In today’s briefing:
- Eternal Beauty IPO – Not Expensive but Its Not Enticing Either
- Foshan Haitian Flavouring A/H Trading – Very Strong Demand, Weak Price Momentum
- Foshan Haitian Flavouring H Share Listing (3288 HK): Trading Debut
- Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong
- Kilcoy Global Foods (KGF): China Based Protein Provider Readying for July IPO
- CaoCao IPO: Forecasts and Valuation
- Knowledge Realty Trust Pre-IPO – The Positives – Premium Market Positioning, Healthy Forecasts
- FS.COM Limited Pre-IPO – Positioned to Capture Structural Demand in Networking
- Zhou Liu Fu (6168 HK) IPO: Not Our Cup of Tea
- Caris Life Sciences, Inc. (CAI): AI Cancer TechBio Company Surges Six Points at Open
Eternal Beauty IPO – Not Expensive but Its Not Enticing Either
- Eternal Beauty Holdings Limited is looking to raise around US$144m in its Hong Kong IPO.
- Eternal Beauty is the largest brand management company of perfumes in the combined markets of Mainland China, Hong Kong and Macau, in terms of retail sales in 2023.
- We have looked at the company’s past performance in our previous note. In this note we talk about valuations.
Foshan Haitian Flavouring A/H Trading – Very Strong Demand, Weak Price Momentum
- Foshan Haitian Flavouring & Food (603288 CH) (FHCC), China’s leading condiments company, raised around US$1.5bn (including over-allocation) in its H-share listing.
- FHCC is China’s leading condiments company within its main product categories of soy sauce, oyster sauce, flavored sauce, specialty condiment products and other products.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the trading dynamics.
Foshan Haitian Flavouring H Share Listing (3288 HK): Trading Debut
- Foshan Haitian Flavouring & Food Company (3288 HK) priced its H Share at HK$36.30 to raise HK$10,128.9 million (US$1.3 billion) in gross proceeds. The H Share will be listed tomorrow.
- I discussed the H Share listing in Foshan Haitian Flavouring H Share Listing: The Investment Case.
- Haitian had the highest oversubscription rates among recent large AH listings. The AH discount implied by the offer is attractive.
Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong
- Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise up to $143m in its upcoming Hong Kong IPO.
- It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
- In this note, we examine the IPO dynamics, and look at the firm’s valuation.
Kilcoy Global Foods (KGF): China Based Protein Provider Readying for July IPO
- They provide tasty, fresh, natural, healthy and convenient food products to customers across over 40 countries worldwide.
- For the year ended December 31, 2024, they recorded a total revenue of US$2,195.0 million, increasing by 17.3% from US$1,870.7 million for the year ended December 31, 2023.
- The area in which this company operates in is one that is not traditionally attractive to IPO investors as the margins are low and the competition is high.
CaoCao IPO: Forecasts and Valuation
- Chinese ride-hailing platform CaoCao plans to issue 44.2m shares at the HKEx IPO at an indicative price of HK$41.9/share, and raise net proceeds of US$219m at a valuation of HK$28.9bn.
- CaoCao’s earnings have seen strong growth during the last 2-3 years, however, much of this growth is driven through debt financing which has resulted in a highly geared balance sheet.
- Our valuation analysis suggests that CaoCao (2643 HK) ‘s IPO is overvalued at the indicative IPO price and we would recommend staying on the sidelines.
Knowledge Realty Trust Pre-IPO – The Positives – Premium Market Positioning, Healthy Forecasts
- Knowledge Realty Trust (258259D IN) is planning to raise about US$558m through its upcoming India IPO. The deal has been downsized from an earlier estimated deal size of about US$712m.
- Knowledge Realty Trust (KRT) owns and manages a high-quality office portfolio in India covering 87% of India’s office supply and gross absorption between FY16-9M24, as per the CBRE report.
- In this note, we talk about the firm’s historical performance.
FS.COM Limited Pre-IPO – Positioned to Capture Structural Demand in Networking
- FS.COM Limited (FS) is looking to raise at least US$100m in its upcoming Hong Kong IPO.
- FS presents a compelling growth story rooted in structural demand for enterprise-grade networking and a differentiated DTC model that delivers both scale and customer proximity.
- Its dominant SKU breadth, global Fortune 500 penetration, and aggressive shift toward high-performance solutions support sustained revenue expansion.
Zhou Liu Fu (6168 HK) IPO: Not Our Cup of Tea
- Zhou Liu Fu Jewelery Co., Ltd. (6168 HK)‘s IPO does not appeal to us, given deteriorating profitability, smaller size, and inferior financials.
- Its IPO price of HK$24.0 appears to be fair relative to the peers’ valuation, leaving limited upside and downside in the secondary market.
- We value the stock at HK$22.5-25.7, based on 20-30% discount to Chow Tai Fook Jewellery (1929 HK). It is not another Laopu Gold (6181 HK).
Caris Life Sciences, Inc. (CAI): AI Cancer TechBio Company Surges Six Points at Open
- The next-generation AI TechBio company priced a full size deal of 23.5mm shares at $21.00 and opened at $27.00 for a gain of 28.6% at first trade.
- It was easy for IPO investors to wrap their heads around this company. Caris generates billions of data points and uses AI to customize immunotherapy for individuals.
- Looking ahead, it is our opinion that this “could” be a company that investors tuck away in their portfolio for a long time.
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