IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<ul>
<li>In <a href="https://www.smartkarma.com/insights/sf-intra-city-industrial-ipo-delivering-losses" target="_blank" data-smartkarma-citation="insights:61272" rel="noopener">SF Intra-City Industrial IPO: Delivering Losses</a>, we noted that SF Intra-city’s fundamentals are less than inspiring. </li>
<li>In <a href="https://www.smartkarma.com/insights/sf-intra-city-industrial-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:61939" rel="noopener">SF Intra-City Industrial IPO: Valuation Insights</a>, we noted that the IPO price is unattractive in the context of its unappetizing mix of high growth at the cost of losses.  </li>
<li>The IPO price is HK$16.42 and it closed -9% lower in the grey market. Our base-case DCF value of HK$15.44 per share is a 6% downside to the IPO price.  </li>
</ul>


In SF Intra-City Industrial IPO: Delivering Losses, we noted that SF Intra-city’s fundamentals are less than inspiring. 
In SF Intra-City Industrial IPO: Valuation Insights, we noted that the IPO price is unattractive in the context of its unappetizing mix of high growth at the cost of losses.  
The IPO price is HK$16.42 and it closed -9% lower in the grey market. Our base-case DCF value of HK$15.44 per share is a 6% downside to the IPO price.  


SF Intra-City Industrial IPO: Trading Debut

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hangzhou-sf-intra-city-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:34916:1" rel="noopener">SF Intra-City (9699 HK)</a> is the largest Chinese independent third-party on-demand delivery service provider. It launched an HKEx IPO to raise net proceeds of $273 million at the IPO mid-point. </li>
<li>In <a href="https://www.smartkarma.com/insights/sf-intra-city-industrial-ipo-delivering-losses" target="_blank" data-smartkarma-citation="insights:61272" rel="noopener">SF Intra-City Industrial IPO: Delivering Losses</a>, we noted that SF Intra-city’s fundamentals are less than inspiring. </li>
<li>While the valuation is undemanding vs peers, we give the IPO a pass as SF Intra-city offers an unappetizing mix of high growth at the cost of losses/cash burn.   </li>
</ul>



SF Intra-City (9699 HK) is the largest Chinese independent third-party on-demand delivery service provider. It launched an HKEx IPO to raise net proceeds of $273 million at the IPO mid-point. 
In SF Intra-City Industrial IPO: Delivering Losses, we noted that SF Intra-city’s fundamentals are less than inspiring. 
While the valuation is undemanding vs peers, we give the IPO a pass as SF Intra-city offers an unappetizing mix of high growth at the cost of losses/cash burn.   


SF Intra-City Industrial IPO: Valuation Insights

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 Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (2618 HK)</a> (JDL) is the leading supply chain solutions and logistics services provider in China. It counts JD.com as its major shareholder with 63.5% ownership.</li>
<li>JDL leverages its integrated infrastructure to offer a comprehensive set of supply chain solutions and logistics services. It also benefits from JD Group’s order flow.</li>
<li>The company is set to gain market share in the integrated supply chain industry and widen its lead in the next few years. Valuation is undemanding after the recent pullback.</li>
</ul>



JD Logistics (2618 HK) (JDL) is the leading supply chain solutions and logistics services provider in China. It counts JD.com as its major shareholder with 63.5% ownership.
JDL leverages its integrated infrastructure to offer a comprehensive set of supply chain solutions and logistics services. It also benefits from JD Group’s order flow.
The company is set to gain market share in the integrated supply chain industry and widen its lead in the next few years. Valuation is undemanding after the recent pullback.


2022 High Conviction - JD Logistics - Market Leader at an Attractive Valuation

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hangzhou-sf-intra-city-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:34916:1" rel="noopener">SF Intra-City (9699 HK)</a> (SFIC) is looking to raise up to about US$300m in its Hong Kong IPO.</li>
<li>SFIC is the intra-city on-demand delivery arm of SF Holding.</li>
<li>Valuation is expensive compared to <a href="https://www.smartkarma.com/entities/dada-nexus-ltd" target="_blank" data-smartkarma-citation="entities:28961:1" rel="noopener">Dada Nexus Ltd (DADA US)</a>. </li>
</ul>



SF Intra-City (9699 HK) (SFIC) is looking to raise up to about US$300m in its Hong Kong IPO.
SFIC is the intra-city on-demand delivery arm of SF Holding.
Valuation is expensive compared to Dada Nexus Ltd (DADA US). 


SF Intra-City (顺丰同城) IPO - Not the Right Price

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (2618 HK)</a> (JDL) was listed on the Hong Kong Exchange on 28th May, 2021. Its IPO lock-up will expire on 28th November, 2021.</li>
<li>JD Logistics (JDL) was the leading supply chain solutions and logistics services provider in China in terms of revenue in 2018 and 2019.</li>
<li>Cornerstone investors are sitting on about 26% loss whereas pre-IPO investors are still mostly up 53% on their investments but have held since 2018.</li>
</ul>



JD Logistics (2618 HK) (JDL) was listed on the Hong Kong Exchange on 28th May, 2021. Its IPO lock-up will expire on 28th November, 2021.
JD Logistics (JDL) was the leading supply chain solutions and logistics services provider in China in terms of revenue in 2018 and 2019.
Cornerstone investors are sitting on about 26% loss whereas pre-IPO investors are still mostly up 53% on their investments but have held since 2018.


JD Logistics (京东物流) Lock-Up Expiry - Cornerstone Sitting on Losses, Pre-IPO Investors Still Up

China

JD Logistics, Inc. offers logistics services. The Company provides cargo transportation, cargo distribution, warehousing, and other services. JD Logistics is located in China.

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JD Logistics (2618 HK)

SF Intra-City Industrial IPO: Trading Debut

The IPO price is HK$16.42 and shares will be listed on 14 Dec. Our base-case DCF value of HK$15.44 per share is a 6% downside to the IPO price.

Arun George

SF Intra-City Industrial IPO: Valuation Insights

While the valuation is undemanding vs peers, we give the IPO a pass as SF Intra-city offers an unappetizing mix of high growth at the cost of...

Arun George

2022 High Conviction - JD Logistics - Market Leader at an Attractive Valuation

The company is set to gain market share in the integrated supply chain industry and widen its lead in the next few years. Valuation is undemanding...

Sumeet Singh

SF Intra-City (顺丰同城) IPO - Not the Right Price

Hangzhou SF Intra-City (SFIC) is looking to raise up to about US$300m in its Hong Kong IPO. Our valuation implies 11 - 38% potential downside to...

Sumeet Singh

JD Logistics (京东物流) Lock-Up Expiry - Cornerstone Sitting on Losses, Pre-IPO Investors Still Up

JDL IPO lock-up expires this week. Cornerstone investors are sitting on about 26% loss whereas pre-IPO investors are still mostly up 53% on their...

Sumeet Singh

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