In today’s briefing:
- Clearing up FSS Review of Samsung SDI & Hanwha Aerospace: Watch for Ramped-Up Recall Pressure
- Duality Biotherapeutics (映恩生物) Pre-IPO: Valuation and the Trap
- Chagee Holdings IPO Preview
- Xiamen Hithium Energy Storage Technology Pre-IPO Tearsheet
- Lotte Logistics Pre-IPO – Sluggish Revenues, High Dependence on Group Affiliates
- Lotte Global Logistics IPO Valuation Analysis
Clearing up FSS Review of Samsung SDI & Hanwha Aerospace: Watch for Ramped-Up Recall Pressure
- Samsung SDI’s rights offering is locked in and even accelerated. Hanwha Aerospace awaits FSS approval, but a pullback is unlikely, with no major red flags seen by regulators.
- With a four-week gap, supply pressure eases, reducing overhang concerns. This shift in dynamics impacts stock rights pricing and is key for any arb setup.
- The wider schedule gap between deals boosts lenders’ flexibility, increasing the likelihood of a stronger share recall. This makes for a solid trade setup, targeting recall-driven price action.
Duality Biotherapeutics (映恩生物) Pre-IPO: Valuation and the Trap
- Duality Biotherapeutics, a China-based clinical-stage biotechnology company, plans to raise up to US$250m via a Hong Kong listing.
- We look at the company’s valuation based on its core products, namely DB-1303, DB-1311, and DB-1305.
- We highlight key differences between our valuation and the broker valuation guidance.
Chagee Holdings IPO Preview
- Chagee Holdings (CHA US) is getting ready to complete its IPO on NASDAQ in the next several weeks. Chagee is one of the largest premium tea chains in China.
- The company’s sales and profits have been exploding higher in the past three years. Its sales jumped from 0.5 billion RMB in 2022 to 12.4 billion RMB in 2024.
- Chagee could raise more than $500 million in this IPO. However, this is subject to change.
Xiamen Hithium Energy Storage Technology Pre-IPO Tearsheet
- Xiamen Hithium Energy Storage Technology (XH) is looking to raise up to US$500m in its upcoming Hong Kong IPO. The deal will be run by Huatai, Citic, ABC, and BOC.
- XH is a leading pure-play global energy storage company, it’s ranked third in the global energy storage market in 2024, in terms of lithium-ion ESS battery shipments, as per CIC.
- With its integrated value chain and mainly in-house manufacturing, XH offers end-to-end energy storage solutions across various application scenarios, mainly collaborate with third-party system integrators in their main market, China.
Lotte Logistics Pre-IPO – Sluggish Revenues, High Dependence on Group Affiliates
- Lotte Global Logistics (LGG KS) aims to raise around US$140m in its Korea IPO via selling a mix of primary and secondary shares.
- Lotte Global Logistics is a logistics and shipping company engaged in a comprehensive logistics service business including courier service, land transportation, 3PL, port loading and unloading, and international logistics.
- In this note, we talk about the company’s historical performance.
Lotte Global Logistics IPO Valuation Analysis
- Our base case valuation of Lotte Global Logistics is implied market cap of 560 billion won, which represents target price of 13,454 won per share.
- We have a negative view of this IPO as our target price does not provide a meaningful upside to the IPO price range.
- Four major factors we are negative on this IPO include lack of sales growth, excessive competition (Coupang and CJ Logistics), mystery of put option clause, and highly geared balance sheet.
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