In today’s briefing:
- Anta Sports Placement – A Large Deal to Digest with Unknown Use of Proceeds but Track Record Is Good
- ZJLD Group IPO – Sentiment Could See a Positive Shift, Mid-Bottom End Digestible
- ZJLD Group IPO: Valuation Insights
- Rakuten Bank IPO: First Day Trading
- Merdeka Battery Materials IPO Trading – Earnings Might Be Long Drawn Out but Should Perform Fine
- ADICON Holdings IPO: The Bull Case
- Pinterest Inc: Managing The Social Media Slowdown – Key Drivers
- VF Corp: A Balanced Apparel Performer In Wholesale & D2C – Key Drivers
- Incyte Corporation: Continued Diversification In Derma & Oncology – Key Drivers
- BlackBerry Limited: IoT Diversification And IVY Ecosystem Development – Key Drivers
Anta Sports Placement – A Large Deal to Digest with Unknown Use of Proceeds but Track Record Is Good
- Anta Sports Products (2020 HK) aims to raise around US$1.5bn in its top-up placement.
- Anta hasn’t specified what it aims to do with the money that it’s looking to raise, furthermore, it’s already net cash.
- In this note, we will talk about the placement and run the deal through our ECM framework.
ZJLD Group IPO – Sentiment Could See a Positive Shift, Mid-Bottom End Digestible
- ZJLD Group (ZJLD HK) is looking to raise around US$811m in its Hong Kong IPO.
- ZJLD Group (ZJLD) is a Chinese liquor company primarily producing baijiu.
- In this note, we will look at deal dynamics and share our thoughts on valuation.
ZJLD Group IPO: Valuation Insights
- ZJLD Group (ZJLD HK) has launched its HKEx listing at HK$10.78-12.98 per share to raise up to US$811 million. Books are open from 17 to 20 April.
- We previously discussed the IPO in ZJLD Group IPO: The Bull Case, ZJLD Group IPO: The Bear Case and ZJLD Group IPO: Valuation First Look.
- Our valuation analysis suggests that the IPO price range is attractive. Therefore, we would participate in the IPO.
Rakuten Bank IPO: First Day Trading
- It appears that Rakuten Bank (5838 JP) received a significant number of subscriptions at the revised offer range, leading the company to set the IPO price at ¥1,400 per share.
- The grey market trading suggests that shares are currently trading close to the lower end of the previous IPO price range, indicating a potential upside of 20% on the debut.
- The IPO has potential to rise beyond 20% on debut. However, in the event that it does not pop more than 100%, we would looking to buy more shares.
Merdeka Battery Materials IPO Trading – Earnings Might Be Long Drawn Out but Should Perform Fine
- Merdeka Battery Materials (2012725D IJ) raised around US$591m in its Indonesian IPO.
- It has the largest resource globally in terms of contained nickel at the Konawe Nickel Mine (the SCM Mine), according to Wood Mackenzie.
- In this note, we will talk about the trading dynamics and valuation.
ADICON Holdings IPO: The Bull Case
- ADICON Holdings Limited (ADI HK) is pre-marketing an HKEx IPO to raise up to US$400 million, according to press reports.
- Adicon is the third largest independent clinical laboratories (ICL) service provider in China, with an 8.6% market share of the non-COVID-19 testing market in 2021, according to Frost & Sullivan.
- The key elements of the bull case rest on the growing non-COVID-19 testing addressable market, improving market sentiment, strong non-COVID-19 testing growth, stable EBITDA margin and cash generation.
Pinterest Inc: Managing The Social Media Slowdown – Key Drivers
- Pinterest ended 2022 on a mixed note as its revenues were below Wall Street expectations.
- Given the softening ad market, Pinterest delivered revenue of $877 million in Q4 but it did manage an earnings beat.
- Overcoming pandemic challenges and achieving increased user engagement, Pinterest has achieved MAUs of 445 million, higher than in the third quarter.
VF Corp: A Balanced Apparel Performer In Wholesale & D2C – Key Drivers
- VF Corp delivered a decent result which happened to be an all-around beat.
- In Asia, VF Corp saw a sequential improvement with up in revenue.
- VF Corp has new products expanding now, and the new school shoes and UltraRange VR3 are attractive.
Incyte Corporation: Continued Diversification In Derma & Oncology – Key Drivers
- Incyte Corporation generated strong financial performance in the last quarter and managed an all-around beat.
- Revenues from the commercialized items in the company’s current portfolio increased by 18% year over year.
- We give Incyte Corporation a ‘Hold’ rating with a revised target price.
BlackBerry Limited: IoT Diversification And IVY Ecosystem Development – Key Drivers
- BlackBerry delivered a mixed result in a challenging macro environment.
- Blackberry IoT closed out with strong year-over-year revenue growth.
- In the quarter, Blackberry secured an overall 36 new design wins and in multiple auto domains, QNX is winning.
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