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

JS Global Lifestyle   / Equity Capital Markets

<div>
<p><a href="https://www.smartkarma.com/entities/js-global-lifestyle-co-ltd" target="_blank" data-smartkarma-citation="entities:28155:1" rel="noopener">JS Global Lifestyle (1691 HK)</a> along with CDH is looking to raise upto US$167m in a mix of a top-up and a sell down by CDH. </p>
<p>The company was listed in Dec 2019 and my colleague, <a href="https://www.smartkarma.com/profiles/zhen-zhou-toh" target="_blank" data-smartkarma-citation="accounts:673" rel="noopener">Zhen Zhou, Toh,</a> covered the IPO extensively, links to his insight are below. The lock-up on the company and its shareholders expired in Jun 2020 and was covered in <a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-lock-up-expiry-potential-sellers-at-a-fair-valuation" target="_blank" rel="noopener">JS Global Lifestyle (JS 环球生活) Lock-Up Expiry - Potential Sellers at a Fair Valuation.</a></p>
<p>With CDH starting its exit, there will be a whole lot more shares to come. In this insight, I'll run the deal through our ECM framework and talk about the deal dynamics.</p>
</div><p>Links to our previous coverage:</p><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-early-thoughts-declaring-us-470m-dividend-before-ipo" target="_blank" data-smartkarma-citation="insights:30871" rel="noopener">JS Global (JS 环球生活) Early Thoughts - Declaring US$470m Dividend Before IPO</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-quick-note-questions-about-corporate-structure-and-reorganization" target="_blank" data-smartkarma-citation="insights:30952" rel="noopener">JS Global (JS 环球生活) Quick Note - Questions About Corporate Structure and Reorganization</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-pre-ipo-review-sometimes-two-negatives-don-t-make-a-positive" target="_blank" data-smartkarma-citation="insights:32701" rel="noopener">JS Global (JS 环球生活) Pre-IPO Review - Sometimes, Two Negatives Don't Make a Positive</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-phip-updates-thoughts-on-valuation-paid-a-premium-for-a-good-brand" target="_blank" data-smartkarma-citation="insights:32870" rel="noopener">JS Global (JS 环球生活) PHIP Updates &amp; Thoughts on Valuation - Paid a Premium for a Good Brand</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-ipo-review-limited-upside-from-the-bottom-end" target="_blank" data-smartkarma-citation="insights:33293" rel="noopener">JS Global (JS 环球生活) IPO Review - Limited Upside from the Bottom-End</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-updates-before-ipo-relaunch-going-at-it-again" target="_blank" data-smartkarma-citation="insights:35102" rel="noopener">JS Global (JS 环球生活) Updates Before IPO Relaunch - Going at It Again</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-trading-low-adjusted-free-float-tightly-held-by-top-shareholders" target="_blank" data-smartkarma-citation="insights:35290" rel="noopener">JS Global (JS 环球生活) Trading - Low Adjusted Free-Float Tightly Held by Top Shareholders</a> </li>
</ul></div><div><p></p></div>


JS Global Lifestyle (1691 HK) along with CDH is looking to raise upto US$167m in a mix of a top-up and a sell down by CDH. 
The company was listed in Dec 2019 and my colleague, Zhen Zhou, Toh, covered the IPO extensively, links to his insight are below. The lock-up on the company and its shareholders expired in Jun 2020 and was covered in JS Global Lifestyle (JS 环球生活) Lock-Up Expiry - Potential Sellers at a Fair Valuation.
With CDH starting its exit, there will be a whole lot more shares to come. In this insight, I'll run the deal through our ECM framework and talk about the deal dynamics.
Links to our previous coverage:

JS Global (JS 环球生活) Early Thoughts - Declaring US$470m Dividend Before IPO 

JS Global (JS 环球生活) Quick Note - Questions About Corporate Structure and Reorganization 

JS Global (JS 环球生活) Pre-IPO Review - Sometimes, Two Negatives Don't Make a Positive 

JS Global (JS 环球生活) PHIP Updates &amp; Thoughts on Valuation - Paid a Premium for a Good Brand 

JS Global (JS 环球生活) IPO Review - Limited Upside from the Bottom-End 

JS Global (JS 环球生活) Updates Before IPO Relaunch - Going at It Again 

JS Global (JS 环球生活) Trading - Low Adjusted Free-Float Tightly Held by Top Shareholders 


JS Global Lifestyle (JS 环球生活) - Big Large Share Price Run-Up, Large Sell Down Overhang

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>Several equity indexes and indicators we watch are telling us an initial primary low has been established for global equities (ACWI-US). At the same time, after this type of major waterfall decline there is often a test of this initial low - and oftentimes we get an undercut of the initial low. Barring approval of a first-line therapy for COVID-19 we are of the belief that we will get an eventual test of this initial low and potentially an undercut. In this report we highlight key technical levels and indicators to watch and <span>suggest investment opportunities with defensive and/or growth characteristics. We are also expanding our recommendations to include bottom-up ideas within several other Sectors.</span></p>

Several equity indexes and indicators we watch are telling us an initial primary low has been established for global equities (ACWI-US). At the same time, after this type of major waterfall decline there is often a test of this initial low - and oftentimes we get an undercut of the initial low. Barring approval of a first-line therapy for COVID-19 we are of the belief that we will get an eventual test of this initial low and potentially an undercut. In this report we highlight key technical levels and indicators to watch and suggest investment opportunities with defensive and/or growth characteristics. We are also expanding our recommendations to include bottom-up ideas within several other Sectors.

Global Equity Strategy: Initial Low Established

<p style="text-align: justify;">With the MSCI ACWI (ACWI-US) breaking below our $70 “line in the sand” support level we highlighted last week, we believe additional downside is likely and that the path of least resistance is lower for global equities. Considering the damage done to major indexes around the world, any potential bottom is likely to take months to develop and until we see evidence of this repair process we want to be positioned primarily in Sectors with defensive characteristics. Of course, there will be major <em>countertrend </em>rallies along the way, but for now the trend is lower and we would treat rallies as selling opportunities. We outline important technical levels across all markets and highlight actionable opportunities within EM, and the Services and Staples Sectors.</p>

With the MSCI ACWI (ACWI-US) breaking below our $70 “line in the sand” support level we highlighted last week, we believe additional downside is likely and that the path of least resistance is lower for global equities. Considering the damage done to major indexes around the world, any potential bottom is likely to take months to develop and until we see evidence of this repair process we want to be positioned primarily in Sectors with defensive characteristics. Of course, there will be major countertrend rallies along the way, but for now the trend is lower and we would treat rallies as selling opportunities. We outline important technical levels across all markets and highlight actionable opportunities within EM, and the Services and Staples Sectors.

ACWI Below Our Line In The Sand: Further Weakness Expected

Investment Advisors, JL Warren Capital

Junheng Li

Investment Advisors

JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/pinduoduo-inc" target="_blank" data-smartkarma-citation="entities:27250:1" rel="noopener">Pinduoduo (PDD US)</a> ’s unattainable path to profitability is a cautionary tale of next-gen social sharing economy.  Investors beware: capital in itself is not a defensible moat.  Since inception, billions of US dollars were invested in the company and the capital helped PDD in accumulating ~430 MM MAUs, transacting 840 billion LTM trailing GMV as of Q3 2019.  Yet 3 years into operations, the company is yet to develop an ecosystem that can keep users coming back to repeat purchases, not just for cash incentive.  While the analyst consensus expects PDD to turn EPS positive in 2020, we believe that it is a mission impossible. </p>

Pinduoduo (PDD US) ’s unattainable path to profitability is a cautionary tale of next-gen social sharing economy.  Investors beware: capital in itself is not a defensible moat.  Since inception, billions of US dollars were invested in the company and the capital helped PDD in accumulating ~430 MM MAUs, transacting 840 billion LTM trailing GMV as of Q3 2019.  Yet 3 years into operations, the company is yet to develop an ecosystem that can keep users coming back to repeat purchases, not just for cash incentive.  While the analyst consensus expects PDD to turn EPS positive in 2020, we believe that it is a mission impossible. 

Behind PDD’s Big Q3 Misses, Profit Mission: Impossible 2020, 2021, 2022...

APAC IPOs & Placements

Zhen Zhou, Toh

<div><p><a href="https://www.smartkarma.com/entities/js-global-lifestyle" target="_blank" data-smartkarma-citation="entities:28155:1" rel="noopener">JS Global Lifestyle (1691 HK)</a> is looking to raise up to US$462m in its Hong Kong IPO. We covered the IPO in:</p></div><div><ul>
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-early-thoughts-declaring-us-470m-dividend-before-ipo" target="_blank" data-smartkarma-citation="insights:30871" rel="noopener">JS Global (JS 环球生活) Early Thoughts - Declaring US$470m Dividend Before IPO</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-quick-note-questions-about-corporate-structure-and-reorganization" target="_blank" data-smartkarma-citation="insights:30952" rel="noopener">JS Global (JS 环球生活) Quick Note - Questions About Corporate Structure and Reorganization</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-lifestyle-js-pre-ipo-review-sometimes-two-negatives-don-t-make-a-positive" target="_blank" data-smartkarma-citation="insights:32701" rel="noopener">JS Global (JS 环球生活) Pre-IPO Review - Sometimes, Two Negatives Don't Make a Positive</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/js-global-js-phip-updates-thoughts-on-valuation-paid-a-premium-for-a-good-brand" target="_blank" data-smartkarma-citation="insights:32870" rel="noopener">JS Global (JS 环球生活) PHIP Updates &amp; Thoughts on Valuation - Paid a Premium for a Good Brand</a> </li>
</ul></div><div><p>In this insight, we look at the implied valuation of JSG, compare it to peers, and share our thoughts on fair valuation.</p></div>

JS Global Lifestyle (1691 HK) is looking to raise up to US$462m in its Hong Kong IPO. We covered the IPO in:

JS Global (JS 环球生活) Early Thoughts - Declaring US$470m Dividend Before IPO 

JS Global (JS 环球生活) Quick Note - Questions About Corporate Structure and Reorganization 

JS Global (JS 环球生活) Pre-IPO Review - Sometimes, Two Negatives Don't Make a Positive 

JS Global (JS 环球生活) PHIP Updates &amp; Thoughts on Valuation - Paid a Premium for a Good Brand 
In this insight, we look at the implied valuation of JSG, compare it to peers, and share our thoughts on fair valuation.

JS Global (JS 环球生活) IPO Review - Limited Upside from the Bottom-End

China

Joyoung Co., Ltd. manufactures and distributes household electrical appliances.

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Joyoung Co Ltd A (002242 CH)

Global Equity Strategy: Initial Low Established

Several equity indexes and indicators we watch are telling us an initial primary low has been established for global equities (ACWI-US). At the...

Vermilion Research

ACWI Below Our Line In The Sand: Further Weakness Expected

With the MSCI ACWI (ACWI-US) breaking below our $70 “line in the sand” support level we highlighted last week, we believe additional downside is...

Vermilion Research

Behind PDD’s Big Q3 Misses, Profit Mission: Impossible 2020, 2021, 2022...

Pinduoduo (PDD US) ’s unattainable path to profitability is a cautionary tale of next-gen social sharing economy. Investors beware: capital in...

JL Warren Capital

JS Global (JS 环球生活) IPO Review - Limited Upside from the Bottom-End

JS Global Lifestyle (1691 HK) is looking to raise up to US$462m in its Hong Kong IPO. We covered the IPO in: JS Global (JS 环球生活) Early Thoughts -...

Zhen Zhou, Toh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

JS Global Lifestyle (JS 环球生活) - Big Large Share Price Run-Up, Large Sell Down Overhang

JS Global Lifestyle (JS 环球生活) Lock-Up Expiry - Potential Sellers at a Fair Valuation JS Global Lifestyle (1691 HK)'s IPO lock-up expires on the...

Sumeet Singh

Global Equity Strategy: Initial Low Established

Several equity indexes and indicators we watch are telling us an initial primary low has been established for global equities (ACWI-US). At the...

Vermilion Research

ACWI Below Our Line In The Sand: Further Weakness Expected

With the MSCI ACWI (ACWI-US) breaking below our $70 “line in the sand” support level we highlighted last week, we believe additional downside is...

Vermilion Research

Behind PDD’s Big Q3 Misses, Profit Mission: Impossible 2020, 2021, 2022...

Pinduoduo (PDD US) ’s unattainable path to profitability is a cautionary tale of next-gen social sharing economy. Investors beware: capital in...

JL Warren Capital

JS Global (JS 环球生活) IPO Review - Limited Upside from the Bottom-End

JS Global Lifestyle (1691 HK) is looking to raise up to US$462m in its Hong Kong IPO. We covered the IPO in: JS Global (JS 环球生活) Early Thoughts -...

Zhen Zhou, Toh