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/zjld-group" target="_blank" data-smartkarma-citation="entities:36734:1" rel="noopener">ZJLD Group (ZJLD HK)</a> is looking to raise up to US$500m in its upcoming Hong Kong IPO.</li>
<li>ZJLD Group (ZJLD) is a Chinese liquor company primarily producing baijiu.</li>
<li>In this note, we discuss the industry dynamics and undertake a peer comparison.</li>
</ul>



ZJLD Group (ZJLD HK) is looking to raise up to US$500m in its upcoming Hong Kong IPO.
ZJLD Group (ZJLD) is a Chinese liquor company primarily producing baijiu.
In this note, we discuss the industry dynamics and undertake a peer comparison.


ZJLD Group Pre-IPO Peer Comparison - Smallest but Compensated with Growth. Sentiment Picking Up

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>In Q1 2023, 86 different Hong Kong-listed companies bought back shares either locally or on foreign exchanges. Total buybacks were HK$22.856bn.</li>
<li>8 Companies made up 90% of the total. On average, they bought back shares 4 days out of every 10 within the quarter. </li>
<li>A lot of the smaller companies doing buybacks were significant portions of their volume.</li>
</ul>


In Q1 2023, 86 different Hong Kong-listed companies bought back shares either locally or on foreign exchanges. Total buybacks were HK$22.856bn.
8 Companies made up 90% of the total. On average, they bought back shares 4 days out of every 10 within the quarter. 
A lot of the smaller companies doing buybacks were significant portions of their volume.


HK Buybacks Q1 2023: 8 Names Are 90% of the Total - AIA, Tencent, StanChart, Greatwall the Big 4

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.

Equity Bottom-Up

<ul><li>Despite challenging macro and ecommerce competition, we remain confident in HTD to deliver above-industrial growth with better margin in the long run.</li><li>We suggest to look beyond FY22E (well anticipated), and expect HTD to benefit from consumption recovery post China’s reopening.</li><li>We forecast its FY23E earnings +20% YoY, with moderate but high-quality topline growth (+18% YoY).</li></ul><p><em>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.</em></p>

Despite challenging macro and ecommerce competition, we remain confident in HTD to deliver above-industrial growth with better margin in the long run.We suggest to look beyond FY22E (well anticipated), and expect HTD to benefit from consumption recovery post China’s reopening.We forecast its FY23E earnings +20% YoY, with moderate but high-quality topline growth (+18% YoY).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.

Huitongda Network (9878 HK) – Solid recovery and margin improvement ahead

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>Huitongda (HTD) reported its 2H22 revenue (9.2%)/(9.0%) lower than our estimate and consensus. The non-IFRS net income beat our estimate/consensus by 23.6%/12.4% respectively. </li>
<li>HTD generated RMB652mn OCF outflow in 2H22, negatively impacted by both Covid and accounts receivables due to its SME focused model.</li>
<li>We maintain the stock as SELL rating and raise TP by HK$4.5 to HK$18.0 to factor in the shrinking minority interests on market value basis. </li>
</ul>


Huitongda (HTD) reported its 2H22 revenue (9.2%)/(9.0%) lower than our estimate and consensus. The non-IFRS net income beat our estimate/consensus by 23.6%/12.4% respectively. 
HTD generated RMB652mn OCF outflow in 2H22, negatively impacted by both Covid and accounts receivables due to its SME focused model.
We maintain the stock as SELL rating and raise TP by HK$4.5 to HK$18.0 to factor in the shrinking minority interests on market value basis. 


[Huitongda (9878 HK, SELL, TP HK$18) Target Price Change]: Concerns Arise on OCF Outflow

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zjld-group" target="_blank" data-smartkarma-citation="entities:36734:1" rel="noopener">ZJLD Group (ZJLD HK)</a> is looking to raise up to US$400m in its upcoming Hong Kong IPO. </li>
<li>ZJLD is a Chinese liquor company primarily producing baijiu. As per F&amp;S, the firm was the fourth largest privately-owned baijiu company in terms of FY21 sales.</li>
<li>In this note, we look at the firm’s PHIP updates.</li>
</ul>



ZJLD Group (ZJLD HK) is looking to raise up to US$400m in its upcoming Hong Kong IPO. 
ZJLD is a Chinese liquor company primarily producing baijiu. As per F&amp;S, the firm was the fourth largest privately-owned baijiu company in terms of FY21 sales.
In this note, we look at the firm’s PHIP updates.


ZJLD Group Pre-IPO PHIP Updates - Benefited from Higher ASPs, Although Inventory Build up a Concern

China

Jianxin Mining Co., Ltd. produces and trades non-ferrous minerals (excluding precious metals), PCs, Servers, network equipments, computer softwares, building materials and other related products.

Jiangsu Guotai International Group Guomao Co., Ltd. operates an import and export business. The company exports textile products, apparel, mechanical and electrical products, light-industry products, chemical products and other general merchandise. The company also provides labor services to foreign countries.

CMST Development Co Ltd provides warehousing, storage, and transportation servic es. The Company also sells merchandise and invests in the real estate industry.

Changlin Co., Ltd. manufactures and markets machinery and equipment for a variety of industries including forestry, construction, mining, and environmental protection industries.

Shanghai Waigaoqiao Free Trade Zone Group Co Ltd develops and manages the properties in Waigaoqiao Free Trade Zone in Shanghai's Pudong New Area. The Company develops and leases commercial and residential properties, manages hotel, invests in the goods trading business and provides logistics services.

Zhejiang Huatie Construction Safety Science and Technology Co. Ltd. is a safety equipment rental company. The Company provides a full range of safety gear and equipment for the construction industry.

Minmetals Development Co., Ltd imports and exports metals and minerals. The Company imports rolled steel, ore sand, and steel billets, and exports coke, coal, iron, bolognian stones, and other minerals.  Minmetals Development also provides freight transportation service and manages hotels.

Sinochem International Corporation imports and exports chemical products including plastics, rubber, coke, and other chemicals,  The Company also operates in domestic trading, freight transportation, and warehousing businesses.

Sinochem International Corporation A (600500 CH)

Xiamen ITG Group Corp Ltd operates an import and export business.  The Company exports textiles and non-ferrous metals, and imports crude oil, ferrous metals, and machinery.  Xiamen International also sells real estate properties.

China Meheco Co Ltd operates an import and export business. The Company trades pharmaceutical products, paper making machinery, and aluminum extruders. CNTIC Trading also imports patent technologies and industrial techniques.

HANWA CO., LTD. wholesales, imports, and exports steel products, nonferrous metals, industrial machines, and food products.  The Company also handles chemical products, construction materials, and information equipment.  Hanwa has several subsidiaries and sales bases in the U.S. and around Asia.

INABA DENKI SANGYO CO., LTD. sells electric cables, plumbing products, and electronic equipment.  The Company's products include cables, electric switchboards, lighting equipment, sensors, and ducts.  Inaba Denki Sangyo also provides real estate management and data processing services.

KANEMATSU CORPORATION is a trading company handling textiles, fuel, chemicals, steel and housing construction materials, foodstuffs, and electronic equipment. The Company diversifies by operating a semiconductor-related IT (Information Technology) business.

Distribution Solutions Group, Inc. operates as a specialty distribution company. The Company provides high touch and value-added distribution solutions to the maintenance, repair and operations (MRO), original equipment manufacturer (OEM), and the industrial technologies markets.

Global Industrial Company operates as an an industrial equipment distributor. The Company offers product categories include electrical and lighting, fasteners and hardware, furniture and office, material handling, safety and security, storage and shelving, and metalworking and cutting tools. Global Industrial serves customers in the United States.

MMTC Limited is a diversified company involved in the business of minerals, precious metals, metals, coal and hydro carbons, fertilizers and agro products.

NOW Inc distributes oil drilling equipment across the globe. The Company provides maintenance, repair, and operating supplies for the global energy and industrial markets.

Kaman Corporation and its subsidiaries serve government and commercial markets through its diversified technologies and distribution segments.  The Company provides aircraft manufacturing, design and manufacture of advanced technology products and systems, and advanced technology services.  Kaman also distributes industrial products.

Richelieu Hardware Ltd. imports and distributes specialty products for the kitchen cabinet and furniture markets in Canada.  The Company also manufactures chalkboards and tackboards.  Richelieu's wholly owned subsidiary, Cedan Industries Inc., specializes in the manufacturing of veneer sheets and edgebanding products for the Canadian and export markets.

Russel Metals Inc. distributes steel in North America.  The Company operates through service center distribution, energy sector distribution, and steel import/export.  Russel also processes steel.

Huitongda Network Co., Ltd. develops a sinking market retail industry transaction and service platform. The Company provides supply chain solutions development, deal matching, logistics and after sales supporting, and other services. Huitongda Network provides its services throughout China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Huitongda (9878 HK)

ZJLD Group Pre-IPO Peer Comparison - Smallest but Compensated with Growth. Sentiment Picking Up

ZJLD Group (ZJLD HK) is looking to raise up to US$500m in its upcoming Hong Kong IPO. In this note, we discuss the industry dynamics and undertake...

Clarence Chu

HK Buybacks Q1 2023: 8 Names Are 90% of the Total - AIA, Tencent, StanChart, Greatwall the Big 4

86 names listed in HK bought back shares in Q1. 90% of total buybacks were done by 8 names. half the names bought back less than US$1mm. AIA,...

Travis Lundy

Huitongda Network (9878 HK) – Solid recovery and margin improvement ahead

Despite challenging macro and ecommerce competition, we remain confident in HTD to deliver above-industrial growth with better margin in the long run.

CMB International