In today’s briefing:
- Fosun Tourism (1992 HK): Affirming Our Support for the Buyback
- Fosun Tourism (1992 HK): No Love For The Scrip Alternative
- Easier to Raise Listing Criteria, but More Difficult to Encourage Growth of Companies Already Listed
- Bama Tea Pre-IPO Tearsheet
- Seria Co Ltd (2782 JP): Q3 FY03/25 flash update
- Yellow Hat Ltd (9882 JP): Q3 FY03/25 flash update
Fosun Tourism (1992 HK): Affirming Our Support for the Buyback
- Fosun Tourism (1992 HK)‘s profit warning suggested a significant deterioration in profitability in 2H24, fading any near-term recovery hope.
- With losses enlarged 89-126% YoY in 2H24, it is more difficult to return to its peak and IPO share prices. This makes the buyback proposal even more attractive.
- We take the inability to introduce the Potential Share Alternative Option as a lack of confidence by the existing shareholders in Fosun Tourism’s medium-term outlook.
Fosun Tourism (1992 HK): No Love For The Scrip Alternative
- Back on the 10th December 2024, Fosun Tourism (1992 HK) announced a rare Scheme buyback, with a Cancellation Price of $7.80/share (not declared final), a punchy 95% premium to undisturbed.
- A successful Scheme would result in Fosun International (656 HK) and concert parties holding 100% in Fosun Tourism – without having to outlay a cent.
- A scrip alternative was afforded IF expressions of interests from 1% of shares out occurred. That didn’t happen. Still a clean deal. Scheme Doc dispatch is the 14th Feb.
Easier to Raise Listing Criteria, but More Difficult to Encourage Growth of Companies Already Listed
- There is a need to change the mindset of company managers who consider IPO as a goal and not a way to grow after the listing.
- The listing criteria for TSE Growth Market will be raised as early as April 2026. It’s clear that the current listing criteria are far from liquid enough to invest in.
- For companies that are already listed, some rule should be established to either de-list them because they cannot bear the listing cost or to increase their market capitalization through M&As.
Bama Tea Pre-IPO Tearsheet
- Bama Tea (BAMA HK) is looking to raise at least US$100m in its upcoming Hong Kong IPO. The deal will be run by Huatai, ABC and TF International.
- Bama Tea, as per the firm, is the most recognized tea brand in China and the leading provider of premium tea leaves in China.
- It sells through its nationwide offline store network and comprehensive online sales platforms, and sells every major tea leaf category
Seria Co Ltd (2782 JP): Q3 FY03/25 flash update
- Sales reached JPY178.0bn, a 7.0% YoY increase, with directly managed stores contributing 98.9% of total sales.
- Operating profit rose 16.9% YoY to JPY13.2bn, while net income increased 18.3% YoY to JPY8.9bn.
- The company opened 84 directly managed stores and closed 49, totaling 2,056 stores by end-Q3 FY03/25.
Yellow Hat Ltd (9882 JP): Q3 FY03/25 flash update
- Yellow Hat’s cumulative Q3 FY03/25 sales increased 4.9% YoY to JPY119.1bn, with operating profit up 9.6% YoY.
- The medium-term plan targets FY03/28 revenue of JPY180.0bn, operating profit of JPY16.8bn, and net income of JPY11.8bn.
- Planned investment of JPY33.0bn from FY03/26 to FY03/28 includes JPY28.0bn in capex and JPY5.0bn for M&A.
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