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.

Equity Capital Markets

Excellence Commercial Property & Facilities Management / Equity Capital Markets

Excellence Commercial Property & Facilities Management

<div><p><a href="https://www.smartkarma.com/entities/excellence-commercial-property-facilities-management" target="_blank" data-smartkarma-citation="entities:29249:1" rel="noopener">Excellence Commercial Property (1611267D CH)</a> is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. At the proposed IPO price range of HK$9.30-10.68 per share, Excellence will have a market cap of HK$11,160.0-12,816.0 million ($1.4-1.7 billion).</p></div><div><p>Nine cornerstone investors will subscribe for 38.79% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are <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>, <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a>, China Southern Asset Management, Snow Lake Capital, 3W Fund, OP Capital, Orient Asset Management, J-Stone Capital and Matthews Funds. </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/excellence-commercial-property-facilities-mgmt-ipo-initiation-facilities-facilitate" target="_blank" rel="noopener">our initiation note</a>, we highlighted that Excellence’s fundamentals over the track record period are attractive. Overall, we think that an attractive valuation and solid cornerstone support makes Excellence tempting at the proposed pricing range. </p></div></div></div>

Excellence Commercial Property (1611267D CH) is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. At the proposed IPO price range of HK$9.30-10.68 per share, Excellence will have a market cap of HK$11,160.0-12,816.0 million ($1.4-1.7 billion).Nine cornerstone investors will subscribe for 38.79% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are Tencent Holdings (700 HK), JD.com Inc (ADR) (JD US), China Southern Asset Management, Snow Lake Capital, 3W Fund, OP Capital, Orient Asset Management, J-Stone Capital and Matthews Funds. In our initiation note, we highlighted that Excellence’s fundamentals over the track record period are attractive. Overall, we think that an attractive valuation and solid cornerstone support makes Excellence tempting at the proposed pricing range. 

Excellence Commercial Property & Facilities Mgmt IPO: Valuation Insights

<p><a href="https://www.smartkarma.com/entities/excellence-commercial-property-facilities-management" target="_blank" data-smartkarma-citation="entities:29249:1" rel="noopener">Excellence Commercial Property (1611267D CH)</a> is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. It has launched a Hong Kong IPO to raise up to HK$3.2 billion ($410 million), according to press reports. </p><div class="content-highlight"><p>Property management IPOs are popular as the property management sector is asset-light and has a long-term recurring business model. Overall, Excellence’s fundamentals over the track record period are attractive, in our view.</p></div>

Excellence Commercial Property (1611267D CH) is a leading commercial operational service provider in China and ranked fourth among the commercial property management service providers in China, according to Frost &amp; Sullivan. It has launched a Hong Kong IPO to raise up to HK$3.2 billion ($410 million), according to press reports. Property management IPOs are popular as the property management sector is asset-light and has a long-term recurring business model. Overall, Excellence’s fundamentals over the track record period are attractive, in our view.

Excellence Commercial Property & Facilities Mgmt IPO Initiation: Facilities Facilitate

Sunac Services Holdings / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/sunac-services-holdings" target="_blank" data-smartkarma-citation="entities:29239:1" rel="noopener">Sunac Services Holdings (1820476D HK)</a> is a Chinese property management company. Sunac is the fastest-growing large-scale property management service provider in China, according to China Index Academy. On 6 August, <a href="https://www.smartkarma.com/entities/sunac-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:240:1" rel="noopener">Sunac China Holdings (1918 HK)</a>, the controlling shareholder, announced the proposed spin-off and listing of Sunac on the HKEX. Post the IPO, Sunac China will have an interest of not less than 50% in Sunac and Sunac will remain a subsidiary of Sunac China. Sunac is seeking to raise $1 billion, according to press reports.</p><div class="content-highlight"><p>A key attraction of the property management sector is its asset-light and long-term recurring business model. Also, IPOs in the property management sector has been red-hot this year with <a href="https://www.smartkarma.com/entities/central-china-new-life" target="_blank" data-smartkarma-citation="entities:28953:1" rel="noopener">Central China New Life (9983 HK)</a> and <a href="https://www.smartkarma.com/entities/zhenro-services-group" target="_blank" data-smartkarma-citation="entities:28869:1" rel="noopener">Zhenro Services (6958 HK)</a> trading 52% and 46% above their IPO price, respectively. Overall, we believe that Sunac is a worthy addition to this group as its fundamentals over the track record period are attractive, in our view.</p></div>

Sunac Services Holdings (1820476D HK) is a Chinese property management company. Sunac is the fastest-growing large-scale property management service provider in China, according to China Index Academy. On 6 August, Sunac China Holdings (1918 HK), the controlling shareholder, announced the proposed spin-off and listing of Sunac on the HKEX. Post the IPO, Sunac China will have an interest of not less than 50% in Sunac and Sunac will remain a subsidiary of Sunac China. Sunac is seeking to raise $1 billion, according to press reports.A key attraction of the property management sector is its asset-light and long-term recurring business model. Also, IPOs in the property management sector has been red-hot this year with Central China New Life (9983 HK) and Zhenro Services (6958 HK) trading 52% and 46% above their IPO price, respectively. Overall, we believe that Sunac is a worthy addition to this group as its fundamentals over the track record period are attractive, in our view.

Sunac Services IPO Initiation: Next in Line

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<div>
<p data-v-da61000a="" data-v-294dc056="">This update is the latest in a series dating back to <em><a href="https://skr.ma/c7hcH" target="_blank" rel="noopener">Legend's Conversion of Domestic Shares</a></em> in June 2018, with the most recent addition <em><a href="https://skr.ma/kJWeU" target="_blank" rel="noopener">CPPCC And Full Circulation Of H-Shares</a></em> speculating the 2020 National People's Congress and Chinese People's Political Consultative may provide guidance on the "<em>full circulation of H shares</em>", which would allow the conversion of domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.</p>
<p data-v-da61000a="" data-v-294dc056="">Since that insight, another 6 companies have been given the green light to convert and/or have submitted applications to covert.</p>
<p data-v-da61000a="" data-v-294dc056="">There has also been one noticeable movement in one of the initial pilot companies to have converted domestic shares.</p>
<p data-v-da61000a="" data-v-294dc056="">As always, more below the fold. </p>
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This update is the latest in a series dating back to Legend's Conversion of Domestic Shares in June 2018, with the most recent addition CPPCC And Full Circulation Of H-Shares speculating the 2020 National People's Congress and Chinese People's Political Consultative may provide guidance on the "full circulation of H shares", which would allow the conversion of domestic shares into H shares, which would then be eligible to be listed and traded on Hong Kong's stock exchange.
Since that insight, another 6 companies have been given the green light to convert and/or have submitted applications to covert.
There has also been one noticeable movement in one of the initial pilot companies to have converted domestic shares.
As always, more below the fold. 






Full Circulation Of H-Shares - July Update

Zhenro Services Group / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/zhenro-services-group" target="_blank" data-smartkarma-citation="entities:28869:1" rel="noopener">Zhenro Services (6958 HK)</a> is a Chinese property management company. Zhenro is one of the fastest-growing property management companies in China, according to CIA. Zhenro will commence trading on Friday, 10 July. Zhenro priced its IPO at HK$4.55, towards the top-end of the indicative price range of HK$3.60-4.70 per share. Zhenro raised net proceeds of HK$1,071.5 million ($138 million).</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/zhenro-services-ipo-initiation-measuring-management" target="_blank" rel="noopener">our initiation note</a>, we stated that a key attraction of the property management sector is its asset-light and long-term recurring business model. Zhenro expects no material adverse effect on its operations and financial performance from the recent COVID-19 outbreak. Overall, Zhenro’s fundamentals over the track record period are attractive, in our view. Our valuation analysis suggests that the IPO price is attractive. </p></div></div></div>

Zhenro Services (6958 HK) is a Chinese property management company. Zhenro is one of the fastest-growing property management companies in China, according to CIA. Zhenro will commence trading on Friday, 10 July. Zhenro priced its IPO at HK$4.55, towards the top-end of the indicative price range of HK$3.60-4.70 per share. Zhenro raised net proceeds of HK$1,071.5 million ($138 million).In our initiation note, we stated that a key attraction of the property management sector is its asset-light and long-term recurring business model. Zhenro expects no material adverse effect on its operations and financial performance from the recent COVID-19 outbreak. Overall, Zhenro’s fundamentals over the track record period are attractive, in our view. Our valuation analysis suggests that the IPO price is attractive. 

China

A-Living Smart City Services Co., Ltd. offers property management services. The Company provides hydropower maintenance, parking management, home cleaning, and other services. A-Living Smart City Services also engages in interior decoration works, landscaping works, and others.

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A-Living Smart City Services C (3319 HK)

Excellence Commercial Property & Facilities Mgmt IPO: Valuation Insights

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Arun George

Excellence Commercial Property & Facilities Mgmt IPO Initiation: Facilities Facilitate

Excellence is a leading commercial operational service provider in China and ranked fourth among the commercial property management service...

Arun George

Sunac Services IPO Initiation: Next in Line

Sunac Services Holdings (1820476D HK) is a Chinese property management company. Sunac is the fastest-growing large-scale property management...

Arun George

Full Circulation Of H-Shares - July Update

This update is the latest in a series dating back to Legend's Conversion of Domestic Shares in June 2018, with the most recent addition CPPCC And...

David Blennerhassett

Zhenro Services IPO: Trading Debut

Zhenro Services (6958 HK) is a Chinese property management company. Zhenro is one of the fastest-growing property management companies in China,...

Arun George

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