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

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<p>Linklogis, a technology solution provider for supply chain finance in China raised around US$1bn in its Hong Kong IPO. Its early investors include Tencent, GIC and Standard Chartered Bank.</p>
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<p>We have covered various aspects of the deal in our earlier notes,</p>
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<ul style="list-style-type: disc;">
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<a href="https://www.smartkarma.com/insights/linklogis-pre-ipo-the-positives-fast-growing-blockchain-driven-supply-chain-financier" target="_blank" rel="noopener">Linklogis Pre-IPO - The Positives - Fast Growing Blockchain Driven Supply Chain Financier,</a> </li>
<li><a href="https://www.smartkarma.com/insights/linklogis-pre-ipo-the-negatives-inconsistent-growth-and-margins-well-funded-competitors" target="_blank" rel="noopener">Linklogis Pre-IPO - The Negatives - Inconsistent Growth and Margins, Well Funded Competitors, and</a></li>
<li><a href="https://www.smartkarma.com/insights/linklogis-pre-ipo-earnings-forecast-peer-comparison-and-first-stab-at-valuation" target="_blank" rel="noopener">Linklogis Pre-IPO - Earnings Forecast, Peer Comparison and First Stab at Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/linklogis-pre-ipo-phip-updates-nothing-to-complain-about" target="_blank" rel="noopener">Linklogis Pre-IPO - PHIP Updates - Nothing to Complain About</a></li>
<li><a href="https://www.smartkarma.com/insights/linklogis-ipo-pricey-for-a-reason" target="_blank" rel="noopener">Linklogis IPO - Pricey for a Reason</a></li>
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<p>In this note, we will talk about deal dynamics and updates since our last note.</p>
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Linklogis, a technology solution provider for supply chain finance in China raised around US$1bn in its Hong Kong IPO. Its early investors include Tencent, GIC and Standard Chartered Bank.


We have covered various aspects of the deal in our earlier notes,




Linklogis Pre-IPO - The Positives - Fast Growing Blockchain Driven Supply Chain Financier, 
Linklogis Pre-IPO - The Negatives - Inconsistent Growth and Margins, Well Funded Competitors, and
Linklogis Pre-IPO - Earnings Forecast, Peer Comparison and First Stab at Valuation
Linklogis Pre-IPO - PHIP Updates - Nothing to Complain About
Linklogis IPO - Pricey for a Reason



In this note, we will talk about deal dynamics and updates since our last note.


Linklogis IPO Trading - Decent but Not Hot Demand

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.

<div><p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (6601 HK)</a> is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. Cheerwin will commence trading on Wednesday, 10 March. Cheerwin priced its IPO at HK$9.20 and <a href="https://inews.hket.com/article/2896489/%E3%80%90%E6%96%B0%E8%82%A1IPO%E3%80%91%E6%9C%9D%E9%9B%B2%E9%9B%86%E5%9C%986601%E6%9A%97%E7%9B%A4%E8%B7%8C2%E6%88%90%E3%80%80%E4%B8%80%E6%89%8B%E8%9D%95%E7%B4%841000%E5%85%83?mtc=40001&amp;srkw=IPO%E6%9C%80%E5%BF%AB%E6%9C%80%E9%BD%8A" target="_blank" rel="noopener">opened around -18% lower</a> at HK$7.52 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions. </p></div><div><p>In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-initiation-the-itch-of-fate" target="_blank" data-smartkarma-citation="insights:48373" rel="noopener">Cheerwin Group IPO Initiation: The Itch of Fate</a>, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In <a href="https://www.smartkarma.com/insights/cheerwin-group-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:48633" rel="noopener">Cheerwin Group IPO: Valuation Insights</a>, we noted that the IPO price range is resonable.</p></div><div><div><div class="content-highlight"><p>In many ways, the timing of Cheerwin's listing is unfortunate as <a href="https://www.smartkarma.com/entities/blue-moon-group-holdings" target="_blank" data-smartkarma-citation="entities:29179:1" rel="noopener">Blue Moon Group Holdings (6993 HK)</a>'s shares have derated -18% since Cheerwin launched its bookbuild. Updating for the final IPO net raise, our base-case DCF derived price target of HK$10.15 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. </p></div></div></div>

Cheerwin (6601 HK) is a leading consumer household care company in China that develops and manufactures a variety of household care, personal care and pet care products. Cheerwin will commence trading on Wednesday, 10 March. Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. The poor grey market performance is perhaps unsurprisingly in light of the choppy market conditions. In Cheerwin Group IPO Initiation: The Itch of Fate, we opined that Cheerwin has the right ingredients to offer investors a play on another subsegment of China’s household care industry. We concluded that Cheerwin’s fundamentals are attractive. In Cheerwin Group IPO: Valuation Insights, we noted that the IPO price range is resonable.In many ways, the timing of Cheerwin's listing is unfortunate as Blue Moon Group Holdings (6993 HK)'s shares have derated -18% since Cheerwin launched its bookbuild. Updating for the final IPO net raise, our base-case DCF derived price target of HK$10.15 per share. Our DCF sensitivity analysis shows that the IPO price remains reasonable and the grey market factors in conservative market share and margin forecasts. For investors with a longer-term horizon, we think that the grey market price represents good value. 

APAC IPOs & Placements

Zhen Zhou, Toh

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<p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (6601 HK)</a> raised US$395m in its Hong Kong IPO, priced at HK$9.20 per share, the top-end of its initial IPO price range.</p>
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<p>Cheerwin is a home, personal, and pet care product platform. The company sells products such as air care, insecticides, repellants, household cleaners, and etc. As per CIC, the company is ranked first among domestic companies for the past five years (from 2015 - 2019) and had a market share of 9.4% in 2019 in terms of retail sales value.</p>
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<p>In this note, we discuss how Cheerwin's bookbuild demand compare to recent IPOs and update peer valuation table.</p>
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<div>
<p>We have previously covered the company in:</p>
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<ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/cheerwin-pre-ipo-monetizing-a-mature-business" target="_blank" data-smartkarma-citation="insights:47223" rel="noopener">Cheerwin (朝云集团) Pre-IPO - Monetizing a Mature Business</a> </li>
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<a href="https://www.smartkarma.com/insights/cheerwin-pre-ipo-9m20-results-product-review" target="_blank" data-smartkarma-citation="insights:48399" rel="noopener">Cheerwin (朝云集团) Pre-IPO - 9M20 Results + Product Review</a> </li>
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<a href="https://www.smartkarma.com/insights/cheerwin-pre-ipo-peer-analysis-and-thoughts-valuation" target="_blank" data-smartkarma-citation="insights:48493" rel="noopener">Cheerwin (朝云集团) Pre-IPO - Peer Analysis and Thoughts Valuation</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/cheerwin-ipo-not-the-right-price" target="_blank" data-smartkarma-citation="insights:48609" rel="noopener">Cheerwin (朝云集团) IPO - Not the Right Price</a> </li>
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Cheerwin (6601 HK) raised US$395m in its Hong Kong IPO, priced at HK$9.20 per share, the top-end of its initial IPO price range.


Cheerwin is a home, personal, and pet care product platform. The company sells products such as air care, insecticides, repellants, household cleaners, and etc. As per CIC, the company is ranked first among domestic companies for the past five years (from 2015 - 2019) and had a market share of 9.4% in 2019 in terms of retail sales value.


In this note, we discuss how Cheerwin's bookbuild demand compare to recent IPOs and update peer valuation table.


We have previously covered the company in:




Cheerwin (朝云集团) Pre-IPO - Monetizing a Mature Business 

Cheerwin (朝云集团) Pre-IPO - 9M20 Results + Product Review 

Cheerwin (朝云集团) Pre-IPO - Peer Analysis and Thoughts Valuation 

Cheerwin (朝云集团) IPO - Not the Right Price 



Cheerwin (朝云集团) IPO - Good Bookbuild Demand but Still Below Average

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p><a href="https://www.smartkarma.com/entities/cheerwin" target="_blank" data-smartkarma-citation="entities:31314:1" rel="noopener">Cheerwin (6601 HK)</a>  is a leading one-stop multi category household care and personal care platform in China. The company has set the terms for its IPO where it plans to raise HK$2.0-2.4bn (approx. US$265-313m) at an indicative IPO price range of HK$7.8-9.2 per share.</p><p>In our previous insight, we discussed Cheerwin’s business model, segments and financials. Refer the extract below from our previous insight:</p><div class="content-highlight"><p><em>The household care market in China is forecasted to grow steadily over the next few years driven by increased urbanisation, growing per capita disposable income, segmentation of product categories and growing innovation. In addition, the Covid-19 outbreak also has accelerated the demand for household care products, especially disinfectants, hand sanitizers and other personal hygiene products. Though the company’s revenues have been growing at lower single digits, we believe strong growth prospects attached to the Chinese household care market alongside diversifying into other verticals such as pet care and personal care markets should help Cheerwin generate stable revenues</em></p></div>

Cheerwin (6601 HK)  is a leading one-stop multi category household care and personal care platform in China. The company has set the terms for its IPO where it plans to raise HK$2.0-2.4bn (approx. US$265-313m) at an indicative IPO price range of HK$7.8-9.2 per share.In our previous insight, we discussed Cheerwin’s business model, segments and financials. Refer the extract below from our previous insight:The household care market in China is forecasted to grow steadily over the next few years driven by increased urbanisation, growing per capita disposable income, segmentation of product categories and growing innovation. In addition, the Covid-19 outbreak also has accelerated the demand for household care products, especially disinfectants, hand sanitizers and other personal hygiene products. Though the company’s revenues have been growing at lower single digits, we believe strong growth prospects attached to the Chinese household care market alongside diversifying into other verticals such as pet care and personal care markets should help Cheerwin generate stable revenues

Cheerwin IPO: Fairly Valued Compared to Recent IPOs in the Household, Personal and Pet Care Markets

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 26 February. The constituent changes will be effective after the close of trading on 12 March.</p><p>For the Hang Seng Composite Index (HSCI) there are 36 inclusions and 29 deletions, taking the number of index constituents up to 500.</p><p>Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. Secondary Listings are not eligible for inclusion in the Stock Connect program.</p><p>Of the 36 inclusions, 4 are already a part of Stock Connect by virtue of having listed A-shares, 2 are Secondary listings and will not be included in Stock Connect, 9 will be added to Shanghai and Shenzhen Stock Connect, while 21 stocks will only be added to Shenzhen Stock Connect.</p><p>Of the 29 index deletions, 13 are not a part of Stock Connect, 7 will continue to remain a part of Stock Connect by virtue of having listed A-shares, while 9 will be deleted from the Stock Connect program.</p><p>We identify 4 stocks that could sell off ahead of their removal from the Stock Connect Buy list, while Biotech stocks could be in focus ahead of their inclusion in the Stock Connect Buy and Sell list.</p>

The Hang Seng Indexes Company Limited (HSIL) announced the results of its review of the Hang Seng Family of Indexes post market close on 26 February. The constituent changes will be effective after the close of trading on 12 March.For the Hang Seng Composite Index (HSCI) there are 36 inclusions and 29 deletions, taking the number of index constituents up to 500.Although there are almost no assets indexed to the HSCI, the index forms the basis of stocks that are eligible for Southbound Stock Connect. Stocks that are included in the HSCI and subsequently included in the Stock Connect program get inflows from mainland investors. Secondary Listings are not eligible for inclusion in the Stock Connect program.Of the 36 inclusions, 4 are already a part of Stock Connect by virtue of having listed A-shares, 2 are Secondary listings and will not be included in Stock Connect, 9 will be added to Shanghai and Shenzhen Stock Connect, while 21 stocks will only be added to Shenzhen Stock Connect.Of the 29 index deletions, 13 are not a part of Stock Connect, 7 will continue to remain a part of Stock Connect by virtue of having listed A-shares, while 9 will be deleted from the Stock Connect program.We identify 4 stocks that could sell off ahead of their removal from the Stock Connect Buy list, while Biotech stocks could be in focus ahead of their inclusion in the Stock Connect Buy and Sell list.

HSCI Index Rebalance & Stock Connect: Inclusions & Exclusions

China

Blue Moon Group Holdings Limited operates as a household care company. The Company produces liquid laundry detergents, liquid soaps, concentrated liquid laundry detergents, and other products. Blue Moon Group Holdings markets its products throughout China.

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Blue Moon Group Holdings (6993 HK)

Linklogis IPO Trading - Decent but Not Hot Demand

Linklogis, a technology solution provider for supply chain finance in China raised around US$1bn in its Hong Kong IPO. Its early investors include...

Sumeet Singh

Cheerwin Group IPO: Trading Debut

Cheerwin priced its IPO at HK$9.20 and opened around -18% lower at HK$7.52 in the grey market. For investors with a longer-term horizon, we think...

Arun George

Cheerwin (朝云集团) IPO - Good Bookbuild Demand but Still Below Average

Cheerwin (6601 HK) IPO was priced at HK$9.20 per share. In this note, we discuss how Cheerwin's bookbuild demand compare to recent IPOs and update...

Zhen Zhou, Toh

Cheerwin IPO: Fairly Valued Compared to Recent IPOs in the Household, Personal and Pet Care Markets

Cheerwin is a leading one-stop multi category household care and personal care platform in China. The company has set the terms for its IPO where...

Shifara Samsudeen, ACMA, CGMA

HSCI Index Rebalance & Stock Connect: Inclusions & Exclusions

There are 36 inclusions/ 29 exclusions for the Hang Seng Composite Index. 9 stocks will be deleted from the Stock Connect Buy list & there are a...

Brian Freitas

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