In today’s briefing:
- Chagee Holdings (CHA US) IPO: The Bear Case
- Jiangsu Zenergy Battery Tech IPO: Growth Fueled By Volume
- ECM Weekly (7 Apr 2025) – CATL, Maynilad, Chagee, Lotte Logistics, Sigenergy, Duality, Wuxi XDC
Chagee Holdings (CHA US) IPO: The Bear Case
- Chagee Holdings (CHA US), a leading premium tea drinks brand, is seeking to raise US$400-500 million through a Nasdaq IPO.
- In Chagee Holdings (CHA US) IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rests on unsustainable growth rates, pressure on KPIs, signs of margin pressure, increasing S&M expenses and weakening forward growth indicators.
Jiangsu Zenergy Battery Tech IPO: Growth Fueled By Volume
- Jiangsu Zenergy Battery Technologies (JSZENERGY CH) (JZBT) is a lithium-ion battery manufacturer in China who is focused on developing a diverse portfolio of market-driven and technology-fueled battery products.
- The company has filed for an IPO on the HKEx and plans to raise proceeds of around US$130m through the issue of 121m shares.
- The company’s earnings have seen strong growth over the years driven by its LFP battery products and fall in lithium carbonate prices have helped turn around profitability.
ECM Weekly (7 Apr 2025) – CATL, Maynilad, Chagee, Lotte Logistics, Sigenergy, Duality, Wuxi XDC
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, we looked at the possible A/H premium for Contemporary Amperex Technology (CATL) (300750 CH).
- On the placements front, WuXi AppTec (2359 HK) was back agai with a sale of WuXi XDC Cayman (2268 HK).
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