APAC IPOs & Placements

Zhen Zhou, Toh

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><p><a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (JDL HK)</a> is looking to raise US$4bn in its upcoming Hong Kong IPO. </p></div><div>
<p>JD Logistics (JDL) was the leading supply chain solutions and logistics services provider in China in terms of revenue in 2018 and 2019. The company offers a full spectrum of supply chain solutions and logistics services ranging from warehousing to distribution, spanning across manufacturing to end-customers, covering regular and specialized items. </p>
<p>In this note, we take a look at the industry dynamics and how JD Logistics competes against peers.</p>
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JD Logistics (JDL HK) is looking to raise US$4bn in its upcoming Hong Kong IPO. 
JD Logistics (JDL) was the leading supply chain solutions and logistics services provider in China in terms of revenue in 2018 and 2019. The company offers a full spectrum of supply chain solutions and logistics services ranging from warehousing to distribution, spanning across manufacturing to end-customers, covering regular and specialized items. 
In this note, we take a look at the industry dynamics and how JD Logistics competes against peers.


JD Logistics (京东物流) Pre-IPO - Peer Comparison - Shielded from Price War

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

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<p>Indonesia's leading transportation and logistics company,<a href="https://www.smartkarma.com/entities/adi-sarana-armada-tbk-pt" target="_blank" rel="noopener"> Adi Sarana Armada (ASSA IJ)</a> posted an increase in revenue of over +30% to IDR 3.04tn in 2020. The growth in the company's revenue was supported by the stable performance from all of its business segments but driven by its core car rental business under ASSA rent together with its last-mile courier service, Anteraja.  The company booked a -21% decline in net income in 2020 but we expect profit to see strong growth in the next two years as Anteraja has now broken even.</p>
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<p>Anteraja recorded a significant increase in revenue performance of +842.0% For FY2020, making up around a quarter of<a href="https://www.smartkarma.com/entities/adi-sarana-armada-tbk-pt" target="_blank" rel="noopener"> Adi Sarana Armada (ASSA IJ)</a> 's total revenue versus only 3.5% of sales in 2019. Management predicts that Anteraja should make up over 50% of sales in the next 1-2 years and it has already broken even, which should also make it an important future profit driver. </p>
<p><a href="https://www.smartkarma.com/entities/adi-sarana-armada-tbk-pt" target="_blank" rel="noopener">Adi Sarana Armada (ASSA IJ)</a> has also been developing a number of new initiatives including a car-sharing platform called ShareCar, an online C2C car sales marketplace called Caroline, and a warehouse fulfillment business through Titipaja.</p>
<p>It continues to grow its car rental business and will expand its fleet further in 2021, with an expected recovery in the private sector but also increasing growth in demand from the government.</p>
<p>Its car auction business under JBA Bid Win also saw strong growth in 2020, with strong growth in the second-hand car market. </p>
<p><a href="https://www.smartkarma.com/entities/adi-sarana-armada-tbk-pt" target="_blank" data-smartkarma-citation="entities:16947:1" rel="noopener">Adi Sarana Armada (ASSA IJ)</a> remains an interesting digital transformation story, with huge potential from Anterja to drive future growth but with a stable revenue base coming from its car rental and auction business. It trades on 10.9x FY21E EV/EBITDA and 8.7x FY22E EV/EBITDA and an FY22E PER of 30x but we expect continuing momentum behind the digital growth story. </p>


Indonesia's leading transportation and logistics company, Adi Sarana Armada (ASSA IJ) posted an increase in revenue of over +30% to IDR 3.04tn in 2020. The growth in the company's revenue was supported by the stable performance from all of its business segments but driven by its core car rental business under ASSA rent together with its last-mile courier service, Anteraja.  The company booked a -21% decline in net income in 2020 but we expect profit to see strong growth in the next two years as Anteraja has now broken even.

Anteraja recorded a significant increase in revenue performance of +842.0% For FY2020, making up around a quarter of Adi Sarana Armada (ASSA IJ) 's total revenue versus only 3.5% of sales in 2019. Management predicts that Anteraja should make up over 50% of sales in the next 1-2 years and it has already broken even, which should also make it an important future profit driver. 
Adi Sarana Armada (ASSA IJ) has also been developing a number of new initiatives including a car-sharing platform called ShareCar, an online C2C car sales marketplace called Caroline, and a warehouse fulfillment business through Titipaja.
It continues to grow its car rental business and will expand its fleet further in 2021, with an expected recovery in the private sector but also increasing growth in demand from the government.
Its car auction business under JBA Bid Win also saw strong growth in 2020, with strong growth in the second-hand car market. 
Adi Sarana Armada (ASSA IJ) remains an interesting digital transformation story, with huge potential from Anterja to drive future growth but with a stable revenue base coming from its car rental and auction business. It trades on 10.9x FY21E EV/EBITDA and 8.7x FY22E EV/EBITDA and an FY22E PER of 30x but we expect continuing momentum behind the digital growth story. 

Adi Sarana Armada (ASSA IJ) - All Aboard for a Digital Ride

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<p><a href="https://www.smartkarma.com/entities/adi-sarana-armada-tbk-pt" target="_blank" data-smartkarma-citation="entities:16947:1" rel="noopener">Adi Sarana Armada (ASSA IJ)</a> continues to see improvements not just for its core car rental business but also for rapid momentum behind its move into the last mile through Anteraja, which looks set to account for more than 50% of revenues over the next 1-2 years and it has already broken even, earlier than expected.</p>
<p>A Webinar we hosted on Smartkarma with senior management revealed a positive outlook for the business on a number of fronts.</p>
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<p>Despite the impact of the pandemic, the company's car rental business under ASSA Rent saw very little fall out from the COVID-19 pandemic, with the overall fleet increasing by +1% last year and the company has also increased its team of drivers.</p>
<p><a href="https://www.smartkarma.com/entities/adi-sarana-armada-tbk-pt" target="_blank" data-smartkarma-citation="entities:16947:1" rel="noopener">Adi Sarana Armada (ASSA IJ)</a> has also developed a car-sharing App to help to better utilize the fleet, where cars are booked by individuals from its corporate clients.</p>
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<p>ASSA rent will increase the fleet further in 2021 by around +10% to cater for higher demand from government departments, as well as the economic recovery in the coming year. </p>
<p>The company's B2B used car auction business under JBA BidWin Auction had a very strong year in 2020, with volume growth of +30%.</p>
<p><a href="https://www.smartkarma.com/entities/adi-sarana-armada-tbk-pt" target="_blank" data-smartkarma-citation="entities:16947:1" rel="noopener">Adi Sarana Armada (ASSA IJ)</a> also has a C2C car marketplace called Caroline, which deals with individuals for new and used cars, with financing as an option. </p>
<p>The backbone of the company's third pillar of business is ASSA logistics, which provides fleet management services, trip management, and delivery systems for its corporate customers. </p>
<p><a href="https://www.smartkarma.com/entities/adi-sarana-armada-tbk-pt" target="_blank" data-smartkarma-citation="entities:16947:1" rel="noopener">Adi Sarana Armada (ASSA IJ)</a>'s last-mile subsidiary is called Anteraja is the real future growth driver for the company with 300 service points in 34 provinces.  Anteraja partners with all the major e-commerce players but is also seeking to enlarge other segments such as B2B, C2C, and Social Commerce. </p>
<p>In 2020, Anteraja delivered 50m packages recording positive growth in its second year of operation by booking 300,000 packages per day on average by the end of 2020, allowing Anteraja to breakeven by the end of the year. </p>
<p>Anteraja has also launched a number of new initiatives including Bisnisaja, Travylite, and Titipaja, a self-developed e-fulfillment service</p>
<section class="figure"><a href="https://www.smartkarma.com/entities/adi-sarana-armada-tbk-pt" target="_blank" data-smartkarma-citation="entities:16947:1" rel="noopener">Adi Sarana Armada (ASSA IJ)</a> takes a positive view on the outlook for this year with positive expectations for revenue growth overall but with the real growth momentum coming from Anteraja.  It trades on 42.2x and 24.4x FY21E and FY22E PER respectively but should be viewed as a transformational growth story crossing into the digital ecosystem, with even higher growth potential in FY2022 according to management. </section>
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Adi Sarana Armada (ASSA IJ) continues to see improvements not just for its core car rental business but also for rapid momentum behind its move into the last mile through Anteraja, which looks set to account for more than 50% of revenues over the next 1-2 years and it has already broken even, earlier than expected.
A Webinar we hosted on Smartkarma with senior management revealed a positive outlook for the business on a number of fronts.

Despite the impact of the pandemic, the company's car rental business under ASSA Rent saw very little fall out from the COVID-19 pandemic, with the overall fleet increasing by +1% last year and the company has also increased its team of drivers.
Adi Sarana Armada (ASSA IJ) has also developed a car-sharing App to help to better utilize the fleet, where cars are booked by individuals from its corporate clients.



ASSA rent will increase the fleet further in 2021 by around +10% to cater for higher demand from government departments, as well as the economic recovery in the coming year. 
The company's B2B used car auction business under JBA BidWin Auction had a very strong year in 2020, with volume growth of +30%.
Adi Sarana Armada (ASSA IJ) also has a C2C car marketplace called Caroline, which deals with individuals for new and used cars, with financing as an option. 
The backbone of the company's third pillar of business is ASSA logistics, which provides fleet management services, trip management, and delivery systems for its corporate customers. 
Adi Sarana Armada (ASSA IJ)'s last-mile subsidiary is called Anteraja is the real future growth driver for the company with 300 service points in 34 provinces.  Anteraja partners with all the major e-commerce players but is also seeking to enlarge other segments such as B2B, C2C, and Social Commerce. 
In 2020, Anteraja delivered 50m packages recording positive growth in its second year of operation by booking 300,000 packages per day on average by the end of 2020, allowing Anteraja to breakeven by the end of the year. 
Anteraja has also launched a number of new initiatives including Bisnisaja, Travylite, and Titipaja, a self-developed e-fulfillment service
Adi Sarana Armada (ASSA IJ) takes a positive view on the outlook for this year with positive expectations for revenue growth overall but with the real growth momentum coming from Anteraja.  It trades on 42.2x and 24.4x FY21E and FY22E PER respectively but should be viewed as a transformational growth story crossing into the digital ecosystem, with even higher growth potential in FY2022 according to management. 












Adi Sarana Armada (ASSA IJ) - To the Last Mile and Beyond

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<p>The Kerry Group has been busy of late.</p>
<p>Back in December, <a href="https://www.smartkarma.com/entities/kerry-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:367:1" rel="noopener">Kerry Logistics Network (636 HK)</a> IPO'ed <a href="https://www.smartkarma.com/entities/kerry-express-thailand" target="_blank" data-smartkarma-citation="entities:29253:1" rel="noopener">Kerry Express Thailand (KEX TB)</a> as discussed by <a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" data-smartkarma-citation="accounts:4" rel="noopener">Sumeet Singh</a> in <em><a href="https://skr.ma/uGPdd" target="_blank" rel="noopener">Kerry Express Thailand IPO - Time for Delivery</a></em>.</p>
<p>Last month <a href="https://www.smartkarma.com/entities/kerry-properties-ltd" target="_blank" data-smartkarma-citation="entities:3320:1" rel="noopener">Kerry Properties (683 HK)</a> ("KPL") and <a href="https://www.smartkarma.com/entities/kerry-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:367:1" rel="noopener">Kerry Logistics Network (636 HK)</a> ("KLN") <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0210/2021021000043.pdf" target="_blank" rel="noopener">announced</a> a pre-conditional Partial Offer from  <a href="https://www.smartkarma.com/entities/maanshan-dingtai-rare-a" target="_blank" data-smartkarma-citation="entities:4128:1" rel="noopener">S.F. Holding (002352 CH)</a>.  This is an ongoing transaction - see <em><a href="https://skr.ma/D9RK7" target="_blank" rel="noopener">Kerry Logistics (636 HK): SF Holdings' Pre-Conditional Partial Offer</a></em>. KLN announced last night the composite document has been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0308/2021030801425.pdf" target="_blank" rel="noopener">delayed</a> potentially up to the 16 August 201. </p>
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<a href="https://www.smartkarma.com/entities/shangri-la-asia-ltd" target="_blank" data-smartkarma-citation="entities:19690:1" rel="noopener">Shangri-La Asia (69 HK)</a>, majority-owned by the Kerry Group, is well up on its March 2020 COVID low, and up 9.5% YTD.  Around half of its hotels are in China, which have witnessed a strong uptick in local leisure and corporate traveling, generating positive EBITDA as early as June last year, the first time since the first outbreak of the pandemic.</div>
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<div>Currently trading at 0.6x P/B against a pre-COVID average multiple of 0.8x., this is worth a second look.</div>
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<div>More below the fold.</div>

The Kerry Group has been busy of late.
Back in December, Kerry Logistics Network (636 HK) IPO'ed Kerry Express Thailand (KEX TB) as discussed by Sumeet Singh in Kerry Express Thailand IPO - Time for Delivery.
Last month Kerry Properties (683 HK) ("KPL") and Kerry Logistics Network (636 HK) ("KLN") announced a pre-conditional Partial Offer from  S.F. Holding (002352 CH).  This is an ongoing transaction - see Kerry Logistics (636 HK): SF Holdings' Pre-Conditional Partial Offer. KLN announced last night the composite document has been delayed potentially up to the 16 August 201. 

Shangri-La Asia (69 HK), majority-owned by the Kerry Group, is well up on its March 2020 COVID low, and up 9.5% YTD.  Around half of its hotels are in China, which have witnessed a strong uptick in local leisure and corporate traveling, generating positive EBITDA as early as June last year, the first time since the first outbreak of the pandemic.

Currently trading at 0.6x P/B against a pre-COVID average multiple of 0.8x., this is worth a second look.

More below the fold.

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

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<p><strong>Our base case valuation of JD Logistics is EV of 344 billion RMB and implied market cap of 368 billion RMB (US$57 billion).</strong> At an implied market cap of $57 billion, this represents a 43% higher level than the recent valuation of $40 billion mentioned in a recent Bloomberg <a href="https://www.bloomberg.com/news/articles/2020-11-24/jd-s-logistics-unit-said-to-mull-ipo-at-40-billion-valuation" target="_blank" rel="noopener">article.</a> Given the solid upside, we have a positive view of the JD Logistics IPO. </p>
<p>Our high end value of JD Logistics is an implied market cap of 478 billion RMB ($74 billion). So, we think that post the IPO, JD Logistics' market cap could have an <em>"initial pop"</em> to nearly $74 billion, which would be 85% higher than the recently mentioned valuation of $40 billion.</p>
</div><p>We forecast the company to generate revenue of 93.8 billion RMB in 2021 (up 30.2% YoY) and 117.1 billion RMB in 2022 (up 24.8% YoY). We have assumed the company's sales growth rate to decline gradually in the ensuing years and we estimate JD Logistics to generate sales of 184.8 billion RMB in 2025.</p>


Our base case valuation of JD Logistics is EV of 344 billion RMB and implied market cap of 368 billion RMB (US$57 billion). At an implied market cap of $57 billion, this represents a 43% higher level than the recent valuation of $40 billion mentioned in a recent Bloomberg article. Given the solid upside, we have a positive view of the JD Logistics IPO. 
Our high end value of JD Logistics is an implied market cap of 478 billion RMB ($74 billion). So, we think that post the IPO, JD Logistics' market cap could have an "initial pop" to nearly $74 billion, which would be 85% higher than the recently mentioned valuation of $40 billion.
We forecast the company to generate revenue of 93.8 billion RMB in 2021 (up 30.2% YoY) and 117.1 billion RMB in 2022 (up 24.8% YoY). We have assumed the company's sales growth rate to decline gradually in the ensuing years and we estimate JD Logistics to generate sales of 184.8 billion RMB in 2025.

China

S.F. Holding Co., Ltd operates as a holding company. The Company, through its subsidiaries, provides logistics, order tracking, supply chain management, and warehousing services. S.F. Holding operates worldwide.

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S.F. Holding (002352 CH)

JD Logistics (京东物流) Pre-IPO - Peer Comparison - Shielded from Price War

JD Logistics (JDL HK) is looking to raise US$4bn in its upcoming Hong Kong IPO. JD Logistics (JDL) was the leading supply chain solutions and...

Zhen Zhou, Toh

Adi Sarana Armada (ASSA IJ) - All Aboard for a Digital Ride

ASSA continues to demonstrate its ability to transform from a car leasing company into a transport and logistics operator with increasing exposure...

Angus Mackintosh

Adi Sarana Armada (ASSA IJ) - To the Last Mile and Beyond

ASSA saw growth in its car rental business despite the pandemic but its last-mile delivery business Anteraja is what will drive the long-term...

Angus Mackintosh

Shangri-La Asia (69 HK): Stay Safe

Based on the average price to book - pre-COVID - I would expect around 33% upside from here, or HK$10.80/share, where it traded as recently as May...

David Blennerhassett

JD Logistics IPO Valuation Analysis

Our base case valuation of JD Logistics is EV of 344 billion RMB and implied market cap of 368 billion RMB (US$57 billion).

Douglas Kim

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