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

<div><p>Bairong, an independent AI-powered technology platform in China serving the financial services industry, aims to raise up to US$508m in its Hong Kong IPO. According to F&amp;S, it was the largest independent financial big data analytics solutions provider in China by revenue in 2019, with a market share of 8.7%.</p></div><div>
<p>We have covered various aspects of the deal in our earlier notes:</p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/bairong-pre-ipo-the-positives-largest-independent-big-data-analytics-provider" target="_blank" rel="noopener">Bairong Pre-IPO - The Positives - Largest Independent Big-Data Analytics Provider,</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/bairong-pre-ipo-the-negatives-playing-with-its-own-data" target="_blank" rel="noopener">Bairong Pre-IPO - The Negatives - Playing with Its Own Data</a>,</li>
<li><a href="https://www.smartkarma.com/insights/bairong-pre-ipo-earnings-forecast-peer-comparison-and-valuation" target="_blank" rel="noopener">Bairong Pre-IPO - Earnings Forecast, Peer Comparison and Valuation, and</a></li>
<li><a href="https://www.smartkarma.com/insights/bairong-pre-ipo-phip-and-valuation-updates-better-4q20-but-client-data-isn-t-as-encouraging" target="_blank" rel="noopener">Bairong Pre-IPO - PHIP and Valuation Updates - Better 4Q20, but Client Data Isn’t as Encouraging</a></li>
</ul>
</div><div><p>In this note, we will talk about deal dynamics and valuation.</p></div>

Bairong, an independent AI-powered technology platform in China serving the financial services industry, aims to raise up to US$508m in its Hong Kong IPO. According to F&amp;S, it was the largest independent financial big data analytics solutions provider in China by revenue in 2019, with a market share of 8.7%.
We have covered various aspects of the deal in our earlier notes:


Bairong Pre-IPO - The Positives - Largest Independent Big-Data Analytics Provider, 

Bairong Pre-IPO - The Negatives - Playing with Its Own Data,
Bairong Pre-IPO - Earnings Forecast, Peer Comparison and Valuation, and
Bairong Pre-IPO - PHIP and Valuation Updates - Better 4Q20, but Client Data Isn’t as Encouraging

In this note, we will talk about deal dynamics and valuation.

Bairong IPO - Decent Valuation Probably Weighed Down by Regulation

APAC IPOs & Placements

Zhen Zhou, Toh

<div>
<p><a href="https://www.smartkarma.com/entities/tuya-inc" target="_blank" data-smartkarma-citation="entities:32158:1" rel="noopener">Tuya Inc (TUYA US)</a> raised about US$915m in its US IPO, priced at US$21 per ADS, above the top end of its initial price range.</p>
</div>
<div>
<p>Tuya is a Platform as a Service (PaaS) and Software as a Service (SaaS) provider to businesses and developers with a focus on IoT. The company’s IoT PaaS enables businesses and developers to easily develop, launch, manage, and monetize software-enabled devices and services while its Industry SaaS helps businesses deploy, connect, and manage a large number and different types of smart devices. </p>
</div>
<div>
<p>In this note, we will look at updated valuation and share our final thoughts on the IPO.</p>
</div>
<div>
<p>We have previously covered the company in:</p>
</div>
<div>
<ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/tuya-pre-ipo-ride-the-iot-wave-via-tuya-s-platform" target="_blank" data-smartkarma-citation="insights:48740" rel="noopener">Tuya (涂鸦智能) Pre-IPO - Ride the IoT Wave Via Tuya’s Platform</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/tuya-pre-ipo-tuya-s-platform-usage-review" target="_blank" data-smartkarma-citation="insights:48822" rel="noopener">Tuya (涂鸦智能) Pre-IPO - Tuya's Platform Usage Review</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/tuya-pre-ipo-peer-comparison-forecast-and-valuation" target="_blank" data-smartkarma-citation="insights:48924" rel="noopener">Tuya (涂鸦智能) Pre-IPO - Peer Comparison, Forecast, and Valuation</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/tuya-ipo-pushing-for-a-pricey-connection" target="_blank" data-smartkarma-citation="insights:49185" rel="noopener">Tuya (涂鸦智能) IPO -  Pushing for a Pricey Connection</a> </li>
</ul>
</div>


Tuya Inc (TUYA US) raised about US$915m in its US IPO, priced at US$21 per ADS, above the top end of its initial price range.


Tuya is a Platform as a Service (PaaS) and Software as a Service (SaaS) provider to businesses and developers with a focus on IoT. The company’s IoT PaaS enables businesses and developers to easily develop, launch, manage, and monetize software-enabled devices and services while its Industry SaaS helps businesses deploy, connect, and manage a large number and different types of smart devices. 


In this note, we will look at updated valuation and share our final thoughts on the IPO.


We have previously covered the company in:




Tuya (涂鸦智能) Pre-IPO - Ride the IoT Wave Via Tuya’s Platform 

Tuya (涂鸦智能) Pre-IPO - Tuya's Platform Usage Review 

Tuya (涂鸦智能) Pre-IPO - Peer Comparison, Forecast, and Valuation 

Tuya (涂鸦智能) IPO -  Pushing for a Pricey Connection 



Tuya (涂鸦智能) IPO Trading - Strong Momentum but Watch Out for the Post Debut Fizzle

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Equity Bottom-Up

<p>EM active funds are running a sizeable underweight in <a href="https://www.smartkarma.com/entities/nio-inc" target="_blank" data-smartkarma-citation="entities:27399:1" rel="noopener">NIO Inc (NIO US).</a>  Despite rising ownership levels, average holding weights are failing to keep up with the benchmark.</p><p><a href="https://www.smartkarma.com/entities/nio-inc" target="_blank" data-smartkarma-citation="entities:27399:1" rel="noopener">NIO Inc (NIO US)</a> has become the 5th largest underweight holding in EM, behind index heavyweights <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>.  At present, the bulk of the holders are low active, benchmark aligned investors.  </p><p>As prices falter after peaking in early January this year, staying out of the stock has been vindicated.   If prices continue to fall further, expect active managers to chip away at that underweight, but on our analysis, prices have to come down significantly before we see that.  </p>

EM active funds are running a sizeable underweight in NIO Inc (NIO US).  Despite rising ownership levels, average holding weights are failing to keep up with the benchmark.NIO Inc (NIO US) has become the 5th largest underweight holding in EM, behind index heavyweights Alibaba Group (BABA US) and Tencent Holdings (700 HK).  At present, the bulk of the holders are low active, benchmark aligned investors.  As prices falter after peaking in early January this year, staying out of the stock has been vindicated.   If prices continue to fall further, expect active managers to chip away at that underweight, but on our analysis, prices have to come down significantly before we see that.  

NIO Inc.  EM Stock Pickers Take Wide Berth

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

<p>Thanks to Covid-19 and the more long-term shift to digital shopping, the big three e-commerce platforms, Amazon, Rakuten and Z Holdings, plundered the physical retail sector last year, grabbing a significantly increased share of consumption, but the wider battle for digital dominance isn’t over yet.</p><p>Z Holdings is just closing on its deal with <a href="https://www.smartkarma.com/entities/line-corp" target="_blank" data-smartkarma-citation="entities:22772:1" rel="noopener">LINE Corp (3938 JP)</a> and following that up with a proposed ¥500 billion investment programme which includes a focus on e-commerce. </p><p>But <a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a> has already responded this week with its breakthrough deal with <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP), </a><a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a> and <a href="https://www.smartkarma.com/entities/walmart-inc" target="_blank" data-smartkarma-citation="entities:11134:1" rel="noopener">Walmart (WMT US).</a></p><p>Meanwhile, despite these efforts by the two domestics giants, <a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a> remained Japan's largest e-commerce operator in 2020 (by Gross Transaction Values) and doesn't look like giving up its poll position anytime soon.</p><p>ZHD has a lot of advantages and strengths on the customer capture and marketing side. It has one of the biggest and more alluring datasets of Japanese consumers out there, which is not just social media handles and click data but names and addresses and – adding in Zozo data – body and foot size and, as of last month, skin type.</p><p>ZHD needs to work hard to integrate all this and if it does so, will have a shot at leadership in digital ecosystems, but to win in e-commerce it must do something about fulfilment where it remains worryingly weak.</p>

Thanks to Covid-19 and the more long-term shift to digital shopping, the big three e-commerce platforms, Amazon, Rakuten and Z Holdings, plundered the physical retail sector last year, grabbing a significantly increased share of consumption, but the wider battle for digital dominance isn’t over yet.Z Holdings is just closing on its deal with LINE Corp (3938 JP) and following that up with a proposed ¥500 billion investment programme which includes a focus on e-commerce. But Rakuten Inc (4755 JP) has already responded this week with its breakthrough deal with Japan Post Holdings (6178 JP), Tencent Holdings (700 HK) and Walmart (WMT US).Meanwhile, despite these efforts by the two domestics giants, Amazon.com Inc (AMZN US) remained Japan's largest e-commerce operator in 2020 (by Gross Transaction Values) and doesn't look like giving up its poll position anytime soon.ZHD has a lot of advantages and strengths on the customer capture and marketing side. It has one of the biggest and more alluring datasets of Japanese consumers out there, which is not just social media handles and click data but names and addresses and – adding in Zozo data – body and foot size and, as of last month, skin type.ZHD needs to work hard to integrate all this and if it does so, will have a shot at leadership in digital ecosystems, but to win in e-commerce it must do something about fulfilment where it remains worryingly weak.

E-Commerce Wars in Japan: How Z Holdings Is Facing off Against Rakuten and Amazon

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.

<p>As anticipated, the Chinese mobile games and video platform <a href="https://www.smartkarma.com/entities/bilibili-inc" target="_blank" data-smartkarma-citation="entities:26793:1" rel="noopener">Bilibili Inc (BILI US)</a>  has received the approval for a secondary listing on the Hong Kong Stock Exchange. According to Bloomberg, Bilibili could raise about US$3bn through its secondary listing.</p><p>We discussed Bilibili’s business model, its segments, financials and also compared the company’s business model and financials with its closest competitor Huya. This insight will focus on Bilibili’s current valuation.</p><p>Read our previous insights:</p><p><a href="https://www.smartkarma.com/insights/bilibili-4q-earnings-value-added-services-surpass-mobile-games-e-commerce-gains-momentum" target="_blank" data-smartkarma-citation="insights:48569" rel="noopener">Bilibili 4Q Earnings: Value-Added Services Surpass Mobile Games; E-Commerce Gains Momentum</a> </p><p><a href="https://www.smartkarma.com/insights/bilibili-vs-huya-strong-top-line-growth-outspending-huya-on-marketing-reason-for-absence-of-profits" target="_blank" data-smartkarma-citation="insights:47309" rel="noopener">Bilibili Vs Huya:Strong Top Line Growth; Outspending Huya on Marketing-Reason for Absence of Profits</a> </p><p><a href="https://www.smartkarma.com/insights/bilibili-secondary-listing-diversifying-revenue-mix-should-make-profits-possible-in-the-medium-term" target="_blank" data-smartkarma-citation="insights:47049" rel="noopener">Bilibili Secondary Listing: Diversifying Revenue Mix Should Make Profits Possible in the Medium Term</a> </p>

As anticipated, the Chinese mobile games and video platform Bilibili Inc (BILI US)  has received the approval for a secondary listing on the Hong Kong Stock Exchange. According to Bloomberg, Bilibili could raise about US$3bn through its secondary listing.We discussed Bilibili’s business model, its segments, financials and also compared the company’s business model and financials with its closest competitor Huya. This insight will focus on Bilibili’s current valuation.Read our previous insights:Bilibili 4Q Earnings: Value-Added Services Surpass Mobile Games; E-Commerce Gains Momentum Bilibili Vs Huya:Strong Top Line Growth; Outspending Huya on Marketing-Reason for Absence of Profits Bilibili Secondary Listing: Diversifying Revenue Mix Should Make Profits Possible in the Medium Term 

Bilibili: Diversified Revenue Streams and Impressive Top Line Growth Justify Current Multiples

China

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

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Tencent Holdings (ADR) (TCEHY US)

Bairong IPO - Decent Valuation Probably Weighed Down by Regulation

Bairong, an independent AI-powered technology platform in China serving the financial services industry, aims to raise up to US$508m in its Hong...

Sumeet Singh

Tuya (涂鸦智能) IPO Trading - Strong Momentum but Watch Out for the Post Debut Fizzle

Tuya Inc (TUYA US) raised about US$915m in its US IPO, priced at US$21 per ADS, above the top end of its initial price range.

Zhen Zhou, Toh

NIO Inc. EM Stock Pickers Take Wide Berth

EM active funds are running a sizeable underweight in NIO Inc (NIO US). Despite rising ownership levels, average holding weights are failing to...

Steven Holden

E-Commerce Wars in Japan: How Z Holdings Is Facing off Against Rakuten and Amazon

2020 boosted the fortunes of the big 3 e-commerce platforms in Japan but Z Holdings remains far behind Amazon Japan and Rakuten in sales volume and...

Michael Causton

Bilibili: Diversified Revenue Streams and Impressive Top Line Growth Justify Current Multiples

we believe Bilibili should be considered as a comprehensive internet stock rather than a streaming platform given its growing exposure into other...

Shifara Samsudeen, ACMA, CGMA

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