ECM Daily Briefs | Page 123 of 161

In today’s briefing:

ECM Weekly (27th Feb 2022) – LIC, SBI Sumishin, Farm Fresh, Yunkang, Shanghai Pulse, Jinmao, IDP Edu

ECM Weekly (27th Feb 2022) – LIC, SBI Sumishin, Farm Fresh, Yunkang, Shanghai Pulse, Jinmao, IDP Edu

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
Life Insurance Corp of India (1248Z IN) and SBI Sumishin Net Bank (7163 JP) are the big listing still on the anvil.
Placement scene continues to remain quiet, with CTOS Digital Bhd (CTOS MK) being the only large one.

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Feb 26

Equity Capital Markets: Jinmao Property Services, Yunkang Group and more

In today’s briefing:

Jinmao Property Services IPO – Premium Asking Valuation and Cornerstones Took up 80% of Deal
Yunkang IPO: Core Business Growth to Slow Down Post-Covid

Jinmao Property Services IPO – Premium Asking Valuation and Cornerstones Took up 80% of Deal

By Shifara Samsudeen, ACMA, CGMA

Jinmao Property Services (JM HK) is looking to raise around US$105m in its Hong Kong IPO.
At listing, it is asking for a steep premium and 82% of the deal size has already been taken up by cornerstones, not leaving a whole lot for other investors.
In this note, we will look at deal dynamics, assumptions, and share our thoughts on valuation.

Yunkang IPO: Core Business Growth to Slow Down Post-Covid

Yunkang Group (YK HK) is a medical operation service provider in China and offers a full suite of diagnostic testing services.
The company’s earnings had a boost in 2020 with the pandemic which resulted in huge demand for Covid-19 diagnostic tests.
Yunkang has filed for an IPO to raise about US$200m. We expect the company’s earnings to gradually decline with pandemic conditions easing off.

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Feb 25

Equity Capital Markets: Yunkang Group, Shanghai Pulse Medical Technology and more

In today’s briefing:

Yunkang Group Pre-IPO – Would Need to Prove Itself Post-COVID
Shanghai Pulse Medical (博动医疗) Pre-IPO: Leading Image-Based FFR Player

Yunkang Group Pre-IPO – Would Need to Prove Itself Post-COVID

Yunkang Group (YK HK) is looking to raise about US$200m in its upcoming Hong Kong IPO.
Yunkang Group is a medical operation service provider in China and as per F&S, had a market share of 3.7% in China’s medical operation service market as per 2020 revenue.
While it has managed to grow its on-site diagnostics centers, the firm has to prove that it can still thrive post-COVID.

Shanghai Pulse Medical (博动医疗) Pre-IPO: Leading Image-Based FFR Player

By Ke Yan, CFA, FRM

Shanghai Pulse is a leading player in the FFR assessment in China. The company is looking to raise up to USD 200 m via a Hong Kong listing.
We look at the company’s key products QFR, OFR and UFR. We also provide our thoughts on the investment thesis.
We think the company has a decent investor backing and meanwhile we also highlight concerns on its management.

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Feb 24

Equity Capital Markets: Delhivery, IDP Education, ClouDr Group and more

By Shifara Samsudeen, ACMA, CGMA

In today’s briefing:

Delhivery IPO: A Bumpy Delivery
IDP Education Placement – Time for Round 2 (US$700m Worth) Of the Selldown
Pre-IPO ClouDr Group – The Logical Business Model Can Support Future Growth

Delhivery IPO: A Bumpy Delivery

Delhivery (1058656D IN) is a fully integrated logistics player in India. The company’s application for a listing has been approved by the regulators.
The company plans to raise US$650m through issuing new shares while existing shareholders will offer US$3120m worth of shares at the IPO.
The company plans to use proceeds from the IPO for funding growth (both organic as well as inorganic growth through acquisitions and strategic initiatives) and for other general corporate purposes.

IDP Education Placement – Time for Round 2 (US$700m Worth) Of the Selldown

Education Australia, the largest shareholder of IDP Education, last raised around US$858m (A$1.1bn) via selling 15% of IDP Education in Aug 2021.
The lock-up from that deal is set to expire later this month, which will result in an additional 12.5% of the company’s shares, worth US$670m (A$927m) being unlocked.
In this note we will talk about the recent results and the upcoming lockup expiry.

Pre-IPO ClouDr Group – The Logical Business Model Can Support Future Growth

By Xinyao (Criss) Wang

Based on our analysis, the logic of ClouDr Group’s business model is more solid and feasible than that of Ping An Good Doctor, indicating better outlook.
If compared with JD Health and Alibaba Health,besides the sales of pharmacy supplies and hospital supplies, ClouDr also provides hospital/pharmacy SaaS services, indicating wider business scope and broader development space.
In terms of valuation, Neusoft Xikang Holdings (NXH HK) is a good comparable company for ClouDr,but investors need to be aware of the market sentiment to new IPOs at that time.

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Feb 21

Equity Capital Markets: Life Insurance Corp of India, Huitongda and more

In today’s briefing:

Life Insurance Corp of India IPO: Premium Market
Huitongda IPO – First Day Trading

Life Insurance Corp of India IPO: Premium Market

By Arun George

Life Insurance Corp of India (1248Z IN) is the largest life insurer in India. LIC is looking to raise about $8 billion. It opens for anchor investors on 11 March.
LIC has leveraged its dominance to deliver healthy premium growth and high persistency ratio. However, the VNB margin and operational efficiency metrics are mid-tier compared to peers.
On balance, the fundamentals look sound. The IPO is worth a look for investors willing to brave the volatile IPO market conditions.

Huitongda IPO – First Day Trading

By Oshadhi Kumarasiri

Huitongda (9878 HK) had a subdued stock market debut with shares opening marginally above the IPO price.
Its subdued first-day performance suggests that investors are no longer misled by artificially low valuation multiples of “1P” EC players.
Based on EV/ (GMV + Retail Revenue), there’s a 38% downside to Huitongda’s valuation. However, it may be best to wait for signs of weakness before arranging a short position.

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Feb 20

Equity Capital Markets: Life Insurance Corp of India and more

In today’s briefing:

ECM Weekly (20th Feb 2022) – LIC, SBI Sumishin, Huitongda, Delhivery, Vedant, Persol, Emcure, Linom

ECM Weekly (20th Feb 2022) – LIC, SBI Sumishin, Huitongda, Delhivery, Vedant, Persol, Emcure, Linom

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
Life Insurance Corp of India (1248Z IN) and SBI Sumishin Net Bank (7163 JP) are set to keep everyone busy till March.
On the placement front, Japanese accelerated selldowns continue their stellar record with Persol Holdings (2181 JP).

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Feb 19

Equity Capital Markets: Daemyung Energy and more

In today’s briefing:

Daemyung Energy IPO Valuation Analysis

Daemyung Energy IPO Valuation Analysis

By Douglas Kim

Our base case valuation of Daemyung Energy is implied market cap of 624 billion won or target price of 35,003 won per share.
Our target price represents 21% upside from the high end of the IPO price range, suggesting a reasonable upside. Therefore, we have a positive view of this IPO.
Our base case valuation is based on 15.7x P/E (2022) which is based on a 30% discount to the comps’ average P/E valuation multiple in 2022.

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Feb 18

Equity Capital Markets: Huitongda and more

In today’s briefing:

Huitongda (汇通达) IPO Trading – Subscription Rates and Cornerstone Quality Leaves Much to Be Desired

Huitongda (汇通达) IPO Trading – Subscription Rates and Cornerstone Quality Leaves Much to Be Desired

Huitongda (9878 HK) raised around US$285m in its Hong Kong IPO.
Overall, we are not comfortable with paying a premium valuation for HTD given its small scale of operations in a highly competitive and fragmented market.
In this note, we will look at the trading dynamics and current valuation.

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Feb 16

Equity Capital Markets: Persol Holdings, Linmon Media, Emcure Pharmaceuticals, Vedant Fashions, Biocytogen Pharmaceuticals (Beijing) and more

In today’s briefing:

Persol Holdings Placement – Selldown by Cross-Shareholder
Linmon Media (柠萌影业) Pre-IPO – Consistently Putting up a Good Show
Emcure Pharmaceuticals Pre-IPO – Proforma Earnings Were Strong but It Faces a Host of Legal Issues
Vedant Fashions IPO Trading – Liked by Instis While Retail Gave It a Miss
Pre-IPO Biocytogen Pharmaceuticals – The Novel Development Model Offset the Pipeline’s Shortcomings

Persol Holdings Placement – Selldown by Cross-Shareholder

Kelly Services Inc A (KELYA US) aims to raise around US$200m via selling its 3.8% stake in Persol Holdings (2181 JP).
Kelly Services mentioned that it was looking to end its cross-shareholding with Persol Holdings in its earnings announcement. The two share a JV in PersolKelly.
In this note, we will run the deal through our ECM framework and comment on other deal dynamics.

Linmon Media (柠萌影业) Pre-IPO – Consistently Putting up a Good Show

Linmon Media (LM HK) is looking to raise about US$300m in its upcoming Hong Kong IPO.
Linmon Media (LM) is a content production firm that operates the full value chain of investment, production, distribution, promotion and derivatives licensing of drama series.
In this note, we take a look at LM’s business, financials, and share our thoughts on the IPO.

Emcure Pharmaceuticals Pre-IPO – Proforma Earnings Were Strong but It Faces a Host of Legal Issues

Emcure Pharmaceuticals Limited is looking to raise around US$500m in its upcoming India IPO.
EP is an Indian Pharmaceutical company engaged in the developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.
In this note, we talk about the various aspects of the deal.

Vedant Fashions IPO Trading – Liked by Instis While Retail Gave It a Miss

Vedant Fashions raised around US$420m in its India IPO. While insti demand was decent, retail investor gave it a miss.
It is a fashionwear company targeting the Indian wedding and celebration wear segment. According to CRISIL, it was the largest company in India in the men’s Indian wedding wear segment.
In this note, we will talk about the trading updates and other deal dynamics.

Pre-IPO Biocytogen Pharmaceuticals – The Novel Development Model Offset the Pipeline’s Shortcomings

By Xinyao (Criss) Wang

The candidates in Biocytogen’s pipeline do not have advantages in development progress and also have to face fierce competition, so continuous large R&D investment in the future would be inevitable.
However, the development model of Biocytogen is very novel and special, which could make it a rare target in the market if it is successfully listed.
Therefore, the certainty of Biocytogen’s future growth is expected to improve gradually, and the mid- and long-term investment value would continue to increase due to the high moat.

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Feb 09

Equity Capital Markets: Mitsubishi Estate Logistics, Adani Wilmar, GoGoX Holdings, Lepu Biopharma, Krafton Inc and more

In today’s briefing:

Mitsubishi Estate Logistics Placement – Annual Routine
Adani Wilmar IPO Trading – Listing Sentiment Isn’t the Greatest
GOGOX IPO Initiation: A Less than Perfect Delivery
Lepu Biopharma IPO: PHIP Updates
Krafton IPO Lock-Up Expiry – Few IPO Shares, More from Pre-IPO Investors

Mitsubishi Estate Logistics Placement – Annual Routine

Mitsubishi Estate Logistics (3481 JP) (MEL) is looking to raise US$203m to acquire two new properties.
The properties are expected to be more accretive to DPU than its last year’s placement, the deal has also been well-flagged and MEL has made capital raise an annual routine.
In this note, we will look at the assets to be acquired, impact on forecast and portfolio, and run the deal through our framework.

Adani Wilmar IPO Trading – Listing Sentiment Isn’t the Greatest

By Shifara Samsudeen, ACMA, CGMA

Adani Wilmar (6596700Z IN) raised around US$500m in its India IPO.
Anchor quality wasn’t the greatest, in our view, and were the firm to trade towards its peers’ trailing average, it would imply a 21.8% downside potential.
In this note we will talk about the subscription levels and trading dynamics.

GOGOX IPO Initiation: A Less than Perfect Delivery

By Arun George

GoGoX Holdings (GOGO HK) is a major online intra-city logistics platform in Asia. It is pre-marketing an HKEx IPO to raise US$200 million, according to press reports.
The fundamentals are unattractive as intensifying competition is pressuring growth, increasing losses and spurring cash burn.
As the losses and cash burn is expected to persist over the next three years, we would give the IPO a pass.

Lepu Biopharma IPO: PHIP Updates

Lepu Biopharma (LBP HK) is a biopharmaceutical company focusing on oncology therapeutics. The company has filed for an IPO to list on the Hong Kong Stock Exchange.
Lepu has the leading ADC candidate pipeline in China, in terms of number of clinical-stage ADC drug candidates. In our previous insight, we discussed the company’s business, products and outlook.
In this follow-up insight, we have highlighted and discussed some of the key new data points from the company’s Post Hearing Information Pack (PHIP).

Krafton IPO Lock-Up Expiry – Few IPO Shares, More from Pre-IPO Investors

By Zhen Zhou, Toh

Krafton Inc (259960 KS) raised about US$3.8bn in its South Korea IPO and its six month lock-up expires on 10th February.
Krafton Inc is a video game developer based in South Korea. The company is known for developing the global hit, PlayerUnknown’s Battlegrounds (PUBG), an online multiplayer battle royale game.
It is backed by Tencent and has also developed other games such as Tera, Elyon, Golf King: World Tour, Mini Golf King, Bowling King, and Archery King.

Before it’s here, it’s on Smartkarma