Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

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.

Equity Capital Markets

Shimao Services Holdings Limited / Equity Capital Markets

<p>Shimao Services, a leading comprehensive property management and community living services company has filed for an IPO to list its shares on the Hong Kong Stock Exchange. At the midpoint of the indicative IPO price of HK$16 per share, the company will raise net proceeds of HK$5.5bn (US$715m).</p><p>The listing constitutes a spin-off from Shimao Group, a residential and commercial property developer in China. In this insight, we examine the company’s business models, segments, financials, and valuation.</p>

Shimao Services, a leading comprehensive property management and community living services company has filed for an IPO to list its shares on the Hong Kong Stock Exchange. At the midpoint of the indicative IPO price of HK$16 per share, the company will raise net proceeds of HK$5.5bn (US$715m).The listing constitutes a spin-off from Shimao Group, a residential and commercial property developer in China. In this insight, we examine the company’s business models, segments, financials, and valuation.

Shimao Services IPO: Another Property Management Services Company with Good Potential

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

KWG Living Group / Equity Capital Markets

<div>
<p>This week in StubWorld ...</p>
</div>
<div>
<div class="content-highlight">
<a href="https://www.smartkarma.com/entities/kwg-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:12601:1" rel="noopener">Kwg Property Holding (1813 HK)</a> is trading rich to peers after the in-specie distribution of soon-to-be-listed <a href="https://www.smartkarma.com/entities/kwg-living-group" target="_blank" data-smartkarma-citation="entities:29231:1" rel="noopener">KWG Living Group (3913 HK)</a>. KWG Living itself will need to hit significant earnings growth targets to justify its implied market valuation.</div>
</div>
<p>Preceding my comments on KWG are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
<div>
<div>
<div class="content-remarks">
<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed as a % - of at least 20%.</p>
</div>
</div>
</div>


This week in StubWorld ...



Kwg Property Holding (1813 HK) is trading rich to peers after the in-specie distribution of soon-to-be-listed KWG Living Group (3913 HK). KWG Living itself will need to hit significant earnings growth targets to justify its implied market valuation.

Preceding my comments on KWG are the weekly setup/unwind tables for Asia-Pacific Holdcos.



These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed as a % - of at least 20%.




<p><a href="https://www.smartkarma.com/entities/kwg-living-group" target="_blank" data-smartkarma-citation="entities:29231:1" rel="noopener">KWG Living Group (3913 HK)</a>  offers comprehensive property management services for both residential properties and commercial properties in China. The company has filed for an IPO on the Hong Kong Stock Exchange to raise about US$402m through the issuance of 383m shares at an indicative IPO price of HK$8.13 per share.</p><p>The company has entered into cornerstone investment agreements with Hillhouse Funds, Orchid China and LMA SPC, Harvest Global Capital Investments, Snow Lake, Valliance, China Lesso, OP Capital and Aspex Master Fund. These cornerstone investors have agreed to subscribe for an aggregate amount of US$120m worth of shares.</p><p>In our previous insight on the company, we discussed the company’s business model, business segments and its financials. In this insight, we discuss the company’s valuation and key risks.</p><p>Read our previous insight:</p><p><a href="https://www.smartkarma.com/insights/kwg-living-ipo-expansion-in-community-value-added-services-drives-growth" target="_blank" data-smartkarma-citation="insights:44334" rel="noopener">KWG Living IPO: Expansion in Community Value-Added Services Drives Growth</a> </p>

KWG Living Group (3913 HK)  offers comprehensive property management services for both residential properties and commercial properties in China. The company has filed for an IPO on the Hong Kong Stock Exchange to raise about US$402m through the issuance of 383m shares at an indicative IPO price of HK$8.13 per share.The company has entered into cornerstone investment agreements with Hillhouse Funds, Orchid China and LMA SPC, Harvest Global Capital Investments, Snow Lake, Valliance, China Lesso, OP Capital and Aspex Master Fund. These cornerstone investors have agreed to subscribe for an aggregate amount of US$120m worth of shares.In our previous insight on the company, we discussed the company’s business model, business segments and its financials. In this insight, we discuss the company’s valuation and key risks.Read our previous insight:KWG Living IPO: Expansion in Community Value-Added Services Drives Growth 

KWG Living IPO: Strong Financials and Growth Prospects Justify a Premium

<p>KWG Living offers comprehensive property management services for both residential properties and commercial properties in China. The company has filed for an IPO on the Hong Kong Stock Exchange to raise about US$402m.</p><p>The company was spun-off from KWG Holdings, a large-scale property developer with a leading position in the Greater Bay Area. The company generates a large majority of its revenues from residential and commercial properties developed by KWG Group, its joint ventures, associates and other related entities.</p><p>In this insight, we examine the company’s business model, segments and its financials.</p>

KWG Living offers comprehensive property management services for both residential properties and commercial properties in China. The company has filed for an IPO on the Hong Kong Stock Exchange to raise about US$402m.The company was spun-off from KWG Holdings, a large-scale property developer with a leading position in the Greater Bay Area. The company generates a large majority of its revenues from residential and commercial properties developed by KWG Group, its joint ventures, associates and other related entities.In this insight, we examine the company’s business model, segments and its financials.

KWG Living IPO: Expansion in Community Value-Added Services Drives Growth

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.

<div><p><a href="https://www.smartkarma.com/entities/kwg-living-group" target="_blank" data-smartkarma-citation="entities:29231:1" rel="noopener">KWG Living Group (3913 HK)</a> is a property management service provider in China. KWG accounted for 0.09% of the total GFA under management in the China property management market in 2019, according to JLL. At the proposed IPO price range of HK$7.00-8.13 per share, KWG will have a market cap of HK$14,124.7-16,404.8 million ($1.8-2.1 billion). At the mid-point of the IPO price range, KWG will raise net proceeds of HK$2,755.5 million ($356 million). </p></div><div><p>Eight cornerstone investors will subscribe for 32.09% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are Hillhouse Capital, Orchid China, Harvest Fund Management, Snow Lake Capital, Valliance Asset Management, <a href="https://www.smartkarma.com/entities/china-lesso-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11598:1" rel="noopener">China Lesso Group Holdings (2128 HK)</a>, OP Capital and Aspex Management. </p></div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/kwg-living-group-ipo-initiation-urban-living" target="_blank" rel="noopener">our initiation note</a>, we highlighted that KWG’s fundamentals over the track record period are attractive. Overall, we think that the valuation implied by the IPO price range is reasonable for KWG's growth potential. </p></div>

KWG Living Group (3913 HK) is a property management service provider in China. KWG accounted for 0.09% of the total GFA under management in the China property management market in 2019, according to JLL. At the proposed IPO price range of HK$7.00-8.13 per share, KWG will have a market cap of HK$14,124.7-16,404.8 million ($1.8-2.1 billion). At the mid-point of the IPO price range, KWG will raise net proceeds of HK$2,755.5 million ($356 million). Eight cornerstone investors will subscribe for 32.09% of the offer shares at the mid-point of the IPO price range. The cornerstone investors are Hillhouse Capital, Orchid China, Harvest Fund Management, Snow Lake Capital, Valliance Asset Management, China Lesso Group Holdings (2128 HK), OP Capital and Aspex Management. In our initiation note, we highlighted that KWG’s fundamentals over the track record period are attractive. Overall, we think that the valuation implied by the IPO price range is reasonable for KWG's growth potential. 

China

KWG Living Group is the property management services arm of KWG Group

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

KWG Living Group (3913 HK)

Shimao Services IPO: Another Property Management Services Company with Good Potential

We deep dive into Shimao Services' business model, financials and valuation to assess the attractiveness of its business and IPO.

Shifara Samsudeen, ACMA, CGMA

StubWorld: KWG Living - Crowded In Crowd

Kwg Prop (1813 HK) is trading rich to peers after the in-specie distribution of soon-to-be-listed KWG Living (3913 HK). KWGL will need to hit...

David Blennerhassett

KWG Living IPO: Strong Financials and Growth Prospects Justify a Premium

We compare the company's implied valuation matrices and KPIs with property management service peers in China. Though KWG Living's shares seem...

Shifara Samsudeen, ACMA, CGMA

KWG Living IPO: Expansion in Community Value-Added Services Drives Growth

We deep dive into KWG Living's business model, its segments and company financials to examine the attractiveness of the business.

Shifara Samsudeen, ACMA, CGMA

KWG Living Group IPO: Valuation Insights

At the mid-point of the IPO price range, KWG will raise net proceeds of $356 million. Overall, we think that the valuation implied by the IPO price...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)