APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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

Shukun (Beijing) Technology / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/shukun-beijing-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:34403:1" rel="noopener">Shukun (Beijing) Technology Co., Ltd. (1702626D CH)</a> is looking to raise about US$300m in its upcoming Hong Kong IPO. The deal will be run by JPM, BofA, and BOCI.Shukun Technology is a healthcare company that employs AI technology to assist treatment. Its AI-powered Digital Doctor analyses medical imaging data and assists doctors in disease screening, diagnosis and therapy selection. As of the latest practicable date (15 Sept 2021), its DigitalDoc portfolio included 12 products and 25 product candidates covering five critical therapeutic areas, including heart, brain, abdomen, chest and musculoskeletal system. The firm’s DigitalDoc products have been adopted by over 1,200 hospitals in China, including approximately 80% of the Top 100 Hospitals and over 30% of all Class III Grade A hospitals.

Shukun (Beijing) Technology Co., Ltd. (1702626D CH) is looking to raise about US$300m in its upcoming Hong Kong IPO. The deal will be run by JPM, BofA, and BOCI.Shukun Technology is a healthcare company that employs AI technology to assist treatment. Its AI-powered Digital Doctor analyses medical imaging data and assists doctors in disease screening, diagnosis and therapy selection. As of the latest practicable date (15 Sept 2021), its DigitalDoc portfolio included 12 products and 25 product candidates covering five critical therapeutic areas, including heart, brain, abdomen, chest and musculoskeletal system. The firm’s DigitalDoc products have been adopted by over 1,200 hospitals in China, including approximately 80% of the Top 100 Hospitals and over 30% of all Class III Grade A hospitals.

Dongguan Rural Commercial Bank / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/dongguan-rural-commercial-bank" target="_blank" data-smartkarma-citation="entities:34248:1" rel="noopener">Dongguan Rural Commercial Bank (9889 HK)</a> raised US$1.14bn at HKD7.92 per share, at the bottom-end of its IPO price range.Dongguan Rural Commercial Bank (DRCB) is the fifth largest rural commercial bank in China by total assets as of Dec 2020, as per China Banking Association in 2021. At the indicated price. valuation is expensive as DRCB comes in at 8.1x FY22E P/E and 0.79x FY22E P/B, well ahead of its peer set. Given our underlying assumptions, the bank needs to trade 65% lower or 49.2% lower (excluding China Everbright and China Minsheng) to trade inline with peers.Our previous coverage of the IPO:<ul><li>
<a href="https://www.smartkarma.com/insights/dongguan-rural-commercial-bank-ipo-mind-the-valuation-gap" target="_blank" data-smartkarma-citation="insights:57797" rel="noopener">Dongguan Rural Commercial Bank IPO - Mind the Valuation Gap</a> </li></ul>

Dongguan Rural Commercial Bank (9889 HK) raised US$1.14bn at HKD7.92 per share, at the bottom-end of its IPO price range.Dongguan Rural Commercial Bank (DRCB) is the fifth largest rural commercial bank in China by total assets as of Dec 2020, as per China Banking Association in 2021. At the indicated price. valuation is expensive as DRCB comes in at 8.1x FY22E P/E and 0.79x FY22E P/B, well ahead of its peer set. Given our underlying assumptions, the bank needs to trade 65% lower or 49.2% lower (excluding China Everbright and China Minsheng) to trade inline with peers.Our previous coverage of the IPO:
Dongguan Rural Commercial Bank IPO - Mind the Valuation Gap 

Dongguan Rural Commercial Bank IPO Trading -Needs to Correct at Least 50% to Trade Inline with Peers

Tam Jai International / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/tam-jai-international-co-ltd" target="_blank" data-smartkarma-citation="entities:34227:1" rel="noopener">Tam Jai International (2271 HK)</a> is looking to raise up to US$179m in its Hong Kong IPO.Tam Jai International is a restaurant chain operator of the TamJai and SamGor branded fast casual restaurant chain in Hong Kong with operations also in Mainland China and Singapore.  As of the latest practicable date (13th September 2021), the firm operated a total of 156 restaurants, comprising 79 TamJai restaurants and 77 SamGor restaurants, of which 150 were located in Hong Kong, three in Mainland China and the remaining three in Singapore. As per Euromonitor, the firm ranks No. 1 among Asian noodle specialty restaurants in Hong Kong. Overall, the firm's earnings have been resilient despite facing setbacks in its track period (i.e. COVID-19 and the Hong Kong riots). Margins have expectedly fallen as rent expenses outpaced revenue, but the firm plans to expand overseas which if successful, would warrant a valuation closer to its higher valued China-based peers.

Tam Jai International (2271 HK) is looking to raise up to US$179m in its Hong Kong IPO.Tam Jai International is a restaurant chain operator of the TamJai and SamGor branded fast casual restaurant chain in Hong Kong with operations also in Mainland China and Singapore.  As of the latest practicable date (13th September 2021), the firm operated a total of 156 restaurants, comprising 79 TamJai restaurants and 77 SamGor restaurants, of which 150 were located in Hong Kong, three in Mainland China and the remaining three in Singapore. As per Euromonitor, the firm ranks No. 1 among Asian noodle specialty restaurants in Hong Kong. Overall, the firm's earnings have been resilient despite facing setbacks in its track period (i.e. COVID-19 and the Hong Kong riots). Margins have expectedly fallen as rent expenses outpaced revenue, but the firm plans to expand overseas which if successful, would warrant a valuation closer to its higher valued China-based peers.

Tam Jai International IPO - Favourable Risk to Reward at Low End

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

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.

<ul>
<li>Hong Kong based rice noodles restaurant chain, <a href="https://www.smartkarma.com/entities/tam-jai-international-co-ltd" target="_blank" data-smartkarma-citation="entities:34227:1" rel="noopener">Tam Jai International (TJI HK)</a> announced the price range to its IPO at HK$ 3.33-4.17 per share, which implies a market cap and EV range of HK$ 4.5-5.6bn and HK$ 3.1-3.9bn respectively.</li>
<li>Tam Jai International will raise HK$ 1.1-1.4bn (US$ 145-182m) via issuing 335m new shares. The parent company, Toridoll has also granted underwriters the right to sell up to an additional 50.2m shares as a part of an overallotment option.</li>
<li>The application period ends on Tuesday (28th September 2021) and the shares are expected to start trading on the Hong Kong Stock Exchange from 7th October 2021.</li>
</ul>


Hong Kong based rice noodles restaurant chain, Tam Jai International (TJI HK) announced the price range to its IPO at HK$ 3.33-4.17 per share, which implies a market cap and EV range of HK$ 4.5-5.6bn and HK$ 3.1-3.9bn respectively.
Tam Jai International will raise HK$ 1.1-1.4bn (US$ 145-182m) via issuing 335m new shares. The parent company, Toridoll has also granted underwriters the right to sell up to an additional 50.2m shares as a part of an overallotment option.
The application period ends on Tuesday (28th September 2021) and the shares are expected to start trading on the Hong Kong Stock Exchange from 7th October 2021.


Tam Jai International IPO Valuation: Cheaper Than Noodles

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tam-jai-international-co-ltd" target="_blank" data-smartkarma-citation="entities:34227:1" rel="noopener">Tam Jai International (TJI HK)</a> is a popular fast casual restaurant chain in Hong Kong that offers a type of rice noodle called “Mixian” under two restaurant brands; TamJai Yunnan Mixian (譚仔雲南米線) and TamJai SamGor Mixian (譚仔三哥米線).</li>
<li>Tam Jai is an excellent business with market leadership in Hong Kong’s specialty noodles restaurants segment. It offered earnings stability during the COVID-19 lockdowns, and has an earnings growth potential of around 99% EBIT CAGR through FY21-24. Though all the restaurants are company-owned, the business model requires low initial capital, resulting in a fast payback period and above industry average investment returns. Moreover, the company expects to pay out a minimum of 30% of earnings as annual dividends.</li>
<li>We think that these factors should help tick the investment criteria of a wide range of investors. As long as it is not priced unreasonably, we think Tam Jai’s proposed US$100m IPO on the Hong Kong Stock Exchange could get lots of institutional and retail investors interested.</li>
</ul>



Tam Jai International (TJI HK) is a popular fast casual restaurant chain in Hong Kong that offers a type of rice noodle called “Mixian” under two restaurant brands; TamJai Yunnan Mixian (譚仔雲南米線) and TamJai SamGor Mixian (譚仔三哥米線).
Tam Jai is an excellent business with market leadership in Hong Kong’s specialty noodles restaurants segment. It offered earnings stability during the COVID-19 lockdowns, and has an earnings growth potential of around 99% EBIT CAGR through FY21-24. Though all the restaurants are company-owned, the business model requires low initial capital, resulting in a fast payback period and above industry average investment returns. Moreover, the company expects to pay out a minimum of 30% of earnings as annual dividends.
We think that these factors should help tick the investment criteria of a wide range of investors. As long as it is not priced unreasonably, we think Tam Jai’s proposed US$100m IPO on the Hong Kong Stock Exchange could get lots of institutional and retail investors interested.


Tam Jai International IPO Satisfies Investor Cravings

Hong Kong

Tam Jai International Co. Limited operates restaurants. The Company provides specialties, fast food products, desserts, drinks, and other related products. Tam Jai International markets its products throughout Hong Kong.

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Tam Jai International (2217 HK)

Shukun Technology Pre-IPO Tearsheet

Shukun (Beijing) Technology Co., Ltd. (1702626D CH) is looking to raise about US$300m in its upcoming Hong Kong IPO. The deal will be run by JPM,...

Clarence Chu

Dongguan Rural Commercial Bank IPO Trading -Needs to Correct at Least 50% to Trade Inline with Peers

Dongguan Rural Commercial Bank (9889 HK) raised US$1.14bn at HKD7.92 per share, at the bottom-end of its IPO price range.

Clarence Chu

Tam Jai International IPO - Favourable Risk to Reward at Low End

Tam Jai International (2271 HK) is looking to raise up to US$179m in its Hong Kong IPO. Tam Jai International is a restaurant chain operator of the...

Clarence Chu

Tam Jai International IPO Valuation: Cheaper Than Noodles

Hong Kong based rice noodles restaurant chain, Tam Jai announced the price range to its IPO at HK$ 3.33-4.17 per share, which implies a market cap...

Oshadhi Kumarasiri

Tam Jai International IPO Satisfies Investor Cravings

Tam Jai is an excellent business with market leadership in Hong Kong’s specialty noodles restaurants segment. It offered earnings stability during...

Oshadhi Kumarasiri

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