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

<a href="https://www.smartkarma.com/entities/hello-inc" target="_blank" data-smartkarma-citation="entities:33031:1" rel="noopener">Hello Inc (1883864D US)</a>, which is backed by <a href="https://www.smartkarma.com/entities/ant-group-co-ltd" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Financial Services Group (6688 HK)</a>, is China's third-largest local services platform by transaction volume, according to iResearch. Hello offers bike-sharing and e-bike sharing services known as Hello Bike and Hello e-Bike. It also has a carpooling marketplace known as Hello Carpooling. Hello is seeking to raise $1 billion through a Nasdaq listing, according to press reports.   In <a href="https://www.smartkarma.com/insights/hello-ipo-initiation-goodbye" target="_blank" data-smartkarma-citation="insights:50795" rel="noopener">Hello IPO Initiation: Goodbye</a> we stated that Hello’s investor pitch is that its various businesses create a flywheel that drives user spending growth with limited user acquisition costs. However, Hello remains saddled with a core business (shared two-wheeler services) that has challenging prospects due to declining growth, low profitability and high cash burn. <div class="content-highlight">Hello has released an updated F-1 filing disclosing its 1Q21 performance and other developments. At first glance, the 1Q21 update looks stunning due to accelerating growth and margin progression. However, a closer look, suggests that business continues to face daunting challenges. Overall, we stick to our view to give the Hello IPO a pass.    </div>

Hello Inc (1883864D US), which is backed by Ant Financial Services Group (6688 HK), is China's third-largest local services platform by transaction volume, according to iResearch. Hello offers bike-sharing and e-bike sharing services known as Hello Bike and Hello e-Bike. It also has a carpooling marketplace known as Hello Carpooling. Hello is seeking to raise $1 billion through a Nasdaq listing, according to press reports.   In Hello IPO Initiation: Goodbye we stated that Hello’s investor pitch is that its various businesses create a flywheel that drives user spending growth with limited user acquisition costs. However, Hello remains saddled with a core business (shared two-wheeler services) that has challenging prospects due to declining growth, low profitability and high cash burn. Hello has released an updated F-1 filing disclosing its 1Q21 performance and other developments. At first glance, the 1Q21 update looks stunning due to accelerating growth and margin progression. However, a closer look, suggests that business continues to face daunting challenges. Overall, we stick to our view to give the Hello IPO a pass.    

Hello IPO: 1Q21 Update Does Not Change the Avoid Tag

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.

<a href="https://www.smartkarma.com/entities/ximalaya-inc" target="_blank" data-smartkarma-citation="entities:33232:1" rel="noopener">Ximalaya (XIMA US)</a>, the largest online audio platform in China, is looking to raise around US$1bn in its US listing. As of 1Q21, it had 250m average MAUs, which included 104m mobile MAUs through its apps and 146m MAUs through internet-of-things (IoT) and other third-party platforms. As per CIC, it accounted for 75% of total mobile listening time among all online audio platforms in China. It had 5.2m active content creators in 2020.In this note, we will talk about the positive aspects of the deal.

Ximalaya (XIMA US), the largest online audio platform in China, is looking to raise around US$1bn in its US listing. As of 1Q21, it had 250m average MAUs, which included 104m mobile MAUs through its apps and 146m MAUs through internet-of-things (IoT) and other third-party platforms. As per CIC, it accounted for 75% of total mobile listening time among all online audio platforms in China. It had 5.2m active content creators in 2020.In this note, we will talk about the positive aspects of the deal.

Ximalaya Pre-IPO - The Positives - A Whole Lot of Listening

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

<a href="https://www.smartkarma.com/entities/zomato-media-pvt" target="_blank" data-smartkarma-citation="entities:28820:1" rel="noopener">Zomato (ZOM IN)</a> recently filed its <a href="https://www.sebi.gov.in/filings/public-issues/apr-2021/zomato-limited-drhp_49956.html" target="_blank" rel="noopener">DRHP</a> with the SEBI last week. ZOM is one of the two Online Food Delivery (OFD) players in India, the other being Swiggy.
ZOM's IPO is also the ray of hope for the many consumer tech and internet companies in India and thus is expected to be the one that receives the maximum attention.
India OFD is a multi-decade play, and hence rather than just one insight, ZOM will be in our coverage with multiple insights over various periods of time even post IPO. 
This Insight focuses on Total Addressable Market (TAM) and SAM (Serviceable Addressable Market) for OFD players in India along with an overview of the current market structure.

Zomato (ZOM IN) recently filed its DRHP with the SEBI last week. ZOM is one of the two Online Food Delivery (OFD) players in India, the other being Swiggy.
ZOM's IPO is also the ray of hope for the many consumer tech and internet companies in India and thus is expected to be the one that receives the maximum attention.
India OFD is a multi-decade play, and hence rather than just one insight, ZOM will be in our coverage with multiple insights over various periods of time even post IPO. 
This Insight focuses on Total Addressable Market (TAM) and SAM (Serviceable Addressable Market) for OFD players in India along with an overview of the current market structure. 

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

<ul class="">
<li>The competition is mainly between Hello and Meituan.</li>
<li>Hello has to put more bikes than needed to push out Meituan's bikes.</li>
<li>The room for price rise is limited.</li>
<li>We cannot see a profit in the near future.</li>
</ul>
About the company introduction, please see <a href="https://www.smartkarma.com/insights/hello-inc-pre-ipo-nowhere-near-being-sustainable" target="_blank" data-smartkarma-citation="insights:50825" rel="noopener">Hello Inc (哈罗出行) Pre-IPO - Nowhere near Being Sustainable</a> by <a href="https://www.smartkarma.com/profiles/zhen-zhou-toh" target="_blank" data-smartkarma-citation="accounts:673" rel="noopener">Zhen Zhou, Toh</a>.


The competition is mainly between Hello and Meituan.
Hello has to put more bikes than needed to push out Meituan's bikes.
The room for price rise is limited.
We cannot see a profit in the near future.

About the company introduction, please see Hello Inc (哈罗出行) Pre-IPO - Nowhere near Being Sustainable by Zhen Zhou, Toh. 

Hello (HI): Competition on the Ground, Hard to Reach Profitability

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

In our weekly HK Connect Flow series, we aim to highlight key stocks and sectors which the mainland investors traded via the southbound Hong Kong Connect, as analyzed by our proprietary data engine. Since the opening of Hong Kong Connect scheme in 2014, southbound Chinese money started to play an increasingly important role in the Hong Kong stock market. In a Hong Kong exchange report released in July 2019, the exchange highlighted that flows from mainland China accounted for 12% of the total trading volume in the market and is ahead of the US investors' 10% and UK investors' 7% share respectively. We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight inflows into Meituan (3690 HK), Wuxi Biologics (Cayman) Inc. (2269 HK), and Anta Sports Products Limited (2020 HK).

In our weekly HK Connect Flow series, we aim to highlight key stocks and sectors which the mainland investors traded via the southbound Hong Kong Connect, as analyzed by our proprietary data engine. Since the opening of Hong Kong Connect scheme in 2014, southbound Chinese money started to play an increasingly important role in the Hong Kong stock market. In a Hong Kong exchange report released in July 2019, the exchange highlighted that flows from mainland China accounted for 12% of the total trading volume in the market and is ahead of the US investors' 10% and UK investors' 7% share respectively. We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight inflows into Meituan (3690 HK), Wuxi Biologics (Cayman) Inc. (2269 HK), and Anta Sports Products Limited (2020 HK).

Hong Kong Connect Flows: Meituan, Wuxi Biologics, Anta Inflows Before May Golden Week

China

Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

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Meituan (3690 HK)

Hello IPO: 1Q21 Update Does Not Change the Avoid Tag

Hello has released an updated F-1 filing disclosing its 1Q21 performance and other developments. The 1Q21 results suggest that business continues...

Arun George

Ximalaya Pre-IPO - The Positives - A Whole Lot of Listening

Ximalaya (XIMA US), the largest online audio platform in China, is looking to raise around US$1bn in its US listing. In this note, we'll talk about...

Sumeet Singh

Zomato (ZOM IN) | The "Desi" TAMinator

Indian OFD is a humungous opportunity. A conductive market structure, a two-player market, decreasing discounts, ability to increase delivery...

Pranav Bhavsar

Hello (HI): Competition on the Ground, Hard to Reach Profitability

The competition is mainly between Hello and Meituan. Hello has to put more bikes than needed to push out Meituan's bikes. We cannot see...

Ming Lu

Hong Kong Connect Flows: Meituan, Wuxi Biologics, Anta Inflows Before May Golden Week

Of the top stocks measured by inflows last week, we highlight inflows into Meituan (3690 HK), Wuxi Biologics (Cayman) Inc. (2269 HK), and Anta...

Ke Yan, CFA, FRM

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