In today’s briefing:
- Baicha Baidao IPO: The Bull Case
- Bharti Hexacom IPO Trading – Strong Insti and Anchor, Retail Gave It a Miss
- HD Hyundai Marine Solution IPO Industry Analysis
- ICTK IPO Valuation Analysis
Baicha Baidao IPO: The Bull Case
- Sichuan Baicha Baidao Industrial (SCBCBDID CH), a leading freshly made tea drinks company, will launch an HKEx IPO to raise US$300 million next week, according to press reports.
- Biacha is China’s third largest freshly-made tea shop company in terms of retail sales value in 2023, according to Frost & Sullivan.
- The bull case rests on a rising market share, high revenue growth, sector-leading margins, cash generation and a strong balance sheet.
Bharti Hexacom IPO Trading – Strong Insti and Anchor, Retail Gave It a Miss
- Government of India raised around US$513m via selling some of its stake in Bharti Hexacom’s IPO.
- Bharti Hexacom (BH) is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
HD Hyundai Marine Solution IPO Industry Analysis
- In this insight, we highlight some of the important industry factors impacting HD Hyundai Marine Solution.
- Eco-Friendly ships are high-value-added ships that require more parts than conventional ships and are mechanically more complex, so the unit cost of parts is higher than that of conventional ships.
- Therefore, the ship AM (aftermarket) is a key industry that is expected to benefit from higher customer demand and increase service prices.
ICTK IPO Valuation Analysis
- Our base case valuation of ICTK is target price of 28,694 won, which is 79% higher than the high end of the IPO price range.
- Our base case valuation is based on P/S multiple of 20.8x using our estimated sales of 18.1 billion won in 2025.
- ICTK’s operating margin improved from -129.9% in 2022 to -38.2% in 2023. We estimate its operating margin to improve further to -12.4% in 2024 and 17.7% in 2025.
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