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/netjoy" target="_blank" data-smartkarma-citation="entities:29729:1" rel="noopener">Netjoy (2131 HK)</a> is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. At the proposed IPO price range of HK$5.56-7.08 per share, Netjoy will have a market cap of HK$4,448-5,664 million ($574-731 million). At the mid-point of the IPO price range, the total net proceeds are HK$1,166.6 million ($151 million). </p></div><div><p>Six cornerstone investors will subscribe for $39 million of the offer shares (23.91% of the offer shares at the mid-point of the price range). The cornerstone investors are Affin Hwang Asset Management, HSBC Global Asset Management, Pacific Asset Management, Seedlings Fund, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> and SenseTime.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/netjoy-ipo-initiation-joy-divisions" target="_blank" data-smartkarma-citation="insights:46112" rel="noopener">Netjoy IPO Initiation: Joy Divisions</a>, we stated that for investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. Overall, we would participate in the IPO due to an attractive IPO price range.</p></div></div></div>

Netjoy (2131 HK) is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. At the proposed IPO price range of HK$5.56-7.08 per share, Netjoy will have a market cap of HK$4,448-5,664 million ($574-731 million). At the mid-point of the IPO price range, the total net proceeds are HK$1,166.6 million ($151 million). Six cornerstone investors will subscribe for $39 million of the offer shares (23.91% of the offer shares at the mid-point of the price range). The cornerstone investors are Affin Hwang Asset Management, HSBC Global Asset Management, Pacific Asset Management, Seedlings Fund, Xiaomi Corp (1810 HK) and SenseTime.In Netjoy IPO Initiation: Joy Divisions, we stated that for investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. Overall, we would participate in the IPO due to an attractive IPO price range.

<p><a href="https://www.smartkarma.com/entities/netjoy" target="_blank" data-smartkarma-citation="entities:29729:1" rel="noopener">Netjoy (2131 HK)</a> is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. Netjoy has launched a Hong Kong IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point of the IPO price range. </p><div class="content-highlight"><p>The IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. </p></div>

Netjoy (2131 HK) is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. Netjoy has launched a Hong Kong IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point of the IPO price range. The IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. 

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Quantitative Analysis

<p>Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods. </p><p>In the past 7 days, the top 3 companies that repurchased the most shares from the market were Bosideng International Holdings Limited (3998 HK) (HKD 30.7 million worth of buybacks), Jacobson Pharma (2633 HK) (HKD 13.1 million worth of buybacks), Duiba (1753 HK) (HKD 10.3 million worth of buybacks). There were 24 companies that repurchased shares in the market. These repurchases amounted to HKD 83.1 million.</p><p>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Xiaomi Corporation (1810 HK) (HKD 989.4 million worth of buybacks), Jacobson Pharma (2633 HK) (HKD 83.4 million worth of buybacks), Viva Biotech (1873 HK) (HKD 80.8 million worth of buybacks).</p><p>In the past 90 days, the top 3 companies that repurchased the most shares from the market were Xiaomi Corporation (1810 HK) (HKD 1,089.4 million worth of buybacks), Tencent Holdings Limited (700 HK) (HKD 233.2 million worth of buybacks), Viva Biotech (1873 HK) (HKD 104.8 million worth of buybacks). </p><p>In the past year, the top 3 companies that repurchased the most shares from the market were Xiaomi Corporation (1810 HK) (HKD 3,114.2 million worth of buybacks), Tencent Holdings Limited (700 HK) (HKD 1,125.6 million worth of buybacks), E-House (China) Enterprise Holdings Limited (2048 HK) (HKD 807.3 million worth of buybacks).</p>

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods. In the past 7 days, the top 3 companies that repurchased the most shares from the market were Bosideng International Holdings Limited (3998 HK) (HKD 30.7 million worth of buybacks), Jacobson Pharma (2633 HK) (HKD 13.1 million worth of buybacks), Duiba (1753 HK) (HKD 10.3 million worth of buybacks). There were 24 companies that repurchased shares in the market. These repurchases amounted to HKD 83.1 million.In the past 30 days, the top 3 companies that repurchased the most shares from the market were Xiaomi Corporation (1810 HK) (HKD 989.4 million worth of buybacks), Jacobson Pharma (2633 HK) (HKD 83.4 million worth of buybacks), Viva Biotech (1873 HK) (HKD 80.8 million worth of buybacks).In the past 90 days, the top 3 companies that repurchased the most shares from the market were Xiaomi Corporation (1810 HK) (HKD 1,089.4 million worth of buybacks), Tencent Holdings Limited (700 HK) (HKD 233.2 million worth of buybacks), Viva Biotech (1873 HK) (HKD 104.8 million worth of buybacks). In the past year, the top 3 companies that repurchased the most shares from the market were Xiaomi Corporation (1810 HK) (HKD 3,114.2 million worth of buybacks), Tencent Holdings Limited (700 HK) (HKD 1,125.6 million worth of buybacks), E-House (China) Enterprise Holdings Limited (2048 HK) (HKD 807.3 million worth of buybacks).

Hong Kong Buyback Weekly: Bosideng, Jacobson, Duiba

<p>Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods. </p><p>In the past 7 days, the top 3 companies that repurchased the most shares from the market were Duiba (1753 HK) (HKD 22.4 million worth of buybacks), Hkc (Holdings) (190 HK) (HKD 9.1 million worth of buybacks), Weimob Inc. (2013 HK) (HKD 7.7 million worth of buybacks). There were 30 companies that repurchased shares in the market. These repurchases amounted to HKD 82.8 million.</p><p>In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent Holdings Limited (700 HK) (HKD 233.2 million worth of buybacks), Xiaomi Corporation (1810 HK) (HKD 100.0 million worth of buybacks), Ronshine China Holdings Limited (3301 HK) (HKD 78.6 million worth of buybacks). </p><p>In the past 90 days, the top 3 companies that repurchased the most shares from the market were Tencent Holdings Limited (700 HK) (HKD 1,125.6 million worth of buybacks), Xiaomi Corporation (1810 HK) (HKD 924.8 million worth of buybacks), Country Garden Holdings Company Limited (2007 HK) (HKD 354.5 million worth of buybacks). </p><p>In the past year, the top 3 companies that repurchased the most shares from the market were Xiaomi Corporation (1810 HK) (HKD 2,124.8 million worth of buybacks), Tencent Holdings Limited (700 HK) (HKD 1,125.6 million worth of buybacks), Hengan International Group Company Limited (1044 HK) (HKD 904.4 million worth of buybacks). </p>

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top repurchases over one week, one month, one quarter and one year periods. In the past 7 days, the top 3 companies that repurchased the most shares from the market were Duiba (1753 HK) (HKD 22.4 million worth of buybacks), Hkc (Holdings) (190 HK) (HKD 9.1 million worth of buybacks), Weimob Inc. (2013 HK) (HKD 7.7 million worth of buybacks). There were 30 companies that repurchased shares in the market. These repurchases amounted to HKD 82.8 million.In the past 30 days, the top 3 companies that repurchased the most shares from the market were Tencent Holdings Limited (700 HK) (HKD 233.2 million worth of buybacks), Xiaomi Corporation (1810 HK) (HKD 100.0 million worth of buybacks), Ronshine China Holdings Limited (3301 HK) (HKD 78.6 million worth of buybacks). In the past 90 days, the top 3 companies that repurchased the most shares from the market were Tencent Holdings Limited (700 HK) (HKD 1,125.6 million worth of buybacks), Xiaomi Corporation (1810 HK) (HKD 924.8 million worth of buybacks), Country Garden Holdings Company Limited (2007 HK) (HKD 354.5 million worth of buybacks). In the past year, the top 3 companies that repurchased the most shares from the market were Xiaomi Corporation (1810 HK) (HKD 2,124.8 million worth of buybacks), Tencent Holdings Limited (700 HK) (HKD 1,125.6 million worth of buybacks), Hengan International Group Company Limited (1044 HK) (HKD 904.4 million worth of buybacks). 

Hong Kong Buyback Weekly: Duiba Leading the Buybacks in a Quiet Week

APAC IPOs & Placements

Zhen Zhou, Toh

<p><a href="https://www.smartkarma.com/entities/28027" target="_blank" data-smartkarma-citation="entities:28027:1">Duiba Group (1753 HK)</a> raised US$85m at HK$6 per share, the bottom end of its IPO price range. We have covered the IPO in:</p>
<ul>
<li><a href="https://www.smartkarma.com/insights/duiba-ipo-review-interactive-ad-leader" target="_blank" data-smartkarma-citation="insights:29251">Duiba (兑吧) IPO Review - Interactive Ad Leader</a></li>
<li><a href="https://www.smartkarma.com/insights/duiba-pre-ipo-review-a-case-of-successful-pivot-gamification-of-ads" target="_blank" data-smartkarma-citation="insights:29166">Duiba (兑吧) Pre-IPO Review - A Case of Successful Pivot - Gamification of Ads</a></li>
</ul>
<p>In this insight, we will update on the deal dynamics, implied valuation, and include a valuation sensitivity table.</p>

Duiba Group (1753 HK) raised US$85m at HK$6 per share, the bottom end of its IPO price range. We have covered the IPO in:

Duiba (兑吧) IPO Review - Interactive Ad Leader
Duiba (兑吧) Pre-IPO Review - A Case of Successful Pivot - Gamification of Ads

In this insight, we will update on the deal dynamics, implied valuation, and include a valuation sensitivity table.

Duiba (兑吧) Trading Update - Weak Debut but Still Has Upside

China

Duiba Group Limited operates as an advertising platform operator. The Company provides big data analysis, platform user operations management, mobile advertising, and other services. Duiba Group offers services in China.

Duiba Group (1753 HK)

Netjoy IPO: Valuation Insights

At the mid-point of the IPO price range, the total net proceeds are $151 million. We would participate in the IPO due to an attractive IPO price...

Arun George

Netjoy IPO Initiation: Joy Divisions

Netjoy has launched an HK IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point. For investors seeking Chinese adtech...

Arun George

Hong Kong Buyback Weekly: Bosideng, Jacobson, Duiba

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top...

Ke Yan, CFA, FRM

Hong Kong Buyback Weekly: Duiba Leading the Buybacks in a Quiet Week

Hong Kong Exchange publishes share repurchases by listed companies on a daily basis. In our weekly note, we will provide statistics on top...

Ke Yan, CFA, FRM

Duiba (兑吧) Trading Update - Weak Debut but Still Has Upside

Duiba Group (1753 HK) raised US$85m at HK$6 per share, the bottom end of its IPO price range. We have covered the IPO in: Duiba (兑吧) IPO Review -...

Zhen Zhou, Toh