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>Trip.com's domestic hotel bookings increased by 70% over pre-COVID 3Q19.</li>
<li>Xiaomi's revenue began to grow in 3Q23 after decreasing for five quarters.</li>
<li>China home appliance export surged in October, for example, fridge export amount growing by 42% YoY.</li>
</ul>


Trip.com's domestic hotel bookings increased by 70% over pre-COVID 3Q19.
Xiaomi's revenue began to grow in 3Q23 after decreasing for five quarters.
China home appliance export surged in October, for example, fridge export amount growing by 42% YoY.


China Consumption Weekly (27 Nov 2023): Trip.com, Xiaomi, IQiyi, Full Truck, Home Appliance Export

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

Lalatech Holdings Co Ltd / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lalatech-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:36848:1" rel="noopener">Lalatech Holdings Co Ltd (LALA HK)</a> is looking to raise about US$1bn in its upcoming HK IPO.</li>
<li>Lalatech operates via a marketplace model serving merchants and carriers. Its platform facilitates closed-loop transactions from online shipping order booking to intelligent order matching, and automated dispatching to after-sale services.</li>
<li>We have looked at the company’s past performance in our earlier notes. In this note we will talk about the updates from its refiling.</li>
</ul>



Lalatech Holdings Co Ltd (LALA HK) is looking to raise about US$1bn in its upcoming HK IPO.
Lalatech operates via a marketplace model serving merchants and carriers. Its platform facilitates closed-loop transactions from online shipping order booking to intelligent order matching, and automated dispatching to after-sale services.
We have looked at the company’s past performance in our earlier notes. In this note we will talk about the updates from its refiling.


Lalatech Holdings Pre-IPO - Refiling Updates - Growth and Profit Pickup but Valuation Gap Remains

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lalatech-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:36848:1" rel="noopener">Lalatech Holdings Co Ltd (LALA HK)</a> is a technology driven logistics transportation platform with a global footprint. The company has filed for an IPO and plans to raise about US$1bn.</li>
<li>The company’s financials have shown significant improvement over the last 2 years with the company turning profitable at the operating profit line in 2022.</li>
<li>Huge drop in selling and marketing costs have helped cut down losses which seems too realistic and the company hasn’t provided sufficient explanation on these cost cuts.</li>
</ul>



Lalatech Holdings Co Ltd (LALA HK) is a technology driven logistics transportation platform with a global footprint. The company has filed for an IPO and plans to raise about US$1bn.
The company’s financials have shown significant improvement over the last 2 years with the company turning profitable at the operating profit line in 2022.
Huge drop in selling and marketing costs have helped cut down losses which seems too realistic and the company hasn’t provided sufficient explanation on these cost cuts.


Lalatech IPO: Huge Drop in Operating Costs Prior to IPO Is Concerning

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

<ul>
<li>In Q2, Full Truck Alliance posted strong revenue growth and dramatic margin expansion</li>
<li>Revenue mix continues to improve, which is driving down unit costs and lifting margins</li>
<li>At just 19x forecast 2023 adjusted net earnings, the company's shares are not expensive</li>
</ul>


In Q2, Full Truck Alliance posted strong revenue growth and dramatic margin expansion
Revenue mix continues to improve, which is driving down unit costs and lifting margins
At just 19x forecast 2023 adjusted net earnings, the company's shares are not expensive


Full Truck Alliance Q223 Earnings: Strong Top-Line | Sharp Margin Expansion | Shares Inexpensive

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Lalatech Holdings filed for an IPO in March. I have tried to come at an IPO valuation for the company using a mix of methodologies: EV/Revenue, EV/GTV and EV/Gross Profit.</li>
<li>Taking a weighted average of peer group multiples-based valuation methodologies, I arrived at a ~$7B IPO valuation for Lalatech Holdings, including ~$1.65B of cash and cash equivalents.</li>
<li>From a peer group perspective, I arrived at a fair IPO valuation close to ~$7B, using a ~5x EV/CY22 Revenue, ~0.7x EV/CY22 GTV, and a 10x EV/CY22 Gross Profit multiple. </li>
</ul>


Lalatech Holdings filed for an IPO in March. I have tried to come at an IPO valuation for the company using a mix of methodologies: EV/Revenue, EV/GTV and EV/Gross Profit.
Taking a weighted average of peer group multiples-based valuation methodologies, I arrived at a ~$7B IPO valuation for Lalatech Holdings, including ~$1.65B of cash and cash equivalents.
From a peer group perspective, I arrived at a fair IPO valuation close to ~$7B, using a ~5x EV/CY22 Revenue, ~0.7x EV/CY22 GTV, and a 10x EV/CY22 Gross Profit multiple. 


Lalatech IPO Valuation Analysis: Discount To Last Round Valuation Is Justified

China

Full Truck Alliance Co. Ltd. operates as a software company. The Company develops digital freight and logistics platform.

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Full Truck Alliance (YMM US)

China Consumption Weekly (27 Nov 2023): Trip.com, Xiaomi, IQiyi, Full Truck, Home Appliance Export

Trip.com’s domestic hotel bookings increased 70% over pre-COVID 3Q19. Xiaomi’s revenue began to grow in 3Q23 after decreasing for five quarters....

Ming Lu

Lalatech Holdings Pre-IPO - Refiling Updates - Growth and Profit Pickup but Valuation Gap Remains

Lalatech Holdings Co Ltd (LALA HK) is looking to raise about US$1bn in its upcoming HK IPO. In this note we talk about the refiling updates.

Sumeet Singh

Lalatech IPO: Huge Drop in Operating Costs Prior to IPO Is Concerning

Lalatech has refiled for an IPO on the HKEx and this insight discusses the company's business model and financials. We will discuss new data points...

Shifara Samsudeen, ACMA, CGMA

Full Truck Alliance Q223 Earnings: Strong Top-Line | Sharp Margin Expansion | Shares Inexpensive

Full Truck Alliance is transforming its revenue profile as it continues to grow. The transformation is resulting in sustainably lower costs,...

Tracking Traffic

Lalatech IPO Valuation Analysis: Discount To Last Round Valuation Is Justified

Lalatech Holdings is expected to go public this year and may raise $1B in the upcoming Hong Kong IPO. My analysis suggests a significant discount...

Andrei Zakharov

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