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

Aquila Acquisition Corporation / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aquila-acquisition-corporation" target="_blank" data-smartkarma-citation="entities:35435:1" rel="noopener">Aquila Acquisition Corporation (7836 HK)</a> agreed to a De-SPAC transaction with ZG Group (formerly Zhaogang.com), the world’s largest digital platform for third-party steel transactions.</li>
<li>ZG has a questionable business model, struggling to generate profits or underlying FCF. This dynamic suggests that ZG has not established a sustainable competitive advantage. </li>
<li>The negotiated value of ZG in the De-SPAC transaction is HK$10,004 million (US$1,277 million). Our valuation analysis suggests that this negotiated value is unrealistic.</li>
</ul>



Aquila Acquisition Corporation (7836 HK) agreed to a De-SPAC transaction with ZG Group (formerly Zhaogang.com), the world’s largest digital platform for third-party steel transactions.
ZG has a questionable business model, struggling to generate profits or underlying FCF. This dynamic suggests that ZG has not established a sustainable competitive advantage. 
The negotiated value of ZG in the De-SPAC transaction is HK$10,004 million (US$1,277 million). Our valuation analysis suggests that this negotiated value is unrealistic.


Aquila Acquisition Corp (7836 HK): ZG Group’s Punchy Valuation

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

<ul>
<li>In this insight we analyze the drivers of a new relationship between SHEIN and Forever 21</li>
<li>We think SHEIN agreed to the deal in part to become more "mainstream" in the US</li>
<li>We also believe SHEIN takes seriously the legal and political risks it faces ahead of US IPO</li>
</ul>


In this insight we analyze the drivers of a new relationship between SHEIN and Forever 21
We think SHEIN agreed to the deal in part to become more "mainstream" in the US
We also believe SHEIN takes seriously the legal and political risks it faces ahead of US IPO


Why Is SHEIN Getting Into Bed with Forever 21? | Plus, More Legal and Political Challenges in US

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>Bilibili has announced the latest incentive policies for the "Spark Program."</li>
<li>XPEV/DiDi: Xpeng to acquire DiDi's Smart EV project and establish strategic partnership with DiDi (+/+)</li>
<li>SE / PDD: Temu enters the Philippines ( - / +)</li>
</ul>


Bilibili has announced the latest incentive policies for the "Spark Program."
XPEV/DiDi: Xpeng to acquire DiDi's Smart EV project and establish strategic partnership with DiDi (+/+)
SE / PDD: Temu enters the Philippines ( - / +)


China TMT Update-Bili/XPEV/DiDi/SE/PDD-Xpeng Acquire DiDi's EV Project/Temu Enters the Philippines

Greater China Equity Long/Short Analyst

Eric Chen

Equity Bottom-Up

<ul>
<li>Over the last decade, VIPShop proved it is the undisputed leader in China’s online discount retail business with the longest streak of profitability and impressive ROE among China internet names.</li>
<li>Investors are misplaced to look to the stock for growth. Rather, it is cash cow in mature business with deep moat and run by disciplined management who cares about shareholders.</li>
<li>Trading at 4.5x our FY23 earnings excluding net cash, it valuation is attractive even compared to depressed sector comps. Expect 20% CAGR of return by 2025 driven by intrinsic value.</li>
</ul>


Over the last decade, VIPShop proved it is the undisputed leader in China’s online discount retail business with the longest streak of profitability and impressive ROE among China internet names.
Investors are misplaced to look to the stock for growth. Rather, it is cash cow in mature business with deep moat and run by disciplined management who cares about shareholders.
Trading at 4.5x our FY23 earnings excluding net cash, it valuation is attractive even compared to depressed sector comps. Expect 20% CAGR of return by 2025 driven by intrinsic value.


VIPShop (VIPS US): Attractive Value Play Underappreciated by Investors Looking for Growth

<ul>
<li>PDD: Temu reportedly increases product prices in certain regions (+)</li>
<li>Atour Lifestyle: Summar vacation season is coming to a end, hotel RevPAR begin to decline</li>
<li>XPEV/NIO/LI: Xpeng to launch G9 facelift in September ( +/-/-)</li>
</ul>


PDD: Temu reportedly increases product prices in certain regions (+)
Atour Lifestyle: Summar vacation season is coming to a end, hotel RevPAR begin to decline
XPEV/NIO/LI: Xpeng to launch G9 facelift in September ( +/-/-)


China TMT Update-PDD/ATAT/XPEV/NIO/LI-Temu Increases Prices/Hotel RevPAR Declines/G9 Facelift

China

PDD Holdings Inc. is a multinational commerce group that owns and operates a portfolio of businesses. The Company focuses on digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. PDD Holdings has built a network of sourcing, logistics, and fulfillment capabilities for its underlying businesses.

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PDD Holdings (PDD US)

Aquila Acquisition Corp (7836 HK): ZG Group’s Punchy Valuation

ZG has a questionable business model, struggling to generate profits or underlying FCF. Our valuation analysis suggests that ZG's negotiated value...

Arun George

Why Is SHEIN Getting Into Bed with Forever 21? | Plus, More Legal and Political Challenges in US

In this insight we evaluate the new relationship between SHEIN and US brand Forever 21. Our main conclusion is that SHEIN is acting in response to...

Tracking Traffic

China TMT Update-Bili/XPEV/DiDi/SE/PDD-Xpeng Acquire DiDi's EV Project/Temu Enters the Philippines

Bilibili has announced the latest incentive policies for the "Spark Program.";XPEV/DiDi: Xpeng to acquire DiDi's Smart EV project(+/+);SE/PDD: Temu...

Blue Lotus Research Institute

VIPShop (VIPS US): Attractive Value Play Underappreciated by Investors Looking for Growth

As a cash cow with deep moat run by disciplined management who cares shareholders, VIPShop is an attractive value play trading at 4.5x our FY23...

Eric Chen

China TMT Update-PDD/ATAT/XPEV/NIO/LI-Temu Increases Prices/Hotel RevPAR Declines/G9 Facelift

PDD: Temu reportedly increases product prices in certain regions (+)/Atour Lifestyle: hotel RevPAR begin to decline/XPEV/NIO/LI: Xpeng to launch G9...

Blue Lotus Research Institute

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