In today’s briefing:
- WuXi XDC IPO: Valuation Insights
- CMIC (2309 JP) – Huge Business Model Plan Appears to Hide Assets, Then an MBO. Ugh…
- MariMed, Inc. – 3Q Earnings Preview
WuXi XDC IPO: Valuation Insights
- WuXi XDC Cayman (1877628D HK), a leading contract research, development and manufacturing organization (CRDMO), has launched an HKEx IPO to raise up to US$470 million.
- We previously discussed the IPO in WuXi XDC IPO: The Bull Case and WuXi XDC IPO: The Bear Case.
- Blue-Chip cornerstones will purchase US$300 million of the offer. Our base-case DCF valuation is HK$22.84 per share, 12.8% above the midpoint of the IPO price range.
CMIC (2309 JP) – Huge Business Model Plan Appears to Hide Assets, Then an MBO. Ugh…
- CMIC Holdings (2309 JP) decided to “change its business model” this past spring, transferring control of a consolidated JV and other subs to DNP.
- The result changed the accounting, and the business model, capitalising future cashflow and net income in a “hidden” asset which may or may not be in the Financial Advisor’s valuation.
- My read is this is being done too cheaply, and the price should be 30-60% higher. But, it would be tough to block this.
MariMed, Inc. – 3Q Earnings Preview
- MariMed reports 3Q earnings on November 8 after the close.
- Q/Q, we are expecting 5.4% revenue growth and a slight contraction in AEBITDA.
- Maryland should be the most significant driver of the top-line improvement.
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