Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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 Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<ul class="">
<li>Alibaba’s Freshippo Bazaar opens a mini-program on Tencent’s WeChat and two other Alibaba businesses are trying to follow.</li>
<li>We believe Alibaba surrendered itself to Tencent after Alibaba and Tencent had blocked each other’s businesses for a long time.</li>
<li>We believe that Alibaba’s advantage among e-commerce companies ruins AliPay’s advantage among e-commerce companies.</li>
</ul>


Alibaba’s Freshippo Bazaar opens a mini-program on Tencent’s WeChat and two other Alibaba businesses are trying to follow.
We believe Alibaba surrendered itself to Tencent after Alibaba and Tencent had blocked each other’s businesses for a long time.
We believe that Alibaba’s advantage among e-commerce companies ruins AliPay’s advantage among e-commerce companies.


Alibaba (BABA): Opens Store in Tencent WeChat - A Surrender

Equity Research in HK and Mainland China

Li Tang

Thematic (Sector/Industry)

<p><a href="https://www.smartkarma.com/entities/minmetals-development-co-a" target="_blank" data-smartkarma-citation="entities:7553:1" rel="noopener">Minmetals Development Co A (600058 CH)</a> the metals and raw materials trading and logistics arm of state-owned China Minmetals Corp., announced that it received a notice from the State Administration for Market Regulation (SAMR)  , which decided to launch investigation on Longteng Digital Tech, a JV in which Minmetals Development is the largest shareholder.</p>

Minmetals Development Co A (600058 CH) the metals and raw materials trading and logistics arm of state-owned China Minmetals Corp., announced that it received a notice from the State Administration for Market Regulation (SAMR)  , which decided to launch investigation on Longteng Digital Tech, a JV in which Minmetals Development is the largest shareholder.

SAMR Launches Investigation on Alibaba E-Commerce JV with Central SOEs

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/waterdrop-inc" target="_blank" data-smartkarma-citation="entities:33018:1" rel="noopener">Waterdrop Inc (WDH US)</a>, a technology platform for insurance and healthcare services in China, aims to raise around US$500m in its US IPO. <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> owned 22.1% and <a href="https://www.smartkarma.com/entities/swiss-re-ag-1f83dcbc-730e-46fa-82f2-bfe7e8e361a1" target="_blank" data-smartkarma-citation="entities:27914:1" rel="noopener">Swiss Re AG (SREN SW)</a> owned 5.7% of the company prior to its listing.</p><p>Waterdrop was the largest independent third-party insurance distribution platform in China in terms of first year premium distributed in 2020, as per iResearch. As of Dec 2020, it had insured 79.4m consumers and generated RMB14.4bn of first year premiums. It was also the largest medical crowdfunding platform in China with 340m donors, as of Dec 2020, who had donated over RMB37bn to 1.7m patients.</p><p>In this note, we will talk about the positive aspects of the deal.</p>

Waterdrop Inc (WDH US), a technology platform for insurance and healthcare services in China, aims to raise around US$500m in its US IPO. Tencent Holdings (700 HK) owned 22.1% and Swiss Re AG (SREN SW) owned 5.7% of the company prior to its listing.Waterdrop was the largest independent third-party insurance distribution platform in China in terms of first year premium distributed in 2020, as per iResearch. As of Dec 2020, it had insured 79.4m consumers and generated RMB14.4bn of first year premiums. It was also the largest medical crowdfunding platform in China with 340m donors, as of Dec 2020, who had donated over RMB37bn to 1.7m patients.In this note, we will talk about the positive aspects of the deal.

Waterdrop Pre-IPO - The Positives - Fast Growth, Strong Backers

Anta Sports Products / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a>'s Chairman aims to raise around US$1.5bn via selling a 3.3% stake in the company. In this note, we will run the deal through our framework and talk about deal dynamics. </p><p>We have covered one of the earlier placements in the stock in 2017, <a href="https://www.smartkarma.com/insights/anta-sports-raising-for-hopefully-a-good-acquisition-great-track-record-helps" target="_blank" rel="noopener">Anta Sports - Raising for Hopefully a Good Acquisition, Great Track Record Helps</a>.</p>

Anta Sports Products (2020 HK)'s Chairman aims to raise around US$1.5bn via selling a 3.3% stake in the company. In this note, we will run the deal through our framework and talk about deal dynamics. We have covered one of the earlier placements in the stock in 2017, Anta Sports - Raising for Hopefully a Good Acquisition, Great Track Record Helps.

Anta Sports Placement - Has Been Doing Well but the Chairman Selling Will Be -Ve for Sentiment

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<div class="content-highlight">
<p>After the failed attempt to merge with <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek</a> and the decision to take the SPAC route to market in the US, <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> has now reportedly taken a 4% stake in local digital and media powerhouse, <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a>. It seems unlikely that this is purely a strategic stake and points the way toward future collaboration potentially in a number of areas.</p>
</div>
<p><a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a> remains a very interesting locally listed alternative to play digital media, e-commerce, and digital payments under one roof, with aspirations to emulate the success of  <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a>.<a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener"></a></p>
<div>
<p>In another related and interesting turn, Bukalapak, which is Indonesia's 3rd largest e-commerce firm 35% owned by <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a> has raised an undisclosed sum from BRI Ventures, the venture capital arm of <a href="https://www.smartkarma.com/entities/bank-rakyat-indonesia-persero" target="_blank" data-smartkarma-citation="entities:484:1" rel="noopener">Bank Rakyat Indonesia (BBRI IJ)</a>. </p>
</div>
<p>Bukalapak claims that it now has around 13.5m MSMEs on its platform and over 100m users on its online to offline (O20) platform. </p>
<p>The merged <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> and <a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" data-smartkarma-citation="entities:24239:1" rel="noopener">Tokopedia PT (1087142D IJ)</a> entity to be named "GoTo" will be a formidable competitor for <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a>, a risk not highlighted enough in the seeming euphoria around the <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> SPAC listing.</p>
<p>Another significant risk to Grab comes from recently launched ShopeeFood in Indonesia, which will directly impact Grab's (and Gojek's) food delivery business in Indonesia.</p>
<p>From a SotP point of view for <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a>, it is difficult to get much beyond a US$4bn valuation but there are those arguing that it should be valued along the same lines as <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a>, which would suggest potential significant upside from here.</p>
<div></div>
<div>
<div>
<div class="content-remarks">
<p></p>
</div>
</div>
</div>


After the failed attempt to merge with Gojek and the decision to take the SPAC route to market in the US, Grab (0967655D SP) has now reportedly taken a 4% stake in local digital and media powerhouse, Emtek (EMTK IJ). It seems unlikely that this is purely a strategic stake and points the way toward future collaboration potentially in a number of areas.

Emtek (EMTK IJ) remains a very interesting locally listed alternative to play digital media, e-commerce, and digital payments under one roof, with aspirations to emulate the success of  Sea Ltd (SE US).

In another related and interesting turn, Bukalapak, which is Indonesia's 3rd largest e-commerce firm 35% owned by Emtek (EMTK IJ) has raised an undisclosed sum from BRI Ventures, the venture capital arm of Bank Rakyat Indonesia (BBRI IJ). 

Bukalapak claims that it now has around 13.5m MSMEs on its platform and over 100m users on its online to offline (O20) platform. 
The merged Gojek (1379371D IJ) and Tokopedia PT (1087142D IJ) entity to be named "GoTo" will be a formidable competitor for Grab, a risk not highlighted enough in the seeming euphoria around the Grab SPAC listing.
Another significant risk to Grab comes from recently launched ShopeeFood in Indonesia, which will directly impact Grab's (and Gojek's) food delivery business in Indonesia.
From a SotP point of view for Emtek (EMTK IJ), it is difficult to get much beyond a US$4bn valuation but there are those arguing that it should be valued along the same lines as Sea Ltd (SE US), which would suggest potential significant upside from here.









Emtek (EMTK IJ) - The Indonesian Digital Game of Thrones

China

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Alibaba Group Holding (BABA US)

Alibaba (BABA): Opens Store in Tencent WeChat - A Surrender

Alibaba’s Freshippo Bazaar opens a mini-program on Tencent WeChat and two other Alibaba’s businesses are trying to follow.We believe Alibaba’s...

Ming Lu

SAMR Launches Investigation on Alibaba E-Commerce JV with Central SOEs

We think that the purpose of this investigation is to send a signal to other technology companies that they must retroactively conduct self...

Li Tang

Waterdrop Pre-IPO - The Positives - Fast Growth, Strong Backers

Waterdrop Inc, a technology platform for insurance and healthcare services in China, aims to raise around US$500m in its US IPO. Tencent owned...

Sumeet Singh

Anta Sports Placement - Has Been Doing Well but the Chairman Selling Will Be -Ve for Sentiment

Anta Sports Products (2020 HK)'s Chairman aims to raise around US$1.5bn via selling a 3.3% stake in the company. In this note, we will run the deal...

Sumeet Singh

Emtek (EMTK IJ) - The Indonesian Digital Game of Thrones

EMTEK remains the largest locally listed proxy to play digital media, e-commerce, and digital payments in Indonesia. The news that Grab has taken a...

Angus Mackintosh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)