In today’s briefing:
- Xero US1.2bn Placement – Trying to Jump Start US, Again. Might Not Be a Game Changer.
- Innovent Biologics Placement – Second for the Month, Stock Has Doubled but Momentum Is Strong
- Anjoy Foods Group A/H Listing – Isn’t Great but Can’t Ask for It to Cheaper
- FWD Pre-IPO – PHIP Updates – Growth Slowing, Metrics Evolution Continues
- Eternal Beauty IPO Trading – Weak Demand, Close to Fair Value
- Zhou Liu Fu IPO Trading: Fundamentally Weak but Oversubscribed
- Anjoy Foods Group (2648 HK) IPO: Reasonably Attractive
- Pre-IPO Nanjing Leads Biolabs (PHIP Updates) – Thoughts on the Valuation and the Outlook
Xero US1.2bn Placement – Trying to Jump Start US, Again. Might Not Be a Game Changer.
- Xero Ltd (XRO AU) plans to raise around US$1.2bn via an institutional placement to partly fund the US$2.5bn acquisition for Melio.
- The US market has been a growth dampener for Xero for a while. The acquisition is large but might not be a game changer.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Innovent Biologics Placement – Second for the Month, Stock Has Doubled but Momentum Is Strong
- Innovent Biologics Inc (1801 HK) aims to raise around US$500m for R&D and marketing.
- The company has undertaken a number of deals in the past, with the overall results being mixed but recent deals have done well.
- In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Anjoy Foods Group A/H Listing – Isn’t Great but Can’t Ask for It to Cheaper
- Anjoy Foods Group (603345 CH), a quick-frozen food company in China, aims to raise around US$336m in its H-share listing.
- AFG was the largest quick-frozen food company in China in terms of revenue in 2023, with a market share of 6.2%, according to the Frost & Sullivan report.
- We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.
FWD Pre-IPO – PHIP Updates – Growth Slowing, Metrics Evolution Continues
- FWD Group Holdings (FWD HK), a pan-Asian life insurer founded by Richard Li, now aims to raise around US$500m in its HK IPO.
- FWD is a pan-Asia life insurer operating in ten markets including Hong Kong (and Macau), Thailand (and Cambodia), Japan, the Philippines, Indonesia, Singapore, Vietnam and Malaysia.
- We looked at the company’s 2018-21 performance in our past notes. In this note, we will talk about the updates since then.
Eternal Beauty IPO Trading – Weak Demand, Close to Fair Value
- Eternal Beauty Holdings raised around US$125m 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 the trading dynamics.
Zhou Liu Fu IPO Trading: Fundamentally Weak but Oversubscribed
- 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.
- We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.
Anjoy Foods Group (2648 HK) IPO: Reasonably Attractive
- Anjoy Foods Group (2648 HK)‘s H-share IPO at a maximum price of HK$66.00 appears reasonably attractive, as this equals a 33-34% discount to peer average FY25F PER.
- It is well-positioned to capture quick-frozen food demand growth, will gain from geographical and market share expansion, and has solid product, marketing and production capability.
- We value the stock at HK$72.66, 12.7x FY25F PER, or a 25% discount to the sector PER. It will also be on a 13.9% discount to its A-share.
Pre-IPO Nanjing Leads Biolabs (PHIP Updates) – Thoughts on the Valuation and the Outlook
- Even if the first indication of LBL-024 is approved, it wouldn’t bring significant performance growth due to small market size for EP-NEC. Commercialization prospects of LBL-007 are also not optimistic.
- Leads Biolabs’ CD3 pipelines would have higher hope to be successful. However, early-stage investors transferred their equity at a discount before IPO, which may reflect their concerns about the prospects.
- Comfortable valuation is RMB3-4bn, which provides investors with a greater margin of safety.Especially in the context of current bull market of innovative drugs, biotech valuation has been full of bubble
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