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Smartkarma Daily Briefs

Indonesia: Vedanta Resources and more

By | Daily Briefs, Indonesia

In today’s briefing:

  • Weekly Wrap – 29 Apr 2022

Weekly Wrap – 29 Apr 2022

By Charles Macgregor

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. China Jinmao Holdings
  2. Guangzhou R&F Properties
  3. Sunac China Holdings
  4. Greenland Hong Kong Holdings
  5. Evergrande

and more…


Before it’s here, it’s on Smartkarma

Equity Bottom-Up: China Education Group, Lasertec Corp, Meituan, Advantest Corp, Pan Pacific International Holdings, Clinuvel Pharmaceuticals, Intel Corp, Banco Do Brasil Sa, Banco Bilbao Vizcaya Argentari and more

By | Daily Briefs, Equity Bottom-Up

In today’s briefing:

  • China Education Group (839 HK): Impressive 1H22 Result, Positive Takeaways from Call
  • Lasertec – A Miss At Stratospheric Valuations But That Isn’t Even The Biggest Problem
  • Meituan Shuts Community Group Buying in Beijing – A Late Realisation That Profits Are Not Easy
  • Advantest (6857 JP): Orders Unsustainable, Cyclical Risk High
  • Donki: New Formats, More Growth
  • Clinuvel Pharmaceuticals (CUV AU): A Profitable Growth Story, With Sustainable Long-Term Future
  • Intel 1Q22: Unexplained Optimism
  • Brazil Banking Data to February in 12 Charts – Consumer NPLs Worsened Further Pushed by Higher Rates
  • BBVA – Mexico Is the Motor for Further Capital Distribution

China Education Group (839 HK): Impressive 1H22 Result, Positive Takeaways from Call

By Osbert Tang, CFA

  • China Education Group (839 HK) demonstrates resilience amid market concerns on policy uncertainties by posting a 40.5% growth in 1H22 reported net profit and 20.1% growth in adjusted net profit. 
  • Higher education segment saw 44% profit growth and strengths will sustain into 2H22. Weaker secondary vocational and global education segments will witness a sharp recovery, based on latest application statistics.
  • CEG has secured increase in tuition and quota in the coming school year, and this will boost FY23 outlook. It opts for an Rmb500m buyback, instead of paying interim dividend.

Lasertec – A Miss At Stratospheric Valuations But That Isn’t Even The Biggest Problem

By Mio Kato

  • Lasertec’s 3Q disappointed as revenue of ¥16.6bn materially undershoot consensus estimates of ¥26.6bn but given quarterly volatility in deliveries and acceptances that is understandable. 
  • What is more concerning is the emerging picture of gross margin decline which the company had previously warned about. 
  • Given inflated valuations these small negatives together with no guidance raise could drive a continued correction.

Meituan Shuts Community Group Buying in Beijing – A Late Realisation That Profits Are Not Easy

By Shifara Samsudeen, ACMA, CGMA

  • Caixin reported on Wednesday that Meituan (3690 HK) has shut down community-group service (Meituan Select) in Beijing following news that the company plans to shut down operations in loss-making cities.
  • Community-Group buying (CGB) became popular in China in 2020 and Meituan entered the market in 3Q2020 and continues to spend heavily on the biz.
  • The market became heavily competitive in the form of price war, which attracted regulatory scrutiny and led to large players like Alibaba and JD.com opting out of the market.

Advantest (6857 JP): Orders Unsustainable, Cyclical Risk High

By Scott Foster

  • The recent surge in IC test equipment orders is unsustainable. Only service orders maintain a positive trend.
  • After peaking this fiscal year, sales and profits are likely to show double-digit declines. When earnings might hit bottom is not clear, but cyclical gearing is high. 
  • Earnings could rebound in 2 or 3 years, but visibility is poor. Don’t forget that Advantest has dropped into the red three times in the past 20 years. 

Donki: New Formats, More Growth

By Michael Causton

  • PPI has begun roll out of new, specialty food stores designed to slot into a variety of shopping malls. 
  • On the surface, these stores look like mini-Don Quijote stores, emphasising low prices and a dazzling density of product, but focused on sweets, liquor, cosmetics, or a combination.
  • Expansion will help reach new customers, reduce the expense of opening new stores, and help with building scale for private brands. 

Clinuvel Pharmaceuticals (CUV AU): A Profitable Growth Story, With Sustainable Long-Term Future

By Tina Banerjee

  • Clinuvel Pharmaceuticals (CUV AU) has sole marketed drug, Scenesse, approved in the U.S. and Europe for the treatment of a rare skin disorder that causes extreme sensitivity to light.
  • Scenesse revenue jumped 65% y/y in H1FY22, due to increasing patient demand. With the re-opening of expert centers, treatment has largely normalized in Europe.
  • Clinuvel has rich pipeline, to develop pharmaceutical products to treat a range of indications and non-prescription healthcare solutions to individuals in the wider population.

Intel 1Q22: Unexplained Optimism

By Aaron Gabin

  • Inline quarter, though margins continue to decline on market share loss and ramping new nodes. 
  • Intel is overly optimistic about PCs rebounding in the 2H; 2021’s 15% growth is not sustainable.
  • Intel maintained its full year revenue guidance and increased its EPS despite lowering 2Q’s guidance. This implies an acceleration in the back half. We find that overly optimistic

Brazil Banking Data to February in 12 Charts – Consumer NPLs Worsened Further Pushed by Higher Rates

By Victor Galliano

  • Brazil’s consumer credit quality trends to February deteriorated further relative to the previous month, despite corporate credit quality improving marginally
  • System loan growth was 16.6% for the twelve months to February which was slightly faster than the YoY rate for January (16.4%), totally due to the stronger consumer loan growth
  • The BCB is in the latter stages of its benchmark rate hiking cycle, which impacts credit quality, especially in consumer categories; still, Brazilian banks should benefit from higher loan spreads

BBVA – Mexico Is the Motor for Further Capital Distribution

By Victor Galliano

  • Mexico continues to be the key contributor to BBVA group, with the offer for Garanti minorities set to increase BBVA’s share of higher risk higher reward returns from emerging markets
  • The revised offer to Garanti minorities is still 10%+ cheaper in Euro terms than at the time of its 4Q21 announcement, with a modest hit of 34bps to CET1 ratio
  • We see BBVA as an attractive value play in select emerging markets and Spain, with its well-established digital offerings as a driver for sustained premium returns and premium capital distribution

Related tickers: China Education Group (0839.HK), Lasertec Corp (6920.T), Meituan (3690.HK), Advantest Corp (6857.T), Pan Pacific International Holdings (7532.T), Clinuvel Pharmaceuticals (CUV.AX), Intel Corp (INTC.O), Banco Do Brasil Sa (BBAS3.SA), Banco Bilbao Vizcaya Argentari (BBVA.MC)

Before it’s here, it’s on Smartkarma

Equity Capital Markets: Life Insurance Corp of India (LIC) and more

By | Daily Briefs, ECM

In today’s briefing:

  • Life Insurance Corp of India IPO: Key Takeaways from the RHP

Life Insurance Corp of India IPO: Key Takeaways from the RHP

By Arun George

  • Life Insurance Corp of India (LIC) (1248Z IN) is set to launch its IPO with the anchor investor offer period starting 2 May. The offer period closes on 9 May. 
  • At the IPO price range of Rs902-949, the Indian government aims to raise $2.6-2.7 billion, which is materially lower than the initial target of $8.7 billion. 
  • Following up on Life Insurance Corp of India IPO: Premium Market, in this note, we look at the latest developments from the Red Herring Prospectus. 

Before it’s here, it’s on Smartkarma

Event-Driven: Mapletree Commercial Trust, Bank of Kyoto, KakaoBank, SK IE Technology, True Corp Pcl, Shin Keisei Electric Railway, Itausa-Investimentos Itau-Pr, Beijing Enterprises Urban Resources, Albioma SA, Kakao Pay and more

By | Daily Briefs, Event-Driven

In today’s briefing:

  • MNACT/MCT Circulars Out – Still Probably Heads I Win Tails I Win – But It’s Complicated
  • JAPAN ACTIVISM:  Silchester Goes After Bank of Kyoto
  • KOSPI 200 Constituents with a Float Rate Change: 11 Increases & 2 Reductions
  • FnGuide Secondary Battery Index (KODEX ETF) Rebalancing Preview
  • True/DTAC: Merger Delays As NBTC Board Revamped
  • Keisei-Shin Keisei: Merger Seems like a Done Deal
  • Itausa (ITSA4 BZ) – Too Narrow a NAV Discount, and the Dividend Yield Is No Longer Compelling
  • Beijing Enterprises Urban Resources’ MGO at HK$0.78. Is A Bump Possible?
  • KKR / Albioma: Agreed Offer, Est. Timetable
  • End of Mandatory Lock-Up Periods for 40 Companies in Korea in May 2022

MNACT/MCT Circulars Out – Still Probably Heads I Win Tails I Win – But It’s Complicated

By Travis Lundy

  • The Mapletree North Asia Commercial Trust (MAGIC SP) Scheme Doc and Mapletree Commercial Trust (MCT SP) Circular are both out this morning. 
  • The IFA deems the deal FAIR and REASONABLE. This is not surprising. It was already going to be so with just the scrip, but with the cash bump it’s easier.
  • But the situation is complicated. And the complications have complications. The trade is still to be long MCT, and long MCT vs MNACT is an interesting idea.

JAPAN ACTIVISM:  Silchester Goes After Bank of Kyoto

By Travis Lundy

  • Silchester International Investors has owned Bank of Kyoto (8369 JP) for 16 years and is now the largest shareholder in the bank.
  • They have been dissatisfied, become vocal behind the scenes with their dissatisfaction, and BoK management disagrees so they will go to the mattresses. Gently. 
  • This could get some investors excited, but it is unlikely to be a successful activist effort.

KOSPI 200 Constituents with a Float Rate Change: 11 Increases & 2 Reductions

By Sanghyun Park


FnGuide Secondary Battery Index (KODEX ETF) Rebalancing Preview

By Sanghyun Park

  • The FnGuide Secondary Battery Index currently holds an AUM of ₩1.35T, and the next rebalancing implementation period is from June 13th to 15th.
  • Since these are same-sector stocks with a high cointegration level, they are suitable for narrow-window basket trading based on passive flow differences.
  • So, I would consider basket trading by targeting the large-cap constituents with a relatively significant passive flow: SK Innovation (096770), SK IE Technology (361610), Ecopro BM (247540), & Ecopro (086520) 

True/DTAC: Merger Delays As NBTC Board Revamped

By David Blennerhassett

  • The newly appointed board of Thailand’s NBTC has set up four subcommittees to study the planned merger of True Corp Pcl (TRUE TB)and Total Access Communication (DTAC TB).
  • Previously NBTC was expected to conclude its vetting by the 15 May. That is now unlikely to occur. 
  • In letters to the NBTC, True insisted the DTAC merger must not be delayed from the expected mid-June completion timetable. NBTC is, appropriately, investigating the merger on its own terms.

Keisei-Shin Keisei: Merger Seems like a Done Deal

By Janaghan Jeyakumar, CFA

  • Japan-Based Railway Company Keisei Electric Railway Co (9009 JP) (“Keisei”) and its 44.64%-owned equity method affiliate Shin Keisei Electric Railway (9014 JP) (“Shin Keisei”) have signed a Share Exchange Agreement.
  • Shin Keisei Shareholders will receive 0.82 Keisei Shares per Shin Keisei Share. Following the completion of this Deal, Shin Keisei will become a wholly-owned subsidiary of Keisei.
  • Below is a closer look at the details of this Transaction and the likelihood of Deal Completion.

Itausa (ITSA4 BZ) – Too Narrow a NAV Discount, and the Dividend Yield Is No Longer Compelling

By Victor Galliano

  • Itausa is trading at an 19.6% discount to the HoldCo’s NAV, with the discount narrowing sharply over the last two months
  • In addition, after a big increase in the dividend per share announced due to 2021 results, we believe that it is unlikely to see another big increase going forward
  • Banco Itaú Unibanco, Itausa’s largest investment, is positively geared to the hiking interest rate cycle by the Brazil central bank; we prefer direct exposure to the bank versus the holdco

Beijing Enterprises Urban Resources’ MGO at HK$0.78. Is A Bump Possible?

By Arun George

  • Beijing Enterprises Water Group (371 HK)/(BEWG) will launch a conditional mandatory general offer (MGO) for Beijing Enterprises Urban Resources (3718 HK) at HK$0.78 as it crossed the 30%+ voting threshold. 
  • The MGO is conditional on the offeror and concert parties holding more than 50% of the voting rights (currently own 38.64%). The MGO price is unattractive, in our view.
  • BEWG’s justification for the offer and lack of a “no increase in offer price” wording suggests the possibility of a bump. The shares closed 2.6% above the MGO price.    

KKR / Albioma: Agreed Offer, Est. Timetable

By Jesus Rodriguez Aguilar

  • KKR has agreed with Albioma on a €50/share+€0.84 dividend offer, €1,583 million implied equity value, c. €2,543 million implied EV. The consideration represents 11.4x EV/Fwd EBITDA and 25.1x Fwd P/E.
  • The multiples are not as rich as in the Falck transaction, but most shareholders will be happy to tender at a 52% premium. 
  • Albioma closed at €50.7 (a 15.9% increase vs. the prior closing price). Gross spread is 0.28%, and the annual estimated return, assuming settlement by 5 August, is 1.03%, probably low.

End of Mandatory Lock-Up Periods for 40 Companies in Korea in May 2022

By Douglas Kim

  • In this insight, we discuss end of the mandatory lock-up periods for 40 stocks in Korea in May 2022, among which 4 are in KOSPI and 36 are in KOSDAQ.
  • These 40 stocks on average could be subject to further selling pressures in May and could underperform relative to the market. 
  • Among these 40 stocks, the following stocks such as Kakao Pay, Enchem, DearU, and 4by4 could face further selling pressures in the coming weeks.

Before it’s here, it’s on Smartkarma

China: China Education Group, Meituan, Beijing Enterprises Urban Resources, Agile Property Holdings, Guodian Technology & Environment Group and more

By | China, Daily Briefs

In today’s briefing:

  • China Education Group (839 HK): Impressive 1H22 Result, Positive Takeaways from Call
  • Meituan Shuts Community Group Buying in Beijing – A Late Realisation That Profits Are Not Easy
  • Beijing Enterprises Urban Resources’ MGO at HK$0.78. Is A Bump Possible?
  • Chinese Property Weekly – 29 April 2022 – Lucror Analytics
  • Chinese Property Weekly – 29 April 2022 – Lucror Analytics
  • Guodian Tech (1296 HK): Composite Doc Out. 20th May H-Class Meeting

China Education Group (839 HK): Impressive 1H22 Result, Positive Takeaways from Call

By Osbert Tang, CFA

  • China Education Group (839 HK) demonstrates resilience amid market concerns on policy uncertainties by posting a 40.5% growth in 1H22 reported net profit and 20.1% growth in adjusted net profit. 
  • Higher education segment saw 44% profit growth and strengths will sustain into 2H22. Weaker secondary vocational and global education segments will witness a sharp recovery, based on latest application statistics.
  • CEG has secured increase in tuition and quota in the coming school year, and this will boost FY23 outlook. It opts for an Rmb500m buyback, instead of paying interim dividend.

Meituan Shuts Community Group Buying in Beijing – A Late Realisation That Profits Are Not Easy

By Shifara Samsudeen, ACMA, CGMA

  • Caixin reported on Wednesday that Meituan (3690 HK) has shut down community-group service (Meituan Select) in Beijing following news that the company plans to shut down operations in loss-making cities.
  • Community-Group buying (CGB) became popular in China in 2020 and Meituan entered the market in 3Q2020 and continues to spend heavily on the biz.
  • The market became heavily competitive in the form of price war, which attracted regulatory scrutiny and led to large players like Alibaba and JD.com opting out of the market.

Beijing Enterprises Urban Resources’ MGO at HK$0.78. Is A Bump Possible?

By Arun George

  • Beijing Enterprises Water Group (371 HK)/(BEWG) will launch a conditional mandatory general offer (MGO) for Beijing Enterprises Urban Resources (3718 HK) at HK$0.78 as it crossed the 30%+ voting threshold. 
  • The MGO is conditional on the offeror and concert parties holding more than 50% of the voting rights (currently own 38.64%). The MGO price is unattractive, in our view.
  • BEWG’s justification for the offer and lack of a “no increase in offer price” wording suggests the possibility of a bump. The shares closed 2.6% above the MGO price.    

Chinese Property Weekly – 29 April 2022 – Lucror Analytics

By Charles Macgregor

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.


Chinese Property Weekly – 29 April 2022 – Lucror Analytics

By Charles Macgregor

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.


Guodian Tech (1296 HK): Composite Doc Out. 20th May H-Class Meeting

By David Blennerhassett

  • Guodian Technology & Environment (1296 HK)‘s Composite Document is now out. The Scheme Meeting will be held on the 20th May with expected payment on or before the 9 June. 
  • The Independent Financial Advisor (Gram Capital) has concluded China Energy and Guodian Power’s Offer is fair and reasonable. 
  • This is a done deal – play the spread. This is trading at a gross/annualised spread of 1.9%/18.6%. 

Before it’s here, it’s on Smartkarma

Singapore: Mapletree Commercial Trust and more

By | Daily Briefs, Singapore

In today’s briefing:

  • MNACT/MCT Circulars Out – Still Probably Heads I Win Tails I Win – But It’s Complicated

MNACT/MCT Circulars Out – Still Probably Heads I Win Tails I Win – But It’s Complicated

By Travis Lundy

  • The Mapletree North Asia Commercial Trust (MAGIC SP) Scheme Doc and Mapletree Commercial Trust (MCT SP) Circular are both out this morning. 
  • The IFA deems the deal FAIR and REASONABLE. This is not surprising. It was already going to be so with just the scrip, but with the cash bump it’s easier.
  • But the situation is complicated. And the complications have complications. The trade is still to be long MCT, and long MCT vs MNACT is an interesting idea.

Before it’s here, it’s on Smartkarma

Thailand: True Corp Pcl and more

By | Daily Briefs, Thailand

In today’s briefing:

  • True/DTAC: Merger Delays As NBTC Board Revamped

True/DTAC: Merger Delays As NBTC Board Revamped

By David Blennerhassett

  • The newly appointed board of Thailand’s NBTC has set up four subcommittees to study the planned merger of True Corp Pcl (TRUE TB)and Total Access Communication (DTAC TB).
  • Previously NBTC was expected to conclude its vetting by the 15 May. That is now unlikely to occur. 
  • In letters to the NBTC, True insisted the DTAC merger must not be delayed from the expected mid-June completion timetable. NBTC is, appropriately, investigating the merger on its own terms.

Before it’s here, it’s on Smartkarma

Consumer: China Education Group, Pan Pacific International Holdings and more

By | Consumer, Daily Briefs

In today’s briefing:

  • China Education Group (839 HK): Impressive 1H22 Result, Positive Takeaways from Call
  • Donki: New Formats, More Growth

China Education Group (839 HK): Impressive 1H22 Result, Positive Takeaways from Call

By Osbert Tang, CFA

  • China Education Group (839 HK) demonstrates resilience amid market concerns on policy uncertainties by posting a 40.5% growth in 1H22 reported net profit and 20.1% growth in adjusted net profit. 
  • Higher education segment saw 44% profit growth and strengths will sustain into 2H22. Weaker secondary vocational and global education segments will witness a sharp recovery, based on latest application statistics.
  • CEG has secured increase in tuition and quota in the coming school year, and this will boost FY23 outlook. It opts for an Rmb500m buyback, instead of paying interim dividend.

Donki: New Formats, More Growth

By Michael Causton

  • PPI has begun roll out of new, specialty food stores designed to slot into a variety of shopping malls. 
  • On the surface, these stores look like mini-Don Quijote stores, emphasising low prices and a dazzling density of product, but focused on sweets, liquor, cosmetics, or a combination.
  • Expansion will help reach new customers, reduce the expense of opening new stores, and help with building scale for private brands. 

Before it’s here, it’s on Smartkarma

Japan: Bank of Kyoto, Lasertec Corp, Shin Keisei Electric Railway, Advantest Corp, Pan Pacific International Holdings, Tokyo Stock Exchange Tokyo Price Index Topix and more

By | Daily Briefs, Japan

In today’s briefing:

  • JAPAN ACTIVISM:  Silchester Goes After Bank of Kyoto
  • Lasertec – A Miss At Stratospheric Valuations But That Isn’t Even The Biggest Problem
  • Keisei-Shin Keisei: Merger Seems like a Done Deal
  • Advantest (6857 JP): Orders Unsustainable, Cyclical Risk High
  • Donki: New Formats, More Growth
  • Japan’s Governance: About an Article on Companies to Which Transitional Measures Are Applied

JAPAN ACTIVISM:  Silchester Goes After Bank of Kyoto

By Travis Lundy

  • Silchester International Investors has owned Bank of Kyoto (8369 JP) for 16 years and is now the largest shareholder in the bank.
  • They have been dissatisfied, become vocal behind the scenes with their dissatisfaction, and BoK management disagrees so they will go to the mattresses. Gently. 
  • This could get some investors excited, but it is unlikely to be a successful activist effort.

Lasertec – A Miss At Stratospheric Valuations But That Isn’t Even The Biggest Problem

By Mio Kato

  • Lasertec’s 3Q disappointed as revenue of ¥16.6bn materially undershoot consensus estimates of ¥26.6bn but given quarterly volatility in deliveries and acceptances that is understandable. 
  • What is more concerning is the emerging picture of gross margin decline which the company had previously warned about. 
  • Given inflated valuations these small negatives together with no guidance raise could drive a continued correction.

Keisei-Shin Keisei: Merger Seems like a Done Deal

By Janaghan Jeyakumar, CFA

  • Japan-Based Railway Company Keisei Electric Railway Co (9009 JP) (“Keisei”) and its 44.64%-owned equity method affiliate Shin Keisei Electric Railway (9014 JP) (“Shin Keisei”) have signed a Share Exchange Agreement.
  • Shin Keisei Shareholders will receive 0.82 Keisei Shares per Shin Keisei Share. Following the completion of this Deal, Shin Keisei will become a wholly-owned subsidiary of Keisei.
  • Below is a closer look at the details of this Transaction and the likelihood of Deal Completion.

Advantest (6857 JP): Orders Unsustainable, Cyclical Risk High

By Scott Foster

  • The recent surge in IC test equipment orders is unsustainable. Only service orders maintain a positive trend.
  • After peaking this fiscal year, sales and profits are likely to show double-digit declines. When earnings might hit bottom is not clear, but cyclical gearing is high. 
  • Earnings could rebound in 2 or 3 years, but visibility is poor. Don’t forget that Advantest has dropped into the red three times in the past 20 years. 

Donki: New Formats, More Growth

By Michael Causton

  • PPI has begun roll out of new, specialty food stores designed to slot into a variety of shopping malls. 
  • On the surface, these stores look like mini-Don Quijote stores, emphasising low prices and a dazzling density of product, but focused on sweets, liquor, cosmetics, or a combination.
  • Expansion will help reach new customers, reduce the expense of opening new stores, and help with building scale for private brands. 

Japan’s Governance: About an Article on Companies to Which Transitional Measures Are Applied

By Aki Matsumoto

  • Since all 9 companies have low foreign shareholding ratios due to the presence of large shareholders, a shortcut to increasing stock price performance is to increase the foreign shareholding ratio.
  • Unless it’s feasible to reduce stake of major shareholders, the key will be to raise ROA, which is correlated with valuations, so growth policy and capital allocation must be clarified.
  • For long-term investors, continued increase in the % independent directors is also helpful. The stock performance of these companies will likely vary in the future depending on the measures taken.

Before it’s here, it’s on Smartkarma

Equity Capital Markets: Campus Activewear Ltd, Life Insurance Corp of India (LIC), Chungdam Global, Scivita Medical Technology and more

By | Daily Briefs, ECM

In today’s briefing:

  • Campus Activewear IPO: Mysterious Return Ratios
  • Life Insurance Corporation of India IPO – Regional Peer Comparison
  • Chungdam Global IPO Preview
  • Pre-IPO Scivita Medical Technology – The Industry, the Business, and the Concerns

Campus Activewear IPO: Mysterious Return Ratios

By Nitin Mangal

  • Campus Activewear Ltd (1535013D IN) is about to go public soon. 
  • The RHP has portrayed Campus’s return ratios such as ROCE to be one of the highest in its peer group, inching past the likes of Bata India Ltd (BATA IN).
  • However, upon further investigation of the financials, the return ratios seem to be mysterious, simply because of capital reserve arising from acquisition of promoter-companies, back when Ind AS was adopted.

Life Insurance Corporation of India IPO – Regional Peer Comparison

By Sumeet Singh

  • Government of India (GoI) is looking to raise around US$2.7bn via selling a 3.5% stake in Life Insurance Corporation of India (LIC) in its upcoming India IPO.
  • This is less than half of its initial plans in terms of fundraising target and comes at less than half of its initial valuation target.
  • We have looked at various aspects of the deal in our earlier notes. In this note, we compare it to its international peers and talk about valuations.

Chungdam Global IPO Preview

By Douglas Kim

  • Chungdam Global is getting ready to complete its IPO in the next several weeks. The expected market cap after the IPO is from 179 billion won to 204 billion won.
  • Chungdam Global sells Korean cosmetics and other global beauty brands to e-commerce companies in China and other countries. It generated more than 75% of its sales in 2021 from JD.com.
  • The company experienced exceptional growth in sales and profits in the past several years. Its sales and operating profits jumped by 97.4% and 204% CAGR from 2019 to 2021, respectively

Pre-IPO Scivita Medical Technology – The Industry, the Business, and the Concerns

By Xinyao (Criss) Wang

  • Scivita Medical Technology (SMT HK) has certain technical advantage and a comprehensive portfolio of products and candidates, which would help the Company seize a position in this market.
  • There are also some potential risks and concerns that could be unfavorable for Scivita’s development, which should be aware of by investors.
  • In terms of the valuation, SonoScape and Aohua Endoscopy (688212.CH) could be the comparable companies, but the valuation of Scivita should be lower than either of them.

Before it’s here, it’s on Smartkarma