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

<ul>
<li>In 1Q23, total revenue grew by 58% YoY and the operating margin improved to 18% versus 9% in the same period last year.</li>
<li>We believe the company benefited from its low-price products and the low comparison base last year.</li>
<li>We conclude the stock has an upside of 40% and a price target of US$100.</li>
</ul>


In 1Q23, total revenue grew by 58% YoY and the operating margin improved to 18% versus 9% in the same period last year.
We believe the company benefited from its low-price products and the low comparison base last year.
We conclude the stock has an upside of 40% and a price target of US$100.


Pinduoduo (PDD): 1Q23, Up by 58% YoY, 40% Upside

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/golden-eagle-retail-group" target="_blank" data-smartkarma-citation="entities:470:1" rel="noopener">Golden Eagle Retail (3308 HK)</a> disclosed a scheme privatisation offer from the controlling family at HK$6.88 per share, a 40.4% premium to the undisturbed price (HK$4.90 on 22 May).</li>
<li>Key condition is approval by at least 75% of disinterested shareholders (&lt;10% of all disinterested shareholders rejection). The shareholder with a blocking stake has provided an irrevocable. </li>
<li>The offer price is final. The offer is reasonable particularly as the sentiment on the department store sector remains weak. This looks like a done deal. </li>
</ul>



Golden Eagle Retail (3308 HK) disclosed a scheme privatisation offer from the controlling family at HK$6.88 per share, a 40.4% premium to the undisturbed price (HK$4.90 on 22 May).
Key condition is approval by at least 75% of disinterested shareholders (&lt;10% of all disinterested shareholders rejection). The shareholder with a blocking stake has provided an irrevocable. 
The offer price is final. The offer is reasonable particularly as the sentiment on the department store sector remains weak. This looks like a done deal. 


Golden Eagle Retail (3308 HK): Controlling Family’s Privatisation Offer at HK$6.88

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>In the IPO space, HK market sentiment is likely to be put to test again with the upcoming listing for <a href="https://www.smartkarma.com/entities/growatt-new-energy-technology" target="_blank" data-smartkarma-citation="entities:36103:1" rel="noopener">Growatt Technology.</a>
</li>
<li>The REIT were once again at the front lines this week for placements, while <a href="https://www.smartkarma.com/entities/rakuten-group-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten (4755 JP)</a> has so far been holding up.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
In the IPO space, HK market sentiment is likely to be put to test again with the upcoming listing for Growatt Technology.

The REIT were once again at the front lines this week for placements, while Rakuten (4755 JP) has so far been holding up.


ECM Weekly (28th May 2023) - HK Trip Notes, Rakuten, JD Ind, Horizon Const, Nippon Prologis, MINT

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>Consumption /Analysis: China’s holiday spending boom masks patchy recovery</li><li>LGFVs /: Kunming scrambles to pay off $170 million of financing vehicle debt</li><li>China-U.S. /: Top trade officials from China and U.S. to meet at APEC</li></ul>

Consumption /Analysis: China’s holiday spending boom masks patchy recoveryLGFVs /: Kunming scrambles to pay off $170 million of financing vehicle debtChina-U.S. /: Top trade officials from China and U.S. to meet at APEC

CX Daily: China’s Holiday Spending Boom Masks Patchy Recovery

JD Industrial Technology  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jd-industrials" target="_blank" data-smartkarma-citation="entities:36875:1" rel="noopener">JD Industrials</a> is looking to raise about US$1bn in its upcoming HK IPO. </li>
<li>JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.</li>
<li>We undertook a peer comparison in our previous note, in this note we talk about some additional useful information that we found interesting from peer filings.</li>
</ul>



JD Industrials is looking to raise about US$1bn in its upcoming HK IPO. 
JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
We undertook a peer comparison in our previous note, in this note we talk about some additional useful information that we found interesting from peer filings.


JD Industrials Pre-IPO - Peer Comparison - Some Interesting Nuggets from Peer Filings

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)

Pinduoduo (PDD): 1Q23, Up by 58% YoY, 40% Upside

In 1Q23, total revenue grew by 58% YoY and the operating margin improved significantly. We believe the company benefit from its low-price products...

Ming Lu

Golden Eagle Retail (3308 HK): Controlling Family’s Privatisation Offer at HK$6.88

The offer price is final. The offer is reasonable particularly as the sentiment on the department store sector remains weak. This looks like a done...

Arun George

ECM Weekly (28th May 2023) - HK Trip Notes, Rakuten, JD Ind, Horizon Const, Nippon Prologis, MINT

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

CX Daily: China’s Holiday Spending Boom Masks Patchy Recovery

Consumption /Analysis: China’s holiday spending boom masks patchy recovery LGFVs /: Kunming scrambles to pay off $170 million of financing vehicle...

Caixin Global

JD Industrials Pre-IPO - Peer Comparison - Some Interesting Nuggets from Peer Filings

JD Industrials is looking to raise about US$1bn in its upcoming HK IPO. In this note we talk about some additional useful information that we...

Sumeet Singh

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