Hong Kong joins the IPO pop parade 10 Dec 2020 First-day gains in the city’s debuts have bested New York’s this year for only the second time in a decade. Rallying stocks help, but JD Health’s 56% jump suggests a more dynamic market following a slew of tech listings. That bodes well amid growing competition with Shanghai.
Australia gives an inch in tech-titan media clash 10 Dec 2020 Google and Facebook have won concessions in the battle over paying for news. They can claim value for readers referred from their sites, and YouTube, Instagram and other services will be excluded initially. The duo’s clout demands extra vigilance to ensure they don’t take a mile.
Slow SoftBank buyout is a risky shortcut for Son 9 Dec 2020 Masayoshi Son is known for snap judgements on multi-billion dollar investments. A plan to gradually buy back shares with an eye to an eventual buyout, as reported by Bloomberg, looks weird, grubby, and might prove more expensive than the straightforward option.
Liquid soap lubricates Chinese IPO gold rush 9 Dec 2020 Following booze and bottled water, detergent is the latest consumer staple poured onto Hong Kong’s foamy market. Priced around 25 times forecast earnings, Blue Moon touts market dominance and high margins. Competition and rising material costs will put pressure on both.
Wish’s cut-price approach fails to extend to IPO 8 Dec 2020 The owner of the cheap-and-cheerful e-commerce site reckons it’s worth up to $14 bln. Wish’s gamification of online shopping is a bit like China’s hugely successful Pinduoduo. The valuation suggests too much optimism that the model will translate for a U.S. audience.
Hitachi unit buyout requires steely resolve 8 Dec 2020 KKR and Bain are among the suitors for the Japanese conglomerate’s $6 bln metals business. The company has fallen on especially hard times during the pandemic. It will take a big recovery and then some to generate a healthy return on the deal. A carve-up may even be in order.
Corona Capital: Airbnb IPO, IKEA catalog 7 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: Vacation-rental app Airbnb ups its likely market valuation when it goes public later this week; and IKEA kills off its doormat-denting printed catalog after 70 years.
Sinovac deal is placebo to governance woes 7 Dec 2020 A unit of the Chinese company making the Covid-19 jabs rolled out by Beijing has won fresh funds pointing to a $3 bln-plus valuation for the scandal-hit parent. It’s cold comfort for owners of the U.S. stock halted since 2019, and reminder that the vaccine lead may not pay off.
Japan Inc confronts limit of corporate carbon cuts 4 Dec 2020 Companies including Sony are lobbying for more renewable power in Japan. They need to satisfy clients like Apple, who have committed to carbon-neutral supply chains as soon as 2030. But even an edict from the $2 trln tech titan can’t force change where policymakers lag behind.
Payments is a wrinkly bow on Walmart’s India deal 3 Dec 2020 PhonePe was an afterthought when the U.S. retailer bought it with Flipkart in 2018. Now the star money-transfer app is being partially spun out of the e-tailer at a $5.5 bln price tag. It’s a deliberately conservative valuation for a business with enormous potential.
Corona Capital: Merck sells Moderna stake 2 Dec 2020 Concise views on the pandemic’s corporate and financial fallout: The U.S. drugmaker is banking its winnings on an investment in Covid-19 vaccine producer Moderna that dates back to 2015.
Healthcare IPO examines value of China’s big tech 2 Dec 2020 The unit of e-commerce giant JD priced its $3.5 bln offer at a reasonable 13 times sales. Virtual consultations and pharmacies are booming, supporting an official push for a healthy China. It’s a timely reminder that powerful internet platforms have valuable uses for Beijing.
Xiaomi $4 bln cash raise exploits peak market 2 Dec 2020 The $81 bln Chinese smartphone maker is using its 143% share rally this year to raise $4 bln - a record Hong Kong follow-on. Shares are now pricier than Apple’s, which should please founder Lei Jun, a Steve Jobs imitator. He has his work cut out justifying that valuation.
Meituan delivers food slathered in EV spice 1 Dec 2020 The $220 bln Chinese food delivery group saw earnings rise 374% in the third quarter, mostly thanks to an equity stake in an electric car maker. Blistering portfolio gains only emphasize the bland performance of Meituan’s core business – and its expensive share price.
Beware Chinese used-car dealer’s sticker price 27 Nov 2020 Kaixin Auto is riding electric-vehicle enthusiasm with an odd plan to merge with e-commerce outfit Haitaoche. After going public by way of a shell company in 2018, just 2% of its shares are freely traded. The 2,300% rise in market cap requires a closer look under the hood.
China’s e-yuan solves one stimulus problem 24 Nov 2020 Digital currency transactions have topped $300 mln as the central bank steps up trials across the country. Virtual money that’s traceable is showing promise in getting consumers to spend rather than hoard. That might spur Beijing to use cash handouts to boost consumption.
Australian milk deal looks a little too local 24 Nov 2020 Vegemite-maker Bega could buy Lion Dairy for $400 mln after regulators blocked a Chinese buyer amidst diplomatic tensions. A home-grown champion could consolidate the domestic market, but as other Aussie industries are discovering, there are few substitutes for Chinese demand.
Corona Capital: Cash stockpiles, Empty real estate 23 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. companies hoard money; retailer rout causes real estate double whammy.
Corona Capital: U.S. airlines 20 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: The CDC issued a warning to Americans not to travel over the upcoming Thanksgiving holiday as Covid-19 cases surge. Airlines, once again, are going hat-in-hand to Washington.
Panasonic pushes limits of rewiring circuitry 20 Nov 2020 The $26 bln electronics empire is yet again shuffling around its fax machines and electric-vehicle batteries. This latest restructuring should help streamline operations and boost profitability. If it clears the way for new boss Yuki Kusumi to lead a broader breakup, even better.