Equity Analyst, LightStream Research

Oshadhi Kumarasiri

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.

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/coupang-inc" target="_blank" data-smartkarma-citation="entities:28425:1" rel="noopener">Coupang (CPNG US)</a>, the largest e-commerce company in South Korea with <a target="_blank">US$ 15.6bn in trailing twelve months revenue</a>, has seen its share price drop more than 61% from the post IPO peak of $69.0 per share to $26.65. Coupang is currently trading 24% below its IPO price despite beating the street revenue and EBITDA estimates over the last two quarters.</p><p>Coupang’s demise after the first day pop could be down to factors such as the antitrust investigations, legal disputes with vendors, employee health and safety concerns and the disposals of 57.0m shares by the majority owner, Softbank.</p><p>The extent of the drop in the share price suggests that there could be another factor at play here, which is the excessive IPO valuation. Coupang was able to ride the IPO wave to obtain an IPO valuation of 2.8x FY+2 revenue. During our Coupang IPO coverage, we mentioned that Coupang’s 1P heavy business model makes Coupang’s revenue multiples incomparable to peers posing significant downside risks once the market comes to realise this situation.</p>

Coupang (CPNG US), the largest e-commerce company in South Korea with US$ 15.6bn in trailing twelve months revenue, has seen its share price drop more than 61% from the post IPO peak of $69.0 per share to $26.65. Coupang is currently trading 24% below its IPO price despite beating the street revenue and EBITDA estimates over the last two quarters.Coupang’s demise after the first day pop could be down to factors such as the antitrust investigations, legal disputes with vendors, employee health and safety concerns and the disposals of 57.0m shares by the majority owner, Softbank.The extent of the drop in the share price suggests that there could be another factor at play here, which is the excessive IPO valuation. Coupang was able to ride the IPO wave to obtain an IPO valuation of 2.8x FY+2 revenue. During our Coupang IPO coverage, we mentioned that Coupang’s 1P heavy business model makes Coupang’s revenue multiples incomparable to peers posing significant downside risks once the market comes to realise this situation.

Coupang: Down 61% From the Peak, Further 60% Downside Is a Possibility

<p><a href="https://www.smartkarma.com/entities/gome-retail-holdings-ltd" target="_blank" data-smartkarma-citation="entities:170:1" rel="noopener">Gome Electrical Appliances (493 HK)</a> is one of China’s largest electronic retailers with a Gross Merchandise Value (GMV) of CNY 113 billion. Due to the competition from e-commerce platforms, Gome endured a tough time during the last four years with revenue declining at an annual compound rate of 12.9%. The company’s operating losses peaked at CNY 3.8 billion in 2020.</p><p>Nevertheless, the future looks bright for Gome Retail as they have managed to transform the traditional brick and mortar retail business to an omni-channel model. In addition, the shift in government policy to eradicate unfair competition and encourage domestic consumption, especially in lower-tier cities could accelerate Gome’s omni-channel revival.</p>

Gome Electrical Appliances (493 HK) is one of China’s largest electronic retailers with a Gross Merchandise Value (GMV) of CNY 113 billion. Due to the competition from e-commerce platforms, Gome endured a tough time during the last four years with revenue declining at an annual compound rate of 12.9%. The company’s operating losses peaked at CNY 3.8 billion in 2020.Nevertheless, the future looks bright for Gome Retail as they have managed to transform the traditional brick and mortar retail business to an omni-channel model. In addition, the shift in government policy to eradicate unfair competition and encourage domestic consumption, especially in lower-tier cities could accelerate Gome’s omni-channel revival.

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

Shanghai MicroPort MedBot Group / Equity Capital Markets

<div><p>MicroPort MedBot (MM), a surgical robot company, aims to raise up to US$1bn in its Hong Kong IPO. It is a subsidiary of <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK)</a> and is backed by Hillhouse and other  mainly domestic investors.</p></div><div><p>MicroPort MedBot (MM) is a surgical robot company which designs, develops and commercializes surgical robots to assist surgeons in performing complex surgical procedures. It is the only company with a product portfolio covering the five major and fast-growing surgical specialties of laparoscopic, orthopedic, panvascular, natural orifice and percutaneous surgical procedures, as per Frost &amp; Sullivan (F&amp;S).</p></div><div><p>Its flagship products, Toumai Laparoscopic Surgical Robot, DFVision 3D Electronic Laparoscope and Honghu Orthopedic Surgical Robot, have all been admitted to the NMPA’s Green Path. Toumai and Honghu are at or near the registration approval stage, and DFVision has recently received NMPA approval.</p></div><p>We have looked at the company’s background and products in our earlier note, <a href="https://www.smartkarma.com/insights/microport-medbot-pre-ipo-robodoc-pre-revenue-has-a-large-competitor-but-a-large-market-as-well" target="_blank" rel="noopener">MicroPort MedBot Pre-IPO - RoboDoc - pre-revenue, has a large competitor but a large market as well</a>. </p><p>In this note, we will talk about the PHIP updates and look at the performance of its largest competitor.</p>

MicroPort MedBot (MM), a surgical robot company, aims to raise up to US$1bn in its Hong Kong IPO. It is a subsidiary of Microport Scientific (853 HK) and is backed by Hillhouse and other  mainly domestic investors.MicroPort MedBot (MM) is a surgical robot company which designs, develops and commercializes surgical robots to assist surgeons in performing complex surgical procedures. It is the only company with a product portfolio covering the five major and fast-growing surgical specialties of laparoscopic, orthopedic, panvascular, natural orifice and percutaneous surgical procedures, as per Frost &amp; Sullivan (F&amp;S).Its flagship products, Toumai Laparoscopic Surgical Robot, DFVision 3D Electronic Laparoscope and Honghu Orthopedic Surgical Robot, have all been admitted to the NMPA’s Green Path. Toumai and Honghu are at or near the registration approval stage, and DFVision has recently received NMPA approval.We have looked at the company’s background and products in our earlier note, MicroPort MedBot Pre-IPO - RoboDoc - pre-revenue, has a large competitor but a large market as well. In this note, we will talk about the PHIP updates and look at the performance of its largest competitor.

MicroPort MedBot Pre-IPO - RoboDoc - PHIP Updates and a Look at Its Largest Competitor

Insurance, Fintech & EM-focused Analyst, KT Capital Group, KT Capital Group

Alec Tseung

Insurance, Fintech & EM-focused Analyst, KT Capital Group

D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi / Equity Bottom-Up

D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi

<p>The tech sector in Turkey is at an inflection point with its large, young, and tech-savvy population. We view that the market deserves a lot more attention from global investors, especially with its tech leaders planning to be listed in the international capital markets in the next 2 - 3 years. </p><p>In this note, we present one of the major e-commerce players in the country, Hepsiburada, which is in the process of developing its super-app ecosystem. The company was listed on NASDAQ in July and is the very first and only Turkish (tech) company listed in the US so far.</p><p>Although we view that it might still be a bit early to play the Turkish (tech) market, Hepsiburada is worth noting and following since it offers insights to keen investors about Turkey's evolving competitive landscape in the e-commerce sector and consumer habits.  </p>

The tech sector in Turkey is at an inflection point with its large, young, and tech-savvy population. We view that the market deserves a lot more attention from global investors, especially with its tech leaders planning to be listed in the international capital markets in the next 2 - 3 years. In this note, we present one of the major e-commerce players in the country, Hepsiburada, which is in the process of developing its super-app ecosystem. The company was listed on NASDAQ in July and is the very first and only Turkish (tech) company listed in the US so far.Although we view that it might still be a bit early to play the Turkish (tech) market, Hepsiburada is worth noting and following since it offers insights to keen investors about Turkey's evolving competitive landscape in the e-commerce sector and consumer habits.  

Hepsiburada: The Very First and Only US-Listed Turkish Tech Company

<div><p>TDCX Inc, a Singapore-headquartered digital customer experience (CX) provider, is looking to raise up to US$338m in its upcoming US IPO.</p></div><div><p>TDCX provides outsourcing services to clients in new economy sectors and traditional blue-chip clients undergoing digital transformation. As of Jun 21, it served 43 global clients and with 114 active campaigns. The firm has offices located in 10 geographies across Asia, Europe and Latin America, namely, Singapore, the Philippines, Malaysia, Thailand, China, Japan, Spain, India, Columbia and Romania.</p></div><div><p>TDCX has recorded very strong growth with revenue, EBITDA and PAT having increased by 2.5x over FY18-20. In addition, Facebook and Airbnb, combined, contributed 60.4% and 62.3% of TDCX’s total revenue for FY20 and 1H21. </p></div><div><p>We have covered various aspects of the deal in our earlier note <a href="https://www.smartkarma.com/insights/tdcx-inc-pre-ipo-tearsheet" target="_blank" rel="noopener">TDCX Inc. Pre-IPO Tearsheet</a> and <a href="https://www.smartkarma.com/insights/tdcx-inc-pre-ipo-past-growth-looks-good-the-rest-is-iffy-including-the-founders-s-325m-payout" target="_blank" rel="noopener">TDCX Inc. Pre-IPO - Past Growth Looks Good, the Rest Is Iffy, Including the Founders S$325m Payout</a>.</p></div><div><p>In this note we will talk about valuations</p></div>

TDCX Inc, a Singapore-headquartered digital customer experience (CX) provider, is looking to raise up to US$338m in its upcoming US IPO.TDCX provides outsourcing services to clients in new economy sectors and traditional blue-chip clients undergoing digital transformation. As of Jun 21, it served 43 global clients and with 114 active campaigns. The firm has offices located in 10 geographies across Asia, Europe and Latin America, namely, Singapore, the Philippines, Malaysia, Thailand, China, Japan, Spain, India, Columbia and Romania.TDCX has recorded very strong growth with revenue, EBITDA and PAT having increased by 2.5x over FY18-20. In addition, Facebook and Airbnb, combined, contributed 60.4% and 62.3% of TDCX’s total revenue for FY20 and 1H21. We have covered various aspects of the deal in our earlier note TDCX Inc. Pre-IPO Tearsheet and TDCX Inc. Pre-IPO - Past Growth Looks Good, the Rest Is Iffy, Including the Founders S$325m Payout.In this note we will talk about valuations

TDCX Inc. Pre-IPO - Largest Client Is Growing Faster and Trading Cheaper

China

JD.com Inc is an online direct sales company in China.  The Company offers a wide selection of products through its website and mobile applications.  JD.com sells appliances, computers, digital products, communication products, garments, books, and household items to consumers and vendors.

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JD.com (ADR) (JD US)

Coupang: Down 61% From the Peak, Further 60% Downside Is a Possibility

At 0.80x, Coupang’s EV/ (Gross Merchandise Value + Retail Revenue) remains 0.58x, 0.66x and 0.64x above Alibaba’s, JD.com’s and Pinduoduo’s EV/...

Oshadhi Kumarasiri

Gome Retail: Time to Shop

At 1.96x price to book, Gome does not look especially cheap considering it’s current liquidity levels. However, we believe the worst has passed for...

Oshadhi Kumarasiri

MicroPort MedBot Pre-IPO - RoboDoc - PHIP Updates and a Look at Its Largest Competitor

MicroPort MedBot, a surgical robot company, aims to raise up to US$1bn in its Hong Kong IPO. It is a subsidiary of Microport Scientific (853 HK)...

Sumeet Singh

Hepsiburada: The Very First and Only US-Listed Turkish Tech Company

Hepsiburada, the very first and only Turkish (tech) company listed in the US, is worth noting and following since Turkish tech is currently at an...

Alec Tseung

TDCX Inc. Pre-IPO - Largest Client Is Growing Faster and Trading Cheaper

TDCX Inc, a Singapore-headquartered digital customer experience (CX) provider, is looking to raise up to US$338m in its upcoming US IPO.

Sumeet Singh

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