In today’s briefing:
- Australia REITs: Asset Deflation Bear Market
- Skymark IPO – Ready For Takeoff
- Weilong Delicious Global Pre-IPO – Latest PHIP Updates – No Growth
- Growatt Technology Pre-IPO – PHIP Updates – Profitability Still Accelerating
- Weilong Delicious IPO: Remains in a Pickle
- Weilong Delicious IPO (PHIP): Covid Outbreak Is Not The Sole Reason for 1H2022 Decline
- Navi Technologies- Forensic Analysis
Australia REITs: Asset Deflation Bear Market
- The S&P/ASX A-REIT 200 Index has returned -22% in FY22, underperforming the ASX 200 Index by ~17% basis points.
- REIT performance is typically negatively correlated with bond yield movements, however, long-dated government bond yields may be approaching their peak.
- The asset deflation bear market in FY22 has improved the REIT valuation. A basket of REITs is currently at 0.8x, versus the five-year average of 1.05x, and 1.1x pre-Covid.
Skymark IPO – Ready For Takeoff
- Skymark will be re-listing following a successful turnaround under the guidance of ANA and Integral.
- Listing proceeds will mainly be directed towards improving the fuel efficiency of its fleet.
- Skymark offers an attractive play on reopening in Japan as it is geared into the simpler domestic market where elevated cargo rates and revenue per passenger are not downside risks.
Weilong Delicious Global Pre-IPO – Latest PHIP Updates – No Growth
- Weilong Delicious Global (WDG HK), a spicy snack food company in China, aims to raise around US$200m in its Hong Kong IPO.
- According to F&S, WDG ranked first among spicy snack food enterprises in China, with a market share of 6.2%, and in the seasoned flour product and spicy vegetable snacks categories.
- In this note, we will talk about the updates from the recently re-refiled PHIP.
Growatt Technology Pre-IPO – PHIP Updates – Profitability Still Accelerating
- Growatt Technology (1833969D CH) is looking to raise about US$1bn in its upcoming Hong Kong IPO.
- Growatt Technology is a global distributed energy solution provider, specializing in sustainable energy generation, storage and consumption, as well as energy digitalization.
- In our previous notes, we looked at the company’s past performance, peer comparison and our thoughts on valuation. In this note, we will talk about the updates from its PHIP.
Weilong Delicious IPO: Remains in a Pickle
- Weilong Delicious Global (WDG HK) has refiled (again) its PHIP with an aim to raise US$200 million, materially below its original ambition to raise US$1 billion.
- We have previously discussed the IPO in Weilong Delicious IPO: In a Pickle, Weilong Delicious IPO: Mixed Update and Weilong Delicious IPO Initiation: Tasty Bite.
- The latest PHIP highlights Weilong’s floundering attempt of putting in price increases to protect margins but without tanking demand. We would pass on the IPO.
Weilong Delicious IPO (PHIP): Covid Outbreak Is Not The Sole Reason for 1H2022 Decline
- Weilong Delicious is a leading spicy snack food company in China with a market share of 6.2%. The company plans to raise proceeds of about US$500m through a HKEx IPO.
- This insight focuses on the new data points from the company’s latest PHIP release (dated 23rd Nov) which includes the company’s 1H2022 results.
- Weilong Delicious Global (WDG HK)’s top line growth has slowed down during 1H2022 and margins have come under pressure due to increased S&M spending and lower utilisation.
Navi Technologies- Forensic Analysis
- Navi (NAVI IN) is a tech-driven financial products and services company in India, with an end-to-end digital system, focusing on three key offerings i.e. lending, insurance and asset management.
- Company has taken a major write offs in 9MF22 which may have glorified the NPA ratios. Moreover, there is an element of opaqueness on the equity issuance transaction in F20.
- Other key forensic takeaways include high cash balances in current account, quality of goodwill, etc.
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