In today’s briefing:
- Tam Jai (2217 HK) Suspended: Expect Toridoll (3397 JP) To Make An Offer
- Guming Holdings IPO – Digestible Valuation from the Bottom End
- Shanghai Henlius Biotech (2696 HK) – LVC Increased Its Holding of Henlius Again
- Trump Admin’s Tariff Headlines Obscure Suspension Of “De Minimis” Rule | Big Impact on SHEIN, Temu
- Guming IPO: The Good, The Bad and The Valuation. Is It Time to Sip or Skip?
- Asia Real Estate Tracker (04-Feb-2025): Gaw Capital raises $260M for HK’s CSI Properties.
- Foshan Haitian Flavouring A/H Listing – Strong Brand but Sales Have Been Slowing Down
Tam Jai (2217 HK) Suspended: Expect Toridoll (3397 JP) To Make An Offer
- Tam Jai International (2217 HK), an operator of Asia noodle specialty restaurants, is currently suspended pursuant to the Takeovers Code.
- On the 13th November 2024, Tam Jai announced 1H25 net profit – to 30th September 2024 – declined 55.8% yoy to HK$36.1mn, its lowest six-month tally since listing.
- Toridoll Holdings Corporation (3397 JP) controls 74.61% of Tam Jai. Expect a Scheme to unfold. An Offer price around HK$1.50/share would be welcome. That’s probably a stretch.
Guming Holdings IPO – Digestible Valuation from the Bottom End
- Guming Holdings (GUM HK) is looking to raise US$202m in its Hong Kong IPO. Guming Holdings (Guming) sells freshly-made beverages in China.
- Guming Holdings (Guming) sells freshly-made beverages in China. Guming focuses on the mid-priced freshly-made tea beverage market with product prices typically ranging between RMB10-18.
- In this note, we discuss our thoughts on valuation at the IPO price range.
Shanghai Henlius Biotech (2696 HK) – LVC Increased Its Holding of Henlius Again
- LVC increased its holding of Henlius by 1,110,900 shares on January 23, reflecting its high recognition of the Company and optimism on its prospects, despite the biosimilar VBP headwinds.
- Even with concerns, LVC still repeatedly invested in Henlius at a valuation far higher than its actual value, offering support with real money during pre-IPO stage.
- Lin Lijun’s dissenting vote was a deliberate decision. We are interested to see Lin’s next move. Lin should have a very clear understanding of the true value of Henlius.
Trump Admin’s Tariff Headlines Obscure Suspension Of “De Minimis” Rule | Big Impact on SHEIN, Temu
- By executive order, President Trump suspended section 321 (“de minimis“) imports on Feb 4th
- Direct-To-Consumer imports valued at < US$800 may no longer enter the US duty-free
- Added cost and new paperwork burden (both borne by US consumers) to hit SHEIN, Temu
Guming IPO: The Good, The Bad and The Valuation. Is It Time to Sip or Skip?
- Guming Holdings (GUM HK) is offering 158.6 million shares in a price range of HK$8.68 to HK$9.94 in its Hong Kong IPO aiming to raise up to HK$1.58 Bn.
- Despite outperforming peers in revenue and profit growth, Guming is grappling with a bleak macro environment, operational slowdowns, and intensified competition.
- Guming Holdings (GUM HK) ‘s faltering operating metrics for last reporting period cast doubt on its near-term growth and profitability outlook—leaving investors to ask: Sip or skip?
Asia Real Estate Tracker (04-Feb-2025): Gaw Capital raises $260M for HK’s CSI Properties.
- Gaw Capital secures $260M investment for Hong Kong CSI Properties, demonstrating confidence in the real estate market.
- CapitaLand Ascott Trust makes significant acquisition with purchase of 2 Japanese hotels worth $140M, expanding their portfolio.
- Hines JV embarks on condo complex development on Delhi’s Birla Mills site, reflecting growing investment interest in India’s real estate sector.
Foshan Haitian Flavouring A/H Listing – Strong Brand but Sales Have Been Slowing Down
- Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, aims to raise around US$1.5bn in its H-share listing.
- FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
- In this note, we look at its past performance and other deal dynamics that might impact the listing.
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