In today’s briefing:
- Alibaba Health Placement – Delta Placement for EB, but Track Record Isn’t Great
- Fengxiang (9977 HK): Precondition Satisfied
- Anjoy Foods Group A/H Trading – Cheap Price but Sluggish Demand
- Puregold Price Club (PGOLD PM) – Members Bring Benefits
- Boxihe Outdoor Sports Pre-IPO – Scaling Fast in China’s Outdoor Boom
- Cosmecca Korea: Switching Listing from KOSDAQ to KOSPI Likely to Be Completed in 2H 2025
- Wakefit Innovations Ltd Pre-IPO Tearsheet
- MAP Aktif (MAPA IJ) — 2025 Update
- China Travel Intl Inv (308 HK): What’s UP?
- Perfect Medical (1830 HK): Green Shoots Emerging After A Disastrous FY25
Alibaba Health Placement – Delta Placement for EB, but Track Record Isn’t Great
- Banks are offering US$500m of Alibaba Health Information Tec (241 HK) stock in order to allow Exchangeable Bond investors to hedge their exposure.
- Alibaba Health (AH) stock has been heading in the wrong direction for the past few years and it remains unclear if the EB offering was well flagged.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Fengxiang (9977 HK): Precondition Satisfied
- The precondition for the PAG privatisation offer for Shandong Fengxiang (9977 HK) is satisfied. The composite document will be despatched by 11 July.
- Despite being a 39.9% discount to the IPO price, the offer is attractive compared to precedent transactions and peer multiples.
- The scheme vote remains low-risk due to the irrevocables, the lack of protest votes at the recent AGM, and the signalling from PAG’s decision not to introduce a scrip offer.
Anjoy Foods Group A/H Trading – Cheap Price but Sluggish Demand
- Anjoy Foods Group (2648 HK), a quick-frozen food company in China, raised around US$350m in its H-share listing.
- AFG was the largest quick-frozen food company in China in terms of revenue in 2023, with a market share of 6.2%, according to the Frost & Sullivan report.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.
Puregold Price Club (PGOLD PM) – Members Bring Benefits
- Puregold Price Club (PGOLD PM) is now the largest groceries company by market share in the Philippines, recently overtaking SM Retail, through its Puregold and S&R Warehouse stores.
- The company’s S&R Warehouse is a members-only big box retailer aiming at more affluent consumers, whilst Puregold stores cater for both Sari Sari (mom&pop) and less affluent consumers.
- Puregold Price Club booked a solid start to the year, despite seasonal disruptions, with management remaining confident about the outlook for FY2025. Valuations are attractive.
Boxihe Outdoor Sports Pre-IPO – Scaling Fast in China’s Outdoor Boom
- Boxihe Outdoor Sports (BOS) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
- BOS has delivered impressive growth, with a 122% revenue CAGR (FY22–24) led by its core Pelliot brand.
- Its shift from a pure online DTC model to include offline and distributor channels has broadened reach, while improving gross margins reflect strong pricing and cost control.
Cosmecca Korea: Switching Listing from KOSDAQ to KOSPI Likely to Be Completed in 2H 2025
- On 2 July, Cosmecca Korea (241710 KS) announced that it plans to switch its listing from KOSDAQ to KOSPI. Cosmecca Korea is the third largest cosmetics ODM company in Korea.
- Cosmecca Korea’s ROE is similar to the average ROE of the comps. However, Cosmecca Korea’s P/B valuation is 36% discount to that of the comps.
- By switching its listing from KOSDAQ to KOSPI, there is an increasing probability of the Cosmecca Korea receiving higher valuations, narrowing the gap with its peers.
Wakefit Innovations Ltd Pre-IPO Tearsheet
- Wakefit Innovations (1684049D IN) (WIL) is looking to raise about US$231m in its upcoming India IPO. The bookrunners for the deal are Axis, IIFL, Nomura.
- Wakefit Innovations is direct‑to‑consumer and sleep and home‑solutions company, founded in 2016.
- According to the Redseer Report, the company was the largest D2C home and furnishings company in India by revenue in FY24.
MAP Aktif (MAPA IJ) — 2025 Update
MAP Aktif is the sportswear subsidiary of Indonesian retail giant Mitra Adiperkasa.
I wrote a deep dive on MAP Aktif in January 2022, during the depths of the COVID-19 pandemic.
At the time, it was suffering from Indonesia’s large-scale social distancing restrictions. But I thought that it would eventually recover, continue growing its store count, and end up with a single-digit P/E ratio.
China Travel Intl Inv (308 HK): What’s UP?
- China Travel International Investment Hong Kong (308 HK)‘s 1-week share price rally was driven by restructuring speculations. Yet, underlying operations have improved in 2H24.
- Tourist attractions and hotel operations will stay decent in FY25, and more projects will come on stream to fuel profitability.
- Asset-Based valuation should be the focus, and its 0.49x P/B is inexpensive. Net cash now equals 8.2% of the share price.
Perfect Medical (1830 HK): Green Shoots Emerging After A Disastrous FY25
- Perfect Medical Health (1830 HK) reported a disastrous FY25 with revenues/profits down 19.1%/34.5% YoY. For H2 FY25, revenues/profits were down 25%/48% YoY.
- The company saw a stabilization in its revenues QoQ for H2 FY25, and is now seeing a slight uptick in revenues/profits courtesy of revamped stores ramping up and cost-cutting measures.
- With 23% of its market cap in cash/investments, a PE of 10.4x/8.0x for FY25/FY26e, respectively, the company has an appetizing dividend yield of 12.5% (assuming -4.5% YoY revenue growth).
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
