In today’s briefing:
- Chery Auto Pre-IPO – The Negatives – Small NEV Portfolio
- Busy Ming IPO: Hyper Growth and Solid Profitability, Largest Snack and Beverage Retailer in China
- Jiangsu Hengrui Pharma H Share Listing: The Investment Case
- CATL A/H Listing – PHIP Updates and Updated Thoughts on A/H Premium
- Sagility India IPO Lockup – US$1.5bn Lockup Release; PE Promoter Will Have to Trim for Free-Float
- Initial Thoughts on the Musinsa IPO
- Pre-IPO Xuanzhu Biopharmaceutical- Outdated Pipelines Are Difficult to Bring Good Investment Returns
- Axbio (安序源) Pre-IPO: First Take of the Deal
Chery Auto Pre-IPO – The Negatives – Small NEV Portfolio
- Chery Automobile is looking to raise about US$1bn in its upcoming Hong Kong IPO.
- Chery Auto is a Chinese passenger vehicle company which designs, develops, manufactures and sells passenger vehicles, including internal combustion engine vehicles and new energy vehicles, both domestically and overseas.
- In this note, we talk about the not-so-positive aspects of the deal.
Busy Ming IPO: Hyper Growth and Solid Profitability, Largest Snack and Beverage Retailer in China
- Busy Ming Group, “a snack brand for the people” and the largest snack and beverage chain retailer in China, filed for an IPO in Hong Kong.
- The fast-growing retailer was backed by HongShan Capital, Gaorong Ventures, 5Y Capital, Haoxiangni Health Food, and Yanker Shop Food Co., among others.
- Busy Ming Group is tapping into Gen Z and younger millennial consumers with playful branding and social media engagement.
Jiangsu Hengrui Pharma H Share Listing: The Investment Case
- Jiangsu Hengrui Medicine (600276 CH), a leading Chinese pharmaceutical company, has filed its PHIP for an H Share listing to raise US$2 billion.
- Jiangsu Hengrui Pharmaceuticals (JHR HK) ranked first among Chinese pharma companies in revenue from NME drugs in 2023 and the number of commercialised NME drugs in 2024.
- The investment case rests on its product portfolio, strong revenue growth, rising profitability, cash generation, strong balance sheet and undemanding valuation.
CATL A/H Listing – PHIP Updates and Updated Thoughts on A/H Premium
- Contemporary Amperex Technology (CATL) (300750 CH), one of the world’s largest battery solutions providers, aims to raise around US$5bn in its H-share listing.
- CATL is the global leader in new energy vehicle battery solutions, in China and globally, as per SNE Research. Its A-shares have been listed since 2018.
- We have looked at the company’s past performance and valuations in our earlier notes. In this note, we talk about its recent updates and provide updated thoughts on valuations.
Sagility India IPO Lockup – US$1.5bn Lockup Release; PE Promoter Will Have to Trim for Free-Float
- Sagility India (2058883D IN) (Sagility) raised around US$250m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
- Sagility is a pure-play healthcare focused solutions and services provider to Payers (U.S. health insurance companies), and Providers (primarily hospitals, physicians, and diagnostic and medical devices companies).
- In this note, we will talk about the lockup dynamics, possible placement and updates since our last note.
Initial Thoughts on the Musinsa IPO
- Musinsa is getting ready to complete its IPO in 2H 2025. Musinsa is the top fashion online/mobile platform in Korea.
- The market value of Musinsa is expected to be about 5 trillion won which could be one of the largest IPOs in Korea this year.
- Musinsa had its best ever results in 2024 with sales of 1.2 trillion won (up 25.1% YoY), operating profit of 102.8 billion won, and net profit of 69.8 billion won.
Pre-IPO Xuanzhu Biopharmaceutical- Outdated Pipelines Are Difficult to Bring Good Investment Returns
- The main purpose for Sihuan to acquire Combio is to form a strong innovative drug business Xuanzhu and then make large capital gains from the subsequent spin-off and listing.
- All the three Core Products need to face fierce competition, and their clinical data do not show obvious advantages to competing products, making them hard to stand out.
- Based on the announcement on Nov.12, 2024, valuation of Xuanzhu was RMB8.5 billion. However, due to the lack of competitive pipelines and weak commercialization prospects, we think Xuanzhu is overvalued.
Axbio (安序源) Pre-IPO: First Take of the Deal
- Axbio, a China-based technology company, is looking to raise at least USD 100 million via a Hong Kong listing. CICC and SPDB are the joint sponsors.
- In this note, we took a quick look at the core products and key products, as well as its management team.
- Although there are interesting takes from the prospectus, we are not convinced on the prospect of the deal yet.
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