Daily Brief United States: Chagee Holdings, Copper, LENSAR and more

In today’s briefing:

Pre-IPO Chagee Holdings – IPO Pricing Is Attractive, But Share Price May Underperform
Copper Tracker 14th April 2025: Green Shoots Emerging After the Trump Tariff Fiasco
Strategic Acquisitions, Merger Developments, and Takeover Bids: Key Updates

Pre-IPO Chagee Holdings – IPO Pricing Is Attractive, But Share Price May Underperform

Chagee is seeking up to US$411 million by offering nearly 14.7 million ADS priced between US$26 and US$28 each, with market value to reach about US$4.8-US$5.1 billion.
Chagee is facing performance headwinds. Whether the current high growth of Chagee is sustainable in the future is uncertain. This makes us tend to be conservative in Chagee’s valuation expectations
Based on our forecast, P/E is about 11.5-12.3x if based on 2025 net profit. Such valuation is attractive, but “valuation discount” may occur due to market turmoil and geopolitical conflicts.

The introduction of Trump Tariffs has adversely impacted the commodities market’s promising start to the year, except for gold, which has exceeded 3,200 USD/oz.
Following a peak of 10,000 USD/ton on March 25, copper prices fell 14% to 8,600 USD/ton before rebounding in the past two trading sessions to 9,150 USD/ton.
The dollar’s depreciation, Trump’s flexibility on tariffs, and anticipated acceleration in Chinese stimulus have created a more favorable market environment for copper.

Lensar (LNSR) is being acquired by Alcon for $14/share plus a CVR up to $2.75/share, with closing expected in H2 2024.
OCI N.V. announced a $1bn extraordinary cash distribution, with shareholders choosing payment currency, ex-dividend date April 15.
Kronos Bio (KRON) terminated a lease for $1.5m, with potential net cash outcome between ~$1 and $1.30/share.

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