In today’s briefing:
- Leapmotor (9863 HK) IPO – Stock Connect & Index Flows Could Provide Some Support
- Astra International (ASII IJ) – Autos and Commodities Driving Growth
- Porsche AG: IPO Set for Success
- Marriott Hotels: Detailed Credit Analysis & Financial Strength Evaluation Report
- Marriott Hotels: Business Strategy
- Sonos Inc.: Initiation of Coverage – Sonos Voice Control & Other Key Product Drivers
Leapmotor (9863 HK) IPO – Stock Connect & Index Flows Could Provide Some Support
- Leapmotor (9863 HK) is looking to raise between US$800m-US$1.03bn by selling 130.82m shares at a price range of HK$48-62/share. Between 30-39% of the shares will be taken by cornerstone investors.
- The continued slide in its closest peers could put pressure on the stock post listing, though there could be some passive buying in December.
- Leapmotor (9863 HK) could be added to the HSCI and Hang Seng Tech Index (HSTECH INDEX) in December. Stock Connect could come online in December too.
Astra International (ASII IJ) – Autos and Commodities Driving Growth
- Astra International just held its public expose at which the company reiterated the strong performance in 1H2022 driven by automotive, finance, heavy equipment and commodity-related businesses.
- The momentum will continue into 2H2022 and car sales continue to show strong growth, with the tailwind of higher commodity prices and increased mobility.
- Astra International remains one of our top picks in Indonesia for the ongoing recovery in an environment where commodity prices remain high. Valuations are attractive versus history.
Porsche AG: IPO Set for Success
- Volkswagen sets the price range for the Porsche AG IPO between €76.50 and €82.50. The books are covered several times. Porsche AG will begin trading on September 29.
- Through a holding chain, the Pïech and Porsche families will control 25% of the votes of Porsche AG directly and 39.975% indirectly (total of 64.975%), with just a 24.275% economic interest.
- The IPO looks set for success, with possible DAX inclusion, and pricing likely towards the top-end. This should favour Volkswagen’s re-rating and tighten the discount to NAV of Porsche SE.
Marriott Hotels: Detailed Credit Analysis & Financial Strength Evaluation Report
- Marriot Hotels has its fair share of underlying risks as it continues its path to recovery after the pandemic.
- Cross-border travel has seen a good recovery which is benefitting the company.
- We also have a dedicated analysis of the company’s Environmental, Social, and Governance (ESG) risk scores in order to evaluate the sustainability risk.
Marriott Hotels: Business Strategy
- Marriot Hotels continues its path to recovery and delivered a solid result driven by strong demand for its brand all over the world.
- RevPAR in every region all over the world has almost recovered to the pre-pandemic levels and helped the company deliver an all-around beat.
- Overall, we provide the stock of Marriot Hotels a ‘Hold’ rating with a revision in the target price.
Sonos Inc.: Initiation of Coverage – Sonos Voice Control & Other Key Product Drivers
- This is our first report on Sonos, the multi-room audio products major.
- The macroeconomic environment has grown significantly more hostile for Sonos off late after it enjoyed a decent phase during the pandemic.
- Despite the uncertain environment, Sonos has a strong brand identity, a dependable and devoted premium client, and a sizable and expanding market opportunity.
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