In today’s briefing:
- LG Electronics India IPO: The Bull Case
- Samsung SDI: Rights Offering Capital Raise Amount Lowered by 14% to 1.7 Trillion Won
- Jiangsu Hengrui Pharma A/H Listing – Recent Updates and Thoughts on A/H Premium
- Pre-IPO Chagee Holdings – Some Points Worth the Attention
- Jain Resource Recycling Pre-IPO Tearsheet
- Runwal Enterprises Ltd Pre-IPO Tearsheet
LG Electronics India IPO: The Bull Case
- LG Electronics India (123D IN)/LGEIL, a subsidiary of LG Electronics (066570 KS), aims to raise up to US$1.5 billion through a secondary offering (15% of outstanding shares).
- According to Redseer, as of 30 June 2024, LGEIL was the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume.
- The bull case rests on a strong market position, solid revenue growth, top-tier operating and FCF margin profile.
Samsung SDI: Rights Offering Capital Raise Amount Lowered by 14% to 1.7 Trillion Won
- Samsung SDI (006400 KS) has lowered the rights offering capital raise amount by 14% to 1.7 trillion won, mainly due to the recent carnage in the global equity markets.
- The expected rights offering price has been lowered to 146,200 won, which is 14.9% lower than current price.
- We remain negative on Samsung SDI’s rights offering capital raise mainly due to shares dilution risk. We also remain concerned that the weak demand for EVs globally could last longer.
Jiangsu Hengrui Pharma A/H Listing – Recent Updates and Thoughts on A/H Premium
- Jiangsu Hengrui Medicine (600276 CH) (JHP), a China-based pharmaceutical company, aims to raise around US$2bn in its H-share listing.
- JHP has been ranked as one of the global Top 50 pharmaceutical companies by Pharm Exec for six consecutive years since 2019.
- We have looked at the company’s past performance in our previous note. In this note, we talk about the recent updates and provide our thoughts on the possible A/H premium.
Pre-IPO Chagee Holdings – Some Points Worth the Attention
- The main reason behind declining performance is related to the increase in regional market density brought about by newly opened teahouses. Franchisees would be more cautious about investing in Chagee.
- With the passage of time and the declining same store GMV, the low teahouse closure rate will gone. Product strategy of “flagship product + classic basics ” also has risks.
- Based on our forecast of 2025 net profit of about RMB3 billion (or US$400 million) and US IPO market value of US$5 billion, P/E is about 12.5x.
Jain Resource Recycling Pre-IPO Tearsheet
- Jain Resource Recycling (2300699D IN) is looking to raise about US$234m in its upcoming India IPO. The deal will be run by ICICI, Motilal, DAM and PL Capital.
- The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
- According to CRISIL, it was the largest and fastest-growing non-ferrous metal recycling business, in terms of revenue for FY22-24 in India.
Runwal Enterprises Ltd Pre-IPO Tearsheet
- Runwal Enterprises Limited (2300329D IN) (REL) is planning to raise about US$117m through its upcoming India IPO. The lead bookrunners for the deal are ICICI, Jefferies.
- REL is a real estate developer engaged across the full spectrum of real estate, with a focus on residential (affordable to luxury), commercial spaces, retail malls, and educational buildings.
- As per JLL Report, between Jan 19 and Sept 24, Runwal Enterprises ranked 2nd in Mumbai for both new launches (5.69%) and sales (5.25%).
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