Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Full Truck Alliance   / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/full-truck-alliance" target="_blank" data-smartkarma-citation="entities:33429:1" rel="noopener">Full Truck Alliance (YMM US)</a> (FTU),  China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing. It is backed by Softbank and Sequoia.</p><p>Full Truck Alliance (FTA) was formed in 2017 via a merger of Yunmanman and Huochebang, which had been operational since 2013 and 2011, respectively. It is the largest digital freight platform in China and the world, as per CIC. In 2020, 71.7m orders were fulfilled on the platform, with a gross transaction value (GTV) of RMB173.8bn (US$26.6bn), by 2.8m truckers. It had 1.3m active shippers in Dec 2020. Approximately 20% of all China’s heavy-duty and medium-duty truckers fulfilled shipping orders on its platform in 2020, according to CIC.</p><p>FTA is the leader in its category and appears to be well ahead of other competitors, as per CIC. The company has been working on various means of monetising its user base. While 2020 wasn’t a great year for revenue growth, the company did manage to turn a profit and was cash flow positive as well. </p>

Full Truck Alliance (YMM US) (FTU),  China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing. It is backed by Softbank and Sequoia.Full Truck Alliance (FTA) was formed in 2017 via a merger of Yunmanman and Huochebang, which had been operational since 2013 and 2011, respectively. It is the largest digital freight platform in China and the world, as per CIC. In 2020, 71.7m orders were fulfilled on the platform, with a gross transaction value (GTV) of RMB173.8bn (US$26.6bn), by 2.8m truckers. It had 1.3m active shippers in Dec 2020. Approximately 20% of all China’s heavy-duty and medium-duty truckers fulfilled shipping orders on its platform in 2020, according to CIC.FTA is the leader in its category and appears to be well ahead of other competitors, as per CIC. The company has been working on various means of monetising its user base. While 2020 wasn’t a great year for revenue growth, the company did manage to turn a profit and was cash flow positive as well. 

Full Truck Alliance Pre-IPO - The Positives - Category Leader

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

Equity Bottom-Up

<p>DoorDash’s had a fairly impressive 1Q21 as it still is benefitting from annualizing the pandemic surge. The company even raised full year guidance by more than then the first quarter beat. However, they are guiding to deceleration in the backhalf of the year as reopenings pick up and normal seasonality sets in for 3Q. On balance, the quarter and commentary made us less bearish – but there’s still that insane valuation to wrap one’s mind around. At 15x forward sales, its down from 20x after last quarter, but after a 22% rip on earnings, this company’s valuation makes no sense in the context of an industry that saw Grubhub and Postmates get acquired at 6x forward sales a year ago.</p><div class="content-highlight"><p>Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.</p></div>

DoorDash’s had a fairly impressive 1Q21 as it still is benefitting from annualizing the pandemic surge. The company even raised full year guidance by more than then the first quarter beat. However, they are guiding to deceleration in the backhalf of the year as reopenings pick up and normal seasonality sets in for 3Q. On balance, the quarter and commentary made us less bearish – but there’s still that insane valuation to wrap one’s mind around. At 15x forward sales, its down from 20x after last quarter, but after a 22% rip on earnings, this company’s valuation makes no sense in the context of an industry that saw Grubhub and Postmates get acquired at 6x forward sales a year ago.Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.

DoorDash 1Q21 Earnings: Reopening or Decelerating?

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

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<div><p><a href="https://www.smartkarma.com/entities/hello-inc" target="_blank" data-smartkarma-citation="entities:33031:1" rel="noopener">Hello Inc (1883864D US)</a>, which is backed by <a href="https://www.smartkarma.com/entities/ant-group-co-ltd" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Financial Services Group (6688 HK)</a>, is China's third-largest local services platform by transaction volume, according to iResearch. Hello offers bike-sharing and e-bike sharing services known as <em>Hello Bike</em> and <em>Hello e-Bike</em>. It also has a carpooling marketplace known as <em>Hello Carpooling</em>. Hello is seeking to raise $1 billion through a Nasdaq listing, according to press reports.   </p></div>
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<p>In <a href="https://www.smartkarma.com/insights/hello-ipo-initiation-goodbye" target="_blank" data-smartkarma-citation="insights:50795" rel="noopener">Hello IPO Initiation: Goodbye</a> we stated that Hello’s investor pitch is that its various businesses create a flywheel that drives user spending growth with limited user acquisition costs. However, Hello remains saddled with a core business (shared two-wheeler services) that has challenging prospects due to declining growth, low profitability and high cash burn.</p>
<div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/hello-ipo-1q21-update-does-not-change-the-avoid-tag" target="_blank" data-smartkarma-citation="insights:51119" rel="noopener">Hello IPO: 1Q21 Update Does Not Change the Avoid Tag</a>, we noted that at first glance, the 1Q21 update looks stunning due to accelerating growth and margin progression. However, a closer look, suggests that business continues to face daunting challenges. In this note, we present our forecasts and take the first look at Hello's potential valuation range. </p></div>
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Hello Inc (1883864D US), which is backed by Ant Financial Services Group (6688 HK), is China's third-largest local services platform by transaction volume, according to iResearch. Hello offers bike-sharing and e-bike sharing services known as Hello Bike and Hello e-Bike. It also has a carpooling marketplace known as Hello Carpooling. Hello is seeking to raise $1 billion through a Nasdaq listing, according to press reports.   

In Hello IPO Initiation: Goodbye we stated that Hello’s investor pitch is that its various businesses create a flywheel that drives user spending growth with limited user acquisition costs. However, Hello remains saddled with a core business (shared two-wheeler services) that has challenging prospects due to declining growth, low profitability and high cash burn.
In Hello IPO: 1Q21 Update Does Not Change the Avoid Tag, we noted that at first glance, the 1Q21 update looks stunning due to accelerating growth and margin progression. However, a closer look, suggests that business continues to face daunting challenges. In this note, we present our forecasts and take the first look at Hello's potential valuation range. 



Latest News from the World’s Leading Innovators

Granite Bay Capital

An innovation focussed investment company

Granite Bay Capital is an innovation focussed investment company with a deep focus on the companies at the leading edge of innovation across major themes such as AI, ubiquitous computing, sustainability, automation and longevity.

Thematic (Sector/Industry)

<p>Headline Developments The battle is on between Fortnite developer Epic Games (private) and Apple (AAPL) - a David and Goliath case which, in a nutshell, will ask whether Apple is acting fairly by charging developers a 15-30% fee for all revenues made via subscriptions and in-app purchases.</p>

Headline Developments The battle is on between Fortnite developer Epic Games (private) and Apple (AAPL) - a David and Goliath case which, in a nutshell, will ask whether Apple is acting fairly by charging developers a 15-30% fee for all revenues made via subscriptions and in-app purchases.

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<p>The ride-hailing giant <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> announced on Tuesday (13th April 2021) that it plans to go public in the US via a SPAC merger with <a href="https://www.smartkarma.com/entities/altimeter-growth-corp" target="_blank" data-smartkarma-citation="entities:33007:1" rel="noopener">Altimeter Growth Corp (AGC US)</a>  at a proposed valuation (pro-forma) of approx. US$39.6bn.</p><p>In our previous insight on Grab’s SPAC deal, we discussed the company’s growth prospects and its financials. In this insight, we examine the company’s valuation using a SOTP.</p>

The ride-hailing giant Grab (0967655D SP) announced on Tuesday (13th April 2021) that it plans to go public in the US via a SPAC merger with Altimeter Growth Corp (AGC US)  at a proposed valuation (pro-forma) of approx. US$39.6bn.In our previous insight on Grab’s SPAC deal, we discussed the company’s growth prospects and its financials. In this insight, we examine the company’s valuation using a SOTP.

Grab: SOTP Suggests Steep Discount to Proposed SPAC Valuation

United States

Lyft, Inc. provides online ridesharing services. The Company offers ride booking, payment processing, and car transportation services. Lyft serves customers in the United States.

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Lyft (LYFT US)

Full Truck Alliance Pre-IPO - The Positives - Category Leader

Full Truck Alliance, China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing. It is...

Sumeet Singh

DoorDash 1Q21 Earnings: Reopening or Decelerating?

DoorDash had a fairly impressive 1Q21 as it still is benefitting from annualizing the pandemic surge. 15x forward P/S, valuation makes no sense...

Aaron Gabin

Hello IPO: Valuation First Look

Hello is seeking to raise $1 billion through a Nasdaq listing, according to press reports. In this note, we present our forecasts and take the...

Arun George

Weekly Innovation Review (WIRE) #30

Headline Developments The battle is on between Fortnite developer Epic Games (private) and Apple (AAPL) - a David and Goliath case which, in a...

Granite Bay Capital

Grab: SOTP Suggests Steep Discount to Proposed SPAC Valuation

Our SOTP valuation implies significant downside to Grab’s pro-forma valuation of the proposed SPAC deal even after assigning generous target...

Shifara Samsudeen, ACMA, CGMA

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