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.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (2618 HK)</a> , the logistics arm of China’s second largest e-commerce platform <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> has priced its IPO at HK$40.36 a share, about 2.5% higher than the lower end of the IPO price range of HK$39.36-43.36 a share despite generating significant interest from both retail and institutional investors. According to news media outlets, the offer was oversubscribed by more than 700x.JD Logistics will raise approx. HK$24.6bn at the IPO price of HK$40.36 per share (assuming over-allotment is not exercised). If the over-allotment option of additional 90m shares is exercised, JD Logistics’ will raise additional proceeds of HK$3.6bn increasing the total proceeds to HK$28.2bn.

JD Logistics (2618 HK) , the logistics arm of China’s second largest e-commerce platform JD.com Inc (ADR) (JD US) has priced its IPO at HK$40.36 a share, about 2.5% higher than the lower end of the IPO price range of HK$39.36-43.36 a share despite generating significant interest from both retail and institutional investors. According to news media outlets, the offer was oversubscribed by more than 700x.JD Logistics will raise approx. HK$24.6bn at the IPO price of HK$40.36 per share (assuming over-allotment is not exercised). If the over-allotment option of additional 90m shares is exercised, JD Logistics’ will raise additional proceeds of HK$3.6bn increasing the total proceeds to HK$28.2bn.

JD Logistics IPO: Thoughts on First Day Trading

<a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (2618 HK)</a>  has set the terms for its Hong Kong IPO where the company plans to issue 609.2m shares at an indicative IPO price range of HK$39.36-43.36 per share. At the midpoint of the IPO price range of HK$41.36 per share, JD Logistics will raise net proceeds of HK$24.7bn (US$3.18bn) at a market capitalisation of HK$251.9bn and post-money enterprise value of HK$234.0bn.<table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 256.0pt;">JD Logistics IPO Details</td></tr>
<tr>
<td style="width: 171.55pt;">No. of Shares Issued</td>
<td style="width: 84.45pt;">        609,160,800</td>
</tr>
<tr>
<td style="width: 171.55pt;">IPO Price per Share (HK$)</td>
<td style="width: 84.45pt;">39.36-43.36</td>
</tr>
<tr>
<td style="width: 171.55pt;">Offer as a % of Outstanding Shares</td>
<td style="width: 84.45pt;">10.0%</td>
</tr>
<tr>
<td style="width: 171.55pt;">Total Shares Outstanding (m)</td>
<td style="width: 84.45pt;">                 6,091.6</td>
</tr>
<tr>
<td style="width: 171.55pt;">Net Proceeds (HK$m)</td>
<td style="width: 84.45pt;">24713</td>
</tr>
<tr>
<td style="width: 171.55pt;">Market Capitalisation (HK$m)</td>
<td style="text-align: right; width: 84.45pt;">                251,949</td>
</tr>
<tr>
<td style="width: 171.55pt;">Enterprise Value (HK$m)</td>
<td style="text-align: right; width: 84.45pt;">                221,843</td>
</tr>
</tbody></table><div style="text-align: left;" class="content-caption">Source: Company Disclosures, LSR (Enterprise Value is calculated after adjusting for net cash and net proceeds from the IPO)</div>The company also has entered into cornerstone investment agreements with 7 investors who have agreed to subscribe for approx. HK$11,882m (approx. 49% of the net proceeds at the midpoint of the IPO price) worth of shares offered at the IPO. These cornerstone investors include Softbank, Temasek, Tiger Global, China Structural Reform Fund and China Chengtong Investment, Blackstone, Mathew Funds and Oaktree.JD Logistics (JDL) plans to use approx. 55% of the net IPO proceeds on upgrading and expanding its logistics network in the next 12-36 months while another 20% of the net proceeds will be spent on developing advanced technologies for supply chain solutions and logistics services.

JD Logistics (2618 HK)  has set the terms for its Hong Kong IPO where the company plans to issue 609.2m shares at an indicative IPO price range of HK$39.36-43.36 per share. At the midpoint of the IPO price range of HK$41.36 per share, JD Logistics will raise net proceeds of HK$24.7bn (US$3.18bn) at a market capitalisation of HK$251.9bn and post-money enterprise value of HK$234.0bn.
JD Logistics IPO Details

No. of Shares Issued
        609,160,800


IPO Price per Share (HK$)
39.36-43.36


Offer as a % of Outstanding Shares
10.0%


Total Shares Outstanding (m)
                 6,091.6


Net Proceeds (HK$m)
24713


Market Capitalisation (HK$m)
                251,949


Enterprise Value (HK$m)
                221,843

Source: Company Disclosures, LSR (Enterprise Value is calculated after adjusting for net cash and net proceeds from the IPO)The company also has entered into cornerstone investment agreements with 7 investors who have agreed to subscribe for approx. HK$11,882m (approx. 49% of the net proceeds at the midpoint of the IPO price) worth of shares offered at the IPO. These cornerstone investors include Softbank, Temasek, Tiger Global, China Structural Reform Fund and China Chengtong Investment, Blackstone, Mathew Funds and Oaktree.JD Logistics (JDL) plans to use approx. 55% of the net IPO proceeds on upgrading and expanding its logistics network in the next 12-36 months while another 20% of the net proceeds will be spent on developing advanced technologies for supply chain solutions and logistics services.

JD Logistics IPO Valuation: Implied Offer Multiples Are Not Cheap but Justifiable

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (JDL HK)</a> , the delivery arm of China’s second largest e-commerce platform JD.com has filed for an IPO to list its shares on the Hong Kong Stock Exchange. According to news media outlets, JD Logistics is looking to raise about US$3-4bn through the IPO. The company won the approval for its HKEX listing and released its post-hearing information pack (PHIP) on Sunday (02nd May). On Thursday (13th May), JD Logistics released its revised PHIP and this insight focuses on new data points from the revised filing.

JD Logistics (JDL HK) , the delivery arm of China’s second largest e-commerce platform JD.com has filed for an IPO to list its shares on the Hong Kong Stock Exchange. According to news media outlets, JD Logistics is looking to raise about US$3-4bn through the IPO. The company won the approval for its HKEX listing and released its post-hearing information pack (PHIP) on Sunday (02nd May). On Thursday (13th May), JD Logistics released its revised PHIP and this insight focuses on new data points from the revised filing.

JD Logistics: Margins Sink as JDL Prioritises Market Share but Peer Margins Shrink Too in 1Q21

<a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (JDL HK)</a> , the delivery arm of China’s second largest e-commerce platform JD.com has filed for an IPO to list its shares on the Hong Kong Stock Exchange. In our previous insights on JD logistics’ IPO, we examined the company’s business model, revenue, margins and the outlook for the company.According to news media outlets, JD Logistics is looking to raise about US$3-4bn at a valuation of US$40bn. This insight focuses on our financial forecasts and thoughts on the company’s rumoured US$40.0bn valuation.Read our previous insights:<a href="https://www.smartkarma.com/insights/jd-logistics-investment-for-growth-to-hurt-margins-in-the-medium-term-but-key-to-long-term-profits" target="_blank" data-smartkarma-citation="insights:50984" rel="noopener">JD Logistics: Investment for Growth to Hurt Margins in the Medium-Term but Key to Long-Term Profits</a> <a href="https://www.smartkarma.com/insights/jd-logistics-ipo-expanding-external-customer-base-supports-top-line-growth-and-gpm-expansion" target="_blank" data-smartkarma-citation="insights:48526" rel="noopener">JD Logistics IPO: Expanding External Customer Base Supports Top Line Growth and GPM Expansion</a> <a href="https://www.smartkarma.com/insights/jd-logistics-ipo-margin-improvement-likely-with-expanding-external-revenues-and-falling-costs" target="_blank" data-smartkarma-citation="insights:48764" rel="noopener">JD Logistics IPO: Margin Improvement Likely with Expanding External Revenues and Falling Costs</a>

JD Logistics (JDL HK) , the delivery arm of China’s second largest e-commerce platform JD.com has filed for an IPO to list its shares on the Hong Kong Stock Exchange. In our previous insights on JD logistics’ IPO, we examined the company’s business model, revenue, margins and the outlook for the company.According to news media outlets, JD Logistics is looking to raise about US$3-4bn at a valuation of US$40bn. This insight focuses on our financial forecasts and thoughts on the company’s rumoured US$40.0bn valuation.Read our previous insights:JD Logistics: Investment for Growth to Hurt Margins in the Medium-Term but Key to Long-Term Profits JD Logistics IPO: Expanding External Customer Base Supports Top Line Growth and GPM Expansion JD Logistics IPO: Margin Improvement Likely with Expanding External Revenues and Falling Costs 

JD Logistics IPO: Financial Forecasts and Initial Thoughts on Rumoured US$40.0bn Valuation

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

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Although slightly weaker than the exceptional growth reported in September and October, Chinese express parcel volume growth remained strong in December, up 37% YoY. 
Unfortunately, pricing remained weak in December, with some companies reporting YoY unit  declines of more than 25%. Such sharp declines can quickly erode profit margins and cash flow. 
Our investment thesis for the sector remains intact: growing financial pressures within China's express sector will lead to necessary industry consolidation, probably in 2021.




Although slightly weaker than the exceptional growth reported in September and October, Chinese express parcel volume growth remained strong in December, up 37% YoY. 
Unfortunately, pricing remained weak in December, with some companies reporting YoY unit  declines of more than 25%. Such sharp declines can quickly erode profit margins and cash flow. 
Our investment thesis for the sector remains intact: growing financial pressures within China's express sector will lead to necessary industry consolidation, probably in 2021. 

TRACKING TRAFFIC/Chinese Express: Volumes UP | Pricing DOWN | Time for Consolidation

China

BEST Inc. offers logistics and supply chain management solutions. The Company provides express and freight delivery, inventory management, warehousing, financing, cross-border supply chain, merchandise sourcing, and value-added services. BEST serves customers worldwide.

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BEST (BEST US)

JD Logistics IPO: Thoughts on First Day Trading

By pricing JD Logistics' shares close to the lower end of the IPO price range, we believe the company is offering enough room for shares to rise...

Shifara Samsudeen, ACMA, CGMA

JD Logistics IPO Valuation: Implied Offer Multiples Are Not Cheap but Justifiable

JDL’s valuation multiples are not exceedingly cheap but for a company that is the market leader and growing at higher rates than peers, we believe...

Shifara Samsudeen, ACMA, CGMA

JD Logistics IPO: Financial Forecasts and Initial Thoughts on Rumoured US$40.0bn Valuation

JDL’s higher revenue growth, market share and its improving margins are already priced into the rumoured US$40.0bn valuation and it is unlikely...

Shifara Samsudeen, ACMA, CGMA

TRACKING TRAFFIC/Chinese Express: Volumes UP | Pricing DOWN | Time for Consolidation

Although express parcel volume growth remained strong in December, unit pricing was still weak, and we expect more companies to report losses in Q4...

Tracking Traffic

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

JD Logistics IPO: Thoughts on First Day Trading

By pricing JD Logistics' shares close to the lower end of the IPO price range, we believe the company is offering enough room for shares to rise...

Shifara Samsudeen, ACMA, CGMA

JD Logistics IPO Valuation: Implied Offer Multiples Are Not Cheap but Justifiable

JDL’s valuation multiples are not exceedingly cheap but for a company that is the market leader and growing at higher rates than peers, we believe...

Shifara Samsudeen, ACMA, CGMA

JD Logistics: Margins Sink as JDL Prioritises Market Share but Peer Margins Shrink Too in 1Q21

JDL's GPM for 1Q2021 was 1% compared to 6.2% for 1Q2020 and drop in peer GPM in implies that the logistics industry as a whole was affected during...

Shifara Samsudeen, ACMA, CGMA

JD Logistics IPO: Financial Forecasts and Initial Thoughts on Rumoured US$40.0bn Valuation

JDL’s higher revenue growth, market share and its improving margins are already priced into the rumoured US$40.0bn valuation and it is unlikely...

Shifara Samsudeen, ACMA, CGMA

TRACKING TRAFFIC/Chinese Express: Volumes UP | Pricing DOWN | Time for Consolidation

Although express parcel volume growth remained strong in December, unit pricing was still weak, and we expect more companies to report losses in Q4...

Tracking Traffic