Smartkarma Daily Briefs

• Back on the 14th November, Ping An Healthcare and Technology (1833 HK) (PA Gooddoctor announced a change in use of proceeds, including the payment of a punchy HK$9.70/share special dividend.
• A scrip option was concurrently afforded. The results of that scrip election have now been announced, the completion of which, triggers an unconditional MGO from Ping An Insurance  (601318 CH).
• The MGO price is HK$6.12/share, a price made public last month. For those investors trading the event and who bought PA Gooddoctor cum dividend, it has worked out well.

• In this note, we will take a look at the Asia Pacific IPO pipeline for 2025, starting with Hong Kong.
• This list has been compiled on a best effort basis from tracking the company filings and through various other sources.
• The deals you see in this note are only a part of our full IPO pipeline tracker. Feel free to drop us a message for additional information on these IPOs.

• On 6 January, Smart Share Global (EM US) disclosed a non-binding proposal from a Trustar Capital-sponsored MBO at US$1.25 per ADS, a 74.8% premium to the undisturbed price of US$0.72.
• The offer is unattractive to the IPO price (US$8.50), average sell-side price targets (US$1.87) and historical trading ranges. 
• Despite the light offer, the shareholder vote is done (two-thirds voting threshold) as the buyer consortium represents 64.0% of the voting power. A binding proposal will be forthcoming.  

• Dream International, a Hong Kong-based company run by a Korean family, has seen significant growth in revenue and earnings per share over the past decade.
• Despite facing challenges such as theft of funds and holding a large cash pile, the company has shown strong performance with an 18% return on equity over the past 15 years.
• Trading at a low multiple of earnings and holding a significant cash reserve, Dream International presents an appealing investment opportunity for value investors due to its potential for continued growth and competitive advantages in the market.

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.

• Sony Group Corporation has exhibited a mix of strengths and challenges in its latest financial results, which provide insights into its current business landscape and future outlook.
• Positive aspects of Sony’s results are largely attributable to robust performance in key segments like Gaming & Network Services (G&NS) and Music.
• The company reported a 9% increase in consolidated sales, excluding the Financial Services segment, year-on-year, with operating income showing a significant increase of 57% for the quarter.

• Aspirasi Hidup Indonesia (ACES IJ) has forged ahead with its rebranding after ending its licensing agreement with ACES US, changing its store branding to AZKO from 1st January 2025.
• The new branding has already been rolled out to several stores but the company has given a 3-month window for all storefronts to be completed across Indonesia. 
• We view this rebranding exercise as an opportunity for the company to lift sales further through heavy promotions and a more aggressive store rollout. Valuations remain attractive relative to history.

• Brigade Hotel Ventures Ltd (BHV IN) is an owner and developer of hotels in India, focusing primarily on South India, plans to raise about US$107m through its upcoming India IPO.
• It has a current portfolio of  9 operating hotels, of which, 4, 3 and 2 are operated under Accor, InterContinental, Marriott brands.
• BHVL intends to use the IPO proceeds primarily to repay debt of INR 4.8bn and to purchase land from the promoter for further expansion.

• Tire production volumes are declining
• Major tire manufacturers are closing/withdrawing from the Chinese truck tire market
• Emerging competitors are expanding capacity, challenging established suppliers 

• Geely’s sales volume grew by 32% in 2024 and management set a growth target of 25% for 2025.
• BEV boomed in 2H24 and will be the protagonist in 2025.
• We believe the overseas market will also be promising for Geely.

• While companies are eager to improve ％ of female board members, for which they are required to meet new targets, they are less enthusiastic about raising ％ of independent directors.
• The improvement in ％ of independent directors has been decreasing year by year. As the importance of independent directors increases, it’s necessary to demand increase in this ratio through engagement.
• For the other evaluation criteria, the median value remained unchanged from the previous year. Meanwhile, some traditional companies have not been able to eliminate the position of ex-CEO advisors.