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

Weilong Delicious Global Holdi / Equity Capital Markets

<ul>
<li>Weilong Delicious Global (WDG), a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO.</li>
<li>According to F&amp;S, WDG ranked first among spicy snack food enterprises in China, with a market share of 5.7%, and in the seasoned flour product and spicy vegetable snacks categories.</li>
<li>In this note, we will undertake a peer comparison and look at valuations.</li>
</ul>


Weilong Delicious Global (WDG), a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO.
According to F&amp;S, WDG ranked first among spicy snack food enterprises in China, with a market share of 5.7%, and in the seasoned flour product and spicy vegetable snacks categories.
In this note, we will undertake a peer comparison and look at valuations.


Weilong Delicious Global Pre-IPO - Peer Comparison and Valuation

<ul>
<li>Weilong Delicious Global (WDG), a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO.</li>
<li>According to F&amp;S, WDG ranked first among spicy snack food enterprises in China, with a market share of 5.7%, and in the seasoned flour product and spicy vegetable snacks categories.</li>
<li>In this note, we will look at the updates from its recently filed PHIP.</li>
</ul>


Weilong Delicious Global (WDG), a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO.
According to F&amp;S, WDG ranked first among spicy snack food enterprises in China, with a market share of 5.7%, and in the seasoned flour product and spicy vegetable snacks categories.
In this note, we will look at the updates from its recently filed PHIP.


Weilong Delicious Global Pre-IPO - PHIP Updates - Mixed Bag 1H21 Performance

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/china-dongxiang-group-co" target="_blank" data-smartkarma-citation="entities:1068:1" rel="noopener">China Dongxiang Group Co (3818 HK)</a> is due to announce its FY21 result (Year end Mar) on next Wednesday (23 Jun). Its share price has rallied by 32.2% since we wrote <a href="https://www.smartkarma.com/insights/china-dongxiang-3818-hk-it-s-not-a-sportswear-company-it-s-a-cheap-investment-fund" target="_blank" data-smartkarma-citation="insights:48560" rel="noopener">China Dongxiang (3818 HK): It's Not a Sportswear Company....It's a Cheap Investment Fund</a>. Despite so, we still like the stock and believe it will report an encouraging recovery story in next week.</p><p>Specifically, we highlight in this Insight three things to expect in the result: 1.) solid rebound in sportswear business with 30%+ YoY gross profit growth for China in 2H FY21; 2.) investment income stays good based on its equity holdings' performance; and 3.) high dividend payout with potential resumption of special dividends after passed in 1H FY21. </p>

China Dongxiang Group Co (3818 HK) is due to announce its FY21 result (Year end Mar) on next Wednesday (23 Jun). Its share price has rallied by 32.2% since we wrote China Dongxiang (3818 HK): It's Not a Sportswear Company....It's a Cheap Investment Fund. Despite so, we still like the stock and believe it will report an encouraging recovery story in next week.Specifically, we highlight in this Insight three things to expect in the result: 1.) solid rebound in sportswear business with 30%+ YoY gross profit growth for China in 2H FY21; 2.) investment income stays good based on its equity holdings' performance; and 3.) high dividend payout with potential resumption of special dividends after passed in 1H FY21. 

China Dongxiang (3818 HK): What Can We Expect from the Final Result?

<div><p>Weilong Delicious Global (WDG), a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO. </p></div><div><p>WDG sells products across three categories: seasoned flour products,  vegetable products and Bean-based and other products. According to Frost &amp; Sullivan (F&amp;S), in terms of retail sales value in 2020, WDG ranked first among all spicy snack food enterprises in China, with a market share of 5.7%, and ranked first in each of the seasoned flour product and spicy vegetable snack product categories.</p></div><div>
<p>We covered the positive aspects of the deal in our earlier note, <a href="https://www.smartkarma.com/insights/weilong-delicious-global-pre-ipo-the-positives-fast-growth-strong-backers" target="_blank" rel="noopener">Weilong Delicious Global Pre-IPO - The Positives - Fast Growth, Strong Backers.</a></p>
<p>In this note we will talk about some of the not so flattering aspects of the deal.</p>
</div>

Weilong Delicious Global (WDG), a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO. WDG sells products across three categories: seasoned flour products,  vegetable products and Bean-based and other products. According to Frost &amp; Sullivan (F&amp;S), in terms of retail sales value in 2020, WDG ranked first among all spicy snack food enterprises in China, with a market share of 5.7%, and ranked first in each of the seasoned flour product and spicy vegetable snack product categories.
We covered the positive aspects of the deal in our earlier note, Weilong Delicious Global Pre-IPO - The Positives - Fast Growth, Strong Backers.
In this note we will talk about some of the not so flattering aspects of the deal.


Weilong Delicious Global Pre-IPO - The Negatives - Spicy Valuation

<p>Weilong Delicious Global (WDG), a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO. </p><p>WDG sells products across three categories: seasoned flour products,  vegetable products and Bean-based and other products. According to Frost &amp; Sullivan (F&amp;S), in terms of retail sales value in 2020, WDG ranked first among all spicy snack food enterprises in China, with a market share of 5.7%, and ranked first in each of the seasoned flour product and spicy vegetable snack product categories.</p><p>Overall revenue growth has been strong at 23% YoY in 2019 and 21.7% in 2020 driven both by an increase in volumes and prices over 2019-20. Vegetable products have been the fastest growing category with a CAGR of 98% over FY18-20.</p><p>Along with strong revenue growth, WDG gross profit growth has been even stronger, with gross profit growing by 25-31% YoY over 2018-20. PAT grew at 25-38% over 2018-20.</p>

Weilong Delicious Global (WDG), a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO. WDG sells products across three categories: seasoned flour products,  vegetable products and Bean-based and other products. According to Frost &amp; Sullivan (F&amp;S), in terms of retail sales value in 2020, WDG ranked first among all spicy snack food enterprises in China, with a market share of 5.7%, and ranked first in each of the seasoned flour product and spicy vegetable snack product categories.Overall revenue growth has been strong at 23% YoY in 2019 and 21.7% in 2020 driven both by an increase in volumes and prices over 2019-20. Vegetable products have been the fastest growing category with a CAGR of 98% over FY18-20.Along with strong revenue growth, WDG gross profit growth has been even stronger, with gross profit growing by 25-31% YoY over 2018-20. PAT grew at 25-38% over 2018-20.

Weilong Delicious Global Pre-IPO - The Positives - Fast Growth, Strong Backers

China

Tsingtao Brewery Company Limited produces and distributes beer products.  The Company markets its products throughout China and around the world under the Tsingtao Beer brand name.

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Tsingtao Brewery Co Ltd A (600600 CH)

Weilong Delicious Global Pre-IPO - Peer Comparison and Valuation

Weilong Delicious Global (WDG), a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO. In this note, we undertake a...

Sumeet Singh

Weilong Delicious Global Pre-IPO - PHIP Updates - Mixed Bag 1H21 Performance

Weilong Delicious Global (WDG), a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO. In this note we talk about...

Sumeet Singh

China Dongxiang (3818 HK): What Can We Expect from the Final Result?

We see CNDX to post good FY21 result next Weds, with things to watch include good recovery at sportswear business, solid performance from...

Osbert Tang, CFA

Weilong Delicious Global Pre-IPO - The Negatives - Spicy Valuation

Weilong Delicious Global, a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO. The company was recently backed by...

Sumeet Singh

Weilong Delicious Global Pre-IPO - The Positives - Fast Growth, Strong Backers

Weilong Delicious Global, a spicy snack food company in China, aims to raise around US$1bn in its Hong Kong IPO. It recently undertook a pre-IPO...

Sumeet Singh

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