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

<div><a href="https://www.smartkarma.com/entities/lufax-holdings" target="_blank" data-smartkarma-citation="entities:29690:1" rel="noopener">Lufax Holdings (LU US)</a> (Lufax) aims to raise around US$3bn via its US listing. The company is backed by <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a> (Ping An).</div><div>Lufax is a technology-empowered personal financial services platform in China. The company aims to address the demand for personal lending among small business owners, as well as salaried workers in China. It also provides wealth management solutions to China’s middle class and affluent population.</div><div>
I covered the positive aspects of the deal in my earlier note, <a href="https://www.smartkarma.com/insights/lufax-pre-ipo-the-positives-able-to-grow-despite-the-headwinds" target="_blank" rel="noopener">Lufax Pre-IPO - The Positives - Able to Grow Despite the Headwinds</a> and the negative aspects in<a href="https://www.smartkarma.com/insights/lufax-pre-ipo-the-negatives-remains-in-flux" target="_blank" rel="noopener"> Lufax Pre-IPO - The Negatives - Remains in Flux.</a>
In this insight, I'll undertake a peer comparison.
</div>

Lufax Holdings (LU US) (Lufax) aims to raise around US$3bn via its US listing. The company is backed by Ping An Insurance (H) (2318 HK) (Ping An).Lufax is a technology-empowered personal financial services platform in China. The company aims to address the demand for personal lending among small business owners, as well as salaried workers in China. It also provides wealth management solutions to China’s middle class and affluent population.
I covered the positive aspects of the deal in my earlier note, Lufax Pre-IPO - The Positives - Able to Grow Despite the Headwinds and the negative aspects in Lufax Pre-IPO - The Negatives - Remains in Flux.
In this insight, I'll undertake a peer comparison.


Lufax Pre-IPO - Peer Review - Bigger than Ant’s CreditTech, in Revenue

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.

<a href="https://www.smartkarma.com/entities/lufax-holdings" target="_blank" data-smartkarma-citation="entities:29690:1" rel="noopener">Lufax Holdings (LU US)</a> , the personal financial services platform in China has filed for an IPO in the US. In our previous insights, we examined the company’s business model, its business segments and margins.Retail credit facilitation is the company’s largest business which accounted for about 82% of the total operating income in 1H2020. The company discontinued its peer-to-peer lending products in August 2019, and a majority of the company’s loans are funded through third-party funding and credit enhancement partners. Lufax’s microloan and consumer finance subsidiaries’ funding accounted for only 0.7% of the volume of new loans generated during 1H2020.In this insight, we have compared the company’s retail credit facilitation business against its CrediTech peers.Read our previous insights on Lufax's IPO:<a href="https://www.smartkarma.com/insights/lufax-ipo-unsecured-loans-drive-top-line-growth-but-risks-remain-despite-capital-light-model" target="_blank" data-smartkarma-citation="insights:44132" rel="noopener">Lufax IPO: Unsecured Loans Drive Top Line Growth but Risks Remain Despite Capital-Light Model</a> <a href="https://www.smartkarma.com/insights/lufax-ipo-shift-in-product-mix-and-higher-customer-acquisition-cost-eat-into-profits" target="_blank" data-smartkarma-citation="insights:44179" rel="noopener">Lufax IPO: Shift in Product Mix and Higher Customer Acquisition Cost Eat into Profits</a>

Lufax Holdings (LU US) , the personal financial services platform in China has filed for an IPO in the US. In our previous insights, we examined the company’s business model, its business segments and margins.Retail credit facilitation is the company’s largest business which accounted for about 82% of the total operating income in 1H2020. The company discontinued its peer-to-peer lending products in August 2019, and a majority of the company’s loans are funded through third-party funding and credit enhancement partners. Lufax’s microloan and consumer finance subsidiaries’ funding accounted for only 0.7% of the volume of new loans generated during 1H2020.In this insight, we have compared the company’s retail credit facilitation business against its CrediTech peers.Read our previous insights on Lufax's IPO:Lufax IPO: Unsecured Loans Drive Top Line Growth but Risks Remain Despite Capital-Light Model Lufax IPO: Shift in Product Mix and Higher Customer Acquisition Cost Eat into Profits 

Lufax IPO: Peer Comparison Reveals Change in Strategy Weighs Heavy on Company Performance

JD Health International  / Equity Capital Markets

JD Health International, the largest online healthcare platform and retail pharmacy in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange. The company is backed by the Chinese online retail giant JD.Com, and is planning to raise about US$3bn through the IPO.In this insight, we examine the company’s business model and its financials.

JD Health International, the largest online healthcare platform and retail pharmacy in China has filed for an IPO to list its shares on the Hong Kong Stock Exchange. The company is backed by the Chinese online retail giant JD.Com, and is planning to raise about US$3bn through the IPO.In this insight, we examine the company’s business model and its financials.

JD Health Pre-IPO: Poised to Benefit from Structural Changes in Healthcare in China and the Pandemic

Lufax Holdings, one of the largest financial services platforms in China has filed for an IPO in the US. The Shanghai-headquartered firm offers personal lending for small business owners and salaried employees, as well as tailor-made wealth management solutions to China’s fast growing middle-class and affluent population.This is the Second of a series of reports on the IPO of Lufax Holdings. In this insight, we examine the company’s wealth management business and margins. In our previous insight on the company’s IPO, we examined the company’s business model, revenue sources and its core income generating business, Retail Credit Facilitation Business.Read our previous insight:<a href="https://www.smartkarma.com/insights/lufax-ipo-unsecured-loans-drive-top-line-growth-but-risks-remain-despite-capital-light-model" target="_blank" data-smartkarma-citation="insights:44132" rel="noopener">Lufax IPO: Unsecured Loans Drive Top Line Growth but Risks Remain Despite Capital-Light Model</a>

Lufax Holdings, one of the largest financial services platforms in China has filed for an IPO in the US. The Shanghai-headquartered firm offers personal lending for small business owners and salaried employees, as well as tailor-made wealth management solutions to China’s fast growing middle-class and affluent population.This is the Second of a series of reports on the IPO of Lufax Holdings. In this insight, we examine the company’s wealth management business and margins. In our previous insight on the company’s IPO, we examined the company’s business model, revenue sources and its core income generating business, Retail Credit Facilitation Business.Read our previous insight:Lufax IPO: Unsecured Loans Drive Top Line Growth but Risks Remain Despite Capital-Light Model 

Lufax IPO: Shift in Product Mix and Higher Customer Acquisition Cost Eat into Profits

Lufax Holdings, one of the largest financial services platforms in China has filed for an IPO in the US. The Shanghai-headquartered firm offers personal lending for small business owners and salaried employees, as well as tailor-made wealth management solutions to China’s fast growing middle-class and affluent population.The company is backed by financial giant Ping An Group and is expected to raise up to US$3bn, and is rumored to be one of the biggest Chinese IPOs in the US since Alibaba’s US$25bn listing in the US in 2014.This is the First of a series of reports on Lufax Holding’s IPO and in this insight, we take a look at the company’s business model, sources of revenues and analysis on the company’s retail credit facilitation business (the core income generator for Lufax).

Lufax Holdings, one of the largest financial services platforms in China has filed for an IPO in the US. The Shanghai-headquartered firm offers personal lending for small business owners and salaried employees, as well as tailor-made wealth management solutions to China’s fast growing middle-class and affluent population.The company is backed by financial giant Ping An Group and is expected to raise up to US$3bn, and is rumored to be one of the biggest Chinese IPOs in the US since Alibaba’s US$25bn listing in the US in 2014.This is the First of a series of reports on Lufax Holding’s IPO and in this insight, we take a look at the company’s business model, sources of revenues and analysis on the company’s retail credit facilitation business (the core income generator for Lufax).

Lufax IPO: Unsecured Loans Drive Top Line Growth but Risks Remain Despite Capital-Light Model

China

Xi'An Hongsheng Technology Co ltd distributes, designs and develops memory, home entertainment and personal computer products. The Company's products include RAM (Random Access Memory) products, DVD (Digital Versatile Disc) players, televisions, as well as personal computers and peripheral products.

Yixin Group Limited offers an online automobile finance transaction platform. The Company provides loan facilitation, car rental, and other services. Yixin Group operates in China.

Shanghai Dongzheng Automotive Finance Co., Ltd. offers auto finance products and services for the purchase of luxury brand cars. The Company provides automotive retail loan, automotive dealer loan, and other services. Shanghai Dongzheng Automotive Finance serves customers in China.

LexinFintech Holdings Ltd. operates as a holding company. The Company, through its subsidiaries, provides online consumer finance services. LexinFintech Holdings offers installments, money loans, wealth management, and other financial services. LexinFintech Holdings serves customers in China.

China Huirong Financial Holdings Limited is a short-term secured financing service provider. The Company specializes in providing short-term loans secured by collateral, or "pawn loans", to customers.

China Huirong Financial Holdings (1290 HK)

Guangdong Join-Share Financing Guarantee Investment is a financing guarantee services provider in Guangdong province. The Company focuses on providing credit-base financing solutions to SMEs.

X Financial provides financial services. The Company offers personal finance, loans, and other related services. X Financial serves customers in China.

Zuoli Kechuang Micro-Finance Company Limited focuses on providing credit-based financing solutions to Deqing's fast-growing SME and microenterprise sector.

Quanzhou Huixin Micro-Credit Co., Ltd. offers micro lending and other related financial services to individuals and small business throughout China.

Yangzhou Guangling District Taihe Rural Micro-finance Company Limited offers financial services. The Company provides loans issuing, financing guarantee, financial institutions business agency, and other businesses. Yangzhou Guangling District Taihe Rural Micro-finance serves small and medium enterprises, individual businesses, and other groups in Yangzhou.

Yangzhou Guangling District Taihe Rural Micro-Finance (1915 HK)

Yangzhou Guangling District Taihe Rural Micro-Finance

AEON Financial Service Co Ltd is a credit card company.  The Company's financial services include loans, credit cards, and customer installment credits.

Manappuram Finance Ltd. is a non-banking finance company. The Company offers loans against gold collateral, business loans, vehicle loans, foreign exchange and money transfer services; and sells gold coins.

Enova International, Inc. offers online financial services to people who have bank accounts but have limited access to traditional consumer credit from banks, thrifts, credit card companies and other lenders. The Company offers short-term consumer and installment consumer loans in the United States, the United Kingdom, Australia, and Canada.

Navient Corporation's focus is in education loan portfolio management, servicing and asset recovery. The Company acts as a servicer for Department of Education and FFELP loans as well as private student loans.

Kruk SA as founded in 1998 and offers debt collection services in Poland, Romania, Czech Republic and Slovakia. The Company's two main business lines are: acquisition of non-performing debt portfolios and debt collection outsourcing with a main focus on consumer and corporate loans.

Muangthai Capital Public Company Limited operates as a commercial lending company. The Company provides car title, personal, agricultural vehicle, land title, and other loan products. Muangthai Capital serves customers in Thailand.

Srisawad Corporation Public Company Limited operates as a consumer finance company. The Company provides personal secured loans, home loans, loans for international labors, and other related financial products. Srisawad offers its products and services to retail clients in Thailand.

Taiwan Acceptance Corp. provides car financing and leasing services.

Bread Financial Holdings Inc. operates as a tech-forward financial services company. The Company offers personalized payment, lending, and saving solutions. Bread Financial Holdings serves customers worldwide.

Cembra Money Bank AG provides financial services. The Company's services include personal loans, vehicle financing, credit cards, and savings and insurance services. Cembra Money Bank AG provides its services throughout Switzerland.

Lufax Holding Ltd operates technology-empowered personal financial services platform. The Company connects financial institutions to facilitate lending and wealth management products tailored to individual customer's needs and risk appetites.

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Lufax Holding (LU US)

Lufax Pre-IPO - Peer Review - Bigger than Ant’s CreditTech, in Revenue

Lufax Holdings (LU US) aims to raise around US$3bn via its US listing. The company is backed by Ping An Insurance (2318 HK).

Sumeet Singh

Lufax IPO: Peer Comparison Reveals Change in Strategy Weighs Heavy on Company Performance

In this insight, we compare and contrast Lufax's retail credit business against its peers Ant, 360 Finance and LexinFintech to examine the...

Shifara Samsudeen, ACMA, CGMA

JD Health Pre-IPO: Poised to Benefit from Structural Changes in Healthcare in China and the Pandemic

JD Health, the largest online retail pharmacy and healthcare platform has filed for an IPO on the HKEX to raise about US$3bn. In this insight, we...

Shifara Samsudeen, ACMA, CGMA

Lufax IPO: Shift in Product Mix and Higher Customer Acquisition Cost Eat into Profits

This is the Second of a series of reports on Lufax IPO, and in this insight, we deep dive into the company's wealth management business and...

Shifara Samsudeen, ACMA, CGMA

Lufax IPO: Unsecured Loans Drive Top Line Growth but Risks Remain Despite Capital-Light Model

In this insight, we take a look at Lufax Holding's business model, sources of revenue and its core income generating segment, Retail Credit...

Shifara Samsudeen, ACMA, CGMA

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