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

<a href="https://www.smartkarma.com/entities/27351" target="_blank" data-smartkarma-citation="entities:27351:1">Babytree Inc (BABYTRE HK)</a> could be looking to raise as much as US$800m in its planned IPO. I covered most aspects of the deal in my earlier insight, <a href="https://www.smartkarma.com/insights/babytree-group-pre-ipo-young-moms-need-it-but-almost-all-seem-to-have-it-might-be-at-peak-mau" target="_blank">Babytree Group Pre-IPO - Young Moms Need It but Almost All Seem to Have It, Might Be at Peak MAU</a>. 
Since then there has been negative newsflow regarding its MAU slump but that doesn't seem to have deterred the bankers from putting up lofty valuation range of US$2.5-4.3bn, as per media reports.
While waiting for the company to file its PHIP with updated 1H18 performance,  I have been fielding some questions around valuations. In this insight, I'll try and come up with a few plausible valuation scenarios.

Babytree Inc (BABYTRE HK) could be looking to raise as much as US$800m in its planned IPO. I covered most aspects of the deal in my earlier insight, Babytree Group Pre-IPO - Young Moms Need It but Almost All Seem to Have It, Might Be at Peak MAU. 
Since then there has been negative newsflow regarding its MAU slump but that doesn't seem to have deterred the bankers from putting up lofty valuation range of US$2.5-4.3bn, as per media reports.
While waiting for the company to file its PHIP with updated 1H18 performance,  I have been fielding some questions around valuations. In this insight, I'll try and come up with a few plausible valuation scenarios.

Babytree Group Pre-IPO - Valuation Estimates - Even the Last Round Might Have Been Too High

CHINA - Healthcare, Steel, Autos, Education, Research From Beijing

Scott Laprise/ 乐天虎

CHINA - Healthcare, Steel, Autos, Education

Research From Beijing

We try to provide our clients with on the ground research of what is really going on here in China.

Our business goal and focus are to provide on the ground research This will give our clients an early look at changes about to happen in China and to give them an edge.

To have the ability to go out and check a car dealer or visit a hospital or go see any new launches in the market. We have regular products such as our steel monthly, a visit to the traders and discuss with them what they see. The steel trader visit gives a great early proxy to spending by the government. We do weekly car dealer visits to see how the car companies are doing but this is also a proxy to the consumer and how is the consumer thinking these days. We visit school and hospitals and attend events to find out what people are really thinking.

Our primary method of research is fundamental research starting with a neutral view, analyzing the financials and building the case for the company. We rarely look at the news as we have found the views to be incomplete lacking the understanding of Chinese thinking. We strive for a fresh differential view on the Chinese stocks. Most Chinese research is made by analysts reading the news and reading other Chinese analysts giving clients the same old view. We also try to give you a better understanding of how the Chinese look at issues. The English media tends to focus on examining issues from the western view giving investors often an incomplete view.

If you want your research done by professionals on the ground who are able to give you early feedback instead of most research taking a long distance view driven by the media. This is our value proposition: focused on the ground research to limited clients. We think this is the best way to give you the best chance to generate alpha for your funds.

Equity Bottom-Up

This strength in consumer spending is counter to the views of most Chinese foreign-based analysts. Consumption is much stronger than consensus is expecting. We have just written a 31 page NON-CONSESNUS report on China’s debt and the state of the economy, let me know if you are interested in this report.

This strength in consumer spending is counter to the views of most Chinese foreign-based analysts. Consumption is much stronger than consensus is expecting. We have just written a 31 page NON-CONSESNUS report on China’s debt and the state of the economy, let me know if you are interested in this report.

China Singles Day – Consensus Is Wrong on Chinese Consumers and Consumption

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.

<a href="https://www.smartkarma.com/entities/27761" target="_blank" data-smartkarma-citation="entities:27761:1">Mogu (MOGU US)</a> is a leading fashion and lifestyle e-commerce platform in China, backed by <a href="https://www.smartkarma.com/entities/26" target="_blank" data-smartkarma-citation="entities:26:1">Tencent Holdings (700 HK)</a> which an 18% shareholder. Users access MOGU primarily through the Mogujie app and Mini Programs on Weixin. It plans to list on the NYSE to raise $200 million, a significant decline from the $500 million target in July, as reported by Caixin Global. <div class="content-highlight">MOGU hopes to distract investors from its uninspiring financials through the promise of tapping into China's young generation. However, MOGU's claims to be a leading online fashion destination sits uncomfortably with a loss of market share, stagnating growth in active buyers and material cash burn.</div>

Mogu (MOGU US) is a leading fashion and lifestyle e-commerce platform in China, backed by Tencent Holdings (700 HK) which an 18% shareholder. Users access MOGU primarily through the Mogujie app and Mini Programs on Weixin. It plans to list on the NYSE to raise $200 million, a significant decline from the $500 million target in July, as reported by Caixin Global. MOGU hopes to distract investors from its uninspiring financials through the promise of tapping into China's young generation. However, MOGU's claims to be a leading online fashion destination sits uncomfortably with a loss of market share, stagnating growth in active buyers and material cash burn.

Investment Advisors, JL Warren Capital

Junheng Li

Investment Advisors

JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Thematic (Sector/Industry)

The initial results of <a href="https://www.smartkarma.com/entities/787" target="_blank" data-smartkarma-citation="entities:787:1">Alibaba Group Holding (BABA US)</a> Singles’ Day Shopping Festival which concluded at 11 am ET today came out to be largely in line with the high end of the street expectations.  BABA and <a href="https://www.smartkarma.com/entities/446" target="_blank" data-smartkarma-citation="entities:446:1">Jd.Com Inc (Adr) (JD US)</a> announced 27% and 26% year-over-year growth in GMV, respectively. The headline data should ease investors’ escalating anxiety over China’s macro slowdown, as these results clearly demonstrate that Chinese consumers are still buying the bargains. On the other hand, our tracking indicates that <a href="https://www.smartkarma.com/entities/24184" target="_blank" data-smartkarma-citation="entities:24184:1">Baozun Inc. (BZUN US)</a>, the largest ecommerce service provider servicing brand retailers such as NKE, ADI, Zara, Huawei, GOOS, UA are under pressure in meeting its sales target on Nov 11st.

The initial results of Alibaba Group Holding (BABA US) Singles’ Day Shopping Festival which concluded at 11 am ET today came out to be largely in line with the high end of the street expectations.  BABA and Jd.Com Inc (Adr) (JD US) announced 27% and 26% year-over-year growth in GMV, respectively. The headline data should ease investors’ escalating anxiety over China’s macro slowdown, as these results clearly demonstrate that Chinese consumers are still buying the bargains. On the other hand, our tracking indicates that Baozun Inc. (BZUN US), the largest ecommerce service provider servicing brand retailers such as NKE, ADI, Zara, Huawei, GOOS, UA are under pressure in meeting its sales target on Nov 11st.   

2018 China’s Singles’ Day GMV Review - First Cut

Founder, Riedel Research

David Riedel

Founder

Independent equity research on GEM Markets

Riedel Research

Riedel provides equity research and analysis to leading financial organizations. By becoming members of a region (Asia, Latin America, Emerging Europe or Global), organizations have access to an integrated set of services including:

Regular company coverage reports
Up-to-date investment decision advice (buy, hold, sell)
Monthly regional and global conference calls
Customized company reports and unlimited on-line access to the program's services.

Riedel provides research coverage of companies across the full range of market capitalization. Experienced research professionals in each market develop company reports and analysis as well as earnings models and projections. Ratings are Buy, Hold and Sell with a focus on compelling investment ideas - both long and short. Downloadable, dynamic earnings models are built to facilitate sensitivity analysis.

Please feel free to contact us for complimentary access to our written research.  We want to show you that our unique research flow can add value and help develop a long-term, high value-add relationship.

Riedel's model focuses on providing clients with unique insights and consulting in addition to unlimited access to all produced research This model allows members to receive exponential benefits for their retainer fees.

<ul>
<li>Are Lower Oil Prices Linked to Underlying Weakness? Impact of Trade War on 2019 Growth Outlook</li>
<li>China: October showed very strong trade numbers for China. Exports rose 15.6% and imports were up 21.4% after increasing 14.3% in the prior month.</li>
<li>Turkey: Inflation remains rampant. The CPI in October rose 25.24% y/y - highest rate since July 2003. Not a good situation.</li>
<li>Brazil: The CPI in October rose 4.56% the main upward pressure came from prices of food and fuels. 
</li>
</ul>


Are Lower Oil Prices Linked to Underlying Weakness? Impact of Trade War on 2019 Growth Outlook
China: October showed very strong trade numbers for China. Exports rose 15.6% and imports were up 21.4% after increasing 14.3% in the prior month.
Turkey: Inflation remains rampant. The CPI in October rose 25.24% y/y - highest rate since July 2003. Not a good situation.
Brazil: The CPI in October rose 4.56% the main upward pressure came from prices of food and fuels.  



RRG EM Macro Weekly - Outlook for 2019 in Focus - Lower Oil and Rising Trade Impact

China

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Alibaba (9988 HK)

Babytree Group Pre-IPO - Valuation Estimates - Even the Last Round Might Have Been Too High

Babytree Inc (BABYTRE HK) could be looking to raise as much as US$800m in its planned IPO. I covered most aspects of the deal in my earlier...

Sumeet Singh

China Singles Day – Consensus Is Wrong on Chinese Consumers and Consumption

This strength in consumer spending is counter to the views of most Chinese foreign-based analysts. Consumption is much stronger than consensus is...

Scott Laprise/ 乐天虎

MOGU IPO Preview: Fading Fads

Mogu (MOGU US) is a leading fashion and lifestyle e-commerce platform in China, backed by Tencent Holdings (700 HK) which an 18% shareholder. Users...

Arun George

2018 China’s Singles’ Day GMV Review - First Cut

The initial results of Alibaba Group Holding (BABA US) Singles’ Day Shopping Festival which concluded at 11 am ET today came out to be largely in...

JL Warren Capital

RRG EM Macro Weekly - Outlook for 2019 in Focus - Lower Oil and Rising Trade Impact

Are Lower Oil Prices Linked to Underlying Weakness? Impact of Trade War on 2019 Growth Outlook China: October showed very strong trade numbers for...

David Riedel

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)