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Most Read: Sichuan Tianqi Lithium Industries, Inc, Nexon, Thai Life Insurance, Viva China Holdings and more

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

By Sumeet Singh

  • 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

By Arun George

  • 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

By Travis Lundy

  • 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

By Brian Freitas

  • 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

By David Blennerhassett

  • 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. 

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