APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tuhu-car" target="_blank" data-smartkarma-citation="entities:36012:1" rel="noopener">Tuhu Car (2007986D HK)</a> is looking to raise up to US$300m in its upcoming Hong Kong IPO.</li>
<li>Tuhu is an integrated online and offline platform for automotive services in China.</li>
<li>We have looked at the firm’s past performance and undertaken a peer comparison in earlier notes. In this note, we will discuss our earnings assumptions and thoughts on valuation.</li>
</ul>



Tuhu Car (2007986D HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO.
Tuhu is an integrated online and offline platform for automotive services in China.
We have looked at the firm’s past performance and undertaken a peer comparison in earlier notes. In this note, we will discuss our earnings assumptions and thoughts on valuation.


Tuhu Car Pre-IPO - Thoughts on Valuation - Will Likely Need a Markdown from Its Latest Funding Round

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Thematic (Sector/Industry)

<ul><li>We summarize the Aug 2023 price discounts at dealers for major automakers in this report.</li><li>Note that such discounts for each automaker are calculated based on weighted average of Jul 2023 retail sales volume for each model, as Aug retail sales volume data have not been released yet.</li><li>Discounts at dealers for most brands widened mildly MoM in Aug 2023, as the price war persists with more and more competitive product rollouts and raw-material price decline.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We summarize the Aug 2023 price discounts at dealers for major automakers in this report.Note that such discounts for each automaker are calculated based on weighted average of Jul 2023 retail sales volume for each model, as Aug retail sales volume data have not been released yet.Discounts at dealers for most brands widened mildly MoM in Aug 2023, as the price war persists with more and more competitive product rollouts and raw-material price decline.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Auto Sector – Aug discounts widened slightly MoM

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tuhu-car" target="_blank" data-smartkarma-citation="entities:36012:1" rel="noopener">Tuhu Car (2007986D HK)</a> is looking to raise up to US$300m in its upcoming Hong Kong IPO. </li>
<li>Tuhu is an integrated online and offline platform for automotive services in China.</li>
<li>We have looked at the firm’s past performance and PHIP updates in earlier notes. In this note, we undertake a peer comparison.</li>
</ul>



Tuhu Car (2007986D HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO. 
Tuhu is an integrated online and offline platform for automotive services in China.
We have looked at the firm’s past performance and PHIP updates in earlier notes. In this note, we undertake a peer comparison.


Tuhu Car Pre-IPO Peer Comp - While It Has Been Loss Making, GPM Expansion Has Been the Strongest

Equity Bottom-Up

<ul><li>Upgrade to BUY. Meidong’s share price has fallen 65% since our downgrade on 1 Apr 2023.</li><li>We are of the view that its new-car gross margin probably hit bottom in 1H23, although recovery may take a while.</li><li>Porsche’s new-car gross margin appears to recover the fastest among traditional luxury brands and Meidong could benefit the most among its peers. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Upgrade to BUY. Meidong’s share price has fallen 65% since our downgrade on 1 Apr 2023.We are of the view that its new-car gross margin probably hit bottom in 1H23, although recovery may take a while.Porsche’s new-car gross margin appears to recover the fastest among traditional luxury brands and Meidong could benefit the most among its peers. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

China Meidong Auto (1268 HK) – The Worst Is Over

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>In three more weeks, the index changes and the indicative capping changes for the September 2023 rebalance will be officially announced. </li>
<li>We first looked at the potential HSCEI index changes and the resultant capping flows for September 2023 in <a href="https://www.smartkarma.com/insights/quiddity-hscei-sep-23-flow-expectations-two-changes-likely-us-276mn-one-way" target="_blank" data-smartkarma-citation="insights:104329" rel="noopener">Quiddity HSCEI Sep 23 Flow Expectations: Two Changes Likely, US$276mn One-Way</a> </li>
<li>In this insight, we take a look at Quiddity's updated flow expectations which account for the changes in prices in the last ~1.5 months.</li>
</ul>


In three more weeks, the index changes and the indicative capping changes for the September 2023 rebalance will be officially announced. 
We first looked at the potential HSCEI index changes and the resultant capping flows for September 2023 in Quiddity HSCEI Sep 23 Flow Expectations: Two Changes Likely, US$276mn One-Way 
In this insight, we take a look at Quiddity's updated flow expectations which account for the changes in prices in the last ~1.5 months.


Quiddity HSCEI Sep 23 Flow Expectations Update: US$367mn One-Way, Beigene Vs Peers Interesting

China

China Meidong Auto Holdings Limited is an automobile dealership and maintenance group in China.

Price Gauge
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China MeiDong Auto (1268 HK)

Tuhu Car Pre-IPO - Thoughts on Valuation - Will Likely Need a Markdown from Its Latest Funding Round

Tuhu Car (2007986D HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO. In this note, we will discuss our earnings assumptions and...

Clarence Chu

China Auto Sector – Aug discounts widened slightly MoM

Discounts at dealers for most brands widened mildly MoM in Aug 2023, as the price war persists with more and more competitive product rollouts and...

CMB International

Tuhu Car Pre-IPO Peer Comp - While It Has Been Loss Making, GPM Expansion Has Been the Strongest

Tuhu Car (2007986D HK) is looking to raise up to US$300m in its upcoming Hong Kong IPO. We have looked at the firm’s past performance in earlier...

Clarence Chu