Aequitas Research - China Feihe (ä¸å›½é£žé¹¤) IPO - Peer comparison and thoughts on valuation

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Aequitas Research

Ke Yan

EUR 88.49 For Business Accounts Only

China Feihe (ä¸å›½é£žé¹¤) IPO - Peer comparison and thoughts on valuation

China Feihe is pre-marketing its USD 1 billion deal to list in Hong Kong. In our previous insight, we have discussed the companyâ€™s background, its history, shareholders, and the latest financials disclosed in the PHIP.
In this note, we compare the companyâ€™s operation with listed infant milk formula (IMF) peers. We also compared the companyâ€™s online reviews on a leading e-Commerce website in China.
We are of the view that the company possesses a strong brand name than its peers and reported a strong performance in a competitive environment.
We also discuss our baseline forecast and valuation for the company. Our conservative fair value for the company is USD 8.7 bn to USD 9.1 bn.

Our previous coverage on China Feihe
- China Feihe IPO Preview: Goat Bless Infant Formula Milk?
- China Feihe (ä¸å›½é£žé¹¤) IPO: New Numbers, New Red Flag, and Demographic Risk
- China Feihe (ä¸å›½é£žé¹¤) IPO: Thoughts on Valuation
- China Feihe (ä¸å›½é£žé¹¤) IPO: PHIP Updates, Favorable Policy, Updated Valuation
- Feihe IPO: Actively Promoted in Supermarkets, Some Concerns on Industrial History

17/10/2019 7 EN

Provider

Aequitas Research

Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.

Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.

Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.

Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.

See profile

Analysts

Ke Yan

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China Feihe (ä¸­å›½é£žé¹¤) IPO - Peer comparison and thoughts on valuation

Onewo Space-Tech Pre-IPO

Legend Biotech Follow-on Offering

Xtep International Placement

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China Feihe (ä¸å›½é£žé¹¤) IPO - Peer comparison and thoughts on valuation