Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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

<p><a href="https://www.smartkarma.com/entities/aihuishou" target="_blank" data-smartkarma-citation="entities:33426:1" rel="noopener">Aihuishou (RERE US)</a> (AHS), China’s largest pre-owned consumer electronics transactions and services platform, aims to raise up to US$1bn via a US listing. It is backed by <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>, Morningside and Tiger Global.</p><p>A total of 26.1m consumer products, worth RMB22.8bn, were transacted by AHS over twelve months ending Mar 2021. It had over 755 offline stores across 172 cities. According to CIC, it had a 6.6% market share in terms of GMV for pre-owned electronics and 8.7% market share in terms of number of pre-owned devices transacted in 2020. As per CIC, its GMV for electronics and number of devices transacted in 2020 were both greater than the next five largest platforms combined, as per CIC. </p>

Aihuishou (RERE US) (AHS), China’s largest pre-owned consumer electronics transactions and services platform, aims to raise up to US$1bn via a US listing. It is backed by JD.com Inc (ADR) (JD US), Morningside and Tiger Global.A total of 26.1m consumer products, worth RMB22.8bn, were transacted by AHS over twelve months ending Mar 2021. It had over 755 offline stores across 172 cities. According to CIC, it had a 6.6% market share in terms of GMV for pre-owned electronics and 8.7% market share in terms of number of pre-owned devices transacted in 2020. As per CIC, its GMV for electronics and number of devices transacted in 2020 were both greater than the next five largest platforms combined, as per CIC. 

AiHuiShou Pre-IPO - Mostly Positive - Pre-Owned but Well Loved

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

Smoore International Holdings / Event-Driven

<p>Hang Seng Indexes should announce the results of the September 2021 review of the Hang Seng Family of Indexes on 13 August. The constituent changes will be effective after the close of trading on 3 September.</p><p>The review period for the September rebalance ends on 30 June and stocks that have at least 3 month of trading history by the review meeting date are eligible for inclusion in the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a>.</p><p>With the major capping changes scheduled to be completed at the June rebalance tomorrow, there could be up to 8 inclusions at the September review while still keeping the one-way index turnover lower than 5%. The actual number of inclusions could be lower to spread the turnover over the next few reviews.</p><p>We see <a href="https://www.smartkarma.com/entities/jd-health-international-inc" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a>, <a href="https://www.smartkarma.com/entities/hansoh-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:23675:1" rel="noopener">Hansoh Pharmaceutical (3692 HK)</a>, <a href="https://www.smartkarma.com/entities/smoore-international" target="_blank" data-smartkarma-citation="entities:28241:1" rel="noopener">Smoore International (6969 HK)</a>, <a href="https://www.smartkarma.com/entities/fosun-international-ltd" target="_blank" data-smartkarma-citation="entities:433:1" rel="noopener">Fosun International (656 HK)</a> and <a href="https://www.smartkarma.com/entities/evergrande-property-services" target="_blank" data-smartkarma-citation="entities:30921:1" rel="noopener">Evergrande Property Services (6666 HK)</a> as higher probability inclusions in the index, while there is a lower probability of <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com Inc. (9618 HK)</a>, <a href="https://www.smartkarma.com/entities/nongfu-spring" target="_blank" data-smartkarma-citation="entities:28955:1" rel="noopener">Nongfu Spring (9633 HK)</a> and <a href="https://www.smartkarma.com/entities/xinyi-glass-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11940:1" rel="noopener">Xinyi Glass Holdings (868 HK)</a> being included in the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hong Kong Hang Seng Index (HSI INDEX)</a>.</p><p><a href="https://www.smartkarma.com/entities/china-gas-holdings-ltd" target="_blank" data-smartkarma-citation="entities:14315:1" rel="noopener">China Gas Holdings (384 HK)</a> could be added to increase the coverage of Group 5 where Utilities are a part. This is less of a priority though with the market cap coverage of the group in excess of 60% as compared to the other groups that are much lower.</p><p>There may not be any deletions at the current time. If the Index Committee decides to delete stocks, the two names most at risk are <a href="https://www.smartkarma.com/entities/china-life-insurance-co-ltd-9f877d22-7cf7-4b00-b525-cec71139f369" target="_blank" data-smartkarma-citation="entities:5794:1" rel="noopener">China Life Insurance Co H (2628 HK)</a> and <a href="https://www.smartkarma.com/entities/hengan-intl-group-co-ltd" target="_blank" data-smartkarma-citation="entities:29:1" rel="noopener">Hengan Intl Group (1044 HK)</a>.</p><p>These changes will increase the market cap coverage of the index from 60.1% to 64.3% and the turnover coverage from 53.75% to 57.75%. One-way index turnover is estimated at 4.79% and would result in a one-way trade of HK$9.2bn.</p>

Hang Seng Indexes should announce the results of the September 2021 review of the Hang Seng Family of Indexes on 13 August. The constituent changes will be effective after the close of trading on 3 September.The review period for the September rebalance ends on 30 June and stocks that have at least 3 month of trading history by the review meeting date are eligible for inclusion in the Hong Kong Hang Seng Index (HSI INDEX).With the major capping changes scheduled to be completed at the June rebalance tomorrow, there could be up to 8 inclusions at the September review while still keeping the one-way index turnover lower than 5%. The actual number of inclusions could be lower to spread the turnover over the next few reviews.We see JD Health (6618 HK), Hansoh Pharmaceutical (3692 HK), Smoore International (6969 HK), Fosun International (656 HK) and Evergrande Property Services (6666 HK) as higher probability inclusions in the index, while there is a lower probability of JD.com Inc. (9618 HK), Nongfu Spring (9633 HK) and Xinyi Glass Holdings (868 HK) being included in the Hong Kong Hang Seng Index (HSI INDEX).China Gas Holdings (384 HK) could be added to increase the coverage of Group 5 where Utilities are a part. This is less of a priority though with the market cap coverage of the group in excess of 60% as compared to the other groups that are much lower.There may not be any deletions at the current time. If the Index Committee decides to delete stocks, the two names most at risk are China Life Insurance Co H (2628 HK) and Hengan Intl Group (1044 HK).These changes will increase the market cap coverage of the index from 60.1% to 64.3% and the turnover coverage from 53.75% to 57.75%. One-way index turnover is estimated at 4.79% and would result in a one-way trade of HK$9.2bn.

HSI Index Rebalance Preview: Potential Inclusions in September

Pop Mart International Group L / Event-Driven

<div>
<p><a href="https://www.smartkarma.com/entities/pop-mart-international-group-limited" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">POP MART (POP HK) </a>was listed in Dec 2020 when it raised around US$674m, by selling 9.8% stake. In this note, we'll talk about the upcoming lock-up expiry.</p>
<p>While the company didn’t have cornerstone investors in the deal, it did have a whole lot of pre-IPO investors. The lock-up on these pre-IPO investors, who own over 40% of the company will expire over the next few days.</p>
</div><div><p>In our previous insights, we spoke about the various aspects of the deal: </p></div><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-the-positives-expanding-portfolio-wider-distribution-explosive-earnings-growth" target="_blank" rel="noopener">Pop Mart Pre-IPO - The Positives - Expanding Portfolio+Wider Distribution= Explosive Earnings Growth,</a> and</li>
<li><a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-the-negatives-is-it-a-brand-owner-or-just-a-retailer" target="_blank" rel="noopener">Pop Mart Pre-IPO - The Negatives - Is It a Brand Owner or Just a Retailer?</a></li>
<li><a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-peer-set-and-valuation" target="_blank" data-smartkarma-citation="insights:41850" rel="noopener">Pop Mart Pre-IPO - Peer Set and Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-quick-note-on-the-ground-pop-up-stores-are-effective" target="_blank" rel="noopener">Pop Mart Pre-IPO Quick Note - On the Ground - Pop-Up Stores Are Effective</a></li>
</ul></div><div><ul style="list-style-type: disc;"><li><a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-phip-updates-still-riding-on-past-expansion" target="_blank" rel="noopener">Pop Mart Pre-IPO - PHIP Updates - Still Riding on past Expansion</a></li></ul></div><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-valuation-updates" target="_blank" rel="noopener">Pop Mart Pre-IPO - Valuation Updates</a></li>
<li><a href="https://www.smartkarma.com/insights/pop-mart-ipo-making-you-pay-well-for-growth" target="_blank" rel="noopener">Pop Mart IPO - Making You Pay Well for Growth</a></li>
<li><a href="https://www.smartkarma.com/insights/pop-mart-ipo-trading-set-for-a-pop-but-we-won-t-be-chasing" target="_blank" rel="noopener">Pop Mart IPO Trading - Set for a Pop but We Won’t Be Chasing</a></li>
</ul></div>


POP MART (POP HK) was listed in Dec 2020 when it raised around US$674m, by selling 9.8% stake. In this note, we'll talk about the upcoming lock-up expiry.
While the company didn’t have cornerstone investors in the deal, it did have a whole lot of pre-IPO investors. The lock-up on these pre-IPO investors, who own over 40% of the company will expire over the next few days.
In our previous insights, we spoke about the various aspects of the deal: 

Pop Mart Pre-IPO - The Positives - Expanding Portfolio+Wider Distribution= Explosive Earnings Growth, and
Pop Mart Pre-IPO - The Negatives - Is It a Brand Owner or Just a Retailer?
Pop Mart Pre-IPO - Peer Set and Valuation
Pop Mart Pre-IPO Quick Note - On the Ground - Pop-Up Stores Are Effective
Pop Mart Pre-IPO - PHIP Updates - Still Riding on past Expansion
Pop Mart Pre-IPO - Valuation Updates
Pop Mart IPO - Making You Pay Well for Growth
Pop Mart IPO Trading - Set for a Pop but We Won’t Be Chasing


Pop Mart Lock-Up Expiry - US$5bn Worth of Shares Will Come off Lock-Up

Full Truck Alliance   / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/full-truck-alliance" target="_blank" data-smartkarma-citation="entities:33429:1" rel="noopener">Full Truck Alliance (YMM US)</a> (FTU),  China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing. It is backed by Softbank and Sequoia.</p><p>In our earlier note, we spoke about the positive aspects of the deal, <a href="https://www.smartkarma.com/insights/full-truck-alliance-pre-ipo-the-positives-category-leader" target="_blank" rel="noopener">Full Truck Alliance Pre-IPO - The Positives - Category Leader</a>. In this note, we'll talk about the not so positive aspects.</p>

Full Truck Alliance (YMM US) (FTU),  China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing. It is backed by Softbank and Sequoia.In our earlier note, we spoke about the positive aspects of the deal, Full Truck Alliance Pre-IPO - The Positives - Category Leader. In this note, we'll talk about the not so positive aspects.

Full Truck Alliance Pre-IPO - The Negatives - Still a Mixed Bag

<p><a href="https://www.smartkarma.com/entities/full-truck-alliance" target="_blank" data-smartkarma-citation="entities:33429:1" rel="noopener">Full Truck Alliance (YMM US)</a> (FTU),  China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing. It is backed by Softbank and Sequoia.</p><p>Full Truck Alliance (FTA) was formed in 2017 via a merger of Yunmanman and Huochebang, which had been operational since 2013 and 2011, respectively. It is the largest digital freight platform in China and the world, as per CIC. In 2020, 71.7m orders were fulfilled on the platform, with a gross transaction value (GTV) of RMB173.8bn (US$26.6bn), by 2.8m truckers. It had 1.3m active shippers in Dec 2020. Approximately 20% of all China’s heavy-duty and medium-duty truckers fulfilled shipping orders on its platform in 2020, according to CIC.</p><p>FTA is the leader in its category and appears to be well ahead of other competitors, as per CIC. The company has been working on various means of monetising its user base. While 2020 wasn’t a great year for revenue growth, the company did manage to turn a profit and was cash flow positive as well. </p>

Full Truck Alliance (YMM US) (FTU),  China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing. It is backed by Softbank and Sequoia.Full Truck Alliance (FTA) was formed in 2017 via a merger of Yunmanman and Huochebang, which had been operational since 2013 and 2011, respectively. It is the largest digital freight platform in China and the world, as per CIC. In 2020, 71.7m orders were fulfilled on the platform, with a gross transaction value (GTV) of RMB173.8bn (US$26.6bn), by 2.8m truckers. It had 1.3m active shippers in Dec 2020. Approximately 20% of all China’s heavy-duty and medium-duty truckers fulfilled shipping orders on its platform in 2020, according to CIC.FTA is the leader in its category and appears to be well ahead of other competitors, as per CIC. The company has been working on various means of monetising its user base. While 2020 wasn’t a great year for revenue growth, the company did manage to turn a profit and was cash flow positive as well. 

Full Truck Alliance Pre-IPO - The Positives - Category Leader

China

JD.com Inc is an online direct sales company in China.  The Company offers a wide selection of products through its website and mobile applications.  JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

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JD.com Inc (ADR) (JD US)

AiHuiShou Pre-IPO - Mostly Positive - Pre-Owned but Well Loved

Aihuishou(RERE US), China’s largest pre-owned consumer electronics transactions and services platform, aims to raise upto US$1bn via a US listing....

Sumeet Singh

HSI Index Rebalance Preview: Potential Inclusions in September

There could be 8 additions to the HSI at the September review to take the index members up to 66. Turnover will be less than 5% and there are a lot...

Brian Freitas

Pop Mart Lock-Up Expiry - US$5bn Worth of Shares Will Come off Lock-Up

POP MART (POP HK) was listed in Dec 2020 when it raised around US$674m, by selling 9.8% stake. In this note, we'll talk about the upcoming lock-up...

Sumeet Singh

Full Truck Alliance Pre-IPO - The Negatives - Still a Mixed Bag

Full Truck Alliance (YMM US), China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing....

Sumeet Singh

Full Truck Alliance Pre-IPO - The Positives - Category Leader

Full Truck Alliance, China’s largest digital freight platform by gross transaction value, aims to raise up to US$1.5bn via a US listing. It is...

Sumeet Singh

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