. 
  • Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&S.
  • In this note, we talk about our thoughts on valuation. 

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Apr 14
0

Daily Brief Industrials: Sun Kwang, Jardine Matheson Holdings, Adi Sarana Armada, XP Power Ltd and more

By | Daily Briefs, Industrials

In today’s briefing:

  • KOSDAQ150 Ad Hoc Index Rebalance: Sun Kwang (003100) To Replace SK Oceanplant (100090)
  • Jardine Strategic’s Dissentient Shareholders: The Sensible And Workable Approach
  • Adi Sarana Armada (ASSA IJ) – Adapting Speedily to the New Reality
  • XP Power – Maintaining FY23 outlook

KOSDAQ150 Ad Hoc Index Rebalance: Sun Kwang (003100) To Replace SK Oceanplant (100090)

By Brian Freitas

  • Following SK Oceanplant (100090 KS) moving from the KOSDAQ to KOSPI Market, the stock will be deleted from the KOSDAQ 150 Index and replaced with Sun Kwang (003100 KS).
  • The change will be implemented at the close on 18 April and passive trackers will need to trade over 1x ADV on both stocks.
  • Sun Kwang (003100 KS) was a high probability index inclusion in June, so this brings forward the inclusion by a couple of months.

Jardine Strategic’s Dissentient Shareholders: The Sensible And Workable Approach

By David Blennerhassett

  • Back on the 8 March 2021, Jardine Matheson (JM SP) made a cash acquisition for the 15% of Jardine Strategic (JS SP)‘s share capital it did not already own.
  • The US$33/share Offer price was arguably light. But with the amalgamation requiring 75% approval and Matheson providing an irrevocable to vote its 84.89% stake for the transaction, it was done.
  • On the 20 April 2022, the Bermuda Court dismissed Jardine’s application to strike out dissenting shareholders who acquired shares after the Offer was announced. Last month, Jardine lost its appeal. 

Adi Sarana Armada (ASSA IJ) – Adapting Speedily to the New Reality

By Angus Mackintosh

  • Adi Sarana Armada (ASSA IJ) provides unique exposure across Indonesia’s mobility ecosystem from car leasing to auctions and omnichannel used car sales together with logistics and last-mile delivery.
  • The company booked relatively strong sales growth last year, with very strong growth from used cars and logistics with slower auctions but profitability was impacted by bigger losses at Anteraja.
  • The outlook for 2023 looks more positive for both sales and profitability, with the ongoing growth in used car sales, recovery in the auction business, and last mile under Anteraja. 

XP Power – Maintaining FY23 outlook

By Edison Investment Research

XP Power confirmed that trading in Q123 was in line with its expectations. As expected, order intake declined from the record level a year ago, reflecting an improving supply chain and softening end-market demand, particularly for semiconductor equipment and industrial technology. Revenue and profitability were higher than a year ago. The strong backlog provides good visibility for the remainder of the year and we expect it to gradually reduce as current year orders are shipped and customers revert to pre-pandemic ordering patterns. We maintain our forecasts.

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Apr 14
0

Daily Brief TMT/Internet: Global Unichip, Tata Technologies, Temenos AG, LTIMindtree, Tata Consultancy Svcs, Infosys Ltd, JD.com Inc (ADR), Soluna Holdings and more

By | Daily Briefs, TMT/Internet

In today’s briefing:

  • MSCI Taiwan May QCIR: Potential Inclusions to Drive Deletions
  • Tata Technologies Pre-IPO – The Negatives – Still Has a Few Issues
  • Temenos (TEMN SW; TMSNY US): M&A Looks Imminent
  • Quiddity Leaderboard NIFTY Sep 23: LTIMINDTREE Could Be an Intra-Review NIFTY 50 ADD
  • TCS: Q4FY23 Growth and Margins Weaker than Expected
  • Infosys: Weak Q4FY23 Earnings
  • [JD.com (JD US, SELL, TP US$27) Earnings Preview]: Slow-Growth and Competitive Pressure Remain
  • More Milestones Reached on the Path of the Company’s Evolution

MSCI Taiwan May QCIR: Potential Inclusions to Drive Deletions

By Brian Freitas

Tata Technologies Pre-IPO – The Negatives – Still Has a Few Issues

By Sumeet Singh

  • Tata Technologies (TATATECH IN)  (TT) is looking to raise around US$600m in its upcoming India IPO.
  • Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier 1 suppliers. 
  • In this note we talk about the not-so-positive aspects of the deal.

Temenos (TEMN SW; TMSNY US): M&A Looks Imminent

By Vijay Lohia, CFA

  • Temenos is an attractive takeover candidate with multiple M&A  speculation in the media in the last 12-18 months. 
  • The probability of Temenos being taken over continues to increase especially after the fresh round of banking industry turmoil witnessed in the last few weeks.
  • At a buy-out multiple of 10x EV/sales, Temenos would be worth CHF110 per share which is roughly 72% upside from here.

Quiddity Leaderboard NIFTY Sep 23: LTIMINDTREE Could Be an Intra-Review NIFTY 50 ADD

By Janaghan Jeyakumar, CFA

  • In this insight, we take a look at the names leading the race to become ADDs/DELs for the NIFTY 50 and NIFTY 100 indices in the September 2023 rebalance.
  • A couple of these names could become intra-review additions if the HDFC Limited (HDFC IN) – HDFC Bank (HDFCB IN) Merger closes prior to the September 2023 Rebalance.
  • Apart from that, there could be five ADDs/DELs for the NIFTY 100 index which by definition will also be added/deleted from the NIFTY Next 50 index.

TCS: Q4FY23 Growth and Margins Weaker than Expected

By Ankit Agrawal, CFA

  • TCS reported weaker than expected growth and margins. YoY growth in constant currency (CC) terms came in at just 10.7%. Operating Margin (OPM) came in at 24.1% vs 25% expected.
  • North America in particular has seen some demand slowdown, largely due to deferment of discretionary projects and delayed decision making. Europe is improving as energy crisis is receding.
  • Looking forward, Europe, in particular UK, is likely to lead the growth. North America may also come back as the banking crisis there seems to have been contained.

Infosys: Weak Q4FY23 Earnings

By Ankit Agrawal, CFA

  • Infosys reported a weak Q4FY23 with QoQ CC (Constant Currency) growth down by -3.2%. OPM (Operating Margin) contracted QoQ by -50bp to 21%, and was weaker than 21.5%+ expected. 
  • Led by macro concerns, demand outlook remains cautious with FY24 growth guided to be 4-7% YoY in CC terms.
  • The bottom end of the FY24 OPM guidance has been lowered to 20% vs 21% achieved in FY23. Overall OPM guidance for FY24 is 20-22%.

[JD.com (JD US, SELL, TP US$27) Earnings Preview]: Slow-Growth and Competitive Pressure Remain

By Shawn Yang

  • We expect JD to report C1Q23 top-line and non-IFRS net income (1.7%) and (12%) vs. consensus, respectively. 
  • We expect revenue to decline (1%) YoY in 1Q23 and grow just 3% YoY in FY23, due to (1) slow recovery in key product categories like electronics; (2) team restructuring;
  • And (3) competitive landscape. We maintain SELL and US$27 TP. Our TP implies 10x 2024 P/E.

More Milestones Reached on the Path of the Company’s Evolution

By Water Tower Research

  • Project Dorothy interconnection now complete and ready for energization.
  • Soluna announced that it has completed the final interconnection construction, setting up for the energization of the first 25 MW phase of the project, which will soon be followed by the 25 MW phase (Dorothy 1B).
  • The final energization requests have been submitted to ERCOT (the grid operator) and we expect the project to be energized in the coming weeks.

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Apr 14
0

Daily Brief Utilities: Adani Green Energy and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Analysis of Adani Group Shareholder Structure Changes in Q1 – Stock Moved

Analysis of Adani Group Shareholder Structure Changes in Q1 – Stock Moved

By Travis Lundy

  • Every quarter, Indian companies report their “Shareholding Pattern” for all to see. They show holdings by category type, and holders over 1%. 
  • The big news in Q1 in AdaniLand was the failed FPO, thwarted by the Hindenburg Research report, and the Adani Promoter sale of stakes in 4 companies to GQG Partners. 
  • The details in the change of the shareholder structure are, however, interesting.

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Apr 14
0

Daily Brief Energy/Materials: Bellevue Gold, Shougang Fushan Resources, Vedanta Resources and more

By | Daily Briefs, Energy & Materials Sector

In today’s briefing:

  • S&P/ASX Adhoc Index Rebalance: SVW in ASX100, BGL in ASX200
  • Fushan Energy: Coking Coal Weak But 14% Yield and 55% of the Mkt Cap in Cash
  • Morning Views Asia: Meituan, Nickel Industries Ltd, Vedanta Resources

S&P/ASX Adhoc Index Rebalance: SVW in ASX100, BGL in ASX200

By Brian Freitas

Fushan Energy: Coking Coal Weak But 14% Yield and 55% of the Mkt Cap in Cash

By Sameer Taneja

  • After declaring a whopping 18% dividend yield in FY22, we expect Shougang Fushan Resources (639 HK)’s generous payments to continue as they could declare another 14% in FY23e.
  • The margin of safety is high as there is a cash buffer (55% of the market cap in cash) and 10-year average annual free cash flows of 1.5 bn HKD.
  • China’s FAI stimulus and stabilizing the steel margins could be catalysts to drive the share price forward in the short term.

Morning Views Asia: Meituan, Nickel Industries Ltd, Vedanta Resources

By Charles Macgregor

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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Apr 14
0

Daily Brief Health Care: Pharmaessentia Corp, Indegene Limited, ADICON Holdings Limited and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • PharmaEssentia GDS Issuance – Strong Revenue Growth and Narrowing Losses
  • Indegene Limited (1864095D IN) Pre-IPO: Enough Head Room For Long-Term Profitable Growth
  • Adicon Holdings Pre-IPO – Thoughts on Valuation

PharmaEssentia GDS Issuance – Strong Revenue Growth and Narrowing Losses

By Ethan Aw

  • Pharmaessentia Corp (6446 TT) aims to raise around US$412m (TWD12.6bn) via a GDS issuance. The issuance will be a large one to digest, representing 17.6 days of three month ADV.
  • The proceeds will be used to accelerate the commercialization, further global clinical trials of BesREMi and conduct R&D in the US for the expansion of the company’s product portfolio. 
  • In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Indegene Limited (1864095D IN) Pre-IPO: Enough Head Room For Long-Term Profitable Growth

By Tina Banerjee

  • Indegene Limited (1864095D IN), a healthtech firm focused on life sciences commercialization is looking to raise INR32B through an IPO, comprises of fresh issue and an offer for sale.  
  • The IPO funds will be used to repay debt, fund capex, pay for one of the company’s past acquisitions, and pursue any future inorganic growth.
  • Amid a large and growing underpenetrated addressable market, Indegene is poised for long-term profitable growth by leveraging on its marquee clientele, long-standing client relationship, and comprehensive offering.  

Adicon Holdings Pre-IPO – Thoughts on Valuation

By Ethan Aw

  • ADICON Holdings Limited (ADI HK)  is looking to raise about US$400m in its upcoming HK IPO. 
  • Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&S.
  • In this note, we talk about our thoughts on valuation. 

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