Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Jinke Smart Services / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/jinke-smart-services" target="_blank" data-smartkarma-citation="entities:29214:1" rel="noopener">Jinke Smart Services (JKS HK)</a> is a comprehensive and smart property management services company who offers a wide range of property management services to residential and non-residential properties located across an extensive number of cities across China.The company has filed to list its shares on the Hong Kong Stock Exchange and plans to raise around US$700-800m through the IPO. The IPO constitutes a spin-off from Jinke Property Group, a leading real estate development company in China.In this insight, we examine the company’s business model, business segments and its financials.

Jinke Smart Services (JKS HK) is a comprehensive and smart property management services company who offers a wide range of property management services to residential and non-residential properties located across an extensive number of cities across China.The company has filed to list its shares on the Hong Kong Stock Exchange and plans to raise around US$700-800m through the IPO. The IPO constitutes a spin-off from Jinke Property Group, a leading real estate development company in China.In this insight, we examine the company’s business model, business segments and its financials.

Jinke Smart Services IPO: Maintenance Secured

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.

Shimao Services Holdings Limited / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/shimao-services-holdings-limited" target="_blank" data-smartkarma-citation="entities:29199:1" rel="noopener">Shimao Services Holdings (873 HK)</a> (SSH) raised about US$1.3bn by pricing its IPO at HK$16.60 per share, the upper end of the price range.
<div>
SSH is the property management unit of Shimao Group Holdings (813 HK) and was recently backed by Sequoia and Tencent. It provides property management community living services and, as of 31 December, 2019, has an aggregated GFA under management and contracted GFA of 68.2m sqm and 100.9m sqm, respectively.
In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.
</div>
<div>
Our previous coverage of the IPO:
</div>
<div>
<ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/shimao-services-pre-ipo-phip-updates-impressive-6m-2020-results" target="_blank" data-smartkarma-citation="insights:44166" rel="noopener">Shimao Services (世茂服务) Pre-IPO - PHIP Updates - Impressive 6M 2020 Results</a> </li>
<li><a href="https://www.smartkarma.com/insights/shimao-services-pre-ipo-community-vas-segment-is-the-star" target="_blank" rel="noopener">Shimao Services (世茂服务) Pre-IPO - Community VAS segment is the star </a></li>
<li>
<a href="https://www.smartkarma.com/insights/shimao-services-ipo-paying-for-growth" target="_blank" data-smartkarma-citation="insights:44306" rel="noopener">Shimao Services (世茂服务) IPO - Paying for Growth</a> </li>
</ul>
</div>

Shimao Services Holdings (873 HK) (SSH) raised about US$1.3bn by pricing its IPO at HK$16.60 per share, the upper end of the price range.

SSH is the property management unit of Shimao Group Holdings (813 HK) and was recently backed by Sequoia and Tencent. It provides property management community living services and, as of 31 December, 2019, has an aggregated GFA under management and contracted GFA of 68.2m sqm and 100.9m sqm, respectively.
In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.


Our previous coverage of the IPO:




Shimao Services (世茂服务) Pre-IPO - PHIP Updates - Impressive 6M 2020 Results 
Shimao Services (世茂服务) Pre-IPO - Community VAS segment is the star 

Shimao Services (世茂服务) IPO - Paying for Growth 



Shimao Services (世茂服务) IPO Trading - Limited Upside from Here

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.

Sunac Services Holdings / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/sunac-services-holdings" target="_blank" data-smartkarma-citation="entities:29239:1" rel="noopener">Sunac Services Holdings (1820476D HK)</a> is a Chinese property management company. Sunac is the fastest-growing large-scale property management service provider in China, according to China Index Academy. Sunac is pre-marketing an IPO to raise $1 billion, according to press reports.<div class="content-highlight">In <a href="https://www.smartkarma.com/insights/sunac-services-ipo-initiation-next-in-line" target="_blank" rel="noopener">our initiation note</a>, we stated that Sunac’s fundamentals over the track record period are attractive. The PHIP discloses the 1H20 results which include New Century (consolidated from 8 May), along with a few data points on the post-period trading. The PHIP data points support our view that Sunac is a well-run property management company. </div>

Sunac Services Holdings (1820476D HK) is a Chinese property management company. Sunac is the fastest-growing large-scale property management service provider in China, according to China Index Academy. Sunac is pre-marketing an IPO to raise $1 billion, according to press reports.In our initiation note, we stated that Sunac’s fundamentals over the track record period are attractive. The PHIP discloses the 1H20 results which include New Century (consolidated from 8 May), along with a few data points on the post-period trading. The PHIP data points support our view that Sunac is a well-run property management company. 

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Shimao Property Holdings / Equity Capital Markets

The IPO price for <a href="https://www.smartkarma.com/entities/shimao-services-holdings-limited" target="_blank" data-smartkarma-citation="entities:29199:1" rel="noopener">Shimao Services Holdings (873 HK)</a> (SSH), the latest in a long line of property management service companies to be listed, will be announced tomorrow. Shares will commence trading this Friday.
SSH is the spin-off of <a href="https://www.smartkarma.com/entities/shimao-property-holdings-limited" target="_blank" data-smartkarma-citation="entities:8375:1" rel="noopener">Shimao Property Holdings (813 HK)</a>, who will own 66.5% in SSH after the IPO, down from 90% currently.
Similar to <a href="https://www.smartkarma.com/entities/kwg-living-group" target="_blank" data-smartkarma-citation="entities:29231:1" rel="noopener">KWG Living Group (3913 HK)</a>, SSH's implied PER is in keeping with its generous growth the last two years, and arguably can be justified, to some degree, when comparing PER/Growth to peer comps.
However, Shimao Property looks expensive when de-consolidating out the implied market cap of SSH.
As always, more below the fold.

The IPO price for Shimao Services Holdings (873 HK) (SSH), the latest in a long line of property management service companies to be listed, will be announced tomorrow. Shares will commence trading this Friday.
SSH is the spin-off of Shimao Property Holdings (813 HK), who will own 66.5% in SSH after the IPO, down from 90% currently.
Similar to KWG Living Group (3913 HK), SSH's implied PER is in keeping with its generous growth the last two years, and arguably can be justified, to some degree, when comparing PER/Growth to peer comps.
However, Shimao Property looks expensive when de-consolidating out the implied market cap of SSH.
As always, more below the fold. 

Shimao Services: KWG Living-Like Valuation; Parent Trading Rich

Lufax Holdings, a leading financial services firm in China has filed for an IPO in the US. The company has set an indicative IPO price range of US$11.5-13.5 per ADS, and at the midpoint of the IPO price of US$12.50, the company will raise net proceeds of US$2.1bn. The company expects to use the proceeds for general corporate purposes.<table class="table table-striped"><tbody>
<tr><td colspan="2" style="width: 237.0pt;">Lufax Holdings IPO Details</td></tr>
<tr>
<td style="width: 147.0pt;">No. of ADSs Issued</td>
<td style="width: 90.0pt;">175,000,000</td>
</tr>
<tr>
<td style="width: 147.0pt;">Ordinary Shares per ADS</td>
<td style="width: 90.0pt;">0.5</td>
</tr>
<tr>
<td style="width: 147.0pt;">Shares Outstanding Post IPO</td>
<td style="width: 90.0pt;">1,219,678,331</td>
</tr>
<tr>
<td style="width: 147.0pt;">Offer as a % of Outstanding Shares</td>
<td style="width: 90.0pt;">7.17%</td>
</tr>
<tr>
<td style="width: 147.0pt;">Price per ADS (US$)</td>
<td style="width: 90.0pt;">11.50-13.50</td>
</tr>
<tr>
<td style="width: 147.0pt;">Net Proceeds from IPO (US$m)</td>
<td style="width: 90.0pt;">                                     2,109</td>
</tr>
<tr>
<td style="width: 147.0pt;">Market Capitalisation (US$m)</td>
<td style="width: 90.0pt;">                                  30,492</td>
</tr>
<tr>
<td style="width: 147.0pt;">Enterprise Value (US$m)</td>
<td style="width: 90.0pt;">                                  26,911</td>
</tr>
</tbody></table><div class="content-caption">Source: Company Disclosures, LSR (net proceeds, market cap and EV are based on the midpoint of the IPO price range)</div>In our previous insights, we discussed about the company’s business model, its business segments and also a comparison with its key peers. We highlighted that the company shifting its business model from P2P products and services have impacted its top line growth and margins.Read our previous insights:<a href="https://www.smartkarma.com/insights/lufax-ipo-unsecured-loans-drive-top-line-growth-but-risks-remain-despite-capital-light-model" target="_blank" data-smartkarma-citation="insights:44132" rel="noopener">Lufax IPO: Unsecured Loans Drive Top Line Growth but Risks Remain Despite Capital-Light Model</a> <a href="https://www.smartkarma.com/insights/lufax-ipo-shift-in-product-mix-and-higher-customer-acquisition-cost-eat-into-profits" target="_blank" data-smartkarma-citation="insights:44179" rel="noopener">Lufax IPO: Shift in Product Mix and Higher Customer Acquisition Cost Eat into Profits</a> <a href="https://www.smartkarma.com/insights/lufax-ipo-peer-comparison-reveals-change-in-strategy-weighs-heavy-on-company-performance" target="_blank" data-smartkarma-citation="insights:44303" rel="noopener">Lufax IPO: Peer Comparison Reveals Change in Strategy Weighs Heavy on Company Performance</a>

Lufax Holdings, a leading financial services firm in China has filed for an IPO in the US. The company has set an indicative IPO price range of US$11.5-13.5 per ADS, and at the midpoint of the IPO price of US$12.50, the company will raise net proceeds of US$2.1bn. The company expects to use the proceeds for general corporate purposes.
Lufax Holdings IPO Details

No. of ADSs Issued
175,000,000


Ordinary Shares per ADS
0.5


Shares Outstanding Post IPO
1,219,678,331


Offer as a % of Outstanding Shares
7.17%


Price per ADS (US$)
11.50-13.50


Net Proceeds from IPO (US$m)
                                     2,109


Market Capitalisation (US$m)
                                  30,492


Enterprise Value (US$m)
                                  26,911

Source: Company Disclosures, LSR (net proceeds, market cap and EV are based on the midpoint of the IPO price range)In our previous insights, we discussed about the company’s business model, its business segments and also a comparison with its key peers. We highlighted that the company shifting its business model from P2P products and services have impacted its top line growth and margins.Read our previous insights:Lufax IPO: Unsecured Loans Drive Top Line Growth but Risks Remain Despite Capital-Light Model Lufax IPO: Shift in Product Mix and Higher Customer Acquisition Cost Eat into Profits Lufax IPO: Peer Comparison Reveals Change in Strategy Weighs Heavy on Company Performance 

Lufax IPO Valuation: The Risk-Reward Profile Does Not Justify the Premium

China

SSH is the property management unit of Shimao Group Holdings.

Shimao Services Holdings Limited (873 HK)

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Shimao Services Holdings Limited (873 HK)

Jinke Smart Services IPO: Maintenance Secured

Jinke Smart Services has filed for an IPO. In this insight, we deep dive into the company's business model, its segments and financials.

Shifara Samsudeen, ACMA, CGMA

Shimao Services (世茂服务) IPO Trading - Limited Upside from Here

SSH is the property management unit of Shimao Group (813 HK) and was recently backed by Sequoia and Tencent. IPO demand was decent despite having...

Zhen Zhou, Toh

Sunac Services IPO: PHIP Data Points

The PHIP discloses the 1H20 results which include New Century, along with a few post-period data points. The PHIP data points support our view that...

Arun George

Shimao Services: KWG Living-Like Valuation; Parent Trading Rich

Shimao Property's trades at a significant premium to the implied P/B for property developers, net of their management services investment holding.

David Blennerhassett

Lufax IPO Valuation: The Risk-Reward Profile Does Not Justify the Premium

In this insight, we evaluate the attractiveness of Lufax's IPO valuation compared to its peers. We believe the company shares are overvalued and...

Shifara Samsudeen, ACMA, CGMA

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