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 Capital Markets

<ul>
<li>Two misunderstandings about JD Digits are widely spread.</li>
<li>JD Digits is controlled by JD.com’s founder, but is not a subsidiary of JD.com.</li>
<li>JD Digits is a B2C company, but not a B2B company, no matter how the company describes itself.</li>
</ul>


Two misunderstandings about JD Digits are widely spread.
JD Digits is controlled by JD.com’s founder, but is not a subsidiary of JD.com.
JD Digits is a B2C company, but not a B2B company, no matter how the company describes itself.


JD Digits: Wide Misunderstandings About Financial Partner of JD.com

Equity Analyst, LightStream Research

Supun Walpola

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.

<p>We are broadly positive about <a href="https://www.smartkarma.com/entities/jd-digits" target="_blank" data-smartkarma-citation="entities:29289:1" rel="noopener">JD Digits (JDD CH)</a>’s IPO. We like the fact that JDD is trying to leverage the consumer credit boom in China by providing B2B solutions for financial institutions rather than competing directly with the likes of <a href="https://www.smartkarma.com/entities/ant-financial-services-group" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Financial (1051260D CH)</a> in the consumer financing space. That being said, JDD should get a steady stream of revenue from providing consumer financing solutions to JD.com’s customers, whose GMV has been growing at around 20%-30% per year in the past few years. Moreover, our marginal profitability analysis suggests that there is room for JDD’s OP margin to improve further as the business scales. JDD also does not look expensive to us at the rumoured IPO valuation.</p>

We are broadly positive about JD Digits (JDD CH)’s IPO. We like the fact that JDD is trying to leverage the consumer credit boom in China by providing B2B solutions for financial institutions rather than competing directly with the likes of Ant Financial (1051260D CH) in the consumer financing space. That being said, JDD should get a steady stream of revenue from providing consumer financing solutions to JD.com’s customers, whose GMV has been growing at around 20%-30% per year in the past few years. Moreover, our marginal profitability analysis suggests that there is room for JDD’s OP margin to improve further as the business scales. JDD also does not look expensive to us at the rumoured IPO valuation.

JD Digits IPO: Leveraging the Chinese Consumer Credit Boom in a Non-Ant Way

China

Fintech-focused division of Chinese online marketplace JD.com.

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JD Digits (JDD CH)

JD Digits: Wide Misunderstandings About Financial Partner of JD.com

Two misunderstandings about JD Digits are widely spread. JD Digits is controlled by JD.com’s founder, but is not a subsidiary of JD.com. JD Digits...

Ming Lu

JD Digits IPO: Leveraging the Chinese Consumer Credit Boom in a Non-Ant Way

We are broadly positive about JDD’s IPO. We like the fact that JDD is trying to leverage the consumer credit boom in China by providing B2B...

Supun Walpola

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)