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.

Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/coupang" target="_blank" data-smartkarma-citation="entities:28425:1" rel="noopener">Coupang (CPNG US)</a> is the largest e-commerce platform in South Korea, according to Euromonitor. Coupang is best known for Rocket Delivery, which provides free, next-day delivery for orders placed any time of the day.</p></div><div><p>Coupang has priced its IPO at $35 per share, above the previously upsized IPO price range of $32-34 per share. The number of the offer shares has increased from 120 million to 130 million shares due to a 10 million shares increase in the secondary tranche. At the final IPO price of $35 per share, Coupang will have a market cap of $60 billion. </p></div><div><p>In <a href="https://www.smartkarma.com/insights/coupang-ipo-initiation-delivering-the-goods" target="_blank" data-smartkarma-citation="insights:48125" rel="noopener">Coupang IPO Initiation: Delivering the Goods</a>, we opined that Coupang's fundamentals tick all the right boxes and worth a look, in our view. In <a href="https://www.smartkarma.com/insights/coupang-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:48708" rel="noopener">Coupang IPO: Valuation Insights</a> we noted was attractively priced for its growth potential vs global e-commerce peers at the original IPO price range of $27-30 per share. In <a href="https://www.smartkarma.com/insights/coupang-ipo-upsized-deal-size" target="_blank" data-smartkarma-citation="insights:48991" rel="noopener">Coupang IPO: Upsized Deal Size</a>, Coupang remained attractive at the upsized IPO price range of $32-34 per share.</p></div><div><div class="content-highlight"><p>Updating for the final IPO net raise, our base-case DCF derived price target of $39.46 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price has reasonable upside potential. </p></div></div>

Coupang (CPNG US) is the largest e-commerce platform in South Korea, according to Euromonitor. Coupang is best known for Rocket Delivery, which provides free, next-day delivery for orders placed any time of the day.Coupang has priced its IPO at $35 per share, above the previously upsized IPO price range of $32-34 per share. The number of the offer shares has increased from 120 million to 130 million shares due to a 10 million shares increase in the secondary tranche. At the final IPO price of $35 per share, Coupang will have a market cap of $60 billion. In Coupang IPO Initiation: Delivering the Goods, we opined that Coupang's fundamentals tick all the right boxes and worth a look, in our view. In Coupang IPO: Valuation Insights we noted was attractively priced for its growth potential vs global e-commerce peers at the original IPO price range of $27-30 per share. In Coupang IPO: Upsized Deal Size, Coupang remained attractive at the upsized IPO price range of $32-34 per share.Updating for the final IPO net raise, our base-case DCF derived price target of $39.46 per share. As DCF-based target prices are subject to a wide range of variability, we present a sensitivity table to help investors gauge where target prices could head. Our DCF sensitivity analysis shows that the IPO price has reasonable upside potential. 

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<div class="content-highlight">
<p><a href="https://finance.yahoo.com/news/1-softbank-backed-coupang-reveals-134723758.html" target="_blank" rel="noopener">Coupang</a>, the largest e-commerce company in Korea, is getting ready to complete its IPO in the New York Stock Exchange in the next few weeks. Coupang is aiming for a valuation of nearly <strong>$50 billion.</strong> This IPO is expected to be the largest IPO by an non-US company in the United States since the Alibaba IPO in 2014. Coupang was last valued at $9 billion in its last private fund raising around 2018. The IPO placeholder is put at $1 billion but this amount is likely to be raised much further. </p>
<p>Coupang has received nearly $3 billion from Softbank and Softbank's Vision Fund since the inception of the company. Other major investors of Coupang include Blackrock, Sequoia Capital, and Bill Ackman. Major underwriters of the Coupang IPO include Goldman Sachs, Allen &amp; Co, JP Morgan, BofA Securities and Citigroup. </p>
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Coupang, the largest e-commerce company in Korea, is getting ready to complete its IPO in the New York Stock Exchange in the next few weeks. Coupang is aiming for a valuation of nearly $50 billion. This IPO is expected to be the largest IPO by an non-US company in the United States since the Alibaba IPO in 2014. Coupang was last valued at $9 billion in its last private fund raising around 2018. The IPO placeholder is put at $1 billion but this amount is likely to be raised much further. 
Coupang has received nearly $3 billion from Softbank and Softbank's Vision Fund since the inception of the company. Other major investors of Coupang include Blackrock, Sequoia Capital, and Bill Ackman. Major underwriters of the Coupang IPO include Goldman Sachs, Allen &amp; Co, JP Morgan, BofA Securities and Citigroup. 


Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/180/980/original/BANNER-BoxDec20.png?1609781008" class="editor-image img-responsive" data-smartkarma-image-id="180980"></figure></section><p>Within container shipping space, recent share price performance suggests investors believe the benefits of the cyclical upturn will mainly accrue to carriers like <a href="https://www.smartkarma.com/entities/evergreen-marine-corp-ltd" target="_blank" data-smartkarma-citation="entities:15428:1" rel="noopener">Evergreen Marine Corp (2603 TT)</a>.</p><p>To maintain a positive view on container carriers in the near- and medium-term, investors must embrace several key assumptions regarding demand, supply, and fuel prices. We lay out five of these key assumptions and the risks associated with them. </p><p>We conclude that investors may not fully appreciate all the risks facing the sector in early 2021. </p>

Within container shipping space, recent share price performance suggests investors believe the benefits of the cyclical upturn will mainly accrue to carriers like Evergreen Marine Corp (2603 TT).To maintain a positive view on container carriers in the near- and medium-term, investors must embrace several key assumptions regarding demand, supply, and fuel prices. We lay out five of these key assumptions and the risks associated with them. We conclude that investors may not fully appreciate all the risks facing the sector in early 2021. 

The Shaky Assumptions Behind Recent Strong Performance of Asian Container Carriers

Chief Economist

Diana Choyleva

Enodo Economics

Enodo Economics is an independent macroeconomic forecasting company that untangles complexity, challenges the consensus, and makes sense of the future. Our focus is on China – one of the most misunderstood economies in the world, but one of the most important to figure out.  Enodo’s chief economist, Diana Choyleva, has been analysing China for almost 20 years, while Enodo’s team boasts a combined 140 years’ experience covering China’s economy, politics and markets. 

Macroeconomics

<h2>China News That Matters</h2><ul>
<li>WHO to visit Wuhan, finally</li>
<li>So much to sell, so few containers to use</li>
<li>Cheap veg! Sign up now!</li>
<li>Toymaker Pop Mart has winning formula, for now</li>
</ul><div class="content-remarks"><p>In my weekly digest China News That Matters, I will give you selected summaries, sourced from a variety of local Chinese-language and international news outlets, and highlight why I think the news is significant. These posts are meant to neither be bullish nor bearish, but help you separate the signal from the noise.</p></div>

China News That Matters
WHO to visit Wuhan, finally
So much to sell, so few containers to use
Cheap veg! Sign up now!
Toymaker Pop Mart has winning formula, for now
In my weekly digest China News That Matters, I will give you selected summaries, sourced from a variety of local Chinese-language and international news outlets, and highlight why I think the news is significant. These posts are meant to neither be bullish nor bearish, but help you separate the signal from the noise.

Huisen Household International Group Limited / Equity Capital Markets

Huisen Household International Group Limited

<p><a href="https://www.smartkarma.com/entities/huisen-household-international-group-limited" target="_blank" data-smartkarma-citation="entities:31078:1" rel="noopener">Huisen Household International (2127 HK)</a> is the largest panel furniture exporter in terms of export value in China with a 3.92% market share in 2019, according to Frost &amp; Sullivan. Huisen has launched a Hong Kong IPO to raise net proceeds of HK$1,228.8 million ($160 million) at the mid-point of the IPO price range. </p><p>Unsurprisingly, due to the covid-19 outbreak, the export value of the PRC panel furniture will decline by 10% YoY to RMB73.5 billion in 2020, according to Frost &amp; Sullivan. Due to this decline in market growth, Huisen guides to a slight decrease in revenue and gross profit in 2020. Encouragingly, the export value of the PRC panel furniture is expected to recover gradually at a 3.2% CAGR from 2020 to 2024. Huisen is well placed to benefit from this growth as it is the largest panel furniture exporter in China.</p><div class="content-highlight"><p>As a sign of confidence, most of the IPO proceeds will be used to establish a new manufacturing factory and construct the second phase of an existing factory. Overall, we believe that Huisen’s fundamentals are attractive.</p></div>

Huisen Household International (2127 HK) is the largest panel furniture exporter in terms of export value in China with a 3.92% market share in 2019, according to Frost &amp; Sullivan. Huisen has launched a Hong Kong IPO to raise net proceeds of HK$1,228.8 million ($160 million) at the mid-point of the IPO price range. Unsurprisingly, due to the covid-19 outbreak, the export value of the PRC panel furniture will decline by 10% YoY to RMB73.5 billion in 2020, according to Frost &amp; Sullivan. Due to this decline in market growth, Huisen guides to a slight decrease in revenue and gross profit in 2020. Encouragingly, the export value of the PRC panel furniture is expected to recover gradually at a 3.2% CAGR from 2020 to 2024. Huisen is well placed to benefit from this growth as it is the largest panel furniture exporter in China.As a sign of confidence, most of the IPO proceeds will be used to establish a new manufacturing factory and construct the second phase of an existing factory. Overall, we believe that Huisen’s fundamentals are attractive.

Huisen Household IPO Initiation: Part of the Furniture

United States

Walmart Inc. operates discount stores, supercenters, and neighborhood markets. The Company offers merchandise such as apparel, house wares, small appliances, electronics, musical instruments, books, home improvement, shoes, jewelry, toddler, games, household essentials, pets, pharmaceutical products, party supplies, and automotive tools. Walmart serves customers worldwide.

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Walmart (WMT US)

Coupang IPO: Trading Debut

Coupang has priced its IPO at $35 per share, above the previously upsized IPO price range of $32-34 per share. Our DCF sensitivity analysis shows...

Arun George

Coupang IPO Preview

Coupang, the largest e-commerce company in Korea, is getting ready to complete its IPO in the New York Stock Exchange in the next few weeks....

Douglas Kim

The Shaky Assumptions Behind Recent Strong Performance of Asian Container Carriers

Container carriers have performed very well since mid-2020, and we concede we underestimated the strength of spot rates in recent weeks. But...

Tracking Traffic

Covid-19/ Economy/ Group Buying/ IPOs

In my weekly digest, I will give you selected summaries, sourced from a variety of local Chinese-language and international news outlets, and...

Diana Choyleva

Huisen Household IPO Initiation: Part of the Furniture

Huisen has launched an HK IPO to raise net proceeds of $160 million at the mid-point of the IPO price range. Overall, we believe that Huisen’s...

Arun George

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