Equity Analyst, LightStream Research

Oshadhi Kumarasiri

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.

Equity Bottom-Up

Alibaba Group Holding  / Equity Bottom-Up

<p>Earlier this week, <a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a> unveiled a plan to invest US$ 1.0bn in Alibaba Cloud, focusing on the development of the cloud business in the APAC region. This comes after Byte Dance dropped Alibaba cloud services from its international businesses amidst concerns over data security and privacy raised by the US government. According to Ciaxin, the lost contract is worth around US$ 800m per year, around 9% of Alibaba Cloud’s annual revenue in FY21.</p>

Earlier this week, Alibaba Group (9988 HK) unveiled a plan to invest US$ 1.0bn in Alibaba Cloud, focusing on the development of the cloud business in the APAC region. This comes after Byte Dance dropped Alibaba cloud services from its international businesses amidst concerns over data security and privacy raised by the US government. According to Ciaxin, the lost contract is worth around US$ 800m per year, around 9% of Alibaba Cloud’s annual revenue in FY21.

Alibaba: Cloud Is on the Offence to Secure Its Dominant Status in APAC Through an $1.0bn Investment

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

<p><a href="https://www.smartkarma.com/entities/dingdong-maicia" target="_blank" data-smartkarma-citation="entities:33461:1" rel="noopener">Dingdong Maicia (DDL US)</a>(DM) and <a href="https://www.smartkarma.com/entities/missfresh-limited" target="_blank" data-smartkarma-citation="entities:33468:1" rel="noopener">Missfresh (MF US)</a> (MFL) are two groceries on-demand e-commerce companies in China, both aim to raise up to US$500m each via a US listing. </p><p>In our earlier notes, we have looked at the background and performance of both of the companies:</p><ul>
<li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/dingdong-maicai-pre-ipo-increasing-market-share-fast-growth-but-no-signs-of-profit" target="_blank" rel="noopener">Dingdong Maicai Pre-IPO - Increasing market share, fast growth but no signs of profit</a></p></li>
<li dir="ltr" aria-level="1"><p><a href="https://www.smartkarma.com/insights/missfresh-limited-pre-ipo-worrying-and-unsustainable-trend" target="_blank" rel="noopener">Missfresh (每日优鲜) Pre-IPO - Worrying and unsustainable trend</a></p></li>
</ul><p>Since both of the companies are operating in similar markets, in this note we will compare the performance of the two companies.</p>

Dingdong Maicia (DDL US)(DM) and Missfresh (MF US) (MFL) are two groceries on-demand e-commerce companies in China, both aim to raise up to US$500m each via a US listing. In our earlier notes, we have looked at the background and performance of both of the companies:
Dingdong Maicai Pre-IPO - Increasing market share, fast growth but no signs of profit
Missfresh (每日优鲜) Pre-IPO - Worrying and unsustainable trend
Since both of the companies are operating in similar markets, in this note we will compare the performance of the two companies.

Dingdong Maicai Vs Miss Fresh Pre-IPO - One Clear Winner

<p><a href="https://www.smartkarma.com/entities/dingdong-maicia" target="_blank" data-smartkarma-citation="entities:33461:1" rel="noopener">Dingdong Maicia (DDL US)</a>, a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global, General Atlantic and Softbank.</p><p>Dingdong Maicai (DM) is an on-demand e-commerce company in China which provides users and households with fresh produce, meat and seafood and other daily necessities via its self-operated frontline fulfillment grid. As of 1Q21, DM had 6.9m monthly transacting users, who had placed 69.7m orders during the quarter. Its FY20 gross merchandise value was RMB13bn, representing a 10%+ market share for the on-demand ecommerce fresh groceries and daily necessities market.</p><p>Its core product category is fresh groceries and it procures most of its products directly and offers to deliver them to customers within 30mins of having received an order.</p>

Dingdong Maicia (DDL US), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global, General Atlantic and Softbank.Dingdong Maicai (DM) is an on-demand e-commerce company in China which provides users and households with fresh produce, meat and seafood and other daily necessities via its self-operated frontline fulfillment grid. As of 1Q21, DM had 6.9m monthly transacting users, who had placed 69.7m orders during the quarter. Its FY20 gross merchandise value was RMB13bn, representing a 10%+ market share for the on-demand ecommerce fresh groceries and daily necessities market.Its core product category is fresh groceries and it procures most of its products directly and offers to deliver them to customers within 30mins of having received an order.

Dingdong Maicai Pre-IPO - Increasing Market Share, Fast Growth but No Signs of Profit

Telco/Internet specialist

Kirk Boodry

Redex Research

<p>There has been an uptick in Softbank news this week as we enter the last stretch of the quarter. On one hand there has been good news as Vision Fund 2’s public portfolio expands, thanks to a successful listing for Zhangmen, two coincident IPO investments and an IPO filing for investee Dingdong Maicai. But the long-expected bankruptcy of Katerra also means another $2bn of Vision Fund value has been wiped off the board so what markets are hearing on Softbank remains decidedly mixed. We have updated our Softbank tables including public portfolio valuations, the holding company discount, and the IPO pipeline.  </p>

There has been an uptick in Softbank news this week as we enter the last stretch of the quarter. On one hand there has been good news as Vision Fund 2’s public portfolio expands, thanks to a successful listing for Zhangmen, two coincident IPO investments and an IPO filing for investee Dingdong Maicai. But the long-expected bankruptcy of Katerra also means another $2bn of Vision Fund value has been wiped off the board so what markets are hearing on Softbank remains decidedly mixed. We have updated our Softbank tables including public portfolio valuations, the holding company discount, and the IPO pipeline.  

Softbank Group - Shares Drift as Discount Settles in 40% Range

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.

<div><p><a href="https://www.smartkarma.com/entities/aihuishou" target="_blank" data-smartkarma-citation="entities:33426:1" rel="noopener">Aihuishou (RERE US)</a> operates the largest pre-owned consumer electronics transactions and services platform in China under the brand “ATRenew”, which stands for “all things renew.” The platform consists of AHS Recycle (an omnichannel business for the collection of pre-owned consumer electronics), PJT Marketplace (B2B channel) and Paipai Marketplace (B2C channel).  AiHuiShou is seeking to raise $500 million to $1 billion through an NYSE listing, according to press reports.   </p></div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/aihuishou-ipo-initiation-turning-the-vicious-cycle-into-a-virtuous-one" target="_blank" data-smartkarma-citation="insights:52617" rel="noopener">AiHuiShou IPO Initiation: Turning the Vicious Cycle into a Virtuous One</a>, we stated that AiHuiShou as the largest player as measured by GMV and transacted devices, is well-positioned to capture its fair share of China's pre-owned consumer electronic devices market opportunity. AiHuiShou is delivering on this market opportunity through strong revenue growth, declining loss margin and improving cash burn. AiHuiShou’s business model will also appeal to investors with an ESG mandate. We concluded that AiHuiShou's story warrants a closer look. In this note, we present our forecasts and take the first look at AiHuiShou's potential valuation range. </p></div></div>

Aihuishou (RERE US) operates the largest pre-owned consumer electronics transactions and services platform in China under the brand “ATRenew”, which stands for “all things renew.” The platform consists of AHS Recycle (an omnichannel business for the collection of pre-owned consumer electronics), PJT Marketplace (B2B channel) and Paipai Marketplace (B2C channel).  AiHuiShou is seeking to raise $500 million to $1 billion through an NYSE listing, according to press reports.   In AiHuiShou IPO Initiation: Turning the Vicious Cycle into a Virtuous One, we stated that AiHuiShou as the largest player as measured by GMV and transacted devices, is well-positioned to capture its fair share of China's pre-owned consumer electronic devices market opportunity. AiHuiShou is delivering on this market opportunity through strong revenue growth, declining loss margin and improving cash burn. AiHuiShou’s business model will also appeal to investors with an ESG mandate. We concluded that AiHuiShou's story warrants a closer look. In this note, we present our forecasts and take the first look at AiHuiShou's potential valuation range. 

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.

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Alibaba Group Holding (9988 HK)

Alibaba: Cloud Is on the Offence to Secure Its Dominant Status in APAC Through an $1.0bn Investment

This Investment not only help Alibaba Cloud to retain its superior position in the APAC market, but could also help mask Cloud Business’ inability...

Oshadhi Kumarasiri

Dingdong Maicai Vs Miss Fresh Pre-IPO - One Clear Winner

Dingdong Maicia (DDL US)(DM) and Missfresh (MF US) (MFL), are two groceries on-demand e-commerce companies in China, both aim to raise up to...

Sumeet Singh

Softbank Group - Shares Drift as Discount Settles in 40% Range

SBG reports incremental progress on its Vision Fund liquidity plans but c. $9bn in public VF valuation losses is a headwind. Shares now trade in...

Kirk Boodry

AiHuiShou IPO: Valuation First-Look

AiHuiShou is seeking to raise $0.5-1.0 billion through an NYSE listing. In this note, we present our forecasts and take the first look at...

Arun George

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Alibaba: Cloud Is on the Offence to Secure Its Dominant Status in APAC Through an $1.0bn Investment

This Investment not only help Alibaba Cloud to retain its superior position in the APAC market, but could also help mask Cloud Business’ inability...

Oshadhi Kumarasiri

Dingdong Maicai Vs Miss Fresh Pre-IPO - One Clear Winner

Dingdong Maicia (DDL US)(DM) and Missfresh (MF US) (MFL), are two groceries on-demand e-commerce companies in China, both aim to raise up to...

Sumeet Singh

Dingdong Maicai Pre-IPO - Increasing Market Share, Fast Growth but No Signs of Profit

Dingdong Maicia (DDL US), a groceries on-demand e-commerce company, aims to raise up to US$500m via a US listing. It is backed by Tiger Global,...

Sumeet Singh

Softbank Group - Shares Drift as Discount Settles in 40% Range

SBG reports incremental progress on its Vision Fund liquidity plans but c. $9bn in public VF valuation losses is a headwind. Shares now trade in...

Kirk Boodry

AiHuiShou IPO: Valuation First-Look

AiHuiShou is seeking to raise $0.5-1.0 billion through an NYSE listing. In this note, we present our forecasts and take the first look at...

Arun George