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

Equity Bottom-Up

<ul>
<li>We expect PDD to report 1Q23's revenue and non-GAAP net income 6.1% and 23.8% ahead of consensus, respectively. </li>
<li>PDD entered an adjustment period, reflected in lower S&amp;M expenditure both overseas and domestically, which has led to declining PDD DAU and moderating growth of Temu’s GMV and losses.</li>
<li>We raise our PDD’s 2023’s EPS estimate by 14%~ to reflect better-than-expected cost control.  We maintain PDD’s BUY rating and US$ 95 TP, implying 21x 2023 P/E.</li>
</ul>


We expect PDD to report 1Q23's revenue and non-GAAP net income 6.1% and 23.8% ahead of consensus, respectively. 
PDD entered an adjustment period, reflected in lower S&amp;M expenditure both overseas and domestically, which has led to declining PDD DAU and moderating growth of Temu’s GMV and losses.
We raise our PDD’s 2023’s EPS estimate by 14%~ to reflect better-than-expected cost control.  We maintain PDD’s BUY rating and US$ 95 TP, implying 21x 2023 P/E.


[PDD Holdings Inc. (PDD US, BUY, TP US$95) Earnings Preview]: BUY on Expected Margin Beat

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

Lalatech Holdings Co Ltd / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lalatech-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:36848:1" rel="noopener">Lalatech Holdings Co Ltd (LALA HK)</a> is looking to raise about US$1bn in its upcoming HK IPO.</li>
<li>Lalatech operates via a marketplace model serving merchants and carriers. Its platform facilitates closed-loop transactions from online shipping order booking to intelligent order matching, and automated dispatching to after-sale services.</li>
<li>In this note, we talk about the positive aspects of the deal.</li>
</ul>



Lalatech Holdings Co Ltd (LALA HK) is looking to raise about US$1bn in its upcoming HK IPO.
Lalatech operates via a marketplace model serving merchants and carriers. Its platform facilitates closed-loop transactions from online shipping order booking to intelligent order matching, and automated dispatching to after-sale services.
In this note, we talk about the positive aspects of the deal.


Lalatech Holdings Limited Pre-IPO - The Positives - A Leader in Closed-Loop

Anta Sports Products / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a>  aims to raise around US$1.5bn in its top-up placement. </li>
<li>Anta hasn’t specified what it aims to do with the money that it's looking to raise, furthermore, it's already net cash.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



Anta Sports Products (2020 HK)  aims to raise around US$1.5bn in its top-up placement. 
Anta hasn’t specified what it aims to do with the money that it's looking to raise, furthermore, it's already net cash.
In this note, we will talk about the placement and run the deal through our ECM framework.


Anta Sports Placement - A Large Deal to Digest with Unknown Use of Proceeds but Track Record Is Good

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>Momentum appears to be picking up on the IPO front with a few successful listing helping sentiment</li>
<li>On the placement front, GDR flow appears to have resumed.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
Momentum appears to be picking up on the IPO front with a few successful listing helping sentiment
On the placement front, GDR flow appears to have resumed.


ECM Weekly (16th Apr 2023) - Rakuten Bank, Harita Nickel, Merdeka Battery, ZJLD, Adicon, Supcon

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

ADICON Holdings Limited / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/adicon-holdings-limited" target="_blank" data-smartkarma-citation="entities:33786:1" rel="noopener">ADICON Holdings Limited (ADI HK)</a>  is looking to raise about US$400m in its upcoming HK IPO. </li>
<li>Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&amp;S.</li>
<li>In this note, we talk about our thoughts on valuation. </li>
</ul>



ADICON Holdings Limited (ADI HK)  is looking to raise about US$400m in its upcoming HK IPO. 
Adicon Holdings is one of the top three independent clinical laboratory (ICL) service providers in China in terms of total revenue during the Track Record Period, according to F&amp;S.
In this note, we talk about our thoughts on valuation. 


Adicon Holdings Pre-IPO - Thoughts on Valuation

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)

[PDD Holdings Inc. (PDD US, BUY, TP US$95) Earnings Preview]: BUY on Expected Margin Beat

We expect PDD to report 1Q23's revenue and non-GAAP net income 6.1% and 23.8% ahead of consensus. PDD entered an adjustment period in March, which...

Blue Lotus Research Institute

Lalatech Holdings Limited Pre-IPO - The Positives - A Leader in Closed-Loop

Lalatech Holdings is looking to raise about US$1bn in its upcoming HK IPO. In this note, we talk about the positive aspects of the deal.

Sumeet Singh

Anta Sports Placement - A Large Deal to Digest with Unknown Use of Proceeds but Track Record Is Good

Anta Sports Products (2020 HK) aims to raise around US$1.5bn in its top-up placement. In this note, we talk about the deal dynamics and run the...

Sumeet Singh

ECM Weekly (16th Apr 2023) - Rakuten Bank, Harita Nickel, Merdeka Battery, ZJLD, Adicon, Supcon

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Adicon Holdings Pre-IPO - Thoughts on Valuation

ADICON Holdings Limited (ADI HK) is looking to raise about US$400m in its upcoming HK IPO. In this note, we talk about our thoughts on valuation.

Ethan Aw

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