In today’s briefing:
- Liquid Universe of European Ordinary and Preferred Shares: October ‘22 Report
- SZSE1000 Index Rebalance Preview: Stock Connect & MSCI/FTSE Eligibility
- Giant Biogene Pre-IPO – Peer Comparison – Might Need to Spend a Lot More Online
- BioNote IPO Valuation Analysis
Liquid Universe of European Ordinary and Preferred Shares: October ‘22 Report
- Since mid-September, spreads have shown a mixed performance across our liquid universe with a slight bias towards widening.
- Trade recommendations long ords / short prefs: BMW, Fuchs Petrolub, Handelsbanken, SSAB Svenska Stal.
- Recommendations Long prefs / short ords: Sixt, VW, MFE-Media for Europe, Grifols, Atlas Copco.
SZSE1000 Index Rebalance Preview: Stock Connect & MSCI/FTSE Eligibility
- Nearing the end of the review period for the SZSE1000 Index, we estimate around 50 changes to the index. The first-order impact on the stocks is not large.
- Stocks that are not currently in Buy/Sell Stock Connect will be added to the list. That makes them eligible for inclusion in the MSCI and FTSE indices in February/March.
- 5 of the potential adds could be added to the MSCI China Index in February and 34 of the potential adds could be added to the FTSE All-World/All-Cap in March.
Giant Biogene Pre-IPO – Peer Comparison – Might Need to Spend a Lot More Online
- Giant Biogene Holding (GBH HK) aims to raise around US$500m in its Hong Kong IPO.
- GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.
- We had looked at the company’s past performance in our previous notes. In this note, we’ll undertake a peer comparison.
BioNote IPO Valuation Analysis
- Our base case valuation is target price of 16,182 won per share, which is 10% lower than the low end of the IPO price range.
- We estimate BioNote to generate sales of 535.2 billion won (down 14% YoY) in 2022 and 349 billion won (down 34.8% YoY) in 2023.
- Given the downside risk relative to the IPO price range, we have a Negative View of the BioNote IPO.
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