In today’s briefing:
- Tianqi Lithium A/H Listing – Back once Again, This Time with a More Compelling Industry Backdrop
- Thai Life Insurance IPO: The Bull Case
- Nexon Buyback May Signal End To Near-Term Relative Outperformance
- Thai Life Insurance: Offering Details & Index Entry Timeline
- Viva China: Perennially Inexpensive Li Ning Exposure
Tianqi Lithium A/H Listing – Back once Again, This Time with a More Compelling Industry Backdrop
- Tianqi Lithium (TL) is looking to raise up to US$1.5bn via its H-shares listing. It undertakes mining of lithium ore and manufacturing of lithium concentrate, lithium compounds and derivatives.
- TL was the largest producer of mined lithium globally in terms of output and ranked third in terms of revenue generated from lithium in 2020, according to Wood Mackenzie .
- In this note, we look at the company’s past performance and the deal dynamics.
Thai Life Insurance IPO: The Bull Case
- Thai Life Insurance (124744Z TB) has started to meet investors ahead of its $1 billion IPO. The roadshow will run till early July with a listing targeted later in July.
- Thai Life is the third-largest life insurer in Thailand with a 12.9% market share as measured by gross premium income in 1Q22.
- The key elements of the bull case rest on a strong brand, the largest agent network, return to APE growth, high persistency ratio and improving VONB margin.
Nexon Buyback May Signal End To Near-Term Relative Outperformance
- Nexon (3659 JP) founder Kim Jung Ju tried to sell his holdco in 2019, didn’t, now shares are higher, but he passed suddenly in Q1. The stock popped.
- Inheritance tax issues for the estate are complicated, but the buyback just executed might signal a “pause” for a while.
- In the meantime, recent underperformance in terms of Peer-relative earnings forecasts suggests the stock could drift.
Thai Life Insurance: Offering Details & Index Entry Timeline
- Thai Life Insurance (124744Z TB) is looking to raise US$1bn in its IPO by selling up to 2.207bn shares. This will value the company at around US$5.18bn.
- Inclusion in the SET50 INDEX will depend on the float exceeding 20% and a rally that leads to its market cap exceeding 1% of the SET INDEX market cap.
- Fast Entry to the MSCI Thailand and FTSE All-World indices is not likely. MSCI inclusion could take place at the November SAIR and FTSE inclusion at the December QIR.
Viva China: Perennially Inexpensive Li Ning Exposure
- Viva China (8032 HK) trades at a large discount to its 10.6% holding in Li Ning (2331 HK).
- Apart from its Li Ning exposure, Viva has a controlling stake in Bossini International Holdings (592 HK), a sports experience segment, and net cash.
- The current NAV discount of ~46% is unlikely to meaningfully narrow near term given management’s reluctance to pay out a large dividend or undertake a corporate restructuring.
Before it’s here, it’s on Smartkarma