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

<ul>
<li>Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares in its Japan IPO.</li>
<li>As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.</li>
<li>In this note we undertake a peer comparison and talk about valuations.</li>
</ul>


Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares in its Japan IPO.
As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.
In this note we undertake a peer comparison and talk about valuations.


Net Protections Holdings IPO - Peer Comparison and Thoughts on Valuation

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, 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.

Poppins Holdings Inc / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/poppins-holdings-inc" target="_blank" data-smartkarma-citation="entities:31056:1" rel="noopener">Poppins Holdings Inc (7358 JP)</a>  operates in the child-care and elderly care services market in Japan. The company offers child-care services such as nanny services and nursery schools, infant/early childhood education support services and elderly care support services such as home care services for seniors and daytime care services.</p><p>The company has filed for an IPO to list its shares on the Tokyo Stock Exchange and plans to raise JPY8.9bn (US$85.8m) at the midpoint of the IPO pricing.</p><p>In our previous insight on the company’s IPO, we examined the company’s business model, the industry and the revenue channels. In this insight, we take a look at the company’s financials.</p>

Poppins Holdings Inc (7358 JP)  operates in the child-care and elderly care services market in Japan. The company offers child-care services such as nanny services and nursery schools, infant/early childhood education support services and elderly care support services such as home care services for seniors and daytime care services.The company has filed for an IPO to list its shares on the Tokyo Stock Exchange and plans to raise JPY8.9bn (US$85.8m) at the midpoint of the IPO pricing.In our previous insight on the company’s IPO, we examined the company’s business model, the industry and the revenue channels. In this insight, we take a look at the company’s financials.

Poppins IPO: Well Positioned to Benefit from Japanese Demographic Trends

Equity Bottom-Up

<p>Freee offers cloud-based online accounting and HR/Payroll software to small and medium businesses (SMBs) in Japan. The company operates a subscription-based revenue model, and the adoption of cloud-based accounting and HR software among SMBs is still at a nascent stage compared to other Western markets.</p><p>The company’s shares have gained 177% YTD outperforming both Nikkei 225 Index and Topix.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/174/972/original/image_65217007521606637862376.png?1606637863" class="editor-image img-responsive" data-smartkarma-image-id="174972"></figure><div class="content-caption"><em>Source: Cap IQ</em></div><p>Our “2021 High Conviction” calls for an upside potential of at least 50%. Given the company is a few quarters away from reporting OP, we believe it is likely that the company’s share price will rally more than 50% over the next 12-months.</p>

Freee offers cloud-based online accounting and HR/Payroll software to small and medium businesses (SMBs) in Japan. The company operates a subscription-based revenue model, and the adoption of cloud-based accounting and HR software among SMBs is still at a nascent stage compared to other Western markets.The company’s shares have gained 177% YTD outperforming both Nikkei 225 Index and Topix.Source: Cap IQOur “2021 High Conviction” calls for an upside potential of at least 50%. Given the company is a few quarters away from reporting OP, we believe it is likely that the company’s share price will rally more than 50% over the next 12-months.

2021 High Conviction - Rapid User Growth Will Set You Freee From Losses

<p><a href="https://www.smartkarma.com/entities/oro-co-ltd" target="_blank" data-smartkarma-citation="entities:26941:1" rel="noopener">oRo Co Ltd (3983 JP)</a> reported its 3Q2020 results today which saw 22.8% YoY decline in revenue while OP for the quarter dropped 32.1% YoY during the quarter. Both business segments saw YoY decline in revenue during the period. The company’s revenue and OP both fell below consensus estimates by 13.6% and 15.8% respectively.</p><p>In our previous insight on the company <a href="https://www.smartkarma.com/insights/oro-another-stock-capable-of-making-pm-suga-s-digitalisation-dream-a-real" target="_blank" data-smartkarma-citation="insights:43954" rel="noopener">oRo: Another Stock Capable of Making PM Suga’s Digitalisation Dream a Real</a> , we highlighted that the company’s revenues and margins are impacted by the ongoing Covid-19 pandemic. During the company’s 1H2020 earnings announcement, the company mentioned that the business conditions have recovered since June, however, 3Q2020 results show that the conditions have not yet improved as evident by the QoQ drop in revenue and margins.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/171/157/original/image_16203616221605205781684.png?1605205782" class="editor-image img-responsive" data-smartkarma-image-id="171157"></figure><div class="content-caption"><em>Source: Company Disclosures</em></div>

oRo Co Ltd (3983 JP) reported its 3Q2020 results today which saw 22.8% YoY decline in revenue while OP for the quarter dropped 32.1% YoY during the quarter. Both business segments saw YoY decline in revenue during the period. The company’s revenue and OP both fell below consensus estimates by 13.6% and 15.8% respectively.In our previous insight on the company oRo: Another Stock Capable of Making PM Suga’s Digitalisation Dream a Real , we highlighted that the company’s revenues and margins are impacted by the ongoing Covid-19 pandemic. During the company’s 1H2020 earnings announcement, the company mentioned that the business conditions have recovered since June, however, 3Q2020 results show that the conditions have not yet improved as evident by the QoQ drop in revenue and margins.Source: Company Disclosures

ORo: Earnings Growth Hasn’t Resumed Yet but We Are Looking for Entry Points

<p>M3 Inc. reported its 2QFY03/21 results last week. Both revenue and operating profit grew significantly compared to the same quarter last year by 28.5% YoY and 65.8% YoY respectively. At the same time, both revenue and OP beat consensus estimates by 7.2% and 26.6% respectively.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/170/077/original/image_87776018731604867251678.png?1604867253" class="editor-image img-responsive" data-smartkarma-image-id="170077"></figure><div class="content-caption"><em>Source: Company Disclosures, Cap IQ</em></div><p>We discuss the details below.</p>

M3 Inc. reported its 2QFY03/21 results last week. Both revenue and operating profit grew significantly compared to the same quarter last year by 28.5% YoY and 65.8% YoY respectively. At the same time, both revenue and OP beat consensus estimates by 7.2% and 26.6% respectively.Source: Company Disclosures, Cap IQWe discuss the details below.

M3 Inc: Strong Earnings Momentum Continues

Japan

eGuarantee, Inc. offers guarantee services for accounts and note receivables arising from business and financial service transactions. The Company analyzes the credit risk of receivables and loans. eGuarantee also provides consulting services for credit risk and credit management.

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eGuarantee, Inc. (8771 JP)

Net Protections Holdings IPO - Peer Comparison and Thoughts on Valuation

Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares...

Sumeet Singh

Poppins IPO: Well Positioned to Benefit from Japanese Demographic Trends

Poppins offers child-care services such as nanny services and nursery schools, infant/early childhood education support services and elderly care...

Shifara Samsudeen, FCMA, CGMA

2021 High Conviction - Rapid User Growth Will Set You Freee From Losses

Our “2021 High Conviction” calls for an upside potential of at least 50%. Given the company is a few quarters away from reporting OP, we believe it...

Shifara Samsudeen, FCMA, CGMA

ORo: Earnings Growth Hasn’t Resumed Yet but We Are Looking for Entry Points

oRo reported its 3Q2020 results today which saw 22.8% YoY decline in revenue while OP for the quarter dropped 32.1% YoY during the quarter.

Shifara Samsudeen, FCMA, CGMA

M3 Inc: Strong Earnings Momentum Continues

M3 reported its 2QFY03/21 results which saw both revenue and operating profit grew significantly compared to the same quarter last year by 28.5%...

Shifara Samsudeen, FCMA, CGMA

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