ECM Daily Briefs | Page 62 of 161

In today’s briefing:

APR IPO Book-Building Results Analysis
Zhejiang Taimei Medical Technology Pre-IPO Tearsheet
Bharti Hexacom Pre-IPO – The Positives – Earnings Have Been Recovering Well

APR IPO Book-Building Results Analysis

By Douglas Kim

APR reported a very strong IPO book-building results. APR IPO price has been determined at 250,000 won, which is 25% higher than the high end of the IPO price range.
A total of 1,969 institutional investors participated in this IPO book-building. The demand ratio was 663 to 1. APR IPO will start trading on 26 February.
Our base case valuation of APR is target price of 370,809 won per share which represents a 48% upside from the IPO price of 250,000 won.

Zhejiang Taimei Medical Technology Pre-IPO Tearsheet

Zhejiang Taimei Medical Technology Co Ltd (1482194D CH) is looking to raise >US$100m in its upcoming Hong Kong IPO. The bookrunners on the deal are Morgan Stanley and CICC.
Zhejiang Taimei Medical Technology (ZTMT) is a digital solution provider for the life sciences R&D and commercialization sector.
As per the CIC report in the application proof, the firm was the largest digital solution provider for life sciences R&D and commercialization in China in terms of 2022 revenue.

Bharti Hexacom Pre-IPO – The Positives – Earnings Have Been Recovering Well

Bharti Hexacom is looking to raise up to US$1bn in its upcoming India IPO.
Bharti Hexacom (BH) is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India.
In this note, we talk about the positive aspects of the deal.

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Feb 13

Daily Brief ECM: Dramatic Growth of SHEIN & Temu Having Noticeable Impact On Segments Outside Of US Retail and more

In today’s briefing:

Dramatic Growth of SHEIN & Temu Having Noticeable Impact On Segments Outside Of US Retail

Dramatic Growth of SHEIN & Temu Having Noticeable Impact On Segments Outside Of US Retail

By Daniel Hellberg

The effects of SHEIN’s and Temu’s growth on US retail are already well known
But recent data points show the companies impacting other industries, too
Through their dramatic growth the two companies are gaining influence in US

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Feb 12

Daily Brief ECM: ECM Weekly (12th Feb 2024) – Nissan/Renault and more

In today’s briefing:

ECM Weekly (12th Feb 2024) – Nissan/Renault, Metcash, Digital Core, SBFC, Thai Credit, Park Hotel

ECM Weekly (12th Feb 2024) – Nissan/Renault, Metcash, Digital Core, SBFC, Thai Credit, Park Hotel

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, Thai Credit Bank finally ended Thailand’s long dry spell, although it wasn’t a happy ending.
For placements, REITs appear to be coming back to life with rates now having peaked.

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Feb 09

Daily Brief ECM: Thai Credit Bank IPO Trading – Half the Deal Already Spoken For and more

In today’s briefing:

Thai Credit Bank IPO Trading – Half the Deal Already Spoken For, the Other Half Should Be Liquid
Agilus Diagnostics Limited Pre-IPO – Still Recovering from COVID
SBFC Finance Lockup Expiry – Time to Cash in on Some Hefty Profits
Entero Healthcare IPO – Profitability Not Out of the Woods Yet

Thai Credit Bank IPO Trading – Half the Deal Already Spoken For, the Other Half Should Be Liquid

Thai Credit Bank PCL (3674238Z TB) raised around US$281m in its Thailand IPO.
TCB is a commercial bank that focuses on providing business loans to small and medium-size enterprises (SMEs), nano loans and micro credits to merchants, and home loans for individual customers.
We had looked at the firm’s past performance and shared our thoughts on TCB’s valuation in earlier notes. In this note, we will look at the trading dynamics.

Agilus Diagnostics Limited Pre-IPO – Still Recovering from COVID

Agilus Diagnostics Limited (SRLL IN) is looking to raise around US$200m in its upcoming India IPO.
Agilus Diagnostics Limited (Agilus) is a diagnostic testing service provider.
In this note, we look at the company’s past performance.

SBFC Finance Lockup Expiry – Time to Cash in on Some Hefty Profits

By Ethan Aw

SBFC Finance Limited (SBFC IN) raised around US$131m in its India IPO, after the deal was priced at INR57/share. Its six-month lockup will expire on 12th Feb 2024.
SBFC Finance is a systematically important, non-deposit taking non-banking finance company (NBFC-ND-SI), offering secured MSME Loans and Loans against Gold.
In this note, we will talk about the lock-up dynamics and updates since our last note.

Entero Healthcare IPO – Profitability Not Out of the Woods Yet

Entero Healthcare Solutions Limited (2294842D IN) is looking to raise US$193m in its India IPO.
Entero Healthcare Solutions (Entero) is a healthcare products distributor in India.
In this note, we will look at the RHP updates, undertake a peer comparison, and share our thoughts on valuation.

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Feb 08

Daily Brief ECM: Digital Core REIT Placement – Taking a Turn for the Better After All the Negative News and more

In today’s briefing:

Digital Core REIT Placement – Taking a Turn for the Better After All the Negative News
CaiNiao’s FYQ3: Solid Revenue Growth & EBITA Margin Improvement Distinguish It From Express Peers

Digital Core REIT Placement – Taking a Turn for the Better After All the Negative News

By Ethan Aw

Digital Core REIT (DCREIT SP) is looking to raise at least US$100m in its primary placement. The proceeds will be used to fund potential acquisitions and debt repayment.
The deal will be a large one to digest at 72.7 days of three month ADV and 12.8% dilution.
In this note, we’ll run the deal through our ECM framework and comment on deal dynamics.

CaiNiao’s FYQ3: Solid Revenue Growth & EBITA Margin Improvement Distinguish It From Express Peers

By Daniel Hellberg

CaiNiao’s revenue growth remained strong, up +24% Y/Y in December quarter
EBITA turned positive from loss in prior year period, but margin < FYQ2
Overall, an impressive set of results that distinguishes CaiNiao from express peers

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Feb 07

Daily Brief ECM: Kayou Pre-IPO Tearsheet and more

In today’s briefing:

Kayou Pre-IPO Tearsheet
Samhyun IPO Valuation Analysis
Pre-IPO Xiaocaiyuan International Holding – A “Dark Horse” In Mass Chinese Cuisine Market

Kayou Pre-IPO Tearsheet

By Ethan Aw

Kayou (000KAYOU CH) is looking to raise up to US$500m in its upcoming HK IPO. The deal will be run by CICC, Morgan Stanley and JP Morgan.
Kayou is a Chinese pan-entertainment product retailer of toys, with trading cards in particular as its core product.
As of 9M23 (30th Sep 23), it had an IP matrix of 44 IPs through licensing from IP partners and the development of proprietary IPs.

Samhyun IPO Valuation Analysis

By Douglas Kim

Our base case valuation of Samhyun is target price of 28,106 won, which is 25% higher than the mid-point of the IPO price range (22,500 won).
Given the moderate upside, we have a Positive view of Samhyun IPO. Our base case valuation is based on P/E of 34.6x net profit of 8.6 billion won in 2023.
Samhyun developed one of the world’s first CVVD (Continuously Variable Valve Duration) technology for automobile engines, which improves fuel efficiency by controlling the engine’s valve opening time.

Pre-IPO Xiaocaiyuan International Holding – A “Dark Horse” In Mass Chinese Cuisine Market

By Xinyao (Criss) Wang

Based on effective strategic positioning, Xiaocaiyuan is able to seize the market’s demand for cost-effective catering during consumption downgrade and the trend of increasing restaurant chain rate in China.
The key for Xiaocaiyuan to generate increasing profits at low spending-per-consumer is due to its strong supply chain, which will be favored by capital especially when Xiaocaiyuan enters community catering.
Xiaocaiyuan International Holding (XCY HK) is better than peers. However, due to poor sentiment in HKEX, it’s not sure if Xiaocaiyuan’s valuation/share price performance could outperform peers as well.

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Jan 24

Daily Brief ECM: Pre-IPO Shouhui Tech – The Business Outlook and Stock Price Performance Are Not Optimistic and more

In today’s briefing:

Pre-IPO Shouhui Tech – The Business Outlook and Stock Price Performance Are Not Optimistic
Guming Holdings (Goodme) Pre-IPO – The Negatives – Growth Sustainability Remains a Question Mark

Pre-IPO Shouhui Tech – The Business Outlook and Stock Price Performance Are Not Optimistic

By Xinyao (Criss) Wang

The essence of Shouhui’s business model is to “sell insurance” rather than provide services with technological attributes. So, Shouhui has relatively single business composition and lacks diversified sources of revenue.
The trend of “disintermediation” is becoming increasingly evident, which may lead to customers deciding to purchase insurance directly from insurance companies not from Shouhui, resulting declining demand for Shouhui’s services/products.
The business nature of insurance is incompatible with the Internet’s pursuit of rapid expansion. Cooling “Internet +insurance” investment in recent years proves the decline of market’s enthusiasm for this business.

Guming Holdings (Goodme) Pre-IPO – The Negatives – Growth Sustainability Remains a Question Mark

Guming Holdings (GUM HK) (Guming) is looking to raise US$300m in its upcoming Hong Kong IPO.
Guming Holdings (Guming) is a maker of freshly-made beverages in China.
In this note, we will talk about the not so positive aspects of the deal.

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Jan 23

Daily Brief ECM: Amer Sports (AS US) IPO: Valuation Insights and more

In today’s briefing:

Amer Sports (AS US) IPO: Valuation Insights
Amer Sports IPO Valuation Analysis
Guming Holdings (Goodme) Pre-IPO – The Positives – Benefited from Scaling Its Store Network

Amer Sports (AS US) IPO: Valuation Insights

By Arun George

Amer Sports (AS US) is a global iconic sports and outdoor brand group. Amer has launched an NYSE IPO to raise US$1.6-1.8 billion at a US$16.00 to US$18.00 price range.
We previously discussed the IPO in Amer Sports IPO: The Bull Case, Amer Sports IPO: The Bear Case and Amer Sports IPO: Valuation First-Look.
We revise our forecasts to reflect the FY23 preliminary estimates and long-term growth targets. Our valuation analysis suggests that Amer is fairly valued at the IPO price range.

Amer Sports IPO Valuation Analysis

By Douglas Kim

Amer Sports announced it plans to raise up to $1.8 billion at $16 to $18 per share, targeting a valuation of up to $8.7 billion.
We estimate the company to generate revenue of $5.6 billion (up 23.5% YoY) and operating profit of $285.7 million (down 13.7% YoY) in 2024.
We would pass on this IPO due to lack of valuation merits, highly leveraged balance sheet, and inconsistent profit margins, despite its solid sales growth in the past several years.

Guming Holdings (Goodme) Pre-IPO – The Positives – Benefited from Scaling Its Store Network

Guming Holdings (GUM HK) (Guming) is looking to raise US$300m in its upcoming Hong Kong IPO.
Guming Holdings (Guming) is a maker of freshly-made beverages in China.
In this note, we will talk about the positive aspects of the deal.

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Jan 22

Daily Brief ECM: Medi Assist Healthcare IPO Trading – Decent Subscription Rates Although Valuation Appears Fair and more

In today’s briefing:

Medi Assist Healthcare IPO Trading – Decent Subscription Rates Although Valuation Appears Fair

Medi Assist Healthcare IPO Trading – Decent Subscription Rates Although Valuation Appears Fair

Medi Assist Healthcare Services (0886371D IN) raised around US$140m in its India IPO.
Medi Assist Healthcare Services (Medi Assist) provides third party administration services to insurance companies via its subsidiaries.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

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Jan 21

Daily Brief ECM: ECM Weekly (21st Jan 2024) – Mixue and more

In today’s briefing:

ECM Weekly (21st Jan 2024) – Mixue, Amer, Medi Assist, IPO Pipeline, Yamae, Alchip, NHPC, ASMedia

ECM Weekly (21st Jan 2024) – Mixue, Amer, Medi Assist, IPO Pipeline, Yamae, Alchip, NHPC, ASMedia