In today’s briefing:
- Anjoy Foods Group A/H Listing – Isn’t Great but Can’t Ask for It to Cheaper
- Laopu Gold (6181 HK): Lockup Expiry Ahead. After 2000% Rally, Is There Still Shine Left?
- Eternal Beauty IPO Trading – Weak Demand, Close to Fair Value
- Formosa Prosonic: Trading at Cash
- Zhou Liu Fu IPO Trading: Fundamentally Weak but Oversubscribed
- How Kontoor Brands Is Building a Fashion Empire by Blending Efficiency, Tech, & Global Reach!
- China Dongxiang (3818 HK): Better than It Appears
- Anjoy Foods Group (2648 HK) IPO: Reasonably Attractive
- GES: Snapping the Store; Leveraging Summer Events, Denim; Reiterate Buy, $23 PT
- Freshpet Inc: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond!
Anjoy Foods Group A/H Listing – Isn’t Great but Can’t Ask for It to Cheaper
- Anjoy Foods Group (603345 CH), a quick-frozen food company in China, aims to raise around US$336m 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 IPO pricing.
Laopu Gold (6181 HK): Lockup Expiry Ahead. After 2000% Rally, Is There Still Shine Left?
- Laopu Gold (6181 HK)’s 365-day lockup on shares held by pre-IPO investors expires tomorrow (June 27), more than doubling its current free float.
- Near-Term pressure on the stock is likely, given the sharp increase in tradable shares, mixed gold price outlook, and limited retail investor access after a steep rally.
- A potential stock split could broaden investor participation, improve liquidity and serve as a catalyst for next leg of stock upside.
Eternal Beauty IPO Trading – Weak Demand, Close to Fair Value
- Eternal Beauty Holdings raised around US$125m in its Hong Kong IPO.
- Eternal Beauty is the largest brand management company of perfumes in the combined markets of Mainland China, Hong Kong and Macau, in terms of retail sales in 2023.
- We have looked at the company’s past performance in our previous note. In this note we talk about the trading dynamics.
Formosa Prosonic: Trading at Cash
- Formosa Prosonic: Asymmetrical Risk Reward for investing as operating business is being priced for nothing
- The company is leading manufacturer of industrial solutions focused for audio and electronic musical products
- It has significant client concentration risks with Top 3 customers accounting for 92% of Revenues.
Zhou Liu Fu IPO Trading: Fundamentally Weak but Oversubscribed
- Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise up to $143m in its upcoming Hong Kong IPO
- It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
How Kontoor Brands Is Building a Fashion Empire by Blending Efficiency, Tech, & Global Reach!
- Kontoor Brands, a prominent name in the fashion industry known for its Wrangler and Lee brands, has recently shared its financial results for the first quarter of 2025.
- The company made notable headway with the impending acquisition of Helly Hansen, which is anticipated to bring substantial benefits in terms of revenue growth, earnings, and cash flow.
- The acquisition is expected to be finalized by the end of May and will likely offer opportunities for expansion and operational synergy.
China Dongxiang (3818 HK): Better than It Appears
- While the 2H FY25 result of China Dongxiang (3818 HK) does not look exciting, there are meaningful operating and financial improvements deep inside.
- The HSI change is a good proxy for its investment gains, and the 5.9% gain since end-FY25 (Mar) should positively reflect on CNDX’s 1H FY26 results.
- The sports goods business is not expected to be a drag in FY26. Trading at a steep 76.5% discount, the stock stays highly undervalued.
Anjoy Foods Group (2648 HK) IPO: Reasonably Attractive
- Anjoy Foods Group (2648 HK)‘s H-share IPO at a maximum price of HK$66.00 appears reasonably attractive, as this equals a 33-34% discount to peer average FY25F PER.
- It is well-positioned to capture quick-frozen food demand growth, will gain from geographical and market share expansion, and has solid product, marketing and production capability.
- We value the stock at HK$72.66, 12.7x FY25F PER, or a 25% discount to the sector PER. It will also be on a 13.9% discount to its A-share.
GES: Snapping the Store; Leveraging Summer Events, Denim; Reiterate Buy, $23 PT
- We are reiterating our Buy rating, $23 price target and projections for Guess?
- after visiting stores in Long Island and the Metropolitan New York City area.
- We believe Guess?
Freshpet Inc: 6 Major Game-Changers Impacting Its 2025 Performance & Beyond!
- Freshpet recently reported its first-quarter 2025 results, demonstrating a mixed performance amidst a challenging macroeconomic environment.
- The key takeaway from the earnings discussion is that while Freshpet has managed to maintain a growth trajectory, driven by its broad consumer base and strong brand proposition, it’s facing economic headwinds that are impacting its ability to maintain the previous levels of growth.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
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