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 Capital Markets

Cainiao Smart Logistics Network / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cainiao-smart-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:36859:1" rel="noopener">Cainiao Smart Logistics (1437124D HK)</a> 's March 2023 quarterly and full-year results can be found within Alibaba's full-year earnings report, which was released on Thursday May 18</li>
<li>In both the March quarter and its fiscal year, CaiNiao showed improved Adjusted EBITDA results, though in both periods the tech-centric logistics network still reported losses</li>
<li>Revenue growth slowed to 18% Y/Y in the March quarter, and parent <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (ADR) (BABA US)</a> indicated CaiNiao will target an IPO in 2024, a bit later than some expected</li>
</ul>



Cainiao Smart Logistics (1437124D HK) 's March 2023 quarterly and full-year results can be found within Alibaba's full-year earnings report, which was released on Thursday May 18
In both the March quarter and its fiscal year, CaiNiao showed improved Adjusted EBITDA results, though in both periods the tech-centric logistics network still reported losses
Revenue growth slowed to 18% Y/Y in the March quarter, and parent Alibaba (ADR) (BABA US) indicated CaiNiao will target an IPO in 2024, a bit later than some expected


Full-Year Results for Alibaba's CaiNiao: Reduced Losses, Slower Growth, and A (Likely) 2024 IPO

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (ADR) (BABA US)</a>'s multi-faceted logistics unit <a href="https://www.smartkarma.com/entities/cainiao-smart-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:36859:1" rel="noopener">Cainiao Smart Logistics (1437124D HK)</a> may seek an IPO in Hong Kong before the end of 2023, according to media reports</li>
<li>In this piece we look at why CaiNiao is being spun off <em>now</em>, what the company actually does (and doesn't do), what its likely comps are, and more</li>
<li>CaiNiao is unique, but we can begin to understand its position and its valuation by comparing it to <a href="https://www.smartkarma.com/entities/jd-logistics" target="_blank" data-smartkarma-citation="entities:31500:1" rel="noopener">JD Logistics (2618 HK)</a> and <a href="https://www.smartkarma.com/entities/maanshan-dingtai-rare-a" target="_blank" data-smartkarma-citation="entities:4128:1" rel="noopener">S.F. Holding (002352 CH)</a>
</li>
</ul>



Alibaba (ADR) (BABA US)'s multi-faceted logistics unit Cainiao Smart Logistics (1437124D HK) may seek an IPO in Hong Kong before the end of 2023, according to media reports
In this piece we look at why CaiNiao is being spun off now, what the company actually does (and doesn't do), what its likely comps are, and more
CaiNiao is unique, but we can begin to understand its position and its valuation by comparing it to JD Logistics (2618 HK) and S.F. Holding (002352 CH)



TRACKING TRAFFIC/Alibaba Logistics Arm CaiNiao May Seek HK IPO Soon

<ul>
<li>Within <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (ADR) (BABA US)</a>'s June quarter results, the numbers from logistics arm <a href="https://www.smartkarma.com/entities/cainiao-smart-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:36859:1" rel="noopener">Cainiao Smart Logistics (1437124D HK)</a> stood out: revenue up 34% Y/Y, &amp; EBITA turned to +ive</li>
<li>In this insight we attempt to place Cainiao's stellar results into context: it grew far faster than parent Alibaba's revenue, but also faster than Chinese e-comm and Chinese express</li>
<li>As Cainiao preps for its IPO, its June results should boost investors' confidence. The numbers also hint at what is driving Cainiao's recent performance, and which indicators to watch</li>
</ul>


Within Alibaba (ADR) (BABA US)'s June quarter results, the numbers from logistics arm Cainiao Smart Logistics (1437124D HK) stood out: revenue up 34% Y/Y, &amp; EBITA turned to +ive
In this insight we attempt to place Cainiao's stellar results into context: it grew far faster than parent Alibaba's revenue, but also faster than Chinese e-comm and Chinese express
As Cainiao preps for its IPO, its June results should boost investors' confidence. The numbers also hint at what is driving Cainiao's recent performance, and which indicators to watch


With A Long-Anticipated IPO on the Horizon, Alibaba's Cainiao Posts Stellar June Quarter Results

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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cainiao-smart-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:36859:1" rel="noopener">Cainiao Smart Logistics</a> ,  <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group Holding (9988 HK)</a>’s logistics linked arm, is planning to raise at least US$1bn in its Hong Kong IPO.</li>
<li>Cainiao is the largest provider of cross-border e-commerce logistics services globally and a leader in China logistics services, according to CIC.</li>
<li>In this note, we talk about the positive aspects of the deal.</li>
</ul>



Cainiao Smart Logistics ,  Alibaba Group Holding (9988 HK)’s logistics linked arm, is planning to raise at least US$1bn in its Hong Kong IPO.
Cainiao is the largest provider of cross-border e-commerce logistics services globally and a leader in China logistics services, according to CIC.
In this note, we talk about the positive aspects of the deal.


Cainiao Pre-IPO - The Postivies - Evolving into a Global Player, Decent Revenue Growth

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.

Alibaba Group Holding  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (ADR) (BABA US)</a> aims to complete the IPO of <a href="https://www.smartkarma.com/entities/cainiao-smart-logistics-network-ltd" target="_blank" data-smartkarma-citation="entities:36859:1" rel="noopener">Cainiao Smart Logistics (1437124D HK)</a> in the next 12 to 18 months. Alibaba holds a 67% stake in Cainiao. </li>
<li>Cainiao's revenue growth, while on a declining trend, remains in double digits. Encouragingly. narrowing losses set a path to profitability.</li>
<li>On 30 March, Bloomberg reported that Cainiao is currently valued at more than US$20 billion. Our valuation analysis suggests that such a valuation is justifiable.</li>
</ul>



Alibaba (ADR) (BABA US) aims to complete the IPO of Cainiao Smart Logistics (1437124D HK) in the next 12 to 18 months. Alibaba holds a 67% stake in Cainiao. 
Cainiao's revenue growth, while on a declining trend, remains in double digits. Encouragingly. narrowing losses set a path to profitability.
On 30 March, Bloomberg reported that Cainiao is currently valued at more than US$20 billion. Our valuation analysis suggests that such a valuation is justifiable.


China

ZTO Express (Cayman) Inc. operates as an express delivery company. The Company provides express delivery service through their nationwide network, as well as other value-added logistics services. ZTO Express serves customers globally.

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ZTO Express Cayman (ZTO US)

Full-Year Results for Alibaba's CaiNiao: Reduced Losses, Slower Growth, and A (Likely) 2024 IPO

In response to the news CaiNiao Smart Logistics has applied to list its shares in Hong Kong, we're re-upping this insight

Tracking Traffic

TRACKING TRAFFIC/Alibaba Logistics Arm CaiNiao May Seek HK IPO Soon

In response to the news CaiNiao Smart Logistics has applied to list its shares in Hong Kong, we're re-upping this insight

Tracking Traffic

With A Long-Anticipated IPO on the Horizon, Alibaba's Cainiao Posts Stellar June Quarter Results

In response to the news CaiNiao Smart Logistics has applied to list its shares in Hong Kong, we're re-upping this insight

Tracking Traffic

Cainiao Pre-IPO - The Postivies - Evolving into a Global Player, Decent Revenue Growth

Cainiao Smart Logistics , Alibaba Group Holding (9988 HK)’s logistics linked arm, is planning to raise at least US$1bn in its Hong Kong IPO.

Sumeet Singh

Alibaba’s Cainiao IPO: The First Look

Alibaba has submitted a listing plan to HKEx to spin-off Cainiao. After the spin-off, Alibaba will hold over 50% of outstanding shares. The share...

Arun George

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