In today’s briefing:
- Onewo Space-Tech IPO – Appears Digestible Even on Conservative Assumptions
- Meituan (3690 HK): User Base Beating Competitor, Industry Recovering, Upgrade to Hold
- Aier Eye Hospital (300015.CH) 22H1 – More Downside Ahead; The Long Logic Doesn’t Exist
- CPMC Holdings (906 HK): Good Time to Re-Visit
- Morning Views Asia: China Vanke, Country Garden Holdings Co
Onewo Space-Tech IPO – Appears Digestible Even on Conservative Assumptions
- Onewo Space-Tech (ONEWO HK) (OST) aims to raise upto US$784m in its Hong Kong IPO. OST is a property management service provider primarily owned by China Vanke (2202 HK).
- As per Frost & Sullivan, amongst the residential community service providers in China, OST ranked first. It also ranked first in the commercial space integrated services market in China.
- In this note, we will run the deal through our ECM framework and talk about valuations.
Meituan (3690 HK): User Base Beating Competitor, Industry Recovering, Upgrade to Hold
- In July, Meituan’s user base exceeded Ele.me and Ele.me’s active user base decreased by 24% YoY.
- In China, Monthly active user bases of local life and food delivery recovered from May to July.
- We believe Meituan’s stock has only a downside of 6% for year end 2023.
Aier Eye Hospital (300015.CH) 22H1 – More Downside Ahead; The Long Logic Doesn’t Exist
- The fundamental changes in the population structure will lead to a decline in the growth rate of the total retail sales of consumer goods. The long logic doesn’t exist.
- Aier has hit a growth ceiling. As the endogenous demand will be stepped downward gradually, the performance of Aier will further decline. The downward elasticity of valuation is greater.
- It is still difficult for healthcare sector to have its own independent growth logic. The bottom of healthcare sector would appear after the collapse of Aier’s valuation.
CPMC Holdings (906 HK): Good Time to Re-Visit
- Underpinned by higher ASP and sequentially lower input costs, CPMC Holdings (906 HK) should achieve better margin in 2H22. Its 17% fall in share price YTD makes it appealing.
- Average aluminum price was down 14% so far in 2H22, vs. 1H21, good to its costs. Well-controlled selling and administrative costs will help to support profitability recovery.
- New two-piece can capacity will grow by 54% over the next three years as 5 production lines are expected to be added. Most of them already have demand lined up.
Morning Views Asia: China Vanke, Country Garden Holdings Co
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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