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>
<a href="https://www.smartkarma.com/entities/national-securities-depository-ltd-nsdl" target="_blank" data-smartkarma-citation="entities:39939:1" rel="noopener">NSDL (NSDL IN)</a> is looking to raise around US$460m in its upcoming India IPO.</li>
<li>It is the largest depository in India in terms of number of issuers, number of active instruments, market share in demat value of settlement volume and value of assets.</li>
<li>In this note, we talk about the updates from its RHP filing.</li>
</ul>



NSDL (NSDL IN) is looking to raise around US$460m in its upcoming India IPO.
It is the largest depository in India in terms of number of issuers, number of active instruments, market share in demat value of settlement volume and value of assets.
In this note, we talk about the updates from its RHP filing.


National Securities Depository Limited (NSDL) IPO - RHP Updates - Revenue Slowing, Margins Growing

HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Bright Smart Securities / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bright-smart-securities-and" target="_blank" data-smartkarma-citation="entities:20511:1" rel="noopener">Bright Smart Securities (1428 HK)</a> will benefit from Ant Financial's technology innovation capabilities, customer group, digitalisation, and cross-selling to over 640m of Alipay users.</li>
<li>With <a href="https://www.smartkarma.com/entities/futu-holdings-ltd" target="_blank" data-smartkarma-citation="entities:27858:1" rel="noopener">Futu Holdings Ltd (FUTU US)</a> having an average PER of 19x for 2020-2025, we use 15x for BSS after a conservative estimate of 50% earnings growth in 5 years. </li>
<li>We value BSS at HK$8.13, but this is a conservative estimate. Its earnings growth is likely to be faster than our forecast, given its better leverage on the new parent.  </li>
</ul>



Bright Smart Securities (1428 HK) will benefit from Ant Financial's technology innovation capabilities, customer group, digitalisation, and cross-selling to over 640m of Alipay users.
With Futu Holdings Ltd (FUTU US) having an average PER of 19x for 2020-2025, we use 15x for BSS after a conservative estimate of 50% earnings growth in 5 years. 
We value BSS at HK$8.13, but this is a conservative estimate. Its earnings growth is likely to be faster than our forecast, given its better leverage on the new parent.  


Bright Smart (1428 HK): An Attempt to Derive a Value

<ul>
<li>The offer price of HK$3.28 by Ant Financial is attractive - 2.9x P/B and 8.3x PER, both on 12-month forward basis. It is also appealing relative to peers.</li>
<li>
<a href="https://www.smartkarma.com/entities/bright-smart-securities-and" target="_blank" data-smartkarma-citation="entities:20511:1" rel="noopener">Bright Smart Securities (1428 HK)</a>'s massive outperformance against the HSI showed its strong marketing and execution capabilities. Ant Financial will bring many synergies to it.  </li>
<li>Risk-Averse investors may take this opportunity to cash out, but we are on the long-term bull camp and prefer to hold for further upside. </li>
</ul>


The offer price of HK$3.28 by Ant Financial is attractive - 2.9x P/B and 8.3x PER, both on 12-month forward basis. It is also appealing relative to peers.

Bright Smart Securities (1428 HK)'s massive outperformance against the HSI showed its strong marketing and execution capabilities. Ant Financial will bring many synergies to it.  
Risk-Averse investors may take this opportunity to cash out, but we are on the long-term bull camp and prefer to hold for further upside. 


Bright Smart (1428 HK): To Sell or Not to Sell?

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.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bright-smart-securities-and" target="_blank" data-smartkarma-citation="entities:20511:1" rel="noopener">Bright Smart Securities And (1428 HK)</a>'s Chairman entered a SPA with Ant Holdco to sell his 50.55% stake at HK$3.28, a 7.5% premium to the last close.</li>
<li>The SPA completion requires approval from both the NDRC and SFC. Unusually, Ant has the option of extending the long-stop date, reflecting a possibility of extra scrutiny by the regulators.</li>
<li>Under Rule 26.1 of the Code, upon completion, Ant will be required to make an unconditional mandatory cash offer at HK$3.28. The MGO price is final and a knockout offer.  </li>
</ul>



Bright Smart Securities And (1428 HK)'s Chairman entered a SPA with Ant Holdco to sell his 50.55% stake at HK$3.28, a 7.5% premium to the last close.
The SPA completion requires approval from both the NDRC and SFC. Unusually, Ant has the option of extending the long-stop date, reflecting a possibility of extra scrutiny by the regulators.
Under Rule 26.1 of the Code, upon completion, Ant will be required to make an unconditional mandatory cash offer at HK$3.28. The MGO price is final and a knockout offer.  


Bright Smart Securities (1428 HK): Ant’s Possible Unconditional MGO at HK$3.28

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tam-jai-international-co-ltd" target="_blank" data-smartkarma-citation="entities:34227:1" rel="noopener">Tam Jai International (2217 HK)</a>'s privatisation price is lower than we expected, based on 1.37x 12-month forward P/B, against our expectation of 1.63x (the historical average).</li>
<li>The PER of 21.1x for CY25, a premiuim to sector average of 13.7x, however, looks attractive enough for investors that entered in the last 12 months. </li>
<li>The 52.6% discount to IPO price (HK$3.33) and huge net cash have made some early investors unhappy. There is already letter from a minority shareholder calling to vote against it.</li>
</ul>



Tam Jai International (2217 HK)'s privatisation price is lower than we expected, based on 1.37x 12-month forward P/B, against our expectation of 1.63x (the historical average).
The PER of 21.1x for CY25, a premiuim to sector average of 13.7x, however, looks attractive enough for investors that entered in the last 12 months. 
The 52.6% discount to IPO price (HK$3.33) and huge net cash have made some early investors unhappy. There is already letter from a minority shareholder calling to vote against it.


Tam Jai Intl (2217 HK): It Seems like Quite Some People Are Unhappy

United States

Futu Holdings Limited operates as a holding company. The Company, through its subsidiaries, offers an online brokerage platform that enables individual investors to trade in listed stocks. Futu Holdings serves customers in the United States, China, and Hong Kong.

Price Gauge
52-week Range	0.00 - 0.00
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Futu Holdings Ltd (FUTU US)

National Securities Depository Limited (NSDL) IPO - RHP Updates - Revenue Slowing, Margins Growing

NSDL (NSDL IN) is looking to raise around US$460m in its upcoming India IPO. In this note, we look at the updates from its recent filings.

Sumeet Singh

Bright Smart (1428 HK): An Attempt to Derive a Value

Bright Smart benefits from Ant Financial's technology and customer base, with potentially faster-than-forecast growth. At a 50% 5-year growth and...

Osbert Tang, CFA

Bright Smart (1428 HK): To Sell or Not to Sell?

Ant Financial's attractive offer price of HK$3.28 for Bright Smart is appealing relative to peers, and is at a good premium to historical P/B and...

Osbert Tang, CFA

Bright Smart Securities (1428 HK): Ant’s Possible Unconditional MGO at HK$3.28

The Chairman is selling out to Ant at a knockout price (HK$3.28). Completion will trigger an unconditional MGO. Timing is the key risk, which is...

Arun George

Tam Jai Intl (2217 HK): It Seems like Quite Some People Are Unhappy

The privatisation price is lower than expected at 1.37x forward P/B, but CY25 PER of 21.1x is attractive for recent investors. A 52.6% discount to...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

National Securities Depository Limited (NSDL) IPO - RHP Updates - Revenue Slowing, Margins Growing

NSDL (NSDL IN) is looking to raise around US$460m in its upcoming India IPO. In this note, we look at the updates from its recent filings.

Sumeet Singh

Bright Smart (1428 HK): An Attempt to Derive a Value

​Bright Smart benefits from Ant Financial's technology and customer base, with potentially faster-than-forecast growth. At a 50% 5-year growth and...

Osbert Tang, CFA

Bright Smart (1428 HK): To Sell or Not to Sell?

​Ant Financial's attractive offer price of HK$3.28 for Bright Smart is appealing relative to peers, and is at a good premium to historical P/B and...

Osbert Tang, CFA

Bright Smart Securities (1428 HK): Ant’s Possible Unconditional MGO at HK$3.28

The Chairman is selling out to Ant at a knockout price (HK$3.28). Completion will trigger an unconditional MGO. Timing is the key risk, which is...

Arun George

Tam Jai Intl (2217 HK): It Seems like Quite Some People Are Unhappy

​The privatisation price is lower than expected at 1.37x forward P/B, but CY25 PER of 21.1x is attractive for recent investors. A 52.6% discount to...

Osbert Tang, CFA

Bright Smart benefits from Ant Financial's technology and customer base, with potentially faster-than-forecast growth. At a 50% 5-year growth and...

Ant Financial's attractive offer price of HK$3.28 for Bright Smart is appealing relative to peers, and is at a good premium to historical P/B and...

The privatisation price is lower than expected at 1.37x forward P/B, but CY25 PER of 21.1x is attractive for recent investors. A 52.6% discount to...