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.

Event-Driven

<div><p>Kuaishou Technology (KT) is a content community and social platform that is looking to raise around US$5bn in its Hong Kong IPO. The company is backed by Tencent, Sequoia China, Baidu, DST Global, Boyu Capital, Temasek and others.</p></div><div><p>As of nine months ended Sep 2020, it had 305m daily active users (DAUs), who spent 86 mins on average on the app every day. It also had 769m monthly active users (MAUs) and total e-commerce GMV of RMB204.1bn. On an average 1.1bn short videos were uploaded on its app during 1H20.</p></div><div><p>As per iResearch, Kuaishou was globally the largest live streaming platform by gross billings from virtual gifting and average live streaming MPUs, the second largest short video platform by average DAUs, and the second largest live streaming e-commerce platform by GMV, over six months ended June 30, 2020.</p></div><div><p>I have covered various aspects of the company’s performance in my previous notes: </p></div><div><ul style="list-style-type: disc;">
<li> <a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-the-positives-hot-segment-fast-growth" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - The Positives - Hot Segment, fast growth</a>
</li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-the-negatives-ample-doubts-remain" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - The Negatives - Ample Doubts Remain</a></li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-peer-comparison-and-thoughts-on-valuation" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - Peer Comparison and Thoughts on Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-phip-updates-user-growth-has-been-slowing-down-post-covid" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - PHIP Updates - User Growth Has Been Slowing Down Post COVID</a></li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-updated-forecasts-and-valuation" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - Updated Forecasts and Valuation</a></li>
</ul></div><div><p>In this note, I’ll talk about the early inclusion in the indices.</p></div>

Kuaishou Technology (KT) is a content community and social platform that is looking to raise around US$5bn in its Hong Kong IPO. The company is backed by Tencent, Sequoia China, Baidu, DST Global, Boyu Capital, Temasek and others.As of nine months ended Sep 2020, it had 305m daily active users (DAUs), who spent 86 mins on average on the app every day. It also had 769m monthly active users (MAUs) and total e-commerce GMV of RMB204.1bn. On an average 1.1bn short videos were uploaded on its app during 1H20.As per iResearch, Kuaishou was globally the largest live streaming platform by gross billings from virtual gifting and average live streaming MPUs, the second largest short video platform by average DAUs, and the second largest live streaming e-commerce platform by GMV, over six months ended June 30, 2020.I have covered various aspects of the company’s performance in my previous notes: 
 Kuaishou Technology Pre-IPO - The Positives - Hot Segment, fast growth

Kuaishou Technology Pre-IPO - The Negatives - Ample Doubts Remain
Kuaishou Technology Pre-IPO - Peer Comparison and Thoughts on Valuation
Kuaishou Technology Pre-IPO - PHIP Updates - User Growth Has Been Slowing Down Post COVID
Kuaishou Technology Pre-IPO - Updated Forecasts and Valuation
In this note, I’ll talk about the early inclusion in the indices.

Kuaishou Technology Pre-IPO - Index Implications, MSCI, FTSE and HSI Indices

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

Equity Bottom-Up

<ul>
<li>Three hacking scandals last week worsen the public relation crisis about an employee's death.</li>
<li>PDD hacked into an app user’s smartphone.</li>
<li>PDD hacked into Another Company’s App.</li>
<li>PDD fired its security director who refused illegal hacking tasks.</li>
</ul>
<p>Our previous notes on PDD's "fakes":</p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/pinduoduo-pdd-fake-active-users" target="_blank" data-smartkarma-citation="insights:34664" rel="noopener">Pinduoduo (PDD): Fake Active Users</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/pinduoduo-pdd-not-only-fake-products-but-also-fake-stores-and-fake-numbers" target="_blank" data-smartkarma-citation="insights:29202" rel="noopener">Pinduoduo (PDD): Not Only Fake Products, But Also Fake Stores and Fake Numbers</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/pinduoduo-pdd-ipo-risk-too-many-fakes-vulnerable-to-lawsuits" target="_blank" data-smartkarma-citation="insights:22254" rel="noopener">Pinduoduo (PDD) IPO Risk: Too Many Fakes, Vulnerable to Lawsuits</a> </li>
</ul>


Three hacking scandals last week worsen the public relation crisis about an employee's death.
PDD hacked into an app user’s smartphone.
PDD hacked into Another Company’s App.
PDD fired its security director who refused illegal hacking tasks.

Our previous notes on PDD's "fakes":


Pinduoduo (PDD): Fake Active Users 

Pinduoduo (PDD): Not Only Fake Products, But Also Fake Stores and Fake Numbers 

Pinduoduo (PDD) IPO Risk: Too Many Fakes, Vulnerable to Lawsuits 


Pinduoduo (PDD): Three Hacking Scandals Last Week

Equity Capital Markets

Kuaishou Technology / Equity Capital Markets

<p>Kuaishou Technology (KT) is a content community and social platform that is looking to raise around US$5bn in its Hong Kong IPO. The company is backed by Tencent, Sequoia China, Baidu, DST Global, Boyu Capital, Temasek and others.</p><p>As of six months ended Jun 2020, it had 302m daily active users (DAUs), who spent 85 mins on average on the app every day. It also had 776m monthly active users (MAUs) and total e-commerce GMV of RMB109.6bn. On an average 1.1bn short videos were uploaded on its app during 1H20.</p><p>As per iResearch, Kuaishou was globally the largest live streaming platform by gross billings from virtual gifting and average live streaming MPUs, the second largest short video platform by average DAUs, and the second largest live streaming e-commerce platform by GMV, over six months ended June 30, 2020.</p><p>I have covered various aspects of the company’s performance in my previous notes: </p><ul>
<li> <a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-the-positives-hot-segment-fast-growth" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - The Positives - Hot Segment, fast growth</a>
</li>
<li><a href="https://www.smartkarma.com/insights/kuaishou-technology-pre-ipo-the-negatives-ample-doubts-remain" target="_blank" rel="noopener">Kuaishou Technology Pre-IPO - The Negatives - Ample Doubts Remain</a></li>
</ul><p>In this note, I’ll undertake a peer comparison, provide earnings forecasts and talk about valuations. </p>

Kuaishou Technology (KT) is a content community and social platform that is looking to raise around US$5bn in its Hong Kong IPO. The company is backed by Tencent, Sequoia China, Baidu, DST Global, Boyu Capital, Temasek and others.As of six months ended Jun 2020, it had 302m daily active users (DAUs), who spent 85 mins on average on the app every day. It also had 776m monthly active users (MAUs) and total e-commerce GMV of RMB109.6bn. On an average 1.1bn short videos were uploaded on its app during 1H20.As per iResearch, Kuaishou was globally the largest live streaming platform by gross billings from virtual gifting and average live streaming MPUs, the second largest short video platform by average DAUs, and the second largest live streaming e-commerce platform by GMV, over six months ended June 30, 2020.I have covered various aspects of the company’s performance in my previous notes: 
 Kuaishou Technology Pre-IPO - The Positives - Hot Segment, fast growth

Kuaishou Technology Pre-IPO - The Negatives - Ample Doubts Remain
In this note, I’ll undertake a peer comparison, provide earnings forecasts and talk about valuations. 

Kuaishou Technology Pre-IPO - Peer Comparison and Thoughts on Valuation

<ul>
<li>Pinduoduo (PDD)’s employee died a sudden death on the way home at a frozen deep night.</li>
<li>Donald Trump banned transactions with 8 Chinese apps.</li>
<li>Chinese developers’ global income increased by 45% yoy, higher than 28% yoy of the global market size.</li>
</ul>


Pinduoduo (PDD)’s employee died a sudden death on the way home at a frozen deep night.
Donald Trump banned transactions with 8 Chinese apps.
Chinese developers’ global income increased by 45% yoy, higher than 28% yoy of the global market size.


China Internet Weekly (11Jan2021): PDD Employee Died at Frozen Deep Night, US Banned 8 Chinese Apps.

Alibaba Group Holding  / Equity Capital Markets

<p>2020 marked our second full year of operations as an Independent Research Company, and our fifth year covering Equity Capital Markets (ECM). While the year started off on a precarious note for ECM, it ended with very strong momentum. Even as IPOs have hogged the limelight in 2020, we actually ended up covering more than twice the number of placements as IPOs. </p><p>We ended 2020 with an accuracy rate of 72.7% across 88 IPOs that we covered and 70.1% across 174 placements. While our placements hit rate improved, our IPO hit rate took a dip from 2019.</p><p>For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific (ex-Korea), including China ADRs.</p>

2020 marked our second full year of operations as an Independent Research Company, and our fifth year covering Equity Capital Markets (ECM). While the year started off on a precarious note for ECM, it ended with very strong momentum. Even as IPOs have hogged the limelight in 2020, we actually ended up covering more than twice the number of placements as IPOs. We ended 2020 with an accuracy rate of 72.7% across 88 IPOs that we covered and 70.1% across 174 placements. While our placements hit rate improved, our IPO hit rate took a dip from 2019.For those not familiar with our coverage, we aim to cover all IPOs and placements with a minimum deal size of US$100m across Asia-Pacific (ex-Korea), including China ADRs.

Aequitas 2020 IPOs and Placements Performance - IPOs in the Limelight but Placements Stole the Show

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)

Kuaishou Technology Pre-IPO - Index Implications, MSCI, FTSE and HSI Indices

Kuaishou Technology is a content community and social platform that is looking to raise around US$5bn in its Hong Kong IPO. The company is backed...

Sumeet Singh

Pinduoduo (PDD): Three Hacking Scandals Last Week

PDD hacked into its app user’s smartphone and another Company’s App. PDD also fired its security director who refused illegal hacking tasks.

Ming Lu

Kuaishou Technology Pre-IPO - Peer Comparison and Thoughts on Valuation

Kuaishou is a content community and social platform that is looking to raise around US$5bn in its Hong Kong IPO. The company is backed by Tencent,...

Sumeet Singh

China Internet Weekly (11Jan2021): PDD Employee Died at Frozen Deep Night, US Banned 8 Chinese Apps.

Pinduoduo (PDD)’s employee died a sudden death on the way home at a frozen deep night. Donald Trump banned 8 Chinese apps. Chinese developers’...

Ming Lu

Aequitas 2020 IPOs and Placements Performance - IPOs in the Limelight but Placements Stole the Show

2020 marked our second year of operations as an Independent Research Company, and our fifth year covering ECM. In 2020 we had an accuracy rate of...

Sumeet Singh

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