In today’s briefing:
- Kolmar Group Chairman Yoon: A Rare Case Of “I Want My Shares Back”
- Eternal Beauty IPO – Not Expensive but Its Not Enticing Either
- Foshan Haitian Flavouring A/H Trading – Very Strong Demand, Weak Price Momentum
- Foshan Haitian Flavouring H Share Listing (3288 HK): Trading Debut
- Kilcoy Global Foods (KGF): China Based Protein Provider Readying for July IPO
- Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong
- CaoCao IPO: Forecasts and Valuation
- Under Armour Working On A Bold Restructuring Move; Will It Result In A Retail Rebound?
- Zhou Liu Fu (6168 HK) IPO: Not Our Cup of Tea
- Guess? Inc.: Will The Rag & Bone Acquisition Be A Game Changer In The Dynamic Fashion Industry Landscape!
Kolmar Group Chairman Yoon: A Rare Case Of “I Want My Shares Back”
- Chairman Yoon Dong-han, founder of the Kolmar Group, has filed a lawsuit against his eldest son, Vice Chairman Yoon Sang-hyun of Kolmar Holdings, demanding the return of Kolmar Holdings shares.
- This is a rare case of a chairman demanding his shares back from his son.
- A key question is can there be an M&A fight for Kolmar Holdings even without the father getting his shares back? And the answer would be yes.
Eternal Beauty IPO – Not Expensive but Its Not Enticing Either
- Eternal Beauty Holdings Limited is looking to raise around US$144m 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 valuations.
Foshan Haitian Flavouring A/H Trading – Very Strong Demand, Weak Price Momentum
- Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, raised around US$1.5bn (including over-allocation) 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.
- 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.
Foshan Haitian Flavouring H Share Listing (3288 HK): Trading Debut
- Foshan Haitian Flavouring & Food Company (3288 HK) priced its H Share at HK$36.30 to raise HK$10,128.9 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.
- I discussed the H Share listing in Foshan Haitian Flavouring H Share Listing: The Investment Case.
- Haitian had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.
Kilcoy Global Foods (KGF): China Based Protein Provider Readying for July IPO
- They provide tasty, fresh, natural, healthy and convenient food products to customers across over 40 countries worldwide.
- For the year ended December 31, 2024, they recorded a total revenue of US$2,195.0 million, increasing by 17.3% from US$1,870.7 million for the year ended December 31, 2023.
- The area in which this company operates in is one that is not traditionally attractive to IPO investors as the margins are low and the competition is high.
Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong
- 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.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
CaoCao IPO: Forecasts and Valuation
- Chinese ride-hailing platform CaoCao plans to issue 44.2m shares at the HKEx IPO at an indicative price of HK$41.9/share, and raise net proceeds of US$219m at a valuation of HK$28.9bn.
- CaoCao’s earnings have seen strong growth during the last 2-3 years, however, much of this growth is driven through debt financing which has resulted in a highly geared balance sheet.
- Our valuation analysis suggests that CaoCao (2643 HK) ‘s IPO is overvalued at the indicative IPO price and we would recommend staying on the sidelines.
Under Armour Working On A Bold Restructuring Move; Will It Result In A Retail Rebound?
- Under Armour’s fourth-quarter fiscal 2025 earnings report reveals a complex narrative, reflecting both strides in strategic realignment and significant challenges in market execution and financial performance.
- On the positive side, Under Armour demonstrated notable progress in several areas, including gross margin improvement, strategic streamlining, and brand repositioning efforts.
- The company increased its gross margin by 170 basis points to 46.7%, driven by reductions in product and freight costs, a decrease in promotional activities, and strategic pricing benefits.
Zhou Liu Fu (6168 HK) IPO: Not Our Cup of Tea
- Zhou Liu Fu Jewelery Co., Ltd. (6168 HK)‘s IPO does not appeal to us, given deteriorating profitability, smaller size, and inferior financials.
- Its IPO price of HK$24.0 appears to be fair relative to the peers’ valuation, leaving limited upside and downside in the secondary market.
- We value the stock at HK$22.5-25.7, based on 20-30% discount to Chow Tai Fook Jewellery (1929 HK). It is not another Laopu Gold (6181 HK).
Guess? Inc.: Will The Rag & Bone Acquisition Be A Game Changer In The Dynamic Fashion Industry Landscape!
- Guess?, Inc. recently reported its first-quarter results for fiscal 2026, revealing a performance that surpassed initial expectations primarily driven by strategic financial management and beneficial acquisitions.
- The company’s revenue grew by 9% in U.S. dollars and 12% in constant currency, largely fueled by the acquisition of rag & bone, which added substantial growth to the topline.
- Apart from this, core growth from Guess’s wholesale operations in Europe and the Americas also contributed positively.
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