In today’s briefing:
- HDB Financial Services IPO Trading – Strong Demand, Driven by Instis
- Lens Technology H Share Listing (6613 HK): Valuation Insights
- Lens Technology H-Share Listing: Thoughts on Valuation
- Foshan Haitian Flavouring & Food Company (3288 HK) – The Dull Post-IPO Share Price and the Outlook
- Daehan Shipbuilding Pre-IPO: PE Cashing Cheques on the Shipping Boom
- Kalpataru IPO Trading – Decent Anchor; Muted Overall Demand
- Fortior Tech A/H Listing – Fast but Volatile Growth and Margins
HDB Financial Services IPO Trading – Strong Demand, Driven by Instis
- HDB Financial Services (HDBFS) raised around US$1.4bn in its India IPO.
- HDBFS is a leading retail-focused non-banking financial company (NBFC) in India, in terms of total gross loan book size, according to the CRISIL Report.
- We have looked at the past performance and pricing in our previous note. In this note, we talk about the trading dynamics.
Lens Technology H Share Listing (6613 HK): Valuation Insights
- Lens Technology (6613 HK), an industry-leading integrated one-stop precision manufacturing solution provider, has launched an H Share listing to raise US$600 million.
- I discussed the H Share listing in Lens Technology H Share Listing (6613 HK): The Investment Case.
- The proposed AH discount of 24.8% to 28.1% (based on the 27 June A Share price) is attractive, and I would participate in the H Share listing.
Lens Technology H-Share Listing: Thoughts on Valuation
- Chinese iPhone glass supplier Lens Technology (6613 HK) has announced the terms for its H-share listing, and plans to raise around US$600m through issuing 262.3m shares.
- The company’s listing is priced at HK$17.38-18.18 per share, at a 25-28% discount to the last close price of the A-shares as of 27th June.
- Our valuation analysis suggests that the company’s H-share offering is priced reasonably compared to domestic and international peers.
Foshan Haitian Flavouring & Food Company (3288 HK) – The Dull Post-IPO Share Price and the Outlook
- Recent positive sentiment towards A/H listings fails to drive Haitian’s post-IPO stock price performance, as the market still has doubts about whether Haitian can effectively break through the growth bottleneck.
- The core contradiction of Haitian lies in the mismatch between high valuation and slow growth. Haitian’s fundamentals are difficult to support high valuation – 20-30x P/E is a reasonable range.
- The intensification of geopolitical tensions has brought considerable uncertainty to the market, which has reduced investors’ risk appetite and made them more willing to avoid investment targets with potential risks.
Daehan Shipbuilding Pre-IPO: PE Cashing Cheques on the Shipping Boom
- Daehan Shipbuilding (439260 KS) is looking to raise up to US$350m in its upcoming Korean IPO.
- It specializes in the design and construction of medium-sized (Aframax) and semi-large sized (Suezmax) vessels for crude oil and petroleum product transportation.
- In this note, we provide updates on the firm’s past performance.
Kalpataru IPO Trading – Decent Anchor; Muted Overall Demand
- Kalpataru Limited (KTARU IN) raised about US$184m in its India IPO.
- Kalpataru (KL) is an integrated real estate developer involved in identification and acquisition of land, planning, designing, execution, sales, and marketing of its projects.
- We have looked at the company’s past performance and valuations in our previous notes. In this note, we will talk about the trading dynamics.
Fortior Tech A/H Listing – Fast but Volatile Growth and Margins
- Fortior Technology (Shenzhen) (688279 CH), a BLDC motor IC design company, aims to raise around US$250m in its H-share listing.
- Fortior Tech is an IC design company dedicated to the design and R&D of BLDC motor control ICs.
- In this note, we look at the past performance and likely A/H premium.
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