In today’s briefing:
- JX Advanced Metals (5016 JP) IPO: Trading Debut
- JX Advanced Metals IPO Trading
- Nanshan Aluminium IPO: Orphaned Security with Margin Risk
- Fujiyama Power Systems Ltd Pre-IPO Tearsheet
- DN Solutions IPO Valuation Analysis
- Huge Dental Pre-IPO Tearsheet
- Klarna Group (KLAR): Peeking at the IPO Prospectus of the Next High Profile E-Commerce Company
- Pre-IPO Soft International Group (PHIP Updates) – Some Points Worth the Attention
- Anthem Biosciences Pre-IPO – The Positives – Portfolio Expansion, Increasing Capacity to Fuel Growth
- DN Solutions Pre-IPO – The Positives – Growing Market Share
JX Advanced Metals (5016 JP) IPO: Trading Debut
- JX Advanced Metals (5016 JP) priced its IPO at JPY820 per share to raise gross proceeds of US$2.5 billion. The shares will start trading on 19 March.
- Relevant notes: JX Advanced Metals (5016 JP) IPO: The Bull Case, JX Advanced Metals (5016 JP) IPO: The Bear Case, JX Advanced Metals (5016 JP) IPO: Price Range Is Fair.
- Since the price range was announced, the peers have modestly re-rated. My SoTP valuation of JPY859 is slightly above the IPO price, suggesting the price is fair.
JX Advanced Metals IPO Trading
- JX Advanced Metals raised 438.6 billion yen (US$3 billion) on its IPO offering after pricing the IPO at 820 yen per share, valuing the company at 761.3 billion yen.
- Our base case valuation of JX Advanced Metals is price per share of 863 yen, based on P/E of 9.9x using our estimated net profit of 81 billion yen (2026E).
- Therefore, we would sell into strength if the share price of JX Advanced Metals rises to the 863 yen to 1,044 yen per share.
Nanshan Aluminium IPO: Orphaned Security with Margin Risk
- Nanshan Aluminium International Holdings (NAI HK) is looking to raise up to US$358m in its upcoming Hong Kong IPO.
- NA is a leading high-quality alumina manufacturer in Southeast Asia. The firm sources bauxite domestically in Indonesia and utilizes low-temperature Bayer process.
- We have looked at the company’s past performance in our earlier notes. In this note, we discuss latest industry dynamics, conduct a quick peer comparison and discuss the company’s valuation.
Fujiyama Power Systems Ltd Pre-IPO Tearsheet
- Fujiyama Power Systems Ltd (1742651D IN) (FPSL) is planning to raise about US$138m through its upcoming India IPO. The lead bookrunners for the deal are Motilal, SBI.
- FPSL was established in 1996. The company specializes in solar panel and inverter manufacturing, covering on-grid, hybrid, and off-grid solutions, along with lead acid and lithium-ion battery production.
- As per CARE Report, it was the 1st Indian company to develop an SMT-based inverter with a single card in 2000.
DN Solutions IPO Valuation Analysis
- Our base case valuation of DN Solutions suggests target price of 90,167 won per share, which is 1% higher than the high end of the IPO price range.
- Our base case valuation is based on 17.9x P/E using our estimated net profit of 317.9 billion won for DN Solutions in 2025.
- Given the lack of upside, we have a Negative View of this IPO. DN Solutions has higher operating margin and ROE but lower revenue growth than its comps.
Huge Dental Pre-IPO Tearsheet
- Huge Dental (HD) is looking to raise about US$100mn in its upcoming Hong Kong IPO. The deal will be run by CICC and DBS.
- As a leading dental material company among domestic players in China, HD offers dental clinical products, dental laboratory products and dental digital products in various application scenarios.
- HD primarily sells across 6 continents, with China, Europe, U.S., and SEA being the primary markets.
Klarna Group (KLAR): Peeking at the IPO Prospectus of the Next High Profile E-Commerce Company
- Their total revenue was $1.90 billion, $2.28 billion, and $2.81 billion and their net profit (loss) was ($1.04 billion), ($244 million), and $21 million in 2022, 2023, and 2024, respectively.
- The company was once valued at $46 billion in a SoftBank-led funding round. Klarna saw its valuation slashed by 85% in 2022 to $6.7 billion in its most recent fundraising.
- The company made headlines when CNBC reported that Klarna will be the exclusive provider of buy now, pay later loans for Walmart (WMT US).
Pre-IPO Soft International Group (PHIP Updates) – Some Points Worth the Attention
- The competition intensity of the industry in which Soft International’s main business operates is expected to remain high in the future. The growth rate of major markets will maintain low.
- Soft International’s performance has shown a downward trend as it enters 2024.This is not good news for capital markets that prioritize performance sustainability.P/E of 10x is a suitable valuation level
- Our forecast is that Soft International’s revenue could reach RMB750-800 million in 2025 and RMB850-950 million in 2026, with CAGR of 10%-15%.Net profit margin may remain low at single digit.
Anthem Biosciences Pre-IPO – The Positives – Portfolio Expansion, Increasing Capacity to Fuel Growth
- Anthem Biosciences (1234D IN) is looking to raise up to US$400m in its upcoming India IPO.
- Anthem Biosciences (ABS) is a contract research, development and manufacturing organisation (CRDMO) with fully integrated operations spanning drug discovery, development, and manufacturing.
- In this note, we talk about the positive aspects of the deal.
DN Solutions Pre-IPO – The Positives – Growing Market Share
- DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
- DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
- In this note, we talk about the company’s past performance.
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