APAC IPOs & Placements

Zhen Zhou, Toh

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

Huali University Group / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/huali-university-group-limited" target="_blank" data-smartkarma-citation="entities:26719:1" rel="noopener">Huali University Group (HUG HK)</a> is looking to raise US$100 m in its upcoming IPO.HUG is a private higher education group operating three schools, namely, Huali College, Huali Vocational College, and Huali Technician College in South China. As of February 2019, the group has a total of 37,364 students enrolled in the three schools. We are concerned about the potential impact of the company's planned conversion of the three schools into a for-profit private schools. There were also instances of non-compliance to regulatory requirements such as student to teacher ratio, site area per full-time student and etc.While such non-compliance is not uncommon, the company admitted that it had been the result of unfamiliarity of regulatory laws which we found unusual compared to other education listings in Hong Kong.

Huali University Group (HUG HK) is looking to raise US$100 m in its upcoming IPO.HUG is a private higher education group operating three schools, namely, Huali College, Huali Vocational College, and Huali Technician College in South China. As of February 2019, the group has a total of 37,364 students enrolled in the three schools. We are concerned about the potential impact of the company's planned conversion of the three schools into a for-profit private schools. There were also instances of non-compliance to regulatory requirements such as student to teacher ratio, site area per full-time student and etc.While such non-compliance is not uncommon, the company admitted that it had been the result of unfamiliarity of regulatory laws which we found unusual compared to other education listings in Hong Kong.

Huali University (华立大学) IPO Early Thoughts - Risks Abound

Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Huali University Group (HLUG) is amongst the biggest private vocational education provider in South China in terms of enrolment. It has about 38,800 students (as of August 2017) enrolled at its three schools: Huali College, Huali Vocational College and Huali Technician College. Its FY8/17 revenues of RMB 538.5m is second highest amongst newly-listed tertiary education providers, behind <a href="https://www.smartkarma.com/entities/18218" target="_blank" data-smartkarma-citation="entities:18218:1">China Education Group Holdings (839 HK)</a> revenues of RMB 878m. Other peers in the higher education space include <a href="https://www.smartkarma.com/entities/23624" target="_blank" data-smartkarma-citation="entities:23624:1">Minsheng Education Group (1569 HK)</a>, <a href="https://www.smartkarma.com/entities/23626" target="_blank" data-smartkarma-citation="entities:23626:1">China New Higher Education Group (2001 HK)</a>, and <a href="https://www.smartkarma.com/entities/26106" target="_blank" data-smartkarma-citation="entities:26106:1">China Xinhua Education (CXE HK)</a>.  My initial estimates place the deal size at  ~USD 160m.  In this article, I will attempt to answer the following questions:1. What is the history of the group and key executives?2. How did the company's revenue and profits grow in the past?3. Should we worry about sliding enrolment at Huali College?4. What other risks should we take note of?5. At what valuations should HLUG trade?

Huali University Group (HLUG) is amongst the biggest private vocational education provider in South China in terms of enrolment. It has about 38,800 students (as of August 2017) enrolled at its three schools: Huali College, Huali Vocational College and Huali Technician College. Its FY8/17 revenues of RMB 538.5m is second highest amongst newly-listed tertiary education providers, behind China Education Group Holdings (839 HK) revenues of RMB 878m. Other peers in the higher education space include Minsheng Education Group (1569 HK), China New Higher Education Group (2001 HK), and China Xinhua Education (CXE HK).  My initial estimates place the deal size at  ~USD 160m.  In this article, I will attempt to answer the following questions:1. What is the history of the group and key executives?2. How did the company's revenue and profits grow in the past?3. Should we worry about sliding enrolment at Huali College?4. What other risks should we take note of?5. At what valuations should HLUG trade?

Huali University Group IPO Preview: Falling Enrolment and Weaker Margins Mean Premium Unlikely

China

Huali University Group Limited provides educational services. The Company offers private higher education, private vocational education, and other related services. Huali University Group provides services in China.

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Huali University Group (1756 HK)

Huali University (华立大学) IPO Early Thoughts - Risks Abound

Huali University Group (HUG HK) is looking to raise US$100 m in its upcoming IPO.HUG is a private higher education group operating three schools,...

Zhen Zhou, Toh

Huali University Group IPO Preview: Falling Enrolment and Weaker Margins Mean Premium Unlikely

Huali University Group (HLUG) is amongst the biggest private vocational education provider in South China in terms of enrolment. It has about...

Valerie Law, CFA

Price Gauge

52-week Range

Market Cap (USDm)

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