Report
EUR 88.49
For Business Accounts Only
Radiance Holdings is a property developer with a national presence. The company has a focus on developing residential properties for first-time home buyers and first-time upgraders.
It has over 20 years of experience in developing residential properties and has expanded operations into five regions including the Yangtze River Delta, Bohai Economic Rim, Southern China, Southwestern China, and Northwestern China.
Revenue has more than doubled between FY2017 to FY2019 while contract liabilities in FY2019 indicate that revenue will continue to maintain the strong growth in FY2020.
However, gross profit and PATMI has not kept pace as margins have been under pressure for the past three years due to increased development costs. Cash flow from operations after working capital have failed to track PATMI and leverage has worsened over the same period. Furthermore, RH sold its property management business at a ridiculously cheap valuation (5.2x LTM P/E) to its founder, Mr. Lam
Radiance Holdings (金辉控股) Pre-IPO - Property management service business carved out at a ridiculously cheap valuation
Radiance Holdings (RH) is looking to raise US$500m in its upcoming IPO in Hong Kong.Radiance Holdings is a property developer with a national presence. The company has a focus on developing residential properties for first-time home buyers and first-time upgraders.
It has over 20 years of experience in developing residential properties and has expanded operations into five regions including the Yangtze River Delta, Bohai Economic Rim, Southern China, Southwestern China, and Northwestern China.
Revenue has more than doubled between FY2017 to FY2019 while contract liabilities in FY2019 indicate that revenue will continue to maintain the strong growth in FY2020.
However, gross profit and PATMI has not kept pace as margins have been under pressure for the past three years due to increased development costs. Cash flow from operations after working capital have failed to track PATMI and leverage has worsened over the same period. Furthermore, RH sold its property management business at a ridiculously cheap valuation (5.2x LTM P/E) to its founder, Mr. Lam
Underlying
Radiance Holdings
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.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Zhen Zhou Toh
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