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

Zijin Gold International / Equity Capital Markets

<ul>
<li>Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.</li>
<li>On the IPO front, <a href="https://www.smartkarma.com/entities/zijin-gold" target="_blank" data-smartkarma-citation="entities:45448:1" rel="noopener">Zijin Gold</a> appears to be shining bright.</li>
<li>On the placements front, it was a relatively quiter week, as compared to some of the more recent weekly flows.</li>
</ul>


Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
On the IPO front, Zijin Gold appears to be shining bright.
On the placements front, it was a relatively quiter week, as compared to some of the more recent weekly flows.


ECM Weekly (22 September 2025)- Chery, Zijin Gold, Orion, Myungin, Urban, Avepoint, Dongfang

APAC IPOs & Placements, Aequitas Research

Hong Jie Seow

APAC IPOs & Placements

<ul>
<li>Butong Group is looking to raise up to US$100m in its upcoming Hong Kong IPO.</li>
<li>Butong has been able to achieve strong topline momentum of 57% CAGR from FY22 to FY24, whilst expanding its margins. </li>
<li>We have looked at the company's past performance in our previous note. In this note, we talk about valuations.</li>
</ul>


Butong Group is looking to raise up to US$100m in its upcoming Hong Kong IPO.
Butong has been able to achieve strong topline momentum of 57% CAGR from FY22 to FY24, whilst expanding its margins. 
We have looked at the company's past performance in our previous note. In this note, we talk about valuations.


Butong Group IPO: Strong Momentum But Premium Hard To Justify

<ul>
<li>
<a href="https://www.smartkarma.com/entities/butong-group" target="_blank" data-smartkarma-citation="entities:44212:1" rel="noopener">Butong Group (BUTONG HK)</a> is looking to raise US$100m in its upcoming Hong Kong IPO.</li>
<li>Butong has been able to achieve strong topline momentum of 57% CAGR from FY22 to FY24, whilst expanding its margins, and is on track to replicate that performance for FY25.</li>
<li>In this note, we look at the company’s past performance.</li>
</ul>



Butong Group (BUTONG HK) is looking to raise US$100m in its upcoming Hong Kong IPO.
Butong has been able to achieve strong topline momentum of 57% CAGR from FY22 to FY24, whilst expanding its margins, and is on track to replicate that performance for FY25.
In this note, we look at the company’s past performance.


Butong Group Pre-IPO: Strong Growth But Mainly Driven By Diapers And Wipes

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>BUTONG adopt a marketing-driven model, which lacks underlying innovation in products, may be effective during market expansion, but is prone to the problem of sluggish growth during valuation transition period.</li>
<li>If the approach of promoting expansion by relying on high growth of low-profit business continues, profit space will be suppressed,which isn’t friendly to the narrative of capital market after IPO.</li>
<li>2025-2027 revenue growth could be 30%, 25%, 20% respectively. Considering the high growth in the short term as well as the concerns, P/E of 20-25x could be a comfortable range  </li>
</ul>


BUTONG adopt a marketing-driven model, which lacks underlying innovation in products, may be effective during market expansion, but is prone to the problem of sluggish growth during valuation transition period.
If the approach of promoting expansion by relying on high growth of low-profit business continues, profit space will be suppressed,which isn’t friendly to the narrative of capital market after IPO.
2025-2027 revenue growth could be 30%, 25%, 20% respectively. Considering the high growth in the short term as well as the concerns, P/E of 20-25x could be a comfortable range  


Pre-IPO Butong Group (PHIP Updates) - Some Points Worth the Attention

<ul>
<li>BUTONG’s growth momentum remained high, but customers are more focused on cost-effectiveness rather than premium products. We are unsure whether BUTONG’s  current high growth is sustainable in this low-growth industry. </li>
<li>The more revenue proportion from baby care products, the lower overall gross margin would be.BUTONG's strategy of emphasizing sales over R&amp;D isn’t conducive to establishing core competitiveness in fierce competition.</li>
<li>After Series B financing, the post-investment valuation reached about RMB2 billion. However, the market value of peers is not high. BUTONG’s post-IPO valuation performance may be lower than expected.</li>
</ul>


BUTONG’s growth momentum remained high, but customers are more focused on cost-effectiveness rather than premium products. We are unsure whether BUTONG’s  current high growth is sustainable in this low-growth industry. 
The more revenue proportion from baby care products, the lower overall gross margin would be.BUTONG's strategy of emphasizing sales over R&amp;D isn’t conducive to establishing core competitiveness in fierce competition.
After Series B financing, the post-investment valuation reached about RMB2 billion. However, the market value of peers is not high. BUTONG’s post-IPO valuation performance may be lower than expected.


Pre-IPO Butong Group - The Current High Growth May Not Be Sustainable

China

Butong Group specializes in the design, research, development, manufacturing, and sale of nursery products. Its key offerings include strollers, child safety seats, cribs, high chairs, baby carriers, and other baby care products, primarily for travel, sleep, and feeding. The company also engages in e-commerce, marketing, and aftersales services. Headquartered in Shanghai, China, the company was founded in 2018.

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Butong (6090 HK)

ECM Weekly (22 September 2025)- Chery, Zijin Gold, Orion, Myungin, Urban, Avepoint, Dongfang

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

Butong Group IPO: Strong Momentum But Premium Hard To Justify

Butong Group aims to raise up to US$100m in Hong Kong IPO, showing strong growth and margin expansion, with focus on valuations in upcoming note.

Hong Jie Seow

Butong Group Pre-IPO: Strong Growth But Mainly Driven By Diapers And Wipes

Butong Group aims to raise $100m in Hong Kong IPO, showing strong growth with 57% CAGR in revenue and expanding margins. Analysis of past...

Hong Jie Seow

Pre-IPO Butong Group (PHIP Updates) - Some Points Worth the Attention

BUTONG's marketing-driven model may lead to sluggish growth during valuation transition. Profit will be suppressed due to business structural...

Xinyao (Criss) Wang

Pre-IPO Butong Group - The Current High Growth May Not Be Sustainable

BUTONG's high growth may not be sustainable as customers prioritize cost-effectiveness over premium products and the number of births in China...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

ECM Weekly (22 September 2025)- Chery, Zijin Gold, Orion, Myungin, Urban, Avepoint, Dongfang

Aequitas Research's weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.

Sumeet Singh

Butong Group IPO: Strong Momentum But Premium Hard To Justify

​Butong Group aims to raise up to US$100m in Hong Kong IPO, showing strong growth and margin expansion, with focus on valuations in upcoming note.

Hong Jie Seow

Butong Group Pre-IPO: Strong Growth But Mainly Driven By Diapers And Wipes

​Butong Group aims to raise $100m in Hong Kong IPO, showing strong growth with 57% CAGR in revenue and expanding margins. Analysis of past...

Hong Jie Seow

Pre-IPO Butong Group (PHIP Updates) - Some Points Worth the Attention

​BUTONG's marketing-driven model may lead to sluggish growth during valuation transition. Profit will be suppressed due to business structural...

Xinyao (Criss) Wang

Pre-IPO Butong Group - The Current High Growth May Not Be Sustainable

​BUTONG's high growth may not be sustainable as customers prioritize cost-effectiveness over premium products and the number of births in China...

Xinyao (Criss) Wang

Butong Group aims to raise up to US$100m in Hong Kong IPO, showing strong growth and margin expansion, with focus on valuations in upcoming note.

Butong Group aims to raise $100m in Hong Kong IPO, showing strong growth with 57% CAGR in revenue and expanding margins. Analysis of past...

BUTONG's marketing-driven model may lead to sluggish growth during valuation transition. Profit will be suppressed due to business structural...

BUTONG's high growth may not be sustainable as customers prioritize cost-effectiveness over premium products and the number of births in China...